Annual Report 2003-04 I volume 1


Outcome 3 I Individuals reach their potential



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Outcome 3 I Individuals reach their potential


Services and assistance that: facilitate people to participate actively in economic and community life, work to their capacity, access a responsive and sustainable safety net and fully develop their capabilities.

Description


This outcome reflects the Government’s commitment to encouraging self-reliance and community contribution through participation in the labour force and community life.

To maximise the engagement of all Australians in society, FaCS will:

encourage economic and social participation by individuals and families by enabling access and promoting opportunities

foster a culture of self-reliance in the community, and provide an effective safety net



develop partnerships with key stakeholders (other departments, business and community organisations and service providers) to improve the efficiency and effectiveness of services, to identify emerging problems and to develop appropriate policy responses.

Figure 12 Outputs contributing to Outcome 3

Financial and staffing resources summary


Table 40: Outcome 3—Individuals reach their potential

Outcome 3: Individuals reach their potential

(A) Budgeta 2003-04 $’000

(B) Actual 2003-04 $’000

Variation (column B minus column A) $’000

Budgetb 2004-05 $’000

Administered Expenses (including third party outputs)

3.1 Labour Market Assistance

12 690182

12 678 437

-11 745

13 166 054

3.2 Support for People with Disabilities

9 024 900

9 014 885

-10 015

9534429

3.3 Support for Carers

1 851947

1 886 438

34 491

1 774 910

3.4 Support for the Aged

19 262 333

19 773 771

511 438

20 343 665

Items Applicable Across Outcome 3

National Secretariats (part component see also Outcomes 1 and 2)

694

1 083

389

699

Ex gratia payments to ACT Bush Fire Victims

202

16

-186

253

Ex gratia— King Island and Furneaux Group of Islands

1 656

811

-845

0

Payments to universities and other organisations for special studies and research (part component see also Outcome 1)

82

81

-1

84

Total Administered Expenses

42 831 996

43 355 522

523 526

44 820 094

Price of Departmental Outputs

Output Group 3.1 Labour Market Assistance

733 557

746 593

13 036

753 804

Output Group 3.2 Support for People with Disabilities

284452

295 986

11 534

316 287

Output Group 3.3 Support for Carers

19 676

30 422

10 746

29 369

Output Group 3.4 Support for the Aged

235 321

246 776

11 455

255436

Appropriations Applicable Across Outcome 3

Centrelink

42 614

42 732

118

37 097

Revenue from Government (Appropriation) for Departmental Output Groups

1 315 620

1 362 508

46 888

1 391 993

Revenue from other Sources

30 517

1 696

-28 821

1 099

Total Price of Output Groups (Departmental)

1 346137

1 364 204

18 067

1 393 092

FaCS Component

107 708

107 721

13

140 008

Centrelink Component

1 207 912

1 254 787

46 875

1 251 985

Non-appropriated expensesc

1 315 620

1 362 508

46 888

1 391 993

TOTAL FOR OUTCOME 3 (Total Price of Outputs and Administered Expenses)

44 178 133

44 719 726

541 593

46 213 186

Staffing Years (Number)







2003-04

2004-05

FaCS (including the Social Security Appeals Tribunal)







843

759

a Final estimates have been used for special appropriations while additional estimates have been used for annual appropriations.

b Budget prior to additional estimates.

c Non-appropriated expenses are expenses from sources other than the annual or special appropriation (non-appropriated revenue). For example, monies paid into the Child Support Trust Fund by non-custodial parents are non-appropriated revenue, while disbursements of those monies to custodial parents and allowances for bad debts are a non-appropriated expense.

