Department of Families, Housing, Community Services and Indigenous Affairs

Key priorities for 2011–12

Building Australia’s Future Workforce

For FaHCSIA, promoting participation will mean increased opportunities and greater recognition of the potential capacity of people receiving Disability Support Pension (DSP). For new and existing DSP recipients aged under 35, extra focus will be given to ensuring that those with an assessed work capacity of 8 or more hours a week can maximise their social and economic participation. They will be required to attend periodic participation interviews with Centrelink to develop participation plans that will help them build their capacity and, potentially, lead to employment. The Budget includes a measure to allow DSP recipients to work up to 30 hours a week and remain eligible for a part pension, subject to income testing. This measure applies to recipients granted after May 2005 under the 15-hour work capacity rule and will enable them to maximise their working hours without having their pension suspended or cancelled.

The Department will also continue to implement already announced improvements, such as revised DSP assessment procedures to ensure they support workforce participation of people with disability, wherever possible. The Government will continue to improve its Disability Support Pension (DSP) assessment procedures, to ensure claimants receive a thorough assessment from an experienced assessor. To fast track these improvements, the implementation date of a key element of the 2010-11 Budget measure – Job Capacity Assessment – has been brought forward from 1 January 2012 to 3 September 2011. This measure will deliver more accurate and efficient assessment for DSP and employment services as well as inform referrals to specialised assistance such as physical rehabilitation or mental healthcare and counselling services.

Jobless families, including teenage parents, are also key groups requiring specific and focused assistance. The Budget includes a range of initiatives to address the heightened risks some families face in communities facing entrenched disadvantage and long-term welfare dependence, including new participation requirements and support services for teenage and jobless parents, and income management. These measures include a number of place-based initiatives targeting locations where a higher proportion of the population face more entrenched disadvantage or are at greater risk of becoming disadvantaged. This approach will ensure the Government has the evidence it needs to guide future developments to what works best. The

Other key supports FaHCSIA provides, such as housing, are crucial foundations for ensuring people are in a position to participate.

Supporting families

The 2011–12 Budget provides more support for low- and middle-income families raising children by increasing family assistance to support teenagers in school, making advance payments more flexible, and encouraging parents receiving income support payments to get health checks for their children before they start school.

The Government will also increase payments for families of teenagers aged 16 to 18, and for 19 year olds if they are still at school. Each year, the families of about 130,000 teenagers will benefit from increased support. Families with teenagers turning 16, 17, 18 or 19 in 2012 will be the first to benefit if their children are in school. From 1 January 2012 Australian families will receive increases of up to $4,200 a year per teenager to help them meet the costs of raising older children, and encourage more teenagers to stay in school. From 1 January 2012, the FTB Part A maximum age of eligibility will be lowered from 24 to 21 years. This brings FTB Part A in line with the Youth Allowance age of independence.

The 2011–12 Budget continues the income management pilots in Cape York, the Kimberley, and metropolitan Perth, and extends child protection, voluntary and vulnerable income management measures to five new communities of high disadvantage. The Department will also continue to deliver the new, non-discriminatory income management model in the Northern Territory. Income management forms part of the Government's commitment to progressively reforming the welfare and family payment system to foster responsibility and to provide a platform for people to move up and out of welfare dependence. Income management is a key tool in the reforms to make sure welfare payments are used in the best interests of children.

This Budget includes also includes funding to extend the School Enrolment and Attendance Measure (SEAM) in trial locations in the Northern Territory and Queensland for a further 12 months. SEAM places conditions on parents’ income support payments to increase the level of school enrolment and attendance in communities where it is low.

In 2011–12, FaHCSIA will continue to implement remaining aspects of previously announced reforms, such as Australia's first Paid Parental Leave (PPL) scheme, which commenced on 1 January 2011. For the first time, many Australian families, particularly low-income earners, seasonal workers, casual workers, contractors and the self-employed have access to government-funded parental leave. The scheme will ensure parents can spend valuable time with their newborns while maintaining their connection to the workforce. It is estimated that 148,000 families each year will be eligible for the scheme. From 1 July 2011, employers will be required to provide the government-funded parental leave pay for children born or adopted on or after that date to their eligible long-term employees. The Family Assistance Office provides parental leave pay to eligible parents who do not receive it from their employer. To ensure the smooth delivery of Australia’s first national PPL scheme, Paid Paternity Leave will begin on 1 January 2013 instead of 1 July 2012. Paid Paternity Leave will provide eligible working fathers or partners with two weeks’ pay at the National Minimum Wage (currently $570 a week before tax) for children born or adopted from 1 January 2013. Paid Paternity Leave will be available to full time, part time, casual, contractor and self-employed workers.

