Contribution to Outcome 3
Support for carers contributes to Outcome 3 by helping to support carers through the provision of income support and income supplement payments.
Strategies
provide targeted income support and supplementary payments for carers that recognise their diversity
maintain policies that encourage the social and economic participation of carers, including voluntary or paid work and study
provide carers who wish to re-enter the labour market with assistance while in the caring role and when their caring responsibilities cease
increase community awareness of carer payment programs and other support for carers provided by the Government.
Outputs under Output Group 3.3 Carer Allowance
Carer Allowance is an income supplement for people who provide daily care and attention at home to a person who has disabilities or a severe medical condition. The payment is not means-tested; it is indexed annually.
Carer Payment
Carer Payment is an income support payment for people whose caring responsibilities prevent them from undertaking substantial workforce participation. The payment is means-tested and paid at the same rate as other social security pensions.
Performance summary Key achievements included:
payment of a one-off Carer Bonus of $1000 to eligible recipients of Carer Payment and a one-off Carer Bonus of up to $600 for Carer Allowance recipients for each eligible care receiver for whom they provide care
supporting the work of the National Family Carers Voice
completing the review of Carer Allowance customers who are carers of children whose eligibility had been assessed before July 1998 and had not been subject to medical review for five years
amending the lists of recognised disabilities that automatically qualify carers of children for Carer Allowance by adding or modifying six disabilities or medical conditions
completing the review of the lists of recognised disabilities used in the assessment of eligibility for Carer Allowance (Child).
Work is required to:
continue supporting the work of the National Family Carers Voice
contribute to the young carers summit being organised and conducted on the Government’s behalf by Carers Australia. The summit will provide young carers with the opportunity to obtain information and to talk with government at all levels about improving support for young carers.
evaluate the child and adult disability assessment tools
implement any recommendations from the review of the lists of recognised disabilities used in the assessment of eligibility for Carer Allowance (Child)
implement the 2004-05 Budget measures for carers, including:
extending Carer Allowance eligibility to carers who do not live with the person for whom they provide substantial levels of personal care on a daily basis
providing additional respite services and age-appropriate information to help young carers stay in education while also providing care
providing up to four weeks’ respite for parents aged 70 years and over who are caring for a son or daughter with disabilities when funding is matched by state and territory governments. Parents aged 65 to 69 years who care for a son or daughter with disabilities and need to spend time in hospital will be eligible for up to two weeks’ respite care.
piloting a range of programs that will further assist carers in their role
explore the issue of succession planning for parents of sons and daughters with severe disabilities by establishing an advisory body to work with the Australian Government and state and territory governments.
Financial and staffing resources summary
Table 58: Output Group 3.3—Support for carers
Group 3.3: Support for carers
|
(A)
Budgeta
2003-04
S’000
|
(B)
Actual
2003-04
S’000
|
Variation (column B minus column A) S’000
|
Budgetb
2004-05
S’000
|
Administered Expenses (including third party outputs)
|
Special Appropriations
|
Assistance to Carers
|
0
|
0
|
0
|
3767
|
Carer Allowance (Adult and Child) (Social Security (Administration) Act 1999)
|
942 341
|
965430
|
23 089
|
825943
|
Carer Payment (Social Security (Administration) Act 1999)
|
909606
|
921008
|
11402
|
945 200
|
Total Administered Expenses
|
1851947
|
1886 438
|
34491
|
i7749io
|
Price of Departmental Outputs
|
Policy Advice
|
1645
|
1645
|
0
|
2870
|
Purchasing, Funding & Relationship Management
|
773
|
773
|
0
|
1349
|
Research and Evaluation
|
195
|
195
|
0
|
339
|
Service Delivery (Centrelink)
|
16219
|
26 965
|
10746
|
23931
|
Service Delivery (other)
|
844
|
844
|
0
|
880
|
Revenue from Government (Appropriation) for Departmental Output Groups
|
19 676
|
30422
|
10746
|
29369
|
FaCS Componentc
|
3457
|
3457
|
0
|
5438
|
Centrelink Component
|
16219
|
26 965
|
10746
|
23931
|
TOTAL FOR GROUP 3.3
|
1871623
|
1916 860
|
45237
|
1804 279
|
Staffing Years (Number)
|
|
|
2003-04
|
2004-05
|
FaCS (including the Social Security Appeals Tribunal)
|
|
|
29
|
27
|
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. FaCS includes the Social Security Appeals Tribunal.
