Annual Report 2003-04 I volume 1
Output Group 3.2 I Support for people with disabilities
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Output Group 3.2 I Support for people with disabilitiesContribution to Outcome 3Support for people with disabilities contributes to Outcome 3 by: promoting independence and self-reliance through support for the provision of rehabilitation services, specialist employment services and other services for people with disabilities helping to support people with disabilities with limited means through the provision of income support.
Strategiesfinalise the Commonwealth State Territory Disability Agreement with all state and territory governments, focusing on better outcomes for people with disabilities and improved reporting and accountability improve targeting of Disability Support Pension consistent with the goals of increased participation and self-reliance fund research and develop projects in accordance with strategic priorities inform debate on policy issues by making data more accessible facilitate national events such as the Prime Minister’s Employer of the Year Awards and International Day of People with Disabilities facilitate participation of people with disabilities at national and international conferences facilitate access to information, including recreation information and video captioning deliver continuous improvement of disability employment assistance and rehabilitation services through the introduction of quality standards and the implementation of case-based funding and business service reforms. Outputs under Output Group 3.2Commonwealth State Territory Disability Agreement (CSTDA)The agreement provides the national framework for provision of specialist disability services. The Australian Government has responsibility for the planning, policy setting and management of specialised employment assistance for people with disabilities. The state and territory governments have similar responsibilities for most other specialist disability services, including accommodation support, respite care and community access programs. Support for advocacy, information and print disability is a shared responsibility. Disability Support PensionDisability Support Pension is a means-tested income support payment for people with a physical, intellectual or psychiatric impairment who are unable to work for at least 30 hours per week at award wages, or be reskilled for such work, within two years because of their impairment (special rules apply for people who are blind). Mobility AllowanceMobility Allowance is a non-means tested income supplement to help with transport costs for people with disabilities who are in employment, vocational training, a combination of work or training, voluntary work or job search who are unable to use public transport without substantial assistance. Sickness AllowanceSickness Allowance is a means-tested income support payment for people who are temporarily incapacitated for work or study due to illness and have a job or course of study to return to. Wife Pension (Disability Support Pension)Wife Pension (DSP) is a means-tested income support payment available to female partners of Disability Support Pension recipients who were on payment as at 30 June 1995. Since 1 July 1995, this payment has been closed to new applicants. Employment assistance and other servicesAdvocacyAdvocacy enables people with disabilities to more fully participate in community life, and achieve and maintain rights as citizens, involving their families where possible and appropriate. Caption and Information ServicesThe services help people with disabilities access recreation information and captioned entertainment videos for people who are deaf or hearing-impaired. Commonwealth Disability StrategyThe strategy is a whole-of-government approach to assist Australian Government agencies to design and deliver policies, programs and services that are accessible to people with disabilities. See Volume two, Part three, ‘Appendix 2’ for a report on FaCS’ performance against the strategy. Disability Employment Assistance ProgramThe program provides funding for employment and related services to assist jobseekers with permanent disabilities that require ongoing support to find and maintain employment. Employer Incentives StrategyThe strategy encourages employers to provide durable job opportunities for people with disabilities, including workplace modifications, wage subsidies, supported wage assessments and the disability recruitment coordinator service. National Disability Advisory CouncilThe council provides consumer-focused advice to the Minister for Family and Community Services on disability issues and encourages consultation between the Government and people with disabilities, families, carers and service providers within the disability sector. National Family Carers Voice (NFCV)The NFCV was established in August 2003 to provide an effective voice to government on family carer issues. The NFCV was appointed for two years to provide the Government with advice and options for addressing the longer-term needs of family carers. Prime Minister’s Employer of the Year AwardsThe awards recognise employers who have demonstrated excellence in employing people with disabilities. Print Disability ServicesThe services subsidise the production of print material in alternative formats such as audiotape and Braille. Rehabilitation servicesRehabilitation services improve function and independence of people