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TREATMENT OF COMMONWEALTH PAYMENTS IN THE 2012 UPDATE

Requirements of the terms of reference

1 In 2008, the Australian and State governments established a new intergovernmental agreement (amended in 2011) which:

streamlined specific purpose payments (SPPs) and introduced national partnership payments (NPPs), which may be project payments, facilitation payments or reward payments. The classification of Commonwealth payments is decided by the Australian Government — the commission has no role in that process

indicated governments expect SPPs, National Health Reform (NHR) funding1, project NPPs and general revenue assistance other than the GST to affect State financial capacities and the relativities but that facilitation and reward NPPs would not

indicated changes to the roles and responsibilities for funding and delivering aged care and disability services set out in the NHR Agreement should not influence the per capita relativities, including any adjustments to a State’s entitlement to National Disability SPP.

However, the agreement gives the commission discretion to decide the appropriate treatment of NPPs and general revenue assistance, other than the GST, subject to consultation with the Australian and State Governments, and provides for the Treasurer to issue terms of reference directing the commission on the treatment of NPPs.

2 The commission concluded that, after following any directions in the terms of reference, it should decide the treatment of each payment on the basis of equalisation principles. Payments that are available for usual State functions and for which needs have been assessed, including a deliberative equal per capita assessment, will impact on the relativities. The size of payments should not influence the treatment of a payment.

3 The terms of reference for the 2012 Update gave the commission the following directions:

the commission’s assessment should take into account the Intergovernmental Agreement on Federal Financial Relations (as amended)

the following payments should have no direct influence on the relativities:1 From 1 July 2012 the National Healthcare SPP will be replaced by NHR funding which will be subject to

the terms and conditions agreed in the NHR Agreement.

1

national partnership reward payments

payments to deliver the Northern Territory Emergency Response as set out in Schedule M and D of Closing the Gap in the Northern Territory National Partnership Agreement

advance payments made under the Natural Disaster Relief and Recovery Arrangements (NDRRA), where an advance payment in a year is any positive difference between NDRRA payments from the Australian Government to a State and payments of eligible claims under the NDRRA to that State

continue to treat payments as not impacting on the relativities as directed by previous terms of reference. Where those payments are replaced, the commission has discretion on the treatment of those payments.

Guidelines for dealing with Commonwealth payments

4 Apart from those payments that the Commonwealth has provided directions on their treatment, the commission has used the guidelines set out below to assist in its decision-making process.

5 Payments in State (general government) budgets. The guidelines cover transactions treated as payments to the States and Commonwealth own-purpose expenses which relate to State-type services. They cover support for recurrent expenses and capital grants. If the Australian Government were to provide loans these would be treated in the same way as other borrowing by State Governments. However, any debt forgiveness would be treated as a capital grant to the relevant State.

6 The commission has used the following guidelines in dealing with all on-going Commonwealth payments to the States. The treatment of payments that have terminated or are terminating as a result of the IGA will be continued until those payments are no longer in the assessment years.

Any treatment prescribed by the terms of reference will be applied, including to any on-going payments quarantined in previous terms of reference

National SPPs will have an impact on the relativities — these are available for State budget support and needs are assessed. The exception is non-government schools payments where their disposition does not impact on State fiscal capacities

All other payments should have a direct impact on the relativities unless:

they are a purchase by the Australian Government

they are for programs implemented at the behest of the Australian Government and which lead to above average or unique State outcomes (such as a trial program which is not part of services delivered under average State policy)

2

they are a payment to a third party that has no impact on State fiscal capacities (States act as an intermediary and the payment does not reduce or increase State needs)

needs have not been able to be assessed for the State expenditures to which the payment relates.2

7 Payments not made to States (general government). The Australian Government also makes payments, including Commonwealth own-purpose expenses, to State trading enterprises (PTEs), non-government agencies and individuals. Those payments are not included in our measures of State revenue or expenses. However, they may indirectly affect State fiscal capacities by reducing the call for State provided services. For example, Commonwealth payments direct:

to transport PTEs could reduce the subsidies States are required to provide

to Indigenous community housing authorities may reduce the amount of Indigenous housing States need to provide or

to individuals, such as the Medicare rebates, can reduce the quantity of community health services States provide.

8 A State with above average Commonwealth payments to these third parties may need to spend less than the average per capita amount. Similarly, a State with less than average may be required to spend more. Any such indirect effects on State fiscal capacities need to be recognised if they are material and can be reliably measured.

9 The commission recognises the indirect effects of Commonwealth own-purpose expenses on State budgets if:

there is a conceptual case that they reduce the level of services the States must provide (which will require evidence that the Commonwealth funded services are close substitutes for State services), and

there are reliable data to measure that impact and it is expected to be material.

10 This would be done by acknowledging that these payments result in a disability — States receiving more or less than a per capita share should have this recognised in determining their assessed expenses. The approach means Commonwealth payments to the State or to non-government organisations for similar purposes would have a similar effect and so ensure States have no incentive to structure their Commonwealth payments in a particular way. Such assessments have been made in the Community and other health services category and for remote Indigenous housing in the Welfare and housing services category.

2 If an EPC assessment has been made because the commission considers there are no differential disabilities or the assessment would be immaterial, then needs have been assessed.

3

Backcasting

11 If there are major changes in federal financial relations between the historical years used in our assessments and the year the recommended relativities would be applied, we ‘backcast’ the new arrangements, unless the terms of reference direct us not to do so or it cannot be done reliably. Under this backcasting process, State revenues and expenses in the historical years are adjusted to what they would have been if the new federal financial arrangements had been in place at that time. It makes the relativities more contemporary by ensuring they better reflect the range, level and interstate allocation of Commonwealth payments that will exist in the application year.

12 The IGA made major changes in the distribution of National SPPs and substantially increased the level of funding available. From 2010-11, the distribution of each National SPP3 will be:

2010-11 — 80% by the distribution set out in Table D3: National SPP share for 2010-11, page D-14 of the Intergovenmental Agreement on Federal Financial Relations plus 20% distributed based on population share



2013-14 — with the exception of NHR funding and the National Disability SPP, 20% by the distribution set out in Table D5: National SPP share for 2012-13, page D-14 of the Intergovenmental Agreement on Federal Financial Relations plus 80% distributed based on population share. NHR funding and National Disability SPP will be distributed 100% based on population share

2014-15 onwards — based on population share.

13 The commission has backcast the distribution of National SPPs from the 2010 Review. Since the application year for the 2012 update is 2012-13, we have:

backcast the 2012-13 distribution of National SPPs into the assessment years because this is a major change in federal financial arrangements affecting the year the relativities will be applied

not backcast the funding increase because it is not practical to estimate the assessment period equivalent amounts or in which expense categories States would have increased their spending and

3 For the government schools component of the National schools SPP, the relevant population will be each State’s share of full time student enrolments in government schools.

4

retained the treatment in past assessment years of payments changing their classification or terminating.

Treatment of each payment

14 Table 1 provides a summary of the treatment accorded each payment. Those payments where treatments are prescribed by the terms of reference are marked with an asterisk.

15 Tables 2 to 4 show payments made in 2008-09 to 2010-11 and the commission’s decision on the treatment of each payment.

16 Table 5 shows payments commencing in 2011-12 and 2012-13. Although these payments will affect the year in which the 2012 update relativities will be applied, we did not backcast any of them. This is because they do not represent a major change in federal financial relations or we have insufficient information on them to make a decision on how they should be backcast. The payments will be reflected in the relativities when they appear in the data for the assessment period in future updates.