Performance information Administered items
The majority of performance information presented below is calculated using data for June 2004. This means that the information corresponds to a point in time rather than a yearly average.
Carer Allowance Effectiveness-adequacy Maximum payments to recipients-Carer Allowance to be regularly indexed in line with the Consumer Price Index (CPI)
Carer Allowance is indexed on 1 January each year.
Quantity Number of customers receiving Carer Allowance
198 083 received Carer Allowance (Adult)
96 153 received Carer Allowance (Child)
2856 received both Carer Allowance (Adult) and Carer Allowance (Child)
17 464 did not receive Carer Allowance (Child) but did receive a Health Care Card only (also 515 were ‘not coded’)
Number of people cared for by customers receiving Carer Allowance
339 630 Carer Allowance care receivers, including 205 663 adults, 111 774 children and 22 193 children for whom a Health Care Card only was received.
Price
$965.4 million
Carer Payment Effectiveness-adequacy Maximum payments to recipients-as a percentage of Male Total Average Weekly Earnings (MTAWE)
Carer Payment is adjusted twice a year in line with the Consumer Price Index (CPI). If the single pension rate (excluding the component added in as part of the new tax system) is less than 25 per cent of MTAWE, then Carer Payment is increased to that rate (with, for partnered recipients, a proportional flow-on to the partnered rate of pension).
Effectiveness-independence
Percentage of customers with income from employment and average amount of income from employment per fortnight (June 2004)—11 per cent of customers with an average amount of income from employment of $380 per fortnight
Percentage of customers with non-employment income and average amount of non-employment income per fortnight (June 2004)-88 per cent of customers with an average amount of non-employment income of $62 per fortnight
Effectiveness-take up/coverage
Percentage of Carer Payment customers also in receipt of Carer Allowance—76 per cent (June 2004)
Effectiveness-targeting
Percentage on part rate due to means test—Data were not available due to changes to Centrelink systems with the introduction of Working Credit in September 2003. Data for 2003-04 will be included in the 2004-05 annual report.
Quantity
Number of customers receiving Carer Payment—84 082
Number of people cared for by customers receiving Carer Payment (at June 2004)-89 404
Price
$921.0 million
Commentary
In 2003-04, the number of customers receiving Carer Payment increased by 11 per cent, down from a 13 per cent increase in 2002-03. The number receiving Carer Allowance decreased by 1 per cent, down from a 10 per cent increase in 2002-03. The change in customer numbers reflects a number of factors:
demographic changes, such as the ageing of the population and an associated increase in the incidence of people suffering from disabilities
greater public awareness of the two payments
the increase in numbers of people with disabilities and medical conditions being cared for at home
the liberalisation of the qualification criteria for Carer Payment
broader targeting of Carer Allowance
reduction in the number of Carer Allowance customers following the review in 2003 of the status of children whose eligibility had been protected from medical review for five years.
Departmental outputs Cost Ratio of departmental expense to administered expense
For every dollar spent on administered items under Output Group 3.3, 1.6 cents were spent on departmental outputs.
Policy advice Quality-customer satisfaction Ministers and ministers’ offices satisfied with the quality of policy advice and department meets standard for policy advice
Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.
Quantity
134 ministerial submissions and other written briefings or advice prepared; 600 ministerial replies to correspondence completed.