Key strategies


The key strategies and activities for assisting individuals to reach their potential are:

continuing to implement and monitor measures under the Australians Working Together (AWT) package to integrate income support with services tailored to individual needs, including:

providing incentives and assistance for customers to seek and take up available work, including through the Employment Entry Payment and the introduction of Working Credit, which allows working-age customers to keep more of their income support payment when they first start work

encouraging and promoting participation among income support customers, including through the Personal Support Programme; Personal Advisers; specialist disability employment services; rehabilitation services; the Jobs, Education and Training (JET) program; and the provision of participation supplements

improving targeting of Disability Support Pension consistent with the goals of increased participation and self-reliance

promoting and delivering continuous improvement to disability employment services through reforms to these services, including the introduction of case-based funding from 1 July 2004 and quality standards from 1 January 2005

promoting participation, independence and self-reliance among older Australians through policy development, education and advisory services

undertaking research and analysis to help FaCS understand its customers, their circumstances, needs and aspirations.

FaCS implements these strategies through relationships with other levels of government; business and community-based and private organisations; service providers; and formal purchaser-provider relationships with Australian Government agencies such as Centrelink.

Operating environment statement


Throughout 2003-04 a reasonably robust Australian economy contributed to improvements in the labour market, including increased employment, a decrease in unemployment and decreased reliance on income support. Highlights include:

in the year to June 2004, the number of people employed in Australia grew by 2.2 per cent, a slightly higher rate of growth compared with the 2 per cent achieved the previous year

unemployment decreased over the year from 6.1 per cent of the labour force in June 2003 to 5.6 per cent in June 2004. Over the same period the number of unemployed people in receipt of Newstart Allowance decreased by 5.7 per cent (29 200) to 483 100. The decrease in unemployment was not consistent across regions: two in three Australian Bureau of Statistics (ABS) statistical regions experienced decreases in unemployment rates in the year to June 2004.

the number of working-age people1 on social security income support payments—representing almost 20 per cent of the Australian working-age population—also decreased slightly over the year, down from 2.53 million to 2.50 million people.

While there have been falls over time in the rate of joblessness in both couple and lone-parent families with dependent children, the increasing proportion of families headed by a lone parent (who account for 23 per cent of all families and over 70 per cent of jobless families) has meant there has been little change in aggregate rates of family joblessness. In June 2004 there were an estimated 471 100 children under 15 living in 267 800 jobless lone-parent families (52 per cent of all lone-parent families) and an estimated 219 300 children in 108 500 jobless couple families (6.3 per cent of couple families with dependent children under 15). The number of dependent children under the age of 25 in jobless families was 823 700.

During 2003 about 17 per cent of people of working age disclosed that they have a disability. People with disabilities are not a homogenous group. There is considerable variation in the onset, extent and significance of the disability and the impact on the person’s ability to work. ABS statistics indicate that, over the period 1998 to 2003, the workforce participation rates for people with disabilities have remained steady at 53 per cent. During the same period, the unemployment rate for people with disabilities has decreased from 11.5 per cent to 8.6 per cent. The prevalence of disability increases in older age groups: around 9 per cent of those aged 15-24 have a disability, rising to 39 per cent of those aged 60-64. This trend is consistently reflected in the high take-up of Disability Support Pension by older people, with one-third of Disability Support Pension grants made to applicants over 55 years of age. Approximately one in 19 people of working age are now receiving Disability Support Pension. The three main conditions prevalent in the Disability Support Pension population are musculo-skeletal conditions (34 per cent), psychiatric conditions (25 per cent) and intellectual disabilities (11 per cent).

Australia’s population is expected to age markedly over coming decades. The proportion of the population aged 65 and over is forecast to increase from its current 13 per cent to 19 per cent in 2021. The ageing of the population sees a growing demand for carers but also an increase in the number of older carers, with around 72 000 carers aged 65 years or over receiving Carer Payment and/or Carer Allowance at June 2004. Over 56 per cent of primary carers are women of working age. However, young carers are a group particularly at risk of isolation from the community and disconnection from education and employment opportunities. Around 8000 carers aged 25 years and under were receiving Carer Payment and/or Carer Allowance at June 2004.