5

Table 1 Summary of treatment of Commonwealth payments

Payment Year of payments Treatment08-09 09-

1010-11

GENERAL RVENUE ASSISTANCE

GST payments x x x Pool for GST relativities

Budget balancing assistance* x No impact on relativities

Residual adjustment* x No impact on relativities

Royalties x x x Mining revenue

Reduced royalties x x x Mining revenue

GST policy decisions x x No impact on relativities

Snowy Hydro Ltd - company tax compensation x x x Other revenue

ACT municipal services x x x No impact on relativities

State cellar door subsidy savings* x No impact on relativities

HEALTH

Specific purpose payments

National healthcare SPP x x Impact on relativities

National healthcare and Healthcare grants x Impact on relativities

Essential vaccines (service delivery) x Impact on relativities

National public health (except for Victorian cytology service)

x Impact on relativities

Youth health services x Impact on relativities

National partnership payments

National Health Reform (former National Health and Hospitals Network package)

Flexible funding for emergency departments, elective surgery and subacute care

x x Impact on relativities

Four hour national access target for emergency departments – capital


Four hour national access target for emergency departments – facilitation funding


Improving access to elective surgery – capital funding x x Impact on relativities

Improving access to elective surgery –facilitation funding


New subacute beds guarantee funding x Impact on relativities

Closing the Gap NT - Indigenous health and related x x No impact on

6

Treatment of Commonwealth payments

services* relativities

Health infrastructure: Impact on relativities

Health and hospital fund Impact on relativities

Hospital infrastructure and other national significance

x Impact on relativities;

National cancer system x Impact on relativities

Regional priority round x Impact on relativities

Table 1 Summary of treatment of Commonwealth payments (continued)

Payment Year of payments Treatment08-09 09-

1010-11

other health and hospital fund payments, including to SA Health and Medical Research Institute (SAHMRI)

x x x Impact on relativities; No impact - SAHMRI

Other Health infrastructure payments x x x Impact on relativities

Health Services

Early intervention pilot program x No impact on relativities

Extension of the COAG Long Stay Older Patients Initiative


Healthy kids health checks x x x Impact on relativities

National antimicrobial utilisation surveillance program x No impact on relativities

National bowel cancer screening x x x Impact on relativities

National Perinatal Depression initiative x x x Impact on relativities

NT medical school – funding contribution x Impact on relativities

Pneumococcal disease surveillance x x Impact on relativities

OzFoodNet x x x Impact on relativities

Satellite renal dialysis facilities in remote NT communities

x x x Impact on relativities

Sexual assault counselling in remote NT areas x x x Impact on relativities

Torres Strait health protection strategy x x x Impact on relativities

Reducing acute rhematic heart fever - indigenous children


Royal Darwin Hospital – equipped, prepared and ready x x x No impact on relativities

Vaccine-preventable diseases surveillance x x Impact on relativities

Victorian cytology service x x x No impact on relativities

Health care grants for Torres Strait* x No impact on relativities

Supporting nurses back into workforce - cash bonus x x No impact on

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Attachment B

Appendix B


incentive relativitiesSupporting nurses back into workforce - training payment


Helping public patients in hospitals waiting for nursing home places


Longer stay older patients in public hospitals x Impact on relativities

PET scanner for Westmead Hospital, Sydney x Impact on relativities

Preventive health

Enabling infrastructure x Impact on relativities

Healthy communities x x No impact on relativities

Social marketing x Impact on relativities

Health and hospital workforce reform x Impact on relativities

Highly specialised drugs x No impact on relativities

East Kimberley development package - health related project


Elective surgery waiting list reduction program x x x Reward – No impact Other - impact


Payment Year of payments Treatment08-09 09-10 10-11

Health (continued)Essential vaccines (vaccine purchase) x x x No impact on relativities

Repatriation general hospitals x x No impact on relativities

Organ transplantation services - Recurrent x x No impact on relativities

Organ transplantation services - Capital x x No impact on relativities

Indigenous early childhood development - Antenatal and reproductive health


Indigenous mobile dental program x Impact on relativities

EDUCATIONSpecific purpose payments

National schools SPP- Government x x x Impact on relativities

National schools SPP - Non-government x x x No impact on relativities

- School grants (was called Government schools) x Impact on relativities

- School grants (was called Non-government schools) x No impact on relativities

- Targeted programs - Government schools x Impact on relativities

- Targeted programs - Non–government schools x No impact on relativities

- Indigenous education strategic initiatives program - government


8

Attachment B

Appendix B


National partnership paymentsClosing the Gap - NT - Indigenous education services (teacher housing, quality teaching, accelerated literacy, additional teachers supporting remote schools)*

x x No impact on relativities

Digital education revolution x x x Impact - Government; No impact - Non-govt

Early childhood education- universal access x x x Impact on relativities

East Kimberley development package - education related payments


Education Investment Fund x x No impact on relativities

Fort Street High School - noise insulation x x No impact on relativities

Indigenous early childhood development - children and family centres


Nation Building and Jobs Plan - Building the education revolution

x x x Impact - Government; No impact - Non-govt

National quality agenda - early childhood education and care x Impact on relativities

National solar schools program x x Impact - Government; No impact - Non-govt

Pre-apprenticeship treatment x Impact on relativities

School pathways program x x No impact on relativities



Education (continued)Secure Schools Program x x x No impact on relativities

Smarter schools - Improving teacher quality x x x Impact on relativities

Smarter schools - Literacy and numeracy x x x Impact – Government except reward; No impact - Non-govt, Government reward

Smarter schools - Low socio-economic status school communities


Trade training centres in schools x x x Impact - Government; No impact - Non-government

Children's services x No impact on relativities

NATIONAL SKILLS AND WORKFORCE DEVELOPMENTSpecific purpose paymentsNational skills and workforce development x x x Impact on relativitiesSkilling Australia's workforce x Impact on relativitiesNational partnership paymentsBetter TAFE facilities x x Impact on relativitiesNational Disaster Queensland–Community Work x No impact on relativities

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Attachment B

Appendix B


PlacementsProductivity places program x x x Impact on relativitiesTAFE fee waivers for childhood qualifications x x x No impact on relativitiesYouth attainment and transitions - Maximising engagement, attainment and successful transitions


COMMUNITY SERVICESSpecific purpose paymentsNational disability services x x x Impact on relativitiesDisability services x Impact on relativitiesYoung people with disabilities x Impact on relativitiesNational partnership paymentsTransitioning for aged care and disabilities-Basic community care maintenance and support services


Aged care assessment x x x Impact on relativitiesCertain concessions for pensioner and senior card holders x x x Impact on relativitiesNational reciprocal transport concessions x x x Impact on relativitiesClosing the Gap - NT - Community services (Remote policing and substance abuse, Community safety - family support, field operations, food security, property and tenancy management)*

x x No Impact on relativities

Home and community care - services for veterans x x x No impact on relativitiesHome and community care x x Impact on relativitiesVictorian bushfire reconstruction and recovery plan x x No impact on relativities



Community services (continued)Unaccompanied humanitarian minors x No impact on

relativitiesNational action plan to build on social cohesion, harmony and security

x No impact on relativities

Family violence partnerships x Impact on relativities

AFFORDABLE HOUSINGSpecific purpose paymentsNational affordable housing x x x Impact on relativities- Commonwealth–State housing agreement x Impact on relativities- Community housing x Impact on relativities- Crisis accommodation assistance x Impact on relativities- Housing assistance for Indigenous people x Impact on relativities- Supported accommodation assistance x Impact on relativitiesNational partnership paymentsEast Kimberley development package – social and transitional housing projects


First home owners boost x x x No impact on relativities

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Attachment B

Appendix B


Homelessness x x x Impact on relativitiesNation building and jobs plan - social housing (includes first and second stage construction and repairs and maintenance)


Remote Indigenous housing x x x No impact on relativities

Social housing x x Impact on relativitiesSocial housing subsidy program x x Impact on relativities

INFRASTRUCTURENational partnership paymentsEast Kimberley development package - States x x x Impact on relativities

East Kimberley development package - Local government x x x No impact on relativities

Interstate road transport x x x Motor taxes revenueLocal Government and Regional Development Infrastructure employment projects (formerly known as Jobs Fund)

x x Impact – States; No impact –Local

Local community sporting infrastructure x x x No impact on relativities

Nation building program (former Auslink) x x x Impact – maintenance, 50 % of construction of National network roads (NNRs), off-NNRs, and Rail; No impact – 50% of NNR, Local roads and Roads to recovery*

Nation building program - local government x No impact on relativities

Nation building plan for the future x x x Impact - Rail & 50% of NNR; No impact - 50% of NNR