Price
$1.6 million
Purchasing, funding and relationship management Quality—assurance Department ensures that service providers meet terms and conditions of funding
The relevant areas in FaCS and Centrelink negotiated the Disability and Carers Output Specification for 2003-04. It establishes performance measures for the delivery of carer payments and services that FaCS purchases from Centrelink. This specification forms part of an overarching Business Partnership Agreement between the two organisations. A framework was developed to monitor and report against agreed standards for delivering services.
Quantity Number of contracts or service agreements under management
1—Business Partnership Agreement with Centrelink
Number of service providers under management
1—Centrelink, through the FaCS-Centrelink Business Partnership Agreement
Price
$0.8 million
Research and evaluation Quality-assurance Research and evaluation is of a high standard (timely, fulfils terms of reference, complete, methodologically sound) and contributes to policy understanding and development
Research and evaluation in progress met the timelines and terms of reference and used sound methodology. All research and evaluation was of a consistently high standard.
Quantity
Major pieces of research and evaluation completed-1
Price
$0.2 million
Service delivery Quality-assurance Service providers deliver services to the standards agreed with FaCS
The Business Partnership Agreement with Centrelink sets FaCS’ key result areas and performance measures for carer program payments. Centrelink monitors performance against agreed standards for the delivery of services.
Quality—customer rights and obligations Control of incorrect payment and fraud: savings in administered items arising from compliance activities
Review mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’. For the purposes of this report, these reviews include compliance reviews, service profiling and general program reviews.
In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe data indicated that 214 404 Carer Payment reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $1 376 475, and upward variations resulted in fortnightly increases of $261 664. It is estimated that debts totalled $6 705 643. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ‘Right payments to the right people’.
Percentage of reviews and appeals where the original decision is changed
Table 59: Reviews and appeals—Output Group 3.3, 2003–04
Payment type
|
Authorised
Review Officers
|
Social Security
Appeals Tribunal
|
Administrative
Appeals Tribunal
|
Reviews finalised
|
Percentage changed
|
Reviews finalised
|
Percentage changed
|
Reviews finalised
|
Percentage changed
|
Carer Allowance
|
1 197
|
22
|
294
|
25
|
43
|
9
|
Carer Payment
|
664
|
36
|
172
|
33
|
34
|
9
| Price
$27.0 million — Centrelink
$0.8 million — other
Output Group 3.4 I Support for the aged Contribution to Outcome 3
Support for the aged contributes to Outcome 3 by:
assisting retirees to make the best use of savings and investments to maintain their standard of living
helping to support the aged with limited means through the provision of income support
providing information and fostering opportunities for mature-age people to participate in their community.
Strategies
promote participation, independence and self-reliance among older Australians through policy development, education and advisory services
contribute to an adequate, sustainable and appropriately targeted social safety net through the means test and policy directions that focus on older Australians
enter into international social security agreements to enable Australians to gain access to overseas pensions and domestic benefits that would be otherwise unavailable
influence the policy debate about population ageing issues and retirement income issues
provide recognition for the contribution made by older Australians to building the community.
Outputs under Output Group 3.4 Ex gratia payments to Holocaust survivors
Restitution payments made to Holocaust victims regardless of the payment’s country of origin have been made exempt from the social security income test from 13 May 2003 under a measure announced in the 2003-04 Budget. Previously only payments made by the German and Austrian governments were exempt. All income support recipients who receive restitution payments in relation to Nazi persecution now receive consistent treatment under the social security income test. The ex gratia payments were made until legislation was passed.
National Information Centre on Retirement Investments (NICRI)
NICRI is an independent body funded by the Australian Government to provide the public with free and independent information on planning and saving for retirement, on the nature of investment options and on effective use of financial resources in retirement.
Support for the aged Age Pension
Age Pension is a payment for people of Age Pension age who cannot support themselves fully in retirement. Age Pension age is currently 65 years of age for men and 62.5 for women. The qualifying age for women is being progressively raised to 65 and will reach that age by 2014.
Widow B Pension
Widow B Pension is paid only to widowed, divorced and separated women aged 50 years and over on 1 July 1987, and women aged 45 and over on 1 July 1987 who received Sole Parent Pension (or one of its forerunners) on or after that date. The payment is being phased out in recognition of women’s increasing labour force participation, with no new grants from 20 March 1997.