Recent trends indicate that people currently reaching Age Pension age have higher levels of income and assets than was previously the case. At June 2004, among Age Pensioners who have been in receipt of Age Pension for less than one year, 50.5 per cent received a full-rate pension while 49.5 per cent received a part-rate pension due to the level of their income or assets. This compares with 63.9 per cent of the general Age Pension population who received a full-rate pension at June 2004.

However, the capacity to save for retirement is limited by the relatively low rates of labour force participation among people of mature age and those approaching Age Pension age:

fifty per cent of people who started receiving Age Pension between December 2002 and December 2003 were previously receiving another income support payment

labour force participation rates for people aged 65 and over were 9.7 per cent for men and 2.8 per cent for women at August 2003. Participation rates have been relatively stable for some years. Of those over Age Pension age in June 2004 who are working, 33 per cent are receiving a part pension and 17 per cent are on the Pension Bonus Scheme.

In February 2004, the Government announced a number of measures that will improve the accessibility and flexibility of the retirement income system. The range of income streams that qualify for taxation and social security concessions will be broadened. This will give people greater choice in how they fund their retirement and maximise their retirement income. It will encourage people to use their superannuation for support through their retirement.

1. 16-64 for males and 16-61 for females in June 2003, and 16-64 for males and 16-62 for females in June 2004.

Social justice and equity impact


The range of outputs and payments under Outcome 3 are designed to encourage self-reliance and economic and social participation and to maintain an effective, sustainable safety net. A central focus is to improve the work prospects of people of working age in order to reduce the number of jobless families. Support for those who cannot work because of caring responsibilities is an important part of this strategy, as is assisting those with older children into work.

Performance highlights and policy outlook

Key achievements included:


continued progress on implementing a range of Australians Working Together measures designed to support increased participation of groups facing barriers:

Working Credit was introduced on 20 September 2003 and is available to over 2 million income support customers. Since its introduction, nearly 540 000 individuals have used their working credits. Customers receiving Newstart Allowance, Parenting Payment (Single), Youth Allowance (other), and Disability Support Pension appear to be the biggest users of Working Credit.

Mature Age Allowance and Partner Allowance were closed off to new claimants from 20 September 2003, and more flexible participation arrangements were introduced for older workers and Parenting Payment recipients with older children.

In 2003-04, the Personal Support Programme assisted around 40 185 individuals, up from approximately 26 000 in 2002-03 and 5000 above the 2003-04 Portfolio Budget Statement target of 35 000.

During 2003-04, 41 354 people have undertaken vocational rehabilitation programs with CRS Australia and over 8000 have achieved an employment outcome.

Personal Advisers interviewed more than 250 000 Centrelink customers, prepared participation plans with 98 per cent of these customers and referred over 130 000 customers to Australian Government-funded programs.

During 2003-04, 5881 new jobseekers with disabilities received assistance from disability employment services with Australians Working Together funding to help address unmet need in high-demand areas.

Agreement was reached with all states and territories on the third Commonwealth State Territory Disability Agreement, which emphasises improved accountability and transparency for use of funding by all jurisdictions, better long-term demand management and better cross-government linkages for services.

Service update reviews for people receiving Disability Support Pension were introduced that provide opportunity for holistic assessments of customers’ circumstances and offers of assistance to maximise participation.

The first national study of supply and demand for Auslan interpreting services across Australia was completed.

Significant progress was made on implementing reforms to the Disability Employment Assistance Program, including quality standards and implementation of a range of resources to help disability employment services prepare for the transition to case-based funding.

FaCS contributed to the statement a more flexible and adaptable retirement income system, released by the Australian Government in February 2004, which announced a number of policy measures to improve the retirement income system. Measures included improvements to incentives for the take- up of non-commutable income streams and increased flexibility for people making the transition to retirement. This statement also set out the responsibilities of the individual and government in financing retirement incomes, and highlighted the importance of financial planning and preparation for retirement.

FaCS also influenced and contributed to the ongoing policy debate on population ageing through conference papers and input to the Australian Government discussion paper Australia’s Demographic Challenges.