11

Attachment B

Appendix B



Infrastructure (continued)Building Australia Fund - rail x x Impact on relativitiesBuilding Australia Fund - road x x 50% Impact; 50% No

impactNorth Penrith Thornton Park Car Park x No impact on relativitiesRegional and Local Community Infrastructure Program x x x No impact on relativitiesRegional Infrastructure Fund Stream 1 – Committed x Impact on relativitiesSeamless National Economy – National Heavy Vehicles Transport Regulator


Seamless National Economy – National Rail Transport Safety Regulator


Supplementary funding to SA councils for local roads x x x No impact on relativitiesFederation Fund projects x No impact on relativitiesKings Highway upgrade x No impact on relativities

ENVIRONMENTNational partnership paymentsBioremediation and revegetation x x No impact on relativitiesCaring for our Country* x x x No impact on relativitiesEradication of red imported fire ant x No impact on relativitiesEnvironment management of former Rum Jungle mine site x x No impact on relativitiesExotic diseases Preparedness program x x x No impact on relativitiesGreat Artesian Basin initiative x x x Impact on relativitiesNatural disaster recovery and rebuilding relief appeals – Commonwealth contribution


Natural disaster resilience x x No impact on relativitiesBushfire mitigation program x x No impact on relativitiesNatural disaster mitigation package x x No impact on relativitiesPlant disease and eradication x x x Impact on relativitiesRenewable remote power generation x x x Impact on relativitiesWater for the future x Impact on relativities- Water for the future - States x x Impact on relativities- Water for the future - Local governments x x No Impact on

relativitiesLiving Murray (was National Water initiative - Living Murray)

x x No impact on relativities

Transfer of Commonwealth land to Victoria - Point Nepean x No impact on relativities

CONTINGENCIESNational partnership paymentsExceptional circumstances assistance x x x No impact on relativitiesEquine influenza emergency response x No impact on relativitiesHepatitis C settlement fund x x x No impact on relativities

12


Natural disaster recovery and rebuilding (former Natural disaster relief)

x x x No impact on relativities


Payment Year of payments

Treatment

08-09 09-10 10-11

OTHER STATE SERVICESNational partnership paymentsDigital regions initiative - States x x Impact - States; No impacts

- payments to third partiesDigital regions initiative - Local government x No impact on relativitiesImproving policing in very remote areas x x x Impact on relativitiesLegal assistance services x x x No impact on relativitiesLocal Government and Regional Development Reform Fund


Native title x No impact on relativitiesPilot of drought reform measures in Western Australia* x No impact on relativitiesRemote Indigenous public internet access x x Impact on relativitiesSinking fund on State debt* x x x No impact on relativitiesStandard business reporting program x x x No impact on relativitiesTasmanian forest contractors financial support program x No impact on relativitiesWorld Sailing Championships x x No impact on relativitiesFilm and literature classifications x x No impact on relativitiesRestoration of Albert Hall, Canberra x No impact on relativitiesQueensland Premier's Disaster Relief Appeal x No impact on relativitiesSeamless national economy x No impact on relativitiesCrimTrac reference system x No impact on relativitiesNorth East Tasmania micro capital scheme x Impact on relativitiesSydney Cricket Ground - new grandstand x No impact on relativitiesStrengthening Tasmania x No impact on relativitiesNational emergency warning system x No impact on relativities

LOCAL GOVERNMENT – FINANCIAL ASSISTANCE GRANTSLocal government general purpose assistance x x x No impact on relativitiesUntied local road grants x x x No impact on relativities

13

Attachment B

Appendix B




Commonwealth own-purpose expenses – Payments to StatesPayments to States for emergency services x x x Impact on relativitiesHealth and Substance Abuse program grants - Indigenous purposes


Family violence partnerships x x x Impact on relativitiesPayments to States for Australian technical colleges (paid as NPP until 2007-08)

x Impact - Government; No impact - Non-government

Other COPEs to States x x x No impact on relativities

* Treatment prescribed by the terms of reference.Source: Commonwealth of Australia Final Budget Outcome and information collected from other

Commonwealth agencies.

14

Attachment B

Appendix B

15

Treatment of Com

monw

ealth payments

Table 2 General revenue assistancePayment Program description Interstate distribution Conditions Year paid in

U2012Treatment in U2012

Reason for ‘No impact’

General revenue assistance (GRA)

GST payments 2008-09 to 2010-11

GST revenue

Budget balancing assistance and Residual adjustment

Assistance to the States during the transitional period (expired 30 June 2009) if a State’s share of GST payments in a financial year is less than its minimum guaranteed amount for that year.

2008-09 to 2009-10

No impact on relativities

Required by terms of reference.

ACT municipal services

Payments to compensate the ACT for the effects of national capital influences on the costs of proving municipal type services.

Payment to ACT only. 2008-09 to 2010-11


For a unique State policy or above average effort.

Royalties Includes the transfer of two-thirds of Commonwealth Government’s petroleum royalties from North Shelf Project to Western Australia; and payment to the Northern Territory in lieu of uranium royalties.

2008-09 to 2010-11

Mining revenue and assessed APC

Reduced royalties (was called Compensation - crude oil excise condensate)

Payment to Western Australia for the loss of shared Offshore Petroleum Royalty revenue resulting from imposing the Crude Oil Excise on condensate. This arises because Crude Oil Excise payments are a deductible expense for calculating the Offshore Petroleum Royalty.

An initial payment of $80 million was paid to Western Australia in 2007-08, with payments in subsequent years adjusted to equal the impact of removing the condensate.

2008-09 to 2010-11

Mining revenue and assessed APC

16

Treatment of Com

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ealth payments

Table 2 General revenue assistance (continued)Payment Program description Interstate distribution Conditions Year paid in



General revenue assistance (GRA) (continued)

GST policy decisions (former GST deferral

To compensate the States for the deferral of GST collections that may occur when organisations move to annual lodgement. This ensures that the full financial impact of the Commonwealth’s decision is borne by the Commonwealth and not the States.

2008-09 to 2009-10


Payment relates only to timing of GST payments.

Snowy Hydro Ltd — company tax compensation

To compensate Victoria and New South Wales for company tax payments by Snowy Hydro Ltd. Snowy Hydro is jointly owned by the Commonwealth, New South Wales and Victorian Governments.

2008-09 to 2010-11

Other revenue and assessed EPC

State cellar door subsidy savings

States previously agreed to return savings arising to them from the Commonwealths introduction of the wine equalisation tax provider rebate. Rather than the States returning these savings annually, the Commonwealth recovered the present value to extinguish all current and future State commitments.

2009-10 No impact on relativities


Source: Commonwealth of Australia Final Budget Outcomes.

Treatment of Com

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ealth payments17

Table 3 Other paymentsPayment Program description Interstate distribution Conditions Year paid in



Health services specific purpose payment (SPPs)

National Healthcare SPP

Funding to support State healthcare services. The 2009-10 base funding for this SPP will be provided on an on-going basis and indexed from 1 July 2010 by a growth factor.

The National healthcare SPP includes Healthcare grants, National public health, Youth health services and Essential vaccines (service delivery).

2009-10 to 2010-11

Impact on relativities

Healthcare grants

Funding under the Australian Health Care Agreements which assists the provision of public hospital services free of charge to eligible persons.

Distributed on an annual basis in accordance with the Agreements, subject to a determination by Minister for Health and Aged Care.

States are required to maintain a level of public patient services.

2008-09 Impact on relativities

National public health — excluding Victorian Cytology service

To provide subsidies for health promotion and disease prevention. It includes: Public Health Outcome Funding Agreements, Council of Australian Governments Diversion Initiative, the Non-government Treatment Grants (NSW only), Hepatitis C Education and Prevention Budget Initiative and COAG Illicit Drug Diversion Package.

Based on a resource allocation formula, COAG Diversion and Illicit Drugs, Hepatitis C are based on weighted predicted population estimates each year.

. 2008-09 Impact on relativities

Youth health services

To fund community based organisations to enable them to develop and implement innovative primary health care services for homeless and at-risk youth.

Based on State population distributions with ACT and NT receiving a minimum percentage of the overall funding.

States match funding on a dollar for dollar basis.


18

Treatment of Com

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ealth payments

Table 3 Other paymentsPayment Program description Interstate distribution Conditions Year paid in



Health services SPPs (continued)

Essential vaccines (service delivery)

Funding for the delivery of vaccines under the national immunisation program. Only the service delivery component of this program is included in the National Healthcare SPP.