Wife Pension (Age)
Wife Pension (Age) is a safety net payment for female partners of recipients of Age Pension where those partners are not eligible in their own right for the Age Pension. The payment is being phased out, with no new grants since 1 July 1995.
FaCS also makes Age, Wife (Age) and Widow B pension payments to people under various international social security agreements.
Pension Bonus Scheme
The Pension Bonus Scheme is intended to encourage older Australians to continue working beyond Age Pension age rather than retiring from the workforce and claiming Age Pension. It provides a one-off tax- free lump sum to eligible people. It is payable when a person registered in the scheme finally claims and receives Age Pension.
Telephone Allowance is available to Commonwealth Seniors Health Card holders to assist with the cost of maintaining a telephone service.
FaCS seniors publications
FaCS promotes independence and self-reliance through the promotion of a range of publications which, in addition to the information and services provided through the Financial Information Service (FIS) and NICRI, provide information to retirees and pre-retirees on planning, saving and preparing for retirement, on investment options and on the effective use of savings for self-support. The department works with industry bodies, other agencies and community groups in producing these publications. The publications are available through Centrelink offices and on the FaCS web site.
Performance summary Key achievements included:
major contribution to the development of the Australian government paper A More Flexible and Adaptable Retirement Income System.
The paper sets out responsibilities of the individual and government in financing retirement incomes, and highlights the importance of financial planning and preparation for retirement, and in particular the measures to:
increase choice and competition in the income streams market through a potential new product called a market-linked income stream
change the assets test exemption for complying income streams and introduce increased flexibility for people making the transition to retirement.
influencing and contributing to the ongoing policy debate on population ageing through conference papers and input to the Australian Government discussion paper Australia’s Demographic Challenges
major contribution to the development of Australian Government legislation to prohibit age discrimination
research designed to test FaCS seniors publications, which has found reaction to the publications extremely positive in all respects.
Work is required to:
develop further policy responses to the effects of population ageing and long-term demographic change, including through work with other departments
ensure that the social security means test is responsive to the effects of population ageing and the needs of working senior Australians
better promote the Pension Bonus Scheme and options that facilitate choices available to older Australians who are willing and able to continue working
further promote seniors programs that will help people better prepare for retirement, including NICRI, FIS and FaCS senior’s publications to ensure information reaches the target audience.
Financial and staffing resources summary
Table 60: Output Group 3.4—Support for the aged
Group 3.4: Support for the aged
|
(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)
|
Ex gratia Exempt Scholarships that Waive or Pay Tuition Fees
|
160
|
0
|
-160
|
340
|
Ex gratia payment to Holocaust Survivors
|
76
|
24
|
-52
|
0
|
National Information Centre on Retirement Investments
|
462
|
462
|
0
|
469
|
Special Appropriations
|
Age Pension (Social Security (Administration) Act 1999)
|
19 026 770
|
19 540 401
|
513 631
|
20 140 472
|
Aged Persons Savings Bonus (ANTS (Bonuses for Older Australians) Act 1999)c
|
0
|
13
|
13
|
0
|
Self-funded Retirees’ Supplementary Bonus (ANTS (Bonuses for Older Australians) Act 1999)
|
200
|
169
|
-31
|
0
|
Telephone Allowance for Commonwealth Seniors Health Card Holders (Social Security (Administration) Act 1999)
|
13 000
|
12 251
|
-749
|
13 300
|
Widow B Pension (Social Security (Administration) Act 1999)
|
27 958
|
26 275
|
-1 683
|
14 496
|
Wife Pension (Age) (Social Security (Administration) Act 1999)
|
193 707
|
194 176
|
469
|
174588
|
Total Administered Expenses
|
19 262 333
|
19 773 771
|
511 438
|
20 343 665
|
Price of Departmental Outputs
|
Policy Advice
|
6 534
|
6 535
|
1
|
9 197
|
Purchasing, Funding & Relationship Management