Work is required to:


make the social support system less complex and more responsive to the individual needs of customers, including:

improving referrals to appropriate programs to help people’s economic or social participation, in collaboration with Centrelink, the Department of Employment and Workplace Relations and key stakeholders

developing a ‘whole-of-system’ approach to encouraging and supporting participation

identifying gaps in services to help those with barriers to participation

explore the outcomes from the Better Assessment and Early Intervention measure of Australians Working Together to develop options to help people with disabilities maximise their participation

establish the new national Auslan interpreter booking service and work with state and territory governments to increase the supply of accredited Auslan interpreters

implement the package of the 2004-05 Budget measures to assist carers

continue implementing the reforms to the Disability Employment Assistance Program, including:

assisting employees with disabilities as well as business services through the implementation of the ‘Security, Quality Services and Choice for People with Disabilities’ package

implementing case-based funding progressively from 1 July 2004

finalise implementation of income streams changes announced in a more flexible and adaptable retirement income system of February 2004.

Policy outlook


The policy outlook for the coming year and beyond will see a major focus on the implications of demographic change and recent social and economic trends including: an ageing population and slowing workforce growth; delayed child-bearing; and balancing work and family life. These all present ongoing challenges to ensuring that income support arrangements are flexible in responding to individual and family circumstances, and service and support networks remain highly relevant.

As a result of demographic changes, it is projected that economic growth in Australia will slow over the next four decades if current policies and workforce participation rates remain the same. A key policy focus is on increasing labour force participation as one of the most important means to achieve higher economic growth and increase the resilience and self-reliance of Australian families, communities and individuals. Policy considerations will include the impact of a slowing workforce growth, the support and service needs of people with disabilities, the situation of ageing carers, and ways to encourage workforce participation of mature-age people.

Monitoring the performance of the Australians Working Together measures will provide a better understanding of the appropriate mix of mainstream and specialist services (such as the Personal Support Programme) needed to support a population with increasingly complex circumstances. It will also provide further information to assess whether the income support system as a whole has the right balance of incentives, obligations and assistance to increase economic participation among the diverse groups of the working-age population. More work also needs to be done to understand the particular issues facing long-term unemployed people, including geographic and personal issues (such as mental health) that need to be addressed to help them find and keep work. In addition, more research is required on the needs of Indigenous jobseekers and those with locational disadvantage.

The number of jobless families in Australia continues to be a concern. This underlines the importance of policies and program strategies to increase employment rates among Parenting Payment recipients and sole parents in particular.


Budget measures


This section reports on the achievements and challenges in implementing Budget measures for which expenses began accruing in 2003-04 and as tabled in the relevant Portfolio Budget Statement or Portfolio Additional Estimates Statement. They are listed by published title and in alphabetical order except where interlinked measures are grouped for ease of reading.

Increasing individual self-reliance and directing payments to the right people and those most in need are critical to maintaining the integrity, strength and sustainability of Australia’s income support safety net. A number of Budget measures aim to ensure that income support payments and services are provided to those most in need.


Assurance of Support Scheme-improved operation


The transfer of administration of the Assurance of Support Scheme from the Department of Immigration and Multicultural and Indigenous Affairs to Centrelink from 1 July 2004 will simplify arrangements for people who provide an assurance of support. Performance will be measured through the achievement of a lower rate of assurance of support debts waived.

Australians Working Together measures—changed arrangements


The Australians Working Together measures relating to changed administrative arrangements for activity-tested customers have all been successfully implemented. Together, these measures provide additional capacity for a more flexible and individualised approach in the development of appropriate activity or participation agreements. They also allow certain customers who have had a breach penalty imposed to either reduce or eliminate the penalty by complying with their requirements.

Bushfires—ex gratia assistance to income support recipients


Funding of $0.5 million over two years was provided for ex gratia payments to assist recipients of income support whose homes were destroyed in the 2002-03 summer bushfires.

Carer Allowance (Child)-enhanced qualification for automatic access


With effect from 1 July 2003, a number of additional disabilities or medical conditions automatically qualify carers of children for Carer Allowance without the need for further medical assessment until the child’s sixteenth birthday.

Respite Support for Carers of Young People-continuation of funding


Substantial support ($22 million over four years) is also being provided each year to continue assistance to over 7200 carers of young people with severe or profound disabilities who are not able to access existing state and territory respite care or other assistance provided by the Australian Government.

Carers—payment of one-off Carer Bonus


The measure providing for payment of a one-off Carer Bonus resulted in payments totalling $273.9 million in 2003-04 being made to Carer Payment and Carer Allowance recipients. These payments were made in recognition of the contribution of people who provide substantial care for a person with disabilities or a frail aged person.

Centrelink—assessment of income and assets held in trusts and private companies


Funding of $7.8 million in 2003-04 was provided to Centrelink to undertake the timely assessment of income and assets held by social welfare recipients with trusts or private companies. The additional funding allowed Centrelink to manage a higher than anticipated number of people in these circumstances.

Centrelink Call Centre supplementation


From 1 July 2003, $15.5 million has been invested to improve the level of service to Centrelink customers who make inquiries to Centrelink call centres, by increasing the number of Centrelink call centre staff and expanding the capacity of Centrelink’s call centre network by 1.22 million additional answered calls.

Centrelink Rural Call Centres—continuation of funding


Funding of $31.8 million over four years was provided to continue the operation of two rural call centres, in Port Augusta in South Australia and Maryborough in Queensland. These rural-specific call centres provide information and advice on Centrelink services to many rural and regional customers.

Centrelink service delivery—enhanced information technology capability


Funding of $312 million is being provided to Centrelink over five years to enhance the capabilities of its information technology systems and ensure continuing reliability. The funding will allow Centrelink to expand online services to customers (self-service) and enter working partnerships with community organisations. The funding will also allow Centrelink to increase payment accuracy through automated data matching and information exchange with businesses, government departments, banks and others.

By July 2007 Centrelink will have delivered a range of online services and will be undertaking real-time validation of customer circumstances with external parties. FaCS has a role in providing advice on the application of policy within the technology.


Clarke review—various Veterans’ Affairs measures affecting FaCS


In the 2004-05 Budget, the Government announced a range of initiatives in response to the Clarke review. An initiative that impacts on the FaCS portfolio is the Defence Force Income Support Allowance, which will create greater parity between Department of Veterans’ Affairs (DVA) disability pensioners who receive service pensions and those who receive social security payments.

Combating trafficking in persons—whole-of-government strategy


In October 2003 the Australian Government introduced a range of initiatives across several portfolios, led and coordinated by the Attorney-General’s Department, to significantly enhance the detection, investigation and prosecution of traffickers and help prevent the trafficking of persons. As part of a comprehensive set of victim support measures FaCS pays, through Centrelink, Special Benefit and Rent Assistance, where appropriate, to support victims of trafficking who are assisting law enforcement authorities. At 30 June 2004, four people were being paid Special Benefit and Rent Assistance under this arrangement.

Compliance reviews—expand data matching and asset reviews to identify incorrect payments

Compliance reviews—extend 2002-03 data-matching pilot

Disability Support Pensions—enhanced reviews

Identity fraud—improving and increasing the number of investigations

Parenting Payment—enhanced profiling to ensure correct payment


A range of measures were implemented that aim to minimise incorrect payments to customers, including: increased numbers of investigations into identity fraud; application of data matching to all payment types, and expansion of data sources used; and increased reviews each year (125 000 data- matching reviews; 20 000 Age Pension asset valuation reviews; and 43 000 compliance reviews).

Enhanced review and profiling measures and increased numbers of reviews for Parenting Payment and Disability Support Pension customers (27 000 additional Parenting Payment reviews and 61 000 Disability Support Pension targeted reviews each year) are also being implemented to ensure that Disability Support Pension and Parenting Payment customers receive their correct entitlement.



The measures generated savings of $111.94 million in 2003-04.

Disability Employment Assistance-improved viability of business services


An initiative of the 2003-04 Budget was a commitment of $25.4 million in tailored assistance to improve the viability of business services in the lead-up to quality assurance certification by December 2004. The assistance offered includes a business review by independent consultants and tailored assistance flowing from the review. Two hundred and twenty-seven business service organisations accepted the offer of assistance; at the end of June 2004, most business reviews are complete. To address the review recommendations, $12 million has been approved in tailored assistance funding, with more to be approved in the 2004-05 financial year.

Disability Employment Assistance-introduction of a case-based funding model


An additional $135.3 million is being provided over four years to implement case-based funding for all disability employment services (to be implemented progressively from 1 July 2004 to 30 June 2006). Case-based funding replaces current block funding arrangements in a way that is fair and equitable. It is a fee-for-service arrangement where fees are paid to disability employment services to assist jobseekers and workers to find and retain employment. Fees are linked to the jobseeker or worker’s support and are paid as employment milestones are reached. It is expected to improve employment outcomes for many people with disabilities and includes incentives for delivery in rural and remote areas, new apprenticeships and work-based personal assistance.

Holocaust payments-extension of means test exemptions


From 13 May 2003, the exemption from social security income testing for restitution payments made to Holocaust victims in relation to Nazi persecution was extended to all such restitution payments regardless of their country of origin. Previously only payments for restitution made by the German and Austrian governments were income-test exempt.

Household, Income and Labour Dynamics in Australia (HILDA) survey-extended funding


Policy development is also being informed by continued research using the HILDA survey. The continued work on the survey will provide the data needed to assess the effects of policy and other changes on families and household formation, labour market and education participation, and retirement and retirement preparation. Performance will be measured by an increase in the production of relevant research papers for policy development using the longitudinal data (38 papers produced in 2003 using the first wave of data); the production of relevant, reliable, comprehensive and accessible longitudinal data; and positive feedback from government agencies and academic institutions on the value of the HILDA survey to social and economic research and policy development.

King Island and the Furneaux Group of Islands—ex gratia payments in lieu of Remote Area Allowance


A total of 377 ex gratia payments were paid in lieu of Remote Area Allowance to eligible current and former income support recipients who resided on King Island and the Furneaux Group of Islands between July 1990 and June 2001. A determination by the Tax Office, relating to the rezoning of the islands in 2001 as a Special Tax Zone B, allowed relevant remote area tax benefits to be back-paid until July 1990, and the ex gratia payments ensured that income support recipients received similar treatment.

New military rehabilitation and compensation scheme


Under the new scheme, Australian military personnel who suffer an injury or contract a disease as a result of their service after 1 July 2004 will have improved rehabilitation and compensation payment options. The new benefits provide a more generous, equitable and flexible choice between pensions and lump sums in the event of severe injury, as well as an increase in the payments made to the spouses of any service personnel who die while on war-like service.

Notification arrangements for people departing Australia and consistent treatment of foreign debt recovery


The 2003-04 Budget strengthened the notification obligations for income support recipients travelling overseas. The Budget also promised that the full amount of a debt incurred as a result of receiving a foreign pension lump-sum payment would be recovered from both single and partnered customers, addressing an existing anomaly where foreign pension lump-sum payments are apportioned to each partner and only half the debt is recoverable.

Necessary administrative action was completed, and revised practices and procedures were introduced, to give full effect to these changes from 1 July 2004.


Our Universities—income support treatment of Commonwealth Learning Scholarships

Our Universities—income support treatment of fee-exempt scholarships

Our Universities—exempt fee-waiver and fee-pay scholarships from social security income tests


Measures have also been introduced from 1 January 2004 to facilitate increased higher education participation of students. The value of full fee-exempt scholarships provided by higher education institutions and Commonwealth Learning Scholarships are excluded from the assessable income of students who receive income support payments.

Measures have also been introduced from Budget night, 11 May 2004, to facilitate increased higher education participation of students by excluding the value of fee-waiver and fee-pay scholarships from the assessable income of students who receive income support payments. This includes scholarships offered in respect of the secondary, vocational education and training, and higher education sectors.


Pensioner Education Supplement—matching payments to study periods


The implementation of changes to the Pensioner Education Supplement (PES) — matching payments to study period’s measure meant that PES was not going to be paid over the summer vacation period for continuing students unless they were actually undertaking formal study during that time. The Government withdrew this Budget measure before implementation.

Recognising and improving the work capacity of people with disabilities—delayed implementation


The 2002-03 Budget included a measure to tighten Disability Support Pension eligibility provisions in the Social Security Act 1991. The new provisions would have increased support and employment opportunities for people with disabilities who have the capacity to work. The provisions would only have affected people applying for Disability Support Pension from 1 July 2003. Legislation to give effect to the changes has not yet been passed.

Research into emerging areas of risks to the social security system


Policy development is being informed by new research ($2.6 million in 2003-04) on emerging areas of risk to the social security system. The range of research projects undertaken under this funding is reported in Volume two, Part two, ‘Right payments to the right people’.

Social Security Act 1991—further legislative simplification


The Social Security Act 1991 is being further simplified (from 1 July 2004) to consolidate the Rent Assistance calculation process, clarify the payments recoverable when customers receive economic loss compensation payments, and clarify the definition of independence for Disability Support Pension youth customers to be consistent with that applied to Youth Allowance customers.

Social Security Agreement with Chile

Social Security Agreement with Malta—revised agreement


A revised international social security agreement with Malta was concluded and signed on 15 June 2004. The revised agreement is in line with the majority of Australia’s other agreements and limits coverage of Disability Support Pension to people who are severely disabled. The agreement is expected to be implemented from 1 July 2005. Performance will be measured by monitoring the variation in the number and value of new payments.

A new international social security agreement was implemented with Slovenia on 1 January 2004 and final legislative and treaty processes were completed for new agreements with Chile and Croatia (for implementation on 1 July 2004). These agreements will improve access to income support for people whose adult lives are spent both in Australia and in the agreement countries. The agreements cover Australian Age Pension and Disability Support Pension for people who are severely disabled. Performance will be measured through an increased number and value of foreign pensions paid into Australia and Australian pensions paid here and overseas.


Student Financial Supplement Scheme repeal


The Student Financial Supplement Scheme was repealed from 1 January 2004 in response to increasing levels of bad and doubtful debt and reduced take-up of loans under the scheme. This has followed the introduction of Youth Allowance and increased access to alternative commercial loan products and opportunities for students to supplement their income.

Sugar Industry Reform Program (SIRP) 2004— intergenerational transfer


FaCS is administering the intergenerational transfer element of the SIRP through the Commonwealth Financial Counselling Program (CFCP) and Family Relationships Services Program (FRSP). FaCS has provided funding to some of its existing service providers (such as Anglicare WA, Interrelate, Lifeline, Relationships Australia and Centacare) for the 2003-04 financial year. FaCS, in conjunction with service providers, is developing appropriate strategies and a funding model for funding in later years. FaCS is also administering the means test concessions for eligible farmers who pass on their farm to the next generation.

Temporary overseas absence provisions—reduction to 13 weeks


To encourage people who are of working age and on income support payments to remain in Australia and be available to contribute through employment or social participation, the 2003-04 Budget reduced the allowable period of temporary overseas absence for most pensions and allowances to 13 weeks from 1 July 2004. Age pensioners and people eligible for an Australian pension by virtue of an international social security agreement while they reside in the agreement country were not affected by this change.

Changes to Australia’s portability rules were agreed, required legislative amendments to the Social Security Act 1991 were introduced, and the new 13-week temporary overseas absence provisions came into effect on 1 July 2004. The changes were widely publicised through Centrelink and migrant media channels in Australia and overseas.




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