The first-ever National Standards for Out of Home Care will also begin on 1 July 2011. The new national standards will provide a consistent benchmark for the care of children and young people who are unable to live with their parents, no matter where they are.

Balancing the additional support provided for families with higher needs, the Budget also includes measures that reinforce a strong budgetary position and favourable economic performance, including a pause in indexation of family payment thresholds and income limits for higher income families for a further two years.

Assisting vulnerable Australians

The Government is investing to assist vulnerable individuals and families at risk of exclusion to access the opportunities most of us enjoy, with help to manage their finances, as a key foundation of lifelong resilience and wellbeing.

The 2011–12 Budget provides secure and ongoing funding for emergency relief and Commonwealth financial counselling services. This funding represents an increase of 60 per cent on emergency relief base funding, and continues 77 full time equivalent financial counsellors funded in responses to the global economic recession. In areas affected by floods and cyclones, base funding will be maintained at the higher levels that applied during the economic downturn for 18 months while these communities rebuild. These programs help very vulnerable Australians in financial crisis get back on track. This funding will ensure that Australia’s most financially vulnerable and disadvantaged people remain able to access support.

The 2011–12 Budget also provides funding for the Financial Literacy and Micro-Finance Programs that were announced in the 2009–10 Budget. This ensures initiatives such as no and low-interest loans and matched savings programs delivered in partnership with the major banks and community organisations can continue. These programs have a large reach and a proven record in building long-term financial resilience. The Innovative Indigenous Projects component of this measure allows for continued support for the Financial Management Resource Support Unit and the ‘Moneymob talkabout’ mobile money management education unit.

In 2011–12 FaHCSIA will continue to work on gambling reform to address problem gambling and the negative impacts it has on individuals, families and children. Building on work that commenced with the Government commissioning the Productivity Commission in 2008 to report on the issue, FaHCSIA will progress toward implementation of a best practice full pre-commitment scheme for electronic gaming machines and other initiatives to reduce negative consequences of problem gambling on the community.

Support for people with disability and mental illness and their carers

The Government is focused on ensuring that people with disability are supported in all aspects of their lives, and disability reform will be a key priority for 2011–12.

On 13 February 2011, COAG endorsed the National Disability Strategy, the first national strategy to provide a long-term road map for improving the lives of Australians with disability, their families and carers. The National Disability Strategy sets a 10-year reform plan for all governments to address the barriers faced by Australians with disability. It will help ensure that mainstream services and programs including health care, housing, transport and education address the needs of people with disability. Implementing the strategy, including a number of new initiatives such as Accessible Communities, Leaders for Tomorrow and the Increasing Accessibility Library Initiative, is a key priority for 2011-12.

Considering and responding to the Productivity Commission's inquiry into long-term care and support for people with disability will be a significant area of work for the portfolio in 2011–12. A draft report was released on 28 February 2011, with the final report to be provided at the end of July 2011.

The Better Start for Children with Disability initiative in this Budget will ensure children with certain disabilities that affect their development have access to intensive early intervention therapies and treatments from expert health professionals. From 1 July 2011, children diagnosed with sight and hearing impairments, cerebral palsy, Down syndrome or Fragile X syndrome will benefit under the program. Children under six with a diagnosis of a listed disability will be eligible to receive up to $12,000 (to a maximum of $6,000 per financial year) for early intervention services. Eligible children in outer regional and remote areas will be able to access an additional $2,000 to help them access services. In addition, a number of new Medicare funded diagnosis and treatment services will be made available for children diagnosed before the age of 13 years with these conditions.

This Budget provides additional help for children with autism spectrum disorders through extra funding for early intervention services under the Helping Children with Autism initiative to meet increased demand.

Recognising the value of community experience and approaches in addressing these issues, the Government is also establishing a Supported Accommodation Innovation Fund. The Fund will help support community organisations that build innovative and sustainable, supported accommodation places for people with disability living in the community. The Fund provides an extra $60 million over three years and the first funding round will commence in late 2011.