National Partnership Payments for Health services

Health and hospital workforce reform

To improve the efficiency of public hospital services, enhance health workforce capability and supply, increase the volume and quality of sub-acute care services, and improve the operations of emergency departments.

States contribute to the Workforce enablers components.


National health and hospital network package

Funding for hospitals and mental health. Consists of payments for 1) Hospital for Four hour national access target for emergency departments, Improving access to elective surgery, New sub-acute hospital beds, Flexible funding for emergency departments, elective surgery and sub-acute care, 2) Mental health for Expanding the early psychosis prevention and intervention centre model, 3) Aged care for supporting long stay older patients and 4) Expanding access to multi-purpose services.

Western Australia has been treated as a signatory State.


National Health Reform

Improving public hospital services –

Flexible funding for emergency departments, elective surgery and subacute care; Four hour national access target for emergency departments-capital; Improving access to elective surgery-capital; New subacute beds guarantee funding


Closing the Gap – NT

Indigenous health and related services 2009-10 to 2010-11

No Impact on relativities


Treatment of Com

monw

ealth payments

19

Table 3 Other payments (continued)Payment Program description Interstate distribution Conditions Year paid in



National Partnership Payments for healthcare (continued)

Health infrastructure – Health and hospital fund

To support infrastructure for three reform priorities: expand and modernise key public hospitals; deliver national consistent cancer services; and invest in translational medical research.

2008-09 to 2010-11

No impact– Payment to SA Health and Medical Research Institute; Impact – Other payments

No impact - Payment to a third party – States act as an intermediary and the payment does not reduce or increase State needs.

Health infrastructure – Other Health infrastructure

Funding for health infrastructure projects. Includes: Tasmanian health package; Tasmanian health package — PET scanner for the Royal Hobart Hospital; PET scanner for Calvary Mater Hospital, Newcastle; PET scanner for Westmead Hospital, Sydney; Olivia Newton-John Cancer Centre, Melbourne; Children’s cancer centre, Adelaide; Lismore integrated cancer centre; Cairns Base Hospital chemotherapy cancer initiative; Cairns integrated cancer centre; Health infrastructure projects in Tasmania; and Health infrastructure grants for Victoria, New South Wales and Queensland; Contribution towards the new Women’s and Children’s Hospital in Hobart; Funding for Grafton Hospital;.

PET scanner for Westmead Hospital, Sydney (now in Health services from 2009-10)

2008-09 to 2010-11


Treatment of Com

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ealth payments20





Health services

Consist of payments for: Health kids health checks; Reducing rheumatic heart fever for Indigenous children; National bowel cancer screening program; National peri-natal depression initiative; OzFoodNet; Pneumococcal disease surveillance; Vaccine preventable diseases surveillance program; National health program — human quarantine services; Torres Strait Islander health protection strategy — mosquito control; Sexual assault counselling in remote NT areas; Satellite renal dialysis facilities in remote NT communities; Supporting nurses back into the workforce; Helping public patients in public hospitals waiting for nursing homes.

PET scanner for Westmead Hospital, Sydney (was in Health infrastructure until 2008-09)

2008-09 to 2010-11

Cash bonus – No impact on relativities

Others – Impact on relativities

Cash bonus to nurses – States act as an intermediary and the payment does not reduce or increase State needs.

The program also consists of payments quarantined by the terms of reference: Victorian cytology services; Royal Darwin Hospital — equipped, prepared and ready; and Healthcare grants for the Torres Strait.

2008-09 to 2009-10



Preventive health – Enabling infrastructure, Social marketing

Enabling infrastructure –The Commonwealth has established the Australian National Preventive Health Agency, and has created the Australian Health Survey. The Survey collects representative data on the prevalence of chronic diseases and lifestyle related risk factors amongst Indigenous and non-Indigenous Australians, including nutrition, physical activity and biomedical measures.

Social marketing – funding to develop social marketing campaigns that extend and complement the Australian Better Health Initiative and reinforce

2009-10 to 2010-11


Treatment of Com

monw

ealth payments21

local activities on preventive health.





Preventive health – healthy communities

The Commonwealth provides funding to support the national roll-out of successful and effective community-based physical activity and healthy eating programs.


Payment to a third party – States act as an intermediary and the payment does not reduce or increase State needs.

Other - East Kimberley development package – health related projects

Funding for health infrastructure projects. Priorities under the package include primary and preventive health care, drug and alcohol services, short term patient accommodation, housing for health service providers, improvements to remote clinics, aged care facilities and environmental health measures.

Payment to Western Australia.

2009-10 to 2010-11

Payments for environment health measures and Aged care - No impact on relativities


Purchase of services by Commonwealth or local government functions.

Other - Elective surgery waiting list reduction program and incentives

To reduce waiting lists for surgery in public hospitals. Includes funding for the construction of additional operating theatres and the purchase of new surgical equipment to improve long-term elective surgery performance.

Funding is also available as performance rewards for those States which reduce elective surgery waiting times and increase surgery throughput.

2008-09 to 2010-11

Impact on relativities; No impact on relativities – reward payments

Required by terms of reference – reward payments

Treatment of Com

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ealth payments22

Table 3 Other payments (continued)Payment Program description Interstate distribution Year paid in



Year paid in U2012


Essential vaccines

Funding for essential vaccines for immunisation under the National Vaccine Schedule. Paid as a National Partnership payment until the Commonwealth enters into centralised purchasing arrangements for individual vaccines.

2008-09 to 2010-11


Purchase by Commonwealth Government.

Indigenous early childhood development – antenatal and reproductive health

Payment of $107 million over five years to improve access to antenatal care by young Indigenous mothers, and support young Indigenous women to make informed decisions about their sexual and reproductive health.

2009-10 to 2010-11


Organ transplantation services

To reimburse New South Wales and South Australia for 40% of the cost of certain transplantation-related services conducted by the Australian Red Cross Blood Service.

The Commonwealth will meet its future payment commitments to States by providing a single payment in 2008-09 and ceasing future payments.

Payment to New South Wales and South Australia only.

2008-09 to 2009-10

Recurrent and capital – No impact on relativities


Indigenous mobile dental program

To provide mobile dental facilities to the indigenous Australians


Treatment of Com

monw

ealth payments23





Repatriation general hospitals

Funding for a non-treatment nature such as accrued leave credits, income maintenance, superannuation differential etc in accordance with agreements reached on integration of repatriation general hospitals.

The Commonwealth will meet its future payment commitments to States by providing a single payment in 2008-09 and ceasing future payments.

Payments to New South Wales, Victoria, South Australia and Tasmania only.

2008-09 to 2009-10


Purchase of services by Commonwealth Government.

Closing the Gap – NT Indigenous health and related services

Payment of $18.7 million over three years to the Northern Territory to continue strengthening the measures initiated under the Northern Territory Emergency Response (NTER) for health.


Continuation of NTER – quarantined by previous terms of reference

Highly specialised drugs (became Commonwealth own-purpose expense (COPE) from 1 July 2009)

To provide access to certain drugs under the Pharmaceutical Benefits Scheme supplied through hospitals to outpatients, because of special need in clinical administration or monitoring. A small number of hospitals have commenced this transition and by 2012 all hospitals will be claiming directly from Medicare Australia.

The Commonwealth Government funds all use of highly specialised drugs by hospital outpatients.



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Education services SPP

National Schools

Funding to support schools. Includes Government and Non-government school grants, Indigenous education strategic initiatives — Government, Targeted programs — Government and Non-government

2008-09 to 2010-11

Government – Impact on relativitiesNon-government – No impact on relativities

Non-government Payment to a third party – States act as an intermediary and the payment does not reduce or increase State needs.

School Grants Government (was called Government schools)

Recurrent grants — for staff salaries, teacher profession development, curriculum development and general operation provisions.Capital grants — for the provision, maintenance and upgrading of school facilities.

Recurrent grants — per student basis and adjusted for movements in average government school operating costs.Capital grants — based on total school enrolments.

Recurrent — No matching conditions; Capital —50% for facilities for existing students.


Indigenous education strategic initiatives — government

Funding to State education providers in the pre-school, school and vocational education and training sectors, as well as project based funding aimed at improving Indigenous education outcomes.


Targeted programs — government

Funding to government schools for the improvement of literacy, numeracy and educational outcomes for educationally disadvantaged students, to promote the study of other languages, and to assist in the transition from school to work.


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Education services SPP (continued)

School grants Non-government (was called non-government schools)

Funding to non-government schools through per capita general recurrent grants and capital grants as well as hostels for rural students.

Recurrent grants — number of eligible students enrolled in non-government schools. Capital grants — according to a schedule approved by the Minister each year.

Capital – 50% of funds allocated in a triennium for existing school students.



Targeted programs — Non-government

Funding to non-government schools for the improvement of literacy, numeracy and educational outcomes for educationally disadvantaged students, to promote the study of other languages, and to assist in the transition from school to work.

No input conditions. Funds may be used at the discretion of the education authority.



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National Partnership Payments for education

Closing the Gap in the NT - Quality teaching, accelerated literacy; Supporting remote schools – additional teachers; Teacher housing education

The Government's Indigenous education initiatives strategically target issues impacting adversely on the educational outcomes of Indigenous students and focus on the attainment of the 'Closing the Gap' targets.

Teacher Housing — Funding to support the construction of up to 22 additional teacher houses in NTER communities.

Quality teaching, accelerated literacy — Funding of $44.3 million to improve teacher quality and foster better outcomes for Indigenous students in remote NTER communities. Supporting remote schools — Funding to support remote schools

2009-10 to 2010-11



Digital Education Revolution (includes National secondary schools computer fund)

A National Secondary School Computer Fund has been established to provide grants of up to $1 million to eligible secondary schools to assist them in providing new or upgraded information and communication technology to students in Years 9 to 12.

2008-09 to 2010-11

Government – Impact on relativities

Non-government – No impact on relativities


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National Partnership Payments for education (continued)

Early childhood education – universal access to early education

Funding with the objective that children have access to affordable, quality early childhood education in the year before formal schooling, with a focus on Indigenous communities. This program is delivered by four-year university qualified early childhood teachers for 15 hours a week, 40 weeks a year.

2008-09 to 2010-11


East Kimberley development package – education related payments

Payment for education and training infrastructure projects. Investment priorities under the package include early childhood development, primary and secondary schooling, post secondary education and training, and community meeting facilities in remote locations.

Concerted action in these areas will improve socio-economic status, employment and workforce participation of Indigenous people.

2009-10 to 2010-11

No impact – teacher training facilities

Other payments - Impact on relativities


Education investment fund

Payment of $38 million to New South Wales over two years.

Funding under this program is available to higher education institutions, vocational education and training providers and research institutions. Staff at DEEWR advised that VET providers must be a registered training organisation (RTO) to be eligible for the funding. The administrative arrangements in New South Wales are such that the State is a RTO and is eligible to receive funding. In the other States, payments go directly to RTOs.

(The Fund is a major component of the Government's Education Revolution. The role is to build a modern, productive, internationally competitive Australian economy by supporting world-leading, strategically-focused infrastructure investments that will

Payments to States other than New South Wales are made directly to service providers. The administrative arrangements in New South

2009-10 to 2010-11



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transform Australian tertiary education).

Wales should not affect its relativities.)





Fort Street High school – noise insulation

Payment over three years to New South Wales to provide aircraft noise insulation works at the Fort Street High School in the State. The work is managed by New South Wales and will be done in conjunction with on-campus works associated with the Building the Education Revolution Program.

2009-10 to 2010-11


Purchase of services by the Commonwealth

Indigenous early childhood development — education – child and family centres

Funding to reduce the gap in development between Indigenous and non-Indigenous children by improving access to early childhood education.

2008-09 to 2010-11


Nation Building and Jobs Plan – Building the education revolution - Primary schools for the 21st century

To improve capital infrastructure for the benefit of schools and their local communities in Australia. This measure is part of the Nation Building and Jobs Plan announced by the Government in February 2009. It includes Primary Schools for the 21st Century; Science and Language Centres for 21st Century Secondary Schools; and National School Pride program.

Primary Schools for the 21st Century enrolment numbers; Science and Language Centres for 21st Century Secondary Schools secondary schools submit a priority list of projects to the Commonwealth for approval; National School Pride program — enrolment numbers.

2008-09 to 2010-11




National quality agenda for

To improve educational and development outcomes for children, improve public knowledge

2010-11 Impact on

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early childhood education and care

of and access to, information about the quality of early childhood education and care services.

relativities





National Solar Schools Program

Payment to help primary and secondary schools around the country take practical action to save energy and water while cutting their utility bills.

2009-10 to 2010-11




Pre-apprenticeship training

To help increase the number of pre-apprenticeship training opportunities.


School pathways program

Payment over five years to South Australia and Western Australia with a focus on providing a career path for young people wanting to enter the defence industry.

The program is designed to increase the pool of young people ready to move from school into further education and apprenticeships and part-time work/study combinations in the defence industry.

Focus will be on advanced manufacturing, maritime and technology skills.

2009-10 to 2010-11


Purchase of services by the Commonwealth

Secure Schools program

To assist at-risk religious, ethnic and secular schools meet their particular security needs.

2008-09 to 2010-11


Payment relates to State expenses

Treatment of Com

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where needs could not be assessed.





Smarter schools - Improving teacher quality

To attract, train, place, develop and retain quality teachers and leaders in schools. These reforms provide a platform for raising student performance and support other school reforms targeting low socio- economic status school communities and literacy and numeracy outcomes.

2008-09 to 2010-11

Government– Impact on relativities

Smarter schools - Literacy and numeracy

Funding to improve literacy and numeracy, with a priority focus on primary-aged students at risk of falling behind, including Indigenous students. The reforms contribute to literacy and numeracy outcomes identified in the National Education Agreement and the COAG target to halve the gap for Indigenous students in reading, writing and numeracy within a decade.

2008-09 to 2010-11


Government reward payments and Non-government – No impact on relativities

Non-government Payment to a third party – States act as an intermediary and the payment does not reduce or increase State needs; Government reward payments as per Terms of Reference.

Smarter schools - Low socio-economic status school

Funding to improve education outcomes in low socio-economic status (SES) communities. The National Partnership contributes to COAG's social inclusion and Indigenous disadvantage agendas

2008-09 to 2010-11

Government– Impact on relativities

Treatment of Com

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communities through the identification of reforms and models of service delivery that achieve improved educational outcomes for low SES school communities.





Trade training centres in Schools

For the provision of facilities to enhance vocational education opportunities for students in years 9 to 12 in every government and non-government secondary school.

2008-09 to 2010-11




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National skills and workforce development SPPs

National skills and workforce development SPP

To work towards increasing the skill levels of all Australians, including Indigenous Australians.

Includes skilling Australia’s workforce from 2009-10

2008-09 to 2010-11


Skilling Australia’s Workforce

To provide a nationally identifiable and consistent vocational education and training system. Funds are paid to the Australian National Training Authority (ANTA) for allocation to the States.

Population share (mix of historical and current).


National Partnership Payments for national skills and workforce developmentBetter TAFE facilities

Payment to improve infrastructure in TAFE facilities. These payments are part of the overall $500 million being invested under the Teaching and Learning Capital Fund for Vocational Education and Training announced as part of the Nation Building Package.

Paid in 2009-10 only. 2009-10 Impact on relativities

National Disaster QLD – Community Work Placements

To provide jobs for local displaced residents for up to six months to assist with the reconstruction of public and community infrastructure. Projects are developed in flood and cyclone affected areas throughout Qld with a focus on areas of greatest need.


Payment to a third party – States and the payment does not reduce or increase State needs.

Productivity places program

To reduce skills shortages and increase the productivity of industry and enterprises. It is part of the Skilling Australia for the Future initiative.

The Commonwealth provides data to Skills Australia to assist in identifying industries, occupations and regions with skill shortages.

50/40/10 cost sharing across the Commonwealth, States and private sources.