with disabilities so they can gain or retain suitable employment or live independently. These services are provided on behalf of FaCS by CRS Australia. Performance summaryKey achievements included:agreement with all states and territories on the third Commonwealth State Territory Disability Agreement. The third agreement emphasises improved accountability and transparency for use of funding by all jurisdictions, better long-term demand management, and better cross-government linkages for services. introduction of service update reviews for people receiving Disability Support Pension, which provide opportunity for broad assessments of customers’ circumstances and offers of assistance to maximise participation presentation of the Prime Minister’s Employer of the Year Awards at Parliament House in October 2003 . These awards recognise businesses that employ people with disabilities, demonstrating that disability need not be a barrier to a successful and productive working life. completion of the first national study into supply and demand for Auslan interpreting services across Australia introduction of voluntary employer reporting to assist Disability Support Pension customers, working in Business Services and with variable employment income, with their fortnightly reporting requirements. Over 120 business services are registered for employer reporting and are able to report their employees’ earnings direct to Centrelink on a regular basis. Significant progress was made on implementing reforms to disability employment assistance with: finalisation of the case-based funding arrangements for disability employment assistance implementation of a range of resources to help disability employment assistance services prepare for the transition to case-based funding release of the business services wage assessment tool and the case-based funding prices for business services and open employment services in April 2004 reviews of business services by independent consultants progress with the ‘Security, Quality Services and Choice for People with Disabilities’ measure announced in April 2004, which provides a flexible funding package to help business services improve their viability and to meet the costs of fairer, award-based wages nature of the reforms to disability employment assistance services significantly influenced by consultations with people affected by the reforms. The ‘Security, Quality Services and Choice for People with Disabilities’ package announced in May 2004 was shaped by public consultations held around Australia in 2001, 2002, and again in October and November 2003. These consultations involved providers, consumers, families and carers, and representative bodies of all these groups. completion of a mid-term review of the quality strategy for disability employment assistance and rehabilitation services, which identified the improvements that can be made to ensure that the best possible administrative arrangements are in place by the end of December 2004 release of approximately 3000 additional disability employment assistance places funded under the AWT measure. Around 6000 new jobseekers were assisted under the measure in 2003-04.
Work is required to:monitor the outcomes from the Australians Working Together Better Assessment and Early Intervention measure to identify ways of maximising participation for people with disabilities further consider policy options to improve effectiveness of the Disability Support Pension program pursue research into disability and employment issues in partnership with research institutions establish the new national Auslan interpreter booking service and work with state and territory governments to increase the supply of accredited Auslan interpreters continue the assistance to business services through implementation of the ‘Security, Quality Services and Choice for People with Disabilities’ package of measures aimed at ensuring people with disabilities in business services enjoy continued service, choices in their employment and payment of award-based wages in a quality environment implement case-based funding progressively from 1 July 2004 undertake monitoring and evaluation activities related to the Budget measures improve access to, and outcomes from, mainstream services for people with disabilities. Financial and staffing resources summaryTable 50: Output Group 3.2—Support for people with disabilities
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.Departmental appropriations for Rehabilitation Services (CRS) have been reclassified as administered appropriations from 1 July 2003. d.FaCS includes the Social Security Appeals Tribunal. Performance informationAdministered itemsCommonwealth State Territory Disability AgreementThe Commonwealth State Territory Disability Agreement provides the national framework for the delivery, funding and development of specialist disability services for people with disabilities. Under the agreement the Australian Government has responsibility for the planning, policy setting and management of specialised employment assistance. The state and territory governments have similar responsibilities for accommodation support, community support, community access and respite. Support for advocacy and print disability is a shared responsibility. Services administered by the state and territory governments, with some Australian Government financial support, are addressed on pages 184-185. Services administered by the Australian Government are addressed on pages 185-193. Effectiveness-capacityProportion of accommodation customers receiving community-based care or support This area is an agreed responsibility of state and territory governments. No maximum or minimum capacity is set by the Australian Government. Information on usage is collected by the Productivity Commission. Services provided with Australian Government unmet-need funds Reporting on this has ceased since funds are no longer separately identified. Effectiveness—take-up/coverageNumber of estimated potential population using accommodation services This area is an agreed responsibility of state and territory governments. No maximum or minimum capacity is set by the Australian Government. Nationally, 3.0 per cent of the estimated potential population were users of accommodation support services on the snapshot day in 2002 (Productivity Commission, Report on Government Services 2004, page 13.16). Effectiveness-targetingProportion of customers from linguistically and culturally diverse or Indigenous backgrounds Table 51: CSTDA-funded services—percentage of service users from linguistically and culturally diverse and Indigenous backgrounds by service type, 1 January to 30 June 2003
Source: Commonwealth State Territory Agreement Annual Public Report 2002-03. Note: Service user data are estimates after use of a statistical linkage key to account for individuals who received more than one service during the six months. QuantityNumber of customers in different service types Table 52: CSTDA-funded services—number of service users and services received by service type, 1 January to 30 June 2003
Source: Commonwealth State Territory Agreement Annual Public Report 2002-03. Note: For each service user, the number of ‘services received’ represents the number of different service type outlets from which the service user has received services. Service user data are after use of a statistical linkage key to account for individuals who received more than one service during the six months from 1 January to 30 June 2003. Totals may not be the sum of the components since individuals may have accessed services from more than one state or territory over the six-month period. Price$559.0 million CommentaryThe revised data set is now collecting whole-of-year data instead of a single snapshot day. Due to the redevelopment of the new CSTDA national minimum data set, the number of consumers of CSTDA services by disability type, from linguistically and culturally diverse backgrounds, Indigenous backgrounds and use of service types for 2003-04 was not available for inclusion in this report. The revised data collected will improve the range and quality of information about the people who receive CSTDA-funded services. Disability support: Disability Support Pension, Mobility Allowance, Sickness Allowance and Wife Pension (DSP)Effectiveness-adequacyMaximum payments to recipients-as a percentage of Male Total Average Weekly Earnings (MTAWE) Disability Support Pension and Wife Pension (DSP) are adjusted twice a year in line with the Consumer Price Index (CPI). After the CPI adjustment, if the single pension rate is less than 25 per cent of Male Total Average Weekly Earnings, it is increased to that level (with a proportional flow-on to the partnered rate of pension). Rent Assistance is also indexed to the CPI. The maximum rate of Disability Support Pension depends upon whether a person is aged under 21 and/or has dependent children.
The real value of Sickness Allowance and Mobility Allowance is maintained through annual indexation in line with the CPI. Effectiveness-independenceAverage duration of payment Disability Support Pension: 7.5 years (30.9 per cent for less than three years, 26.7 per cent for 10 years or more) Sickness Allowance: 34 weeks
Disability Support Pension: 9 per cent of clients with an average amount of income from employment of $388 per fortnight Wife Pension (DSP): 20 per cent of clients with an average amount of income from employment of $579 per fortnight
Disability Support Pension: 82 per cent of clients with an average amount of non-employment income of $86 per fortnight Wife Pension (DSP): 87 per cent of clients with an average amount of non-employment income of $45 per fortnight
Effectiveness-take-up/coveragePercentage of people of workforce age who receive Disability Support Pension or Wife Pension (DSP) or Sickness Allowance or Mobility Allowance 744 439 people received disability-related benefits, or around 7.3 per cent of the Australian civilian labour force population. 93.6 per cent received Disability Support Pension. 4.5 per cent received Wife Pension (DSP). 1.1 per cent received Sickness Allowance. Of the 47 402 customers receiving Mobility Allowance, 41 327 also received Disability Support Pension. A total of 2293 customers receiving Mobility Allowance were receiving other forms of income support. Effectiveness-targetingPercentage of customers by disability typeDisability Support Pension: Musculo-skeletal conditions: 34 per cent Psychological/psychiatric conditions: 25 per cent Intellectual/learning difficulties: 11 per cent Sickness Allowance: Musculo-skeletal conditions: 15 per cent Depression: 13 per cent Fracture and crush injuries: 12 per cent Percentage on part rate due to means testData 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. QuantityNumber of customers in receipt of assistanceDisability Support Pension: 696 742 Wife Pension (DSP): 33 183 Sickness Allowance: 8478 Mobility Allowance: 47 402 Number of customers paid under international agreements-2870 Average value of payments for DSP at June 2004-$6698 per year Price$7.5 billion-Disability Support Pension $82.2 million-Mobility Allowance $85.4 million-Sickness Allowance $326.1 million-Wife Pension (DSP) CommentaryIn 2003-04, the Disability Support Pension population increased by 3.5 per cent. With the exception of 2001-02, the rate of increase has gradually slowed since the 13.3 per cent increase recorded in 1991 following the introduction of the disability reform package. Since the implementation of the Australians Working Together Better Assessment and Early Intervention measure in 2002, the rejection rate for Disability Support Pension claims has increased from 33 per cent in 2001-02 to 37 per cent in 2003-04. That measure introduced independent assessment of work capacity to provide Centrelink staff with better information about the appropriate payment and service needs of people with varying degrees of incapacity for work. Customers receiving Disability Support Pension are more likely to be male; however, the proportion of female customers is increasing, mainly due to the closure of other forms of income support payments, such as Wife Pension (DSP) and Widow B Pension, and the increasing Age Pension qualifying age for women. Customers are more likely to be between 45 and 65 years of age. The three largest categories of disability type are musculo-skeletal conditions, psychological/psychiatric conditions and intellectual/learning difficulties. The proportion of customers in each of these categories has remained largely unchanged over the past few years. Service update reviews introduced in September 2003 have contributed to an improvement in payment correctness as indicated by a reduction in the average amount of debt accrued by Disability Support Pension customers, suggesting that incorrect payments are being detected earlier.
Employment assistance and other servicesDisability Employment Assistance ProgramEffectiveness-early interventionNumber of young people (15-24 years) assisted as a proportion of new jobseekers (block grant funding)-38 per cent Effectiveness-targetingPercentage of customers from linguistically and culturally diverse backgrounds-7 per cent Quality-assuranceNumber of disability employment services certified under the post-30 June 2002 Disability Service Standards Under the new quality assurance system 54 per cent of disability employment services achieved certification by 30 June 2004. The remaining disability employment services are scheduled to have audits before the end of December 2004. Number of disability employment services meeting the pre-1 July 2002 Disability Services Standards All services met the standards in place before 1 July 2002 or had acceptable action plans for meeting the pre-1 July 2002 standards. Service quality was monitored through annual self-assessment, five-yearly audits and review of standards action plans by FaCS state and territory offices. QuantityNumber of customers receiving assistance from funded specialist disability employment services (block grant and case-based funding)-68 137 Percentage increase in the number of customers assisted by funded specialist disability employment services since 1996-97 (both block grant and case-based funding)-61.1 per cent Block grant fundingEffectiveness-capacityPercentage of all customers who have achieved a sustainable employment outcome (13 weeks of work) under block grant funding-62.8 per cent Percentage of new jobseeker customers who have achieved a sustainable employment outcome (13 weeks of work) under block grant funding-32.5 per cent Case-based fundingEffectiveness-capacityNumber of jobseekers who have achieved a sustainable employment outcome (26 weeks of work), as a proportion of all jobseekers under case-based funding since November 1999— 35 per cent Percentage of new jobseeker customers who have achieved a sustainable employment outcome (26 weeks of work) under case-based funding—35 per cent Effectiveness—early interventionNumber of young people (15-24 years) in employment assistance, as percentage of all new jobseekers (case-based funding only)—39.9 per cent Respite for carers of young people with severe or profound disabilitiesQuantityNumber of carers of young people with severe or profound disabilities assisted by Australian Government-funded respite centres—5737 Employer incentivesQuantityNumber of customers assisted under the employer incentives strategy programs of wage subsidy, supported wage system, and workplace modifications Wage subsidy scheme: 2580 Supported wage system: 3425 Workplace modifications scheme: 275 Total price$350.6 million CommentaryA number of research and evaluation activities were undertaken during the year to provide a solid evidence base to support the disability employment assistance reforms and to help create a viable, sustainable business service sector. The mid-term review of the 2001-02 Budget measure introducing a quality strategy for disability employment assistance services confirmed that the system provides a robust system for determining whether disability employment and rehabilitation services comply with the Disability Services Standards. The review also found that FaCS faces a number of challenges, including sustaining industry focus on achieving certification by December 2004. Case-based funding prices for both open employment services and business services were subject to lengthy trialling and evaluation before being announced. Financial modelling tools were developed to enable services to predict their likely future funding levels in both transition to and a full case-based funding environment. A panel of consultants was convened to review the viability of business services. Reviews of most business services were completed during the year and these have laid a solid foundation for the implementation of the business services assistance package. In order to monitor the introduction of the reforms and evaluate their success, an evaluation framework and plan for the reforms were developed. These will ensure the design and planning of monitoring and evaluation activities are well coordinated, that appropriate linkages between evaluation-related activities are established and maintained, and that timely and relevant evaluation information is available. During 2003 a safety net discussion paper was distributed to facilitate a national round of consultations. The consultations, involving 202 sessions nationally, were undertaken to provide information on the objectives and content of disability employment assistance reforms and their impact on customers and their families, and information on case-based funding and its implications for business services. The consultations involved business services, people with disabilities, their families and carers and local disability stakeholders. The consultations highlighted anxiety about the cost of paying pro-rata award based-wages, continuity of service and the possible impact of wages on Centrelink assistance provided to families, carers and people with disabilities. Feedback from the consultations and subsequent written submissions were used to formulate the ‘Security, Quality Services and Choice for People with Disabilities’ package announced in May 2004. Extensive trialling of the new wage tool for business services was undertaken in 2002-03. Its release was delayed following the Business Services Review Implementation Group’s request to further test its methodology. The new wage tool was demonstrated with a representative sample of 31 business services in 2003-04. The wage tool was subject to extensive independent expert review and found to be reliable, transparent and consistent with modern wage remuneration practices. The Business Services Review Implementation Group (BSRIG), a joint initiative with ACROD, the national industry association for disability services, was established in 2001 to assist the business services sector to implement the 52 recommendations of the business services review report released in 2000. The BSRIG continues to develop advice on strategies to assist business services to improve their commercial performance. Approximately 3000 additional disability employment assistance places funded under the AWT measure were released. Around 6000 new jobseekers were assisted under the measure in 2003-04.
Rehabilitation servicesFaCS continued to purchase rehabilitation services from CRS Australia in 2003-04. Effectiveness-capacityNumber of new customers assisted on a rehabilitation program New customers assisted: 24 535 Existing customers assisted: 16 819
A total of 23 587 customers exited from a CRS rehabilitation program during 2003-04 and of this number 16 064 customers achieved an outcome. An employment outcome of 13 weeks or more was achieved by 8874 customers (37.6 per cent). An ‘other’ economic outcome (for example, studying, supported employment or voluntary work) was achieved by 1901 customers (8.1 per cent) and a social outcome (for example, seeking work and increased community participation) was recorded by 5289 customers (22.4 per cent). In addition, 475 customers completed an independent living program and achieved increased social participation. Percentage of customers achieving outcomes in CRS Australia rehabilitation programs Table 53: Customer outcomes in CRS Australia rehabilitation programs, 2002-03 and 2003-04
a. In 2003-04, CDEP has been removed as an employment outcome and is now included as an ‘other’ economic outcome. b. Total programs less independent living programs. Effectiveness-targetingPercentage of customers from linguistically and culturally diverse backgrounds, and by disability, gender and age Table 54: New customers supported by CRS Australia by special needs groups, 2003-04
Note: ‘Rural and remote’ incorporates the Accessibility/Remoteness Index of Australia (ARIA) classifications Moderately Accessible, Remote and Very Remote. Capital and Metropolitan incorporates ARIA classifications Accessible and Highly Accessible. Table 55: New customers supported by CRS Australia by primary disability type, 2003–04
Table 56: New customers supported by CRS Australia by age and gender, 2003–04
Quality-assuranceCRS Australia delivers services to the agreed standards CRS Australia provides services under and in accordance with Part III of the Disability Services Act 1986, and under the terms and conditions set out in its service-level agreement with FaCS. CRS Australia delivered services to the standards agreed under the service-level agreement for rehabilitation services. CRS Australia successfully completed the accreditation process under the recently introduced quality assurance framework for disability employment and rehabilitation services. Of all customers responding to the CRS Australia feedback survey, 91 per cent rated CRS Australia service as good to excellent, with 62 per cent rating CRS Australia as excellent.
QuantityNumber of customers assisted on a rehabilitation program In 2003-04 CRS Australia was contracted to provide assistance to 39 445 eligible customers, consisting of 22 626 new customers (+/- 5 per cent) and 16 819 existing customers in 2003-04. CRS Australia exceeded this requirement, providing services to 24 535 new customers in addition to 16 819 existing customers, or 41 354 customers in total. Price$119.2 million CommentaryA cost-benefit analysis of vocational rehabilitation was undertaken by Curtin University, indicating a total benefit-to-cost ratio of 30:1—that is, for every $1 spent by the Australian Government, there is over a $30 return in public and social benefits. CRS Australia received additional funding under the Australians Working Together package, which enabled it to assist 4800 additional mature-aged jobseekers and parents in 2003-04. CRS Australia undertook three early intervention pilot projects testing the effectiveness of a group program for youth and mature-aged jobseekers with a disability regarded as lacking the motivation to undertake a vocational rehabilitation program. The model was seen to be an effective one in improving participants’ readiness to participate in vocational activity. At the completion of the pilots over 75 per cent of participants moved on to a vocational activity, paid work, or further study. Most participants reported personal gains in managing their health and disability. Departmental outputsCostRatio of departmental expense to administered expense For every dollar spent on administered items under Output Group 3.2, 3.3 cents were spent on departmental outputs. Policy adviceQuality-customer satisfactionMinisters and ministers’ offices satisfied with the quality of policy advice and department 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’. QuantityNumber of items to ministers 324 ministerial submissions and other written briefings or advice prepared; 1142 ministerial replies to correspondence completed. Price$7.8 million Purchasing, funding and relationship managementQuality—assuranceDepartment 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 disability payments and services that FaCS purchases from Centrelink. This specification formed part of the overarching Business Partnership Agreement between the two organisations. A framework was developed to monitor and report against agreed standards for delivering services. Service providers’ performance is monitored through regular reports specified in funding agreements. All service providers meet the terms and conditions of funding.
Such agreements are in place with all providers. QuantityNumber of contracts or service agreements under management (both departmental and administered)-547 Number of service providers under management (both service outlets and consultants or contractors) -952 Price$22.9 million Research and evaluationQuality-assuranceResearch 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 during 2003-04 met the timelines, terms of reference and used sound methodology. All research and evaluation was of a consistently high standard. QuantityMajor pieces of research and evaluation completed-8 Price$6.0 million Service deliveryQuality-assuranceService providers deliver services to the standards agreed with FaCS-100 per cent Quality—customer rights and obligationsControl 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 a total of 548 783 Disability Support Pension, Wife Pension (DSP), Sickness Allowance and Mobility Allowance reviews were completed. It is estimated that rate reductions resulted in fortnightly savings of $8 003 651, and upward variations resulted in fortnightly increases of $1 942 185. It is estimated that debts totalled $57 717 679. 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 57: Reviews and appeals—Output Group 3.2, 2003-04
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