As part of FaHCSIA’s commitment to enabling people to participate in society, this Budget announces significant additional support for community mental health. Investment of an additional $154 million for community organisations to employ 425 new personal helpers and mentors to work one-on-one with people with mental illness to help them participate in society. These new mentors provide increased opportunities for recovery by helping people with mental illness to overcome social isolation and increase their connections to the community with the support of personal helpers and mentors.

The Government is investing $61 million over five years to establish 40 new Family Mental Health Support Services. These new support services will provide more than 32,000 children and young people with, or at risk of mental illness with a range of flexible supports tailored to meet their needs such as family support and counselling, information and referral to clinical or other community services, home based support and education and skill development. 

The Government is also investing $54.3 million over the next five years for extra mental health respite services.  The respite services will give 1,100 families and carers of people with mental illness greater access to flexible respite and support services.

The Government is committed to ensuring carers are supported and receive recognition for their role. The National Carer Strategy will be delivered in 2011 to acknowledge the vital role of carers and, importantly, improve supports for carers. The Strategy has been developed in consultation with state and territory governments, carers, service providers and peak bodies. The Australian Government discussion paper Towards a National Carer Strategy formed the basis for nation wide targeted consultations and a written submission process undertaken in 2010.

The Government is building on measures such as greater financial security for carers through increases to the Carer Payment and an annual ongoing Carers Supplement with new services for carers. As part of reforms announced earlier in the year, carers and their families will be able to access improved family relationship and support services that cater specifically to their needs, under reforms to the Family Relationship Services for Carers initiative. From 1 July this year the Family Relationship Services for Carers initiative will be integrated into the Government’s Family Support Program.

Support for seniors

FaHCSIA will continue to work to support the wellbeing of Australian seniors. The Secure and Sustainable Pension Reform package has been successfully implemented. Most components commenced from 20 September 2009, with two further measures implemented from 1 July 2010 (improved pension advances and the option to receive the Pension Supplement quarterly). The Department will continue to monitor the impacts of the package, including its longer term effects. The Government has committed to enhancing the work bonus arrangements for age pensioners from 1 July 2011, subject to the passage of legislation. To respond to the long-term cost of demographic change and to reflect improvements in life expectancy, the Government will progressively increase the qualifying age for the Age Pension to 67 beginning in 2017.

The government also understands that many grandparents have a continuing, primary care role for young children. Additional support for grandparent carers will be provided in this Budget, with funding to establish 25 peer support groups for grandparent carers across Australia. These groups will offer a supportive environment for grandparents to meet and share ideas with other grandparents who are caring for their grandchildren.  In addition, the Government will provide four new Centrelink Grandparent Advisors – one each in Melbourne and Brisbane, and two in Sydney – to complement the existing Grandparent Advisor in Perth.  These Grandparent Advisors will assist grandparents to access the government payments they are entitled, and provide information about to other relevant support and services available to them.

The Government continues to roll-out assistance to help seniors to stay in touch with their family and friends and engage in the community by providing $10.4 million additional funding in this budget for the Broadband for Seniors initiative. Broadband for Seniors provides older Australians with free internet kiosks in their local communities, as well as training in basic computing, internet browsing and email skills.

Continuing to address Indigenous disadvantage

FaHCSIA's lead role in delivering the Government's Closing the Gap targets has helped focus coordinated effort towards improving outcomes for Indigenous Australians. FaHCSIA leads a collaborative, whole-of-government approach to Indigenous affairs in order to ensure a better alignment of overall effort to achieve the Government's commitments under the National Indigenous Reform Agreement.

FaHCSIA is working to better integrate efforts to achieve improvements in safety and wellbeing for remote communities in the Northern Territory, better service delivery for Indigenous people, both in remote communities and in urban and regional communities, and economic participation among Indigenous Australians. FaHCSIA also works to facilitate strong engagement among Indigenous Australians in these areas.

2011-12 Budget continues to build on the significant investments already in place in Indigenous Affairs. Funding of $16.1 million will be provided to extend the Cape York Welfare Reform Trial by 12 months until 31 December 2012. The Queensland Government, a strong partner in the trial, will lead a process of consultation with Cape York communities on the extension. Indigenous people will also benefit from the expansion of the Personal Helpers and Mentors (PHaMS) respite service in this year’s Budget.