2008-09 to 2010-11


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National Partnership Payments for national skills and workforce developmentTAFE fee waivers for childcare qualifications

To remove fees for the diploma and advanced diploma of children's services courses delivered at TAFE institutions, or other government VET providers. This agreement will assist in meeting the objectives of agreement on Early Childhood Education, agreed by COAG on 29 November 2008.

The Agreement applies to student activity of the 2009 calendar year only. A longer term arrangement will be negotiated by the parties to this agreement in 2010.

2008-09 to 2010-11



Youth attainment and transitions – maximising engagement, attainment and successful transitions

Funding over five years to improve young people's engagement with learning, levels of Year 12 or equivalent attainment, and transition to further education, training, or employment.

It also provides $100 million in reward funding to the States for progress towards the COAG target of 90% Year 12 or equivalent attainment for 20 to 24 year olds by 2015.

The NPP includes two payments to the States:

to address the reform areas of multiple learning pathways, career development, and mentoring — maximising engagement, attainment and successful transitions; and

to improve participation rates in 2010 and Year 12 or equivalent attainment rates in 2012 — reward funding. States that receive the reward funding will use it for education and

2009-10 to 2010-11

Impact on relativities – reward payments will be decided when it is paid

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training purposes.




Community Services SPPsNational disability SPP

To support State community services. At its meeting of 29 November 2008, COAG agreed to a one-off payment of $70 million to the States in 2008-09, and to roll the Disabilities Assistance Package into the base National Disability SPP.

Includes payments for Young people with disabilities and Disability services from 2009-10

2008-09 to 2010-11


Young people with disabilities

To reduce the numbers of younger people with a disability in residential aged care, with priority given to people aged less than 50 years.

The States will contribute up to $122 million over the 5 years on an annual basis.


Disability services

To assist in the provision of accommodation support and other services for people with disabilities.

Based on historical arrangements during the first agreement (1991-92 to 1996-97).

Additional funding based on population shares.


National Partnership Payments for community servicesAged care assessment

To enable Aged Care Assessment Teams to comprehensively assess the care needs of frail older people and to establish their eligibility for appropriate residential aged care, transitional care and community care services.

Needs-adjusted, population-based approach.

2008-09 to 2010-11


Certain concessions for pensioner and seniors card holders

To contribute towards the cost of certain concessions for pensioners. It includes the Extension of Fringe Benefits.

2008-09 to 2010-11


National reciprocal transport concessions

To enable Seniors Card holders to access public transport concessions when they travel outside their home State.

2008-09 to 2010-11


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35




National Partnership Payments for community services (continued)Closing the Gap in the Northern Territory

Payment of $161.3 million over three years from 2009-10 to continue and strengthen the measures initiated under the Northern Territory Emergency Response (NTER) for community services.

Includes payments for Remote policing and substance abuse, Community safety – family support, Field operations and Property and tenancy management

2009-10 to 2010-11



Transitioning responsibilities for aged care and disability

To implement roles associated with Commonwealth taking full funding for basic community care services and specialist disability services for people aged 65 years and over.


Home and Community Care — services for veterans

To support Home and Community Care program provision of community care services to veterans.

2008-09 to 2010-11



Home and community care

For the provision of appropriate community care services to help frail aged people and people with a disability live independently in their homes as long as possible.

Equal per capita across target population.

States match the funding at a required matching ratio.

2008-09 to 2009-10


Victorian bushfire reconstruction and recovery plan

In October 2009, the Commonwealth and Victorian Governments agreed to provide funding for initiatives in Rebuilding Together: A State-wide Plan for Bushfire Reconstruction and Recovery (Rebuilding Together plan). The Rebuilding Together plan represents the framework for community recovery and the restoration of core services and infrastructure following the 2009 Victorian bushfires.

This program covers projects that are not funded under the NDRRA, and the payment is made in addition to $21.2 million is being provided towards the Rebuilding Together

2009-10 to 2010-11



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36

plan




National Partnership Payments for community services (continued)Unaccompanied humanitarian minors

To assist humanitarian minors without parents in Australia and families providing their care through early intervention, counselling and assistance by State welfare agencies.

Number of refugee minors receiving supervision and care in each location.


Payment relates to State expenses where needs could not be assessed.

National action plan to build on social cohesion, harmony, and security

Contribution to partnership projects with State governments aimed at further integrating the Muslim community into broader Australian society.

Funding is distributed according to an assessment of State proposals, and after Minister for Immigration and Citizenship approvals.

Not applicable 2008-09 No impact on relativities


Children’s Services (in education services)

To contribute to the cost of establishing additional new child care places.

Distributed by demand and/or historical costs.

Not applicable 2008-09 No impact on relativities


Family violence partnership

To assist the States to jointly fund projects designed to reduce and prevent the incidence of family violence in Indigenous communities. This was Commonwealth own-purpose expense prior to 2007-08.

On merit basis. 2008-09 Impact on relativities

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37




Affordable housing services SPPNational Affordable Housing SPP

Funding to support State services in the housing sector, including social housing, assistance to people in the private rental market, support and accommodation for people who are homeless or at risk of homelessness, and home purchase assistance.

Includes CSHA, Community housing, Crisis accommodation, Housing Assistance for Indigenous people and Supported accommodation assistance

2008-09 to 2010-11


Commonwealth-State housing agreement (CSHA) — base funding

For the provision of public rental housing for low to moderate income households. It includes housing assistance such as public and community housing, home purchase assistance and private rental assistance.

Base funding is distributed across States on a modified per capita basis.

States contribute 48.95% of their share of base funding.


Community Housing

To develop community housing which provides appropriate and affordable rental accommodation for low to moderate income earners. States use the funding to subsidise non-government organisations in providing low cost accommodation.

Per capita basis. State matching funds are determined as a set proportion of CSHA Base Funding.


Crisis Accommodation Assistance

Funding under the CSHA for the purchase, construction, renovation, maintenance and lease of dwellings to provide accommodation for use under the Supported Accommodation Assistance Program.

Per capita basis. State matching funds are determined as a set proportion of CSHA Base Funding.


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National affordable housing SPPs (continued)Housing Assistance for Indigenous people

To assist Indigenous people with low to moderate incomes to access affordable, appropriate and secure rental accommodation, including public and community-owned rental housing. States can use the grants for construction, upgrades, maintenance and other related housing functions.

Based on Indigenous housing needs.

State matching funds are determined as a set proportion of CSHA Base Funding.


Supported accommodation assistance

To assist people who are homeless and in crisis. Services are provided by community organisations and local governments under contracts to State government welfare departments.

Historical basis. Commonwealth Government (51%) and State (49%).


National Partnership Payments for affordable housingEast Kimberley development package – Indigenous housing

The Commonwealth will provide $50 million to Western Australia for Indigenous housing projects from the East Kimberley development package. Investment priorities under the package focus on improving the provision of social and transition housing, where noticeable gaps exist in the region. Improved housing outcomes for Indigenous people will provide the foundation for lasting improvements in living standards, social and economic wellbeing and access to life opportunities, such as employment and education.

2009-10 to 2010-11

Payments for environment health measures and Aged care - No impact on relativities


Purchase of services by Commonwealth or local government functions.

First Home Owners Boost

As part of the Economic Security Strategy, to stimulate housing activity, support the construction industry and assist first homebuyers to enter the housing market.

2008-09 to 2010-11



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National Partnership Payments for affordable housing (continued)Homelessness To support homelessness initiatives consistent with

the priorities identified in the Commonwealth Government’s White Paper on Homelessness: The Road Home, with a focus on prevention, early intervention and breaking the cycle of homelessness through a better connected service system.

2008-09 to 2010-11


Nation Building and Jobs Plan — Invest in social housing –construction and Repairs and maintenance

To invest in additional public and community housing to meet priority social housing needs, including reducing homelessness. This includes $200 million in 2009-10 for repairs to existing public housing stock.

2008-09 to 2010-11


Social Housing To establish a Social Housing Growth Fund to provide capital funding to support a range of projects to increase the supply of social housing and enable more disadvantaged households to access safe and secure housing that meets their needs.

On a per capita basis, subject to each State submitting suitable proposals.

2008-09 to 2009-10


Social Housing Subsidy Program

To subsidise New South Wales for its recurrent costs of financing rental accommodation in the private and non government sectors for low to moderate income earners. The Commonwealth will meet its future payment commitments by providing a single payment in 2009-10 and ceasing future annual payments.

Requirement to match the Commonwealth Government funding dollar for dollar.

2008-09 to 2009-10


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National Partnership Payments for Affordable housing (continued)Remote Indigenous Housing

To facilitate significant reform in the provision of housing for Indigenous people in remote communities and to address overcrowding, homelessness, poor housing conditions and severe housing shortages in remote Indigenous communities.

2008-09 to 2010-11



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National Partnership Payments for infrastructureEast Kimberley development package – other infrastructure projects

The East Kimberley development package was launched by the Prime Minister in Kununurra on 3 July 2009. From 2008-09, this package will provide $195 million to the Wyndham Shire and associated Indigenous organisations in the East Kimberley region of Western Australia to support economic development through investment in social and common-use infrastructure. The package comprises four different sets of projects:

Payment for Western Australia only. Conditional on a joint assessment with the Western Australian Government of most effective infrastructure investments. Funding to State Government, local governments and not for profit organisations to support economic development in the East Kimberley region through investment in social and common use infrastructure.

States match Commonwealth contribution.

2008-09 to 2010-11

Payments for environment health measures, teacher training facilities and aged care and local governments – No impact on relativities

Other payments – Impact on relativities

Payments for environment health measures, teacher training facilities and aged care – payments for Commonwealth or local government functions.

Interstate road transport

Payments of funds received through the Federal Interstate Registration Scheme that provides an alternative to State registration for vehicles engaged in interstate trade. The intention is to provide funds for the maintenance and upkeep of roads used by these vehicles.

Based on road use from ABS surveys, with the exception that under a Ministerial agreement of 1986, Australian Capital Territory, Tasmania and the Northern Territory receive a fixed 0.5% of funds collected for expenditure on road maintenance.

2008-09 to 2010-11

Assessed as motor tax revenue

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National Partnership Payments for infrastructure (continued)Local Government and Regional Development infrastructure employment projects (former Jobs fund – Infrastructure employment projects)

The Commonwealth Government is consulting with councils to determine options for assisting the rebuilding effort in their communities after a major disaster. The program supports major investments in a range of regional and local community infrastructure projects and takes a strategic approach in responding to local priorities and needs.

A methodology which includes relative need, population and growth.

Payments to local governments

2008-09 to 2010-11



Local community sporting infrastructure

Payments to New South Wales for local community sporting infrastructure.

Payment to New South Wales only.

2008-09 to 2010-11



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National Partnership Payments for infrastructure (continued)Nation building program (formerly Auslink)

To assist national and regional economic and social development by the provision of funding aimed at improving the performance of land and rail infrastructure.

2008-09 to 2009-10

Maintenance of NNRs and off-NNRs – Impact (needs assessed in Roads);Construction of NNRs – Impact (needs assessed in Investment - half assessed using payment distribution and half assessed same as other road investments);Rail – Impact (increase State net financial worth);Local roads – No impact;Roads to recovery – No impact.

Local roads –Payment to a third party – States act as an intermediary and the payment does not reduce or increase State needs.Roads to recovery – required by terms of reference.

Nation Building program – local government

Payment to the prosperity of the economy and the wellbeing of all Australians by assisting local governments to manage their own futures, including providing essential services and developing effective planning initiatives.


Payment to a third party – States act as an intermediary and the payment does not reduce or increase State

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44

needs.

Treatment of Com

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National Partnership Payments for infrastructure (continued)Nation building plan for the future and Building Australia Fund

Funding for nationally significant transport infrastructure investment that will provide the building blocks for Australia's long term economic, environmental and social prosperity. Regional areas will benefit from improved freight supply chains and export infrastructure, better connections between major towns and cities, and improved telecommunications.

2008-09 to 2009-10

Construction of NNRs – Impact (needs assessed in Investment – half assessed using payment distribution and half assessed same as other road investments);

Rail – Impact (increase State net financial worth);

Other projects – Impact

North Penrith Thornton Park Car Park

Funding towards construction and landscaping costs associated with the construction of a multi-level car park in the North Penrith Thornton Park to the local government.


Payment made direct to local government and does not affect State fiscal needs.

Kings Highway upgrade

Funding for upgrading the Kings Highway between Queanbeyan and Bungendore, New South Wales.

Payments for New South Wales and the ACT.



Federation fund projects

The Commonwealth provided funding to Victoria in 2009-10 for Centenary of Federation Fund projects.



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National Partnership Payments for infrastructure (continued)Regional Infrastructure Fund Stream 1 – Committed infrastructure projects

To support projects already committed in 2010 infrastructure and transport portfolio.


Seamless national economy

To reduce unnecessary and inconsistent regulation across jurisdictions and to improve processes for regulation-making and review.



Seamless National Economy – National Heavy Vehicles Transport Regulator

To the creation of project implementation teams to establish national heavy vehicle safety regulators.



Seamless National Economy National Rail Transport Safety Regulator component

To the creation of project implementation teams to establish rail regulators.



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47




National Partnership Payments for infrastructure (continued)Supplementary funding to SA Councils for local roads.

Supplementary funding to South Australia to address the State’s current disadvantage under the current distribution of the untied local roads grants.

Payment to South Australia only.

2008-09 to 2010-11


Payment made direct to local government and does not affect State fiscal needs.

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48




National Partnership Payments for environmentBioremediation and revegetation

The Government will provide $1.9 million in 2010—11 for bioremediation and revegetation trials in suitable sites in and around South Australia's lower lakes. The trials will continue to engage and involve local communities.

2009-10 to 2010-11



Caring for our Country

To integrate delivery of the previous natural resource management programs: the Natural Heritage Trust; the National Action Plan for Salinity and Water Quality; the National Landcare Program; the Environmental Stewardship Program; and the Working on Country Indigenous land and environmental program.

Payment to regional bodies through the States on a project basis.

2008-09 to 2010-11



Environmental management of the former Rum Jungle mine site

The Commonwealth will provide $7 million in financial assistance over four years from 2009-10 to the Northern Territory to support the ongoing management of the former Rum Jungle mine site.

The measure includes funding to:

support environmental management and monitoring of the site; and

assist with the development of site management and rehabilitation strategies in partnership with industry and the site's traditional owners.

Not applicable 2009-10 to 2010-11



Exotic Disease Preparedness

To support investigations of wildlife species in the maintenance and spread of emerging animal diseases and incursions of major exotic diseases.

On a project basis. States match dollar for dollar.

2008-09 to 2010-11


Payment relates to State expenses where needs could not

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49

be assessed.

Treatment of Com

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National Partnership Payments for environment (continued)

Great Artesian Basin Sustainability Initiative

To assist with the implementation of Great Artesian Basin Management Plan. Grants are made to States and Territories to assist bore rehabilitation. Supplementary incentives are also being made available for the replacement of open drains with piping.

Initial distribution of funds was determined for each Management Zones defined by hydro-geologic, bio-physical and industry characteristics. The available funds were partitioned up to each zone in proportion to the results of the need analysis.

2008-09 to 2010-11


Natural disaster recovery and rebuilding relief appeals –Commonwealth contributions

The Commonwealth contribution for flood reconstruction and recovery


Purchase of services by Commonwealth Government

National disaster resilience

To strengthen efforts to combat man-made and natural threats and disasters across Australia.Grants are provided for projects developed to address disaster risks through disaster mitigation works which minimise the risks to communities.

2008-09 to 2010-11



Plant Disease and

To assess plant health emergencies and development and implementation of

States match dollar for

2008-09 to 2010-11


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51

Eradication appropriate response plans to mitigate impacts and eradication.

dollar.

Treatment of Com

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Renewable Remote Power Generation

To provide a rebate to the States for the installation of renewable energy generation technologies in areas of Australia currently reliant on diesel for electricity generation.

Based on Diesel Fuel Excise paid by the States for ‘off-grid public generation’

States to maintain their existing commitment for renewable energy.

2008-09 to 2010-11


Water for the Future – National Urban Water and Desalination Plan; National Water Security Plan for Cities and Towns; Sustainable Rural Water Use and infrastructure

To support the sustainable rural water use and infrastructure program. In July 2008 the Commonwealth and State governments finalised the Agreement on Murray-Darling Basin Reform to secure a sustainable future for the Murray-Darling Basin.

The Commonwealth has agreed in-principle to fund significant State-based water infrastructure.

Payments to States and Local governments

2008-09 to 2010-11

Impact on relativitiespayments to States; No impact – payments to Local governments


Eradication of Red Imported Fire Ant

Funding for the eradication of red imported fire ant from Queensland.

Payment to Queensland only.

States match dollar for dollar.



Transfer of Commonwealth land to Victoria – Point Nepean

Payment as part of the transfer of the ownership of the Quarantine Station at Point Nepean from the Commonwealth to the Victorian Government - for ongoing management of the Station

Payment to Victoria only.



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53





The Living Murray (was National Water Initiative — Living Murray)

To implement a package of water recovery and water use efficiency activities to address water over-allocation in the Murray Darling Basin and improve the health of the Murray Darling system

A partnership of the Australian, New South Wales, Victorian, South Australian and ACT Governments.

Treatment changed in 2011 Update as payment is for environment purposes.

2008-09 to 2009-10


Payment relates to State expenses where needs could not be assessed. (change in treatment from R2010)

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54




National Partnership payments for contingencies

Exceptional circumstances assistance

Interest rate subsidies to eligible farmers and small business operators in a region experiencing a severe downturn due to a rare and severe climatic or other event.

2008-09 to 2010-11

No impact relativities


Hepatitis C settlement fund

Contribution to the States’ schemes for out-of-court settlement costs for eligible individuals who contracted Hepatitis C through the blood supply between 1985 and 1991.

Based on agreed settlements.

2008-09 to 2010-11



Natural disaster recovery and rebuilding (former Natural disaster relief)

Funding under the Natural Disaster Relief and Recovery Arrangements, to partially reimburse States for their expenditure on relief assistance following an eligible natural disaster.

2008-09 to 2010-11



Equine influenza emergency

Funding towards response costs associated with eradication of the equine influenza.

2008-09 No impact relativities

Purchase of services by Commonwealth

57

Treatment of Com

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response Government.




National Partnership payments to support other State services

Digital regions initiative

The Commonwealth will provide $26.8 million to the States in 2010-11 for the Digital Regions Initiative, subject to the outcomes of the initiative's competitive funding rounds. This initiative will co-fund innovative digital enablement projects to support improved education, health and emergency services in regional, rural and remote communities.

Payments to States and Local government

2009-10 to 2010-11

Impact on relativities - Payments to States. No impact – payments to local government and non-government organisations that do not create a State asset.


Improving policing in very remote areas

To address violence and child abuse in Indigenous communities by improving police services in very remote areas. Includes the construction of police stations, police housing, and funding for sniffer dog teams in the Northern Territory.

Based on assessment of needs

2008-09 to 2010-11


Legal assistance services (former Legal aid)

To provide funding to State Legal Aid commission for the provision of legal assistance on the Commonwealth Government matters.

2008-09 to 2010-11



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National Partnership payments to support other State services (continued)

Local Government Regional Development – Local Government Reform Fund

To provide funding to the States for projects that support the implementation of nationally consistent frameworks for local government asset and financial management and/or improve collaboration in the local government sector.


Native title For expenditure under part 9 of the Native Title Act 1993. Funding is to assist States and Territories implement to consistent framework for dealing with native title issues of meeting compensation costs.


Purchase of services by Commonwealth Government

Pilot of drought reform measures in WA

To test a package of new measures developed in response to the national review of drought policy.



Remote Indigenous public internet access

The Commonwealth will provide $2.3 million to the States in 2010-11 for remote Indigenous public internet access. This program will provide funding in collaboration with the States for new or expanded public internet access and delivery of computer training in nominated remote Indigenous communities that have limited or no public access internet facilities. Funding will also cover maintenance of facilities installed in 2009-10 under this program.

2009-10 to 2010-11


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Table 4 Other payments (continued)Payment Program description Interstate distribution Year paid in



Year paid in U2012


Sinking fund on State debt

Contributions to the Debt Retirement Reserve Trust Account on behalf of the six States and the Northern Territory in accordance with the Financial Agreement Act 1994.

The Commonwealth Government contributes 0.28% of the net public debt of the States as at the preceding 30 June.

2008-09 to 2010-11



Standard business reporting program

To simplify business-to-government reporting by making forms easier to understand, using accounting or record-keeping software to automatically pre-fill government forms and introduce a single secure way to interact online with participating agencies.

2008-09 to 2010-11



Tasmanian forest contractors financial support program

To assist forest contractors to respond to the challenges facing the Tasmanian native forest industry.



World sailing championships

The Commonwealth will provide $2.0 million to Western Australia in 2010-11 to contribute to the staging of the International Sailing Federation World Championships in Western Australia in December 2011.

Payment to Western Australia only. Payment through the States.

2009-10 to 2010-11



Treatment of Com

monw

ealth payments58

Treatment of Com

monw

ealth payments59





North East Tasmania micro- capital scheme

To provide business micro-capital to create sustainable jobs in the north-east regions of Tasmania.

Grants of up to $50,000 are available to eligible applicants.


Sydney Cricket Ground — new grandstand

To improve facilities and increase the capacity of the new Victor Trumper Grandstand at the Sydney Cricket Ground.

Payment to New South Wales only



Strengthening Tasmania

To strengthen Tasmania’s economy and building a better community through various sporting and community facility upgrades and initiatives. One of the initiatives is the refurbishment of buildings in the Low Head Historic Precinct to promote increased visitation.

Payment to Tasmania only. In 2008-09, the payment of $2.5 million was for projects in the Launceston City Council, the Burnie Council and the Devonport Council.



Film and literature classification

Payments to States for participation in the national cooperative censorship scheme as per inter-governmental agreement signed in November 1995.




Treatment of Com

monw

ealth payments

60





CrimTrac police reference system

Payments to State police agencies for their contribution toward a national information sharing solution through the CrimTrac Police Reference System.

A fixed amount determined by the Australasian Police Ministers’ Council.

Reimbursement is capped at an agreed amount.



Restoration of Albert Hall, Canberra

$0.5 million to the ACT in 2009-10 for the restoration of the Albert Hall. The Albert Hall is a historic and cultural landmark of Canberra and is listed in the Register of the National Estate on the Australian Capital Territory Heritage Register. The Australian Capital Territory Government is responsible for the management and maintenance of the Albert Hall and is refurbishing it under a conservation plan.

This grant is to assist the ACT Government in this $2.7 million project


Payment to a third party – States act as an intermediary and the payment does not reduce or increase State needs

Queensland Premier’s disaster relief appeal

In 2009-10, the Commonwealth has provided $0.5 million to the Queensland Premier's Disaster Relief Appeal to help people affected by the 2010 monsoonal floods in Queensland.



National emergency warning system

The Commonwealth will provide $15.7 million in 2009-10 to fund the development of a telephone based national emergency warning system, Emergency Alert. Emergency Alert enables the States to deliver warnings to


Purchase of service by the Commonwealth Government.

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Treatment of Com

monw

ealth payments61

landline and mobile telephones based on the customer's service address.




Payments to support local government - Financial assistance grants

Local government general purpose assistance

Untied funding to local governments through the States.

Interstate allocation is on a per capita basis.




Untied local road grants

Untied assistance to local government authorities in place of specific purpose payments formerly passed on to local government by the States for expenditure on local roads.

Level of funding to each States originated from historical relative local road needs and indexed every year.




Source: Commonwealth of Australia Final Budget Outcome and information collected from other Commonwealth agencies.

Chapter 2 The adjusted budget — Appendix 2B


Table 5 Treatment of Commonwealth own-purpose expensesCommonwealth payment Year paid in U2012 Treatment in U2012 Reason for ‘No impact’

Family violence partnerships (various payments)

2008-09 to 2010-11 Impact on relativities

Indigenous health and substance abuse

2008-09 to 2010-11 Impact on relativities

Emergency services 2008-09 to 2010-11 Impact on relativities

All other COPE payments(a) 2008-09 to 2010-11 No impact on relativities


(a) The commission does not have information on all COPE payments and therefore would not be able to consider the treatment of each payment.

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