|
1 855
|
1 855
|
0
|
2 611
|
Research and Evaluation
|
3 195
|
3 196
|
1
|
4 498
|
Service Delivery (Centrelink)
|
222 482
|
233 935
|
11 453
|
237 973
|
Service Delivery (other)
|
1 255
|
1 254
|
-1
|
1 157
|
Revenue from Government (Appropriation) for Departmental Output Groups
|
235 321
|
246 776
|
11 455
|
255 436
|
FaCS Componentd
|
12 839
|
12 841
|
2
|
17 463
|
Centrelink Component
|
222 482
|
233 935
|
11 453
|
237 973
|
TOTAL FOR GROUP 3.4
|
19 497 654
|
20 020 547
|
522 893
|
20 599 101
|
Staffing Years (Number)
|
|
|
2003-04
|
2004-05
|
FaCS (including the Social Security Appeals Tribunal)
|
|
|
97
|
87
|
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.The aged persons’ savings bonus and the self-funded retirees’ supplementary bonus provided compensation to older Australians for A New Tax System in July 2000. Some residual claims result from the lodgement of taxation returns for the 2000-01 financial year.
d.FACS includes the Social Security Appeals Tribunal.
Performance information Administered items Ex gratia payments to Holocaust survivors Quality-assurance
Legislation approving the exemption of the Holocaust payments from the social security income test became law in December 2003. Ex gratia payments were made to affected customers from 13 May 2003 until the exemption became law.
Price
$0.02 million
National Information Centre on Retirement Investments (NICRI) Quality-assurance FaCS satisfied that NICRI met terms and conditions of government funding, as specified in contract between FaCS and NICRI
During 2003-04, NICRI:
addressed 66 retirement or Financial Information Service (FIS) seminars (51 FIS, 15 other), for which feedback was very positive
conducted training sessions for FIS officers and various community workers
distributed 177 558 information leaflets on types of investment, financial planning and preparation for retirement
responded to 4876 inquiries from the general public, financial advisers and FIS officers
maintained a web site at www.nicri.org.au, which was accessed 17 014 times.
Price
$0.5 million
Commentary
FaCS is satisfied that NICRI met the terms and conditions of government funding, as specified in the contract between FaCS and NICRI for 2003-04, by providing quality technical information to the public on retirement investment and planning, and by assisting Centrelink Financial Information Service officers.
Support for the aged Effectiveness-adequacy Maximum payments to recipients-as a percentage of Male Total Average Weekly Earnings (MTAWE)
The maximum basic rate and pension supplement for Age Pension, Wife Pension (Age) and Widow B Pension are indexed twice a year in line with increases in the Consumer Price Index (CPI). If, after CPI adjustment, the single maximum basic rate is less than 25 per cent of MTAWE, it is adjusted up to that benchmark, with proportional flow-on to the partnered maximum basic rate.
While indexation in line with CPI increases ensures payment rates reflect increases in prices, the MTAWE benchmark ensures pensioners share in any increases in community living standards as measured by growth in wages. The real value of pension payments has substantially increased over the last decade.
Maximum payments to recipients-index of real value
Figure 14 Maximum payments to recipients of pension—index of real value, June 1994 to June 2004
Table 61: Maximum payments to recipients of pension: index of real value, June 1994 to June 2004
Pension Type
|
Year
|
|
1994
|
1995
|
1996
|
1997
|
1998
|
1999
|
2000
|
2001
|
2002
|
2003
|
2004
|
Single Pensioner
|
100.0
|
98.1
|
100.0
|
101.2
|
102.4
|
103.3
|
103.0
|
105.0
|
107.2
|
108.9
|
112.1
|
with Rent Assistance
|
100.0
|
98.1
|
100.0
|
101.2
|
102.1
|
102.9
|
102.4
|
105.4
|
107.1
|
108.6
|
111.2
|
Pension Couple
|
100.0
|
98.1
|
100.0
|
101.2
|
102.5
|
103.4
|
103.1
|
105.1
|
107.3
|
109.0
|
112.2
|
with Rent Assistance
|
100.0
|
98.1
|
100.0
|
101.2
|
102.3
|
103.1
|
102.7
|
105.3
|
107.2
|
108.9
|
111.7
| Increases to the single pension rate: actual increases versus alternative CPI and MTAWE adjustments
Figure 15 Increases to single pension rate: actual increases versus alternative CPI andMTAWE adjustments, September 1997 to June 2004
Effectiveness-independence Percentage on part rate due to means tests
As at June 2004, 36.1 per cent of people receiving Age Pension, 22.4 per cent of women receiving Wife Pension (Age) and 25.0 per cent of women receiving Widow B Pension were receiving a part-rate pension.