Across Government, this Budget provides new investment in services to close the gap in Indigenous disadvantage and to supporting Indigenous economic participation and employment. This includes $113.4 million over five years to provide 15 new or expanded Indigenous health clinics and 40 new renal dialysis chairs; and $50.7 million over four years to provide school based traineeships and other support to help 6,400 Indigenous students make an effective transition to work or further study.

New investments in the 2011-12 Budget build on the unprecedented investments made by the Australian to overcome decades of under-investment in services and infrastructure. Improving the quality and supply of Indigenous housing and infrastructure in remote communities remains a key priority for FaHCSIA and the Australian Government. FaHCSIA continues to support the Government’s unprecedented investment of $5.5 billion over ten years from 2008-09 to 2017 18 and to drive states and territories to meet their implementation milestones under the National Partnership Agreement on Remote Indigenous Housing.

Improving the quality and supply of Indigenous housing and infrastructure in remote communities remains a key priority for FaHCSIA and the Australian Government. FaHCISA continues to support the Government’s unprecedented investment of $5.5 billion over ten years from 2008-09 to 2017 18 and to drive states and territories to meet their implementation milestones under the National Partnership Agreement on Remote Indigenous Housing.

FAHCSIA will continue to work with all levels of government to deliver the $291.2 million National Partnership Agreement on Remote Service Delivery, to improve the delivery of services to Indigenous people in 29 priority remote locations across the Northern Territory, Western Australia, Queensland, New South Wales and South Australia.

Work will also continue to deliver significant investment in services to improve the lives of Indigenous people in the Northern Territory, through the $807.4 million Closing the Gap in the Northern Territory National Partnership Agreement.

Reforming the Constitution by publicly acknowledging the unique and special place that Aboriginal and Torres Strait Islander peoples have in the nation will build on the Government’s efforts to close the gap. The Government is progressing this important reform and has established an Expert Panel that will consider how best to progress constitutional recognition of Indigenous people, and provide possible options on the nature of amendments which may be put to the Australian people at a referendum. The Expert Panel will report to the Government by December 2011.

Housing

The Social Housing Initiative, announced as part of the Nation Building – Economic Stimulus Plan, continues to be rolled out across Australia with completion of building works expected by June 2012. The initiative helps disadvantaged Australians, particularly those who are homeless or at risk of becoming homeless, and ensures that current tenants benefit from upgrades to their housing.

Addressing homelessness is crucial in reducing long-term disadvantage, and remains a priority for the Government. The Government is working with states and territories under the National Partnership Agreement on Homelessness on the effective rollout of new and expanded services. In 2011–12 the Government will continue working with the states and territories to develop a National Quality Framework to improve the quality of professional service organisations that work with people dealing with homelessness.

Preventing homelessness is not just about providing a house. It also involves a broader set of integrated services that include mental health, drug and alcohol, education, training and employment initiatives. The new National Partnership Agreement on Mental Health in this Budget provides states and territories with an opportunity to build a more strongly connected system, from hospital to housing, for people with mental health conditions.

To ensure policy and services to reduce homelessness are underpinned by a strong evidence base, the Government will continue to support the Longitudinal Study of Australians Vulnerable to Homelessness. As part of the National Homelessness Research Agenda, the study aims to improve understanding of, and policy responses to, the diverse social, economic and personal factors that are related to homelessness and the risk of becoming homeless.

The Department also continues to have significant responsibilities in managing key elements of COAG’s reform agenda, in housing, disability and Indigenous reform. FaHCSIA maintains policy and performance management responsibility for these elements of the COAG reform agenda and works closely with state and territory government agencies.

Economic and fiscal context for the 2011–12 Budget

These Portfolio Budget Statements reflect a clear commitment to continuing to invest in key programs and services, to provide support and stabilise the circumstances of the most vulnerable members of the community, and support greater participation once that stability has been achieved. This approach acknowledges that, while the effects of the global economic downturn were felt by many Australians, the risks of ongoing impacts are greatest for those who face an increased likelihood of long-term disconnection from social and economic participation.

The decisions reflected in these Portfolio Budget Statements are based on responsible financial management, a thorough scrutiny of existing effort and the prioritisation of new spending. