Annual Report 2002–03 Volume I


Performance information Administered items



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Performance information

Administered items

Labour market assistance—Assistance for people of workforce age

Effectiveness—Adequacy


Ratio of adult rates of income support to minimum wage

Table 43: Labour market assistance—effectiveness measured by adequacy

Year

NSA

MAA

PAa

WA

SpB

BVA

PPS

PPPa

Ratio of adult rates of income support to minimum wage

2002–03

0.42

0.46

0.38

0.42

0.42

0.49

0.49

0.38

2001-02

0.43

0.47

0.39

0.43

0.43

0.49

0.49

0.39

a These are partnered rates of payment.

Effectiveness—Independence

Average duration of Newstart Allowance/incapacity exemption—4 months
Percentage of clients transferring from Newstart Allowance to DSP

Of those clients granted a Disability Support Pension, 33.2 per cent were granted within three months of cancelling from Newstart Allowance.

Average duration on income support in weeks

Table 44: Labour market assistance—effectiveness measured by independence



Year

NSA

MAA

PA

WA

SpB

BVA

PPS

PPP

Total3

Average duration on income support (weeks)

2002–03

155

232

198

263

119

n/a

243

221

202

2001-02

141

241

178

228

103

n/a

234

193

185

a Average duration for all customers on labour market related payments.

Percentage of Newstart allowees who leave payment within the first three months— 36 per cent

Percentage of Newstart allowees receiving payments for 12 months or more—60.6 per cent, up from 58.8 per cent in June 2002

Percentage of Parenting Payment recipients with a duration of five years or more

27 per cent of PPS recipients and 19 per cent of PPP recipients, compared to 26 per cent of PPS and 17 per cent of PPP recipients in June 2002.



Number of clients participating in language, literacy and numeracy training

In 2002–03, 17 785 people began courses under the Language, Literacy and Numeracy program, following a referral from Centrelink. This figure does not include commencements following referrals from other organisations, including the Job Network.



Number of clients per fortnight who deplete their Working Credit

Not applicable. Implementation of Working Credit began on 20 September 2003.



Percentage of clients undertaking paid work, job search, education or training, employment assistance, Work for the Dole, Mutual Obligation Initiative or voluntary work

At June 2003, the percentage of Newstart Allowance clients whose main activity was job search was 52.5 per cent. The percentage of Newstart Allowance clients undertaking, as an activity, paid work, education and training, employment assistance, Work for the Dole, Mutual Obligation Initiative or voluntary work was 27.4 per cent.



Percentage of clients with earnings

Average amount of earnings per fortnight in $

Table 45: Labour market assistance-effectiveness measured by independence

Year

NSA

MAA

PA

WA

SpB

BVA

PPS

PPP

Total

Percentage of clients with earnings

2002–03

16.3

7.0

8.0

10.1

1.7

n/a

27.7

7.5

17.6

2001-02

17.3

7.3

8.2

10.9

1.8

n/a

27.7

7.4

17.8

Average amount of earnings per fortnight ($)

2002–03

300

225

264

233

206

n/a

599

251

448

2001-02

305

207

256

225

316

n/a

561

236

421

Note: 19.5 per cent of Pensioner Education Supplement clients had earnings.

The percentage of PPP clients with earnings and their average amount of earnings for 2001-02 have been revised from those reported in last year’s annual report. This reflects revision to the source data by Centrelink.

Proportion of Newstart Allowance recipients with earnings and the average amount of earnings in the month of June

Figure 13: Proportion of Newstart Allowance recipients with earnings and the average amount of earnings in the month of June

Effectiveness—Take-up/coverage


Percentage of population of workforce-age on labour market assistance-related income support

Table 46: Labour market assistance—effectiveness measured by take-up/coverage

Year

NSA

MAA

PA

WA

SpB

BVA

PPS

PPP

Total

Percentage of population of workforce-age on labour market assistance related income support

2002–03

4.05

0.32

0.80

0.34

0.09

0.0

3.39

1.41

10.39

2001-02

4.36

0.32

0.80

0.32

0.10

0.0

3.36

1.51

10.78

Effectiveness—Targeting


Number and average duration of waiting periods applied to Newstart Allowance claimants

In 2002–03, there were 124 343 clients serving the Ordinary Waiting period for average length of one week, 41 565 clients serving the Income Maintenance Period for an average of five weeks, 35 094 clients serving the Liquid Assets Waiting Period for an average of nine weeks, 139 clients serving the Newly Arrived Resident Waiting Period for an average of 98 weeks.



Number of clients leaving payment following referral to mutual obligation activity

During 2002–03 it is estimated that approximately 500 job seekers left payment following a breach for a Mutual Obligations Initiative interview. This result is down on the previous estimate largely because overall breach numbers have halved from the previous year.



Percentage on part rate due to income1 test

Table 47:Labour market assistance—effectiveness measured by targeting

Year

NSA

MAA

PA

WA

SpB

BVA

PPS

PPP

Total

Percentage on part rate due to income test

2002–03

17.4

18.3

18.9

21.1

54.3

n/a

26.5

35.5

23.4

2001-02

18.0

18.5

18.4

21.6

48.5

n/a

25.8

35.9

23.4

Quantity


Number of clients in receipt of assistance

Table 48: Labour market assistance-quantity

Year

NSA

MAA

PA

WA

SpB

BVA

PPS

PPP

Total

Number of clients in receipt of assistance

2002–03

521 677

41 078

102 811

43 209

12 228

55

436 958

181 405

1 339 421

2001-02

554 821

40 132

102 331

41 277

13 091

41

427 846

191 576

1 371 115

Note: Pensioner Education Supplement (PES): 52 923 clients (as at June 2003). 4284 of these were receiving PES at the half-rate. Parenting Payment Single clients comprise around 60 per cent of PES recipients; Disability Support pensioners comprise 37 per cent. The remaining 3 per cent receive Carer Payment, Veterans’ Affairs pensions, Widow Allowance, Widow B Pension or Wife Pension.