Table 62: Income and asset value limits for full pension, as at 30 June 2004
|
Single $
|
Couple (combined) $
|
Income free area (per fortnight)
|
120
|
212
|
Asset value limit for home owners (home not included)
|
149 500
|
212 500
|
Asset value limit for non-home owners
|
257 500
|
320 500
|
Figure 16 Proportion of Age Pension customers receiving a part-rate pension, June 1994 to June 2004
Average reduction per part-rate pensioner
For those customers receiving a reduced Age Pension, the average reduction due to the means test has increased in the last year:
$94.80 per fortnight in 2000-01
$102.35 per fortnight in 2001-02
$103.32 per fortnight in 2002-03
$105.78 per fortnight in 2003-04.
Note: The increase in the proportion of customers receiving part-rate Age Pension is due mainly to an increase in assessable income.
Percentage of income units headed by a person aged 65 years and over:
with government pension as principal source of income
The Age Pension represents a large proportion of most people’s retirement income in Australia.
Australian Bureau of Statistics (ABS) figures show that the proportion of income units relying on pensions and benefits as their principal source of income where the person is aged 65 years or more fell from about 75 per cent in 1999-2000 to under 71 per cent in 2000-01:
74.1 per cent in 1996-97
73.4 per cent in 1997-98
74.7 per cent in 1999-2000
70.6 per cent in 2000-01.
with government pension contributing less than 20 per cent of income
with government pension contributing less than 50 per cent of income
ABS data for 2000-01 show the proportion of income units headed by a person aged 65 years and over where the Age Pension contributed to less than 50 per cent of income as follows:
Age Pension: 50 per cent of income — 29.3 per cent of income units
Age Pension: 20 per cent of income—17.8 per cent of income units
Age Pension: 1 per cent of income — 11.6 per cent of income units.
Average amount of assessed income
At June 2004, 95 per cent of persons receiving Age Pension, 94 per cent of women receiving Wife Pension (Age) and 79 per cent of women receiving Widow B Pension had assessed private income from sources other than their pension. Across all payment types included in Table 63, assessed income made up, on average, 25 per cent of total income (including pension).
Table 63: Percentage of customers of Age Pension, Wife Pension (Age) and Widow B Pension with assessable income (%) and their average assessed income ($), 2001–02 to 2003–04
|
2001-02
|
2002-03
|
2003-04
|
$
|
Per cent
|
$
|
Per cent
|
$
|
Per cent
|
Single age pensioners
|
2811
|
91.8
|
2932
|
91.8
|
3374
|
92.3
|
Partnered age pensioners
|
3336
|
97.8
|
3458
|
97.8
|
3838
|
98.0
|
Wife pensioners (Age)
|
2200
|
94.4
|
2266
|
94.4
|
2122
|
94.4
|
Widow B Pensioners
|
2541
|
80.7
|
2928
|
80.7
|
3206
|
79.3
|
In June 2004, 94 per cent of people receiving Age Pension had income from their own savings, with the annual average being $1348. The proportion of Age Pension customers receiving income from superannuation was 14 per cent. The annual average income from superannuation rose from $6153 in June 2003 to $6266 in June 2004.
Percentage of age pensioners with assessed income greater than $500 per annum
Proportion of people receiving Age Pension who had assessed income exceeding $500 per year:
66.2 per cent in 2000-01
62.9 per cent in 2001-02
63.7 per cent in 2002-03
67.5 per cent in 2003-04.
Ratio of assessed income to total income
Ratio of assessed income to total income (including pension):
$25.90 of assessed income to every $100 of total income in 2000-01
$24.00 of assessed income to every $100 of total income in 2001-02
$24.10 of assessed income to every $100 of total income in 2002-03
$25.50 of assessed income to every $100 of total income in 2003-04.
Effectiveness-take-up/coverage Percentage of estimated aged population who are customers
ABS estimates the Australian population over qualifying age for Age Pension at 2 817 120 persons in June 2004. At this time, around 67 per cent, or 1 876 250 persons, received Age Pension. In addition, around 299 416 people over Age Pension age received a similar means-tested income support payment from the Department of Veterans’ Affairs (DVA), bringing total government pension take-up for this group to 77 per cent.
Figure 17: Take-up of Age Pension, June 1994 to June 2004
Quality—access and choice Access for target or special interest groups
Women have a longer life expectancy and lower qualifying age for Age Pension than men. Subsequently, women comprise the greater proportion of people receiving Age Pension (59.4 per cent in June 2004). Women receiving Age Pension are less likely than men to have accumulated income and assets to provide for retirement and consequently have to spread their wealth over a longer retirement period. As a result, 65.5 per cent of women receiving Age Pension receive the full-rate compared with 61.6 per cent of men.
Almost 45 per cent of Age Pension customers are single and tend to be older than partnered pensioners. More single pensioners receive a full-rate pension than are partnered pensioners (70.2 per cent compared with 58.9 per cent). An increasing proportion of people receiving Age Pension are born overseas. In June 2004, 38.5 per cent of Age Pension customers assisted by Centrelink were born overseas.
Figure 18 Percentage of Age Pension customers born overseas, June 1994 to June 2004
Quantity
Number customers assisted
Number of people assisted by Centrelink at June 2004:
1 869 612 people paid Age Pension
19 646 women paid Wife Pension (Age)
1879 women paid Widow B Pension.
In addition, the Department of Veterans’ Affairs paid Age Pension to 6638 people and Wife Pension (Age) to 82 people.
Number of customers paid Rent Assistance
In June 2004, based on the number of people assisted by Centrelink:
10.4 per cent (194 427) of Age Pension customers were paid Rent Assistance
8.2 per cent (1604) of Wife Pension (Age) customers were paid Rent Assistance
8.7 per cent (164) of Widow B Pension customers were paid Rent Assistance.
Number of customers paid under international agreements Average value of payments
In June 2004, 28 325 Age Pensions were paid under agreements (excluding new Zealand and the United Kingdom), averaging $3875 per year per customer. In addition, 7430 Age Pensions were paid under the agreement with New Zealand at an average of $7834 per year per customer, and 1177 Age Pensions were paid under the agreement with the United Kingdom, averaging $5108 per year per customer.
In June 2004, 437 Wife (Age) Pensions were paid under agreements (excluding New Zealand and the United Kingdom), averaging $4120 per year per customer. In addition, 11 Wife (Age) Pensions were paid under the agreement with New Zealand at an average of $9360 per year per customer, and one was paid under the agreement with the United Kingdom, at a cost of $4394 in 2003-04.
In June 2004, 308 Widow B Pensions were paid under agreements (excluding New Zealand and the United Kingdom), averaging $5426 per year per customer. In addition, four Widow B Pensions were paid under the agreement with New Zealand at an average of $11 395 per year per customer.
Number of Commonwealth Seniors Health Card holders-287 326
Number of Pension Bonus Scheme registrations
In June 2004, among those over Age Pension age who were working, 33 per cent received Age Pension while they worked and another 17 per cent were registered in the Pension Bonus Scheme. On 30 June 2004, 67 975 people had registered in the scheme. In 2003-04 a total of $83 876 551 was paid in bonuses to 7407 people.