Price


$1 million—Bereavement Allowance

$381.2 million—Mature Age Allowance

$4 831.1 million—Newstart Allowance

$5 731.1 million—Parenting Payment (Partnered and Single)

$350. 8 million—Partner Allowance (Benefit)

$509.9 million—Partner Allowance (Pension)

$116.3 million—Special Benefit

$429.7 million—Widow Allowance

$68.6 million—Pensioner Education Supplement

1. Based on income from both earnings and unearned sources, such as savings. Previous annual reports used only earnings to determine part rate customer numbers for NSA, MAA, PA, WA and SpB.


Commentary


The robust economic conditions in recent years have resulted in fewer people getting Newstart Allowance and Special Benefit resulting in a smaller proportion of workforce-age people on these payments. These conditions have been of most benefit to short-term unemployed people. As a result more than six in 10 Newstart Allowance clients are now long-term income support customers. This increasing proportion of long-term clients is reflected in the increase in average duration on income support of the Newstart Allowance population in the year to June 2003. Recent measures in the AWT package, such as the PSP, will help long-term clients address barriers they face to entering and re- entering the labour market.

The proportion of clients with earnings decreased slightly in June 2003 compared to June 2002. This drop occurred in the last three months of 2002–03, with the incidence of earnings running higher than earnings in 2001-02 for the first nine months of the year. The drop from March 2003 coincided with a general flattening of labour market conditions.

A significant number of Special Benefit clients receive a part-rate of payment as a result of modest income received from sources other than earnings, such as interest on investments. Of all the Special Benefit clients with income, two-thirds have income of less than $10 a fortnight. However, as Special Benefit has no income-free area, their benefit is reduced accordingly.

In July 2002 FaCS introduced a new method to more accurately measure the number of people receiving labour market and related allowance payments. Under the new method, clients eligible for and entitled to a payment are included in the count, not those who actually receive a payment. This method is simpler and more consistent with the way pension and parenting clients are counted. This change increased the count of Newstart Allowance clients by around 4 per cent, Youth Allowance (other) by around 7 per cent, and other allowance payments, such as Partner Allowance and Widow Allowance, by around 1 per cent.

Three research projects on parents were completed this year and one began:

The Parenting Payment New Claims Survey Round 1 was completed. Findings show significant churning between income support and employment, with only 17 per cent of new claimants new to the income support system. New claimants are younger, have younger children and are more likely to be partnered than existing clients. Two-thirds were working or wanted to work. Balancing work and family was a key issue.

Research into the service needs and programs available to young parents on Parenting Payment has found that young parents are more likely to rely on government assistance for longer periods. They often experience multiple disadvantages and have difficulty accessing mainstream programs.

A three-year industry partnership was commenced with an Australian Research Council linkage grant to develop knowledge about parents on low incomes.

The evaluation of longer-term outcomes from the Parenting Payment Intervention Pilot was completed.

Payment to voluntary work agencies (Voluntary Work Initiative including AWT Participation through Volunteering)

Quantity


Number of clients assisted and referred to voluntary work

In 2002–03, 21 048 clients were referred to voluntary work (figures supplied by Volunteering Australia).


Price


$2.2 million

Commentary


An expansion of the Voluntary Work Initiative through AWT saw the provision of funding for 11 new services and strengthened 13 existing, mostly rural, Voluntary Resource Centres. An additional one-off payment of $54 000 was also made to Volunteering Australia for distribution to nine, mostly rural, Voluntary Resource Centres experiencing high demand from AWT clients. There are now 50 service delivery outlets nationally.

Personal Support Programme

Cost


Amount outlaid to PSP providers in the past 12 months, expressed average cost per participant in dollars—$980

Effectiveness—Adequacy


Number of participants achieving social outcomes, and durable economic outcomes within the last 12 months (as assessed using FaCS guidelines)

In all, 4403 participants achieved a social outcome. Employment placements were obtained for 2397 participants, of whom 644 achieved a durable economic outcome-that is, 26 continuous weeks of employment, education or transition into Job Network, Intensive Assistance or Disability Employment Assistance. In total 5047 individuals achieved an outcome, representing 48.1 per cent of all participants exiting the program.


Quality—Access and choice


Number of organisations delivering PSP services, nationally, by rural/metropolitan breakdown

Rural—261 sites

Metropolitan—328 sites

Quantity


Number of individuals participating in PSP over the last 12 months—26 309, exceeding the 25,000 target

Price


$27.2 million

Commentary


The PSP has been operational for 12 months. It is a two-year program that assists people on income support whose multiple non-vocational barriers make it difficult for them to work or benefit for other kinds of employment assistance. At 30 June 2003, there were 3785 people on waitlists for the program. Waitlists fluctuated throughout the year due to the release of extra places to service providers to meet demand. The monthly average of people on waitlists was 4214.

Welfare Reform Consultative Forum

Quantity


Advice on operation of Australia’s welfare system

The Welfare Reform Consultative Forum provided advice on the operation of Australia’s welfare system, the development of the medium to longer-term agenda for welfare reform, including the reform of income support for working-age people, and the implementation of the AWT package. The forum consists of 10 members. It met twice during 2002–03. Members participated in subgroups of the forum on Indigenous welfare reform and implementation of the Personal Advisers initiative, as well as in the consultations on the simpler system discussion paper.


Price


$0.3 million


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