Price
$19.5 billion-Age Pension including (Deferred Age) Pension Bonus Scheme
$26.3 million-Widow B Pension
$194.2 million-Wife Pension (Age).
Telephone Allowance to Commonwealth Seniors Health Card holders Effectiveness-take Up/coverage
Percentage of eligible Commonwealth Seniors Health Card holders receiving Telephone Allowance-88 per cent
Quantity Number of Commonwealth Seniors Health Card holders receiving Telephone Allowance
— 252 127
Price
$12.3 million
Departmental outputs Cost Ratio of departmental expense to administered expenses
For every dollar spent on administered items under Output Group 3.4, 1.3 cents were spent on departmental outputs.
Policy advice Quality-customer satisfaction Ministers and ministers’ offices are satisfied with the quality of policy advice and FaCS meets standards for policy advice
Ministers and their offices did not provide feedback on individual output groups but did provide feedback on departmental performance as a whole. Information on ministers’ and their offices’ assessment can be found in Volume two, Part two, ‘Ministerial and parliamentary services’.
Quantity Number of items to ministers
255 ministerial submissions and other written briefings or advice prepared; 1458 ministerial replies to correspondence completed.
Price
$6.5 million
Purchasing, funding and relationship management Quality-assurance
Service agreements or contracts that meet legislative, government policy and departmental requirements in place with all service providers-100 per cent
Service providers meet terms and conditions of funding
FaCS ensures that service providers meet terms and conditions of funding.
Quantity
Number of contracts or service agreements under management-4
Number of service providers under management-4
Price
$1.9 million
Research and evaluation Quality-assurance Research and evaluation is of a high standard (timely, fulfills terms of reference, complete, methodologically sound) and contributes to policy understanding and development
100 per cent
Quantity
Major pieces of research and evaluation completed—1
Price
$3.2 million
Service delivery Quality-assurance Service providers deliver services to the standards agreed with FaCS Financial Information Service
Centrelink delivers the Financial Information Service (FIS). The service aims to encourage and assist people to maintain or improve their standard of living by planning effectively for their retirement and maximising their retirement income.
There are 141 FIS officers throughout Australia (122 full-time and 19 part-time). Between July 2003 and June 2004, FIS officers conducted 210 208 calls and 77 041 interviews. Over the same period 78 574 people attended FIS seminars. The seminars are increasingly focused on assisting and encouraging pre-retirees to commence planning for retirement.
Quality—customer rights and obligations Control of incorrect payment and fraud: savings in administered items arising from compliance activities
Review mechanisms common across most payment types for detection and control of incorrect payment and fraud are described in Volume two, Part two, ‘Right payments to the right people’. For the purposes of this report, these reviews include compliance reviews, service profiling and general program reviews.
In 2003-04, the Integrated Review System and an interrogation of the Centrelink mainframe data indicated that 424 604 Age Pension, Wife Pension (Age) and Widow B Pension reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $3 614 036, and upward variations resulted in fortnightly increases of $876 122. It is estimated that debts totalled $39 606 267. Performance outcomes for debt recovery and prosecution activity are reported in Volume two, Part two, ‘Right payments to the right people’.
Percentage of reviews and appeals relating to the Age Pension where the original decision is changed
Table 64: Reviews and appeals—Output Group 3.4, 2003–04
Payment type
|
Authorised Review Officers
|
Social Security Appeals Tribunal
|
Administrative Appeals Tribunal
|
Reviews finalised
|
Percentage changed
|
Reviews finalised
|
Percentage changed
|
Reviews finalised
|
Percentage changed
|
Age Pension
|
3429
|
38
|
1075
|
38
|
275
|
15
|
Wife Pension (Age)
|
68
|
38
|
27
|
33
|
5
|
0
|
Widow B Pension
|
42
|
24
|
13
|
15
|
0
|
0
| Price
$233.9 million — Centrelink
$1.3 million—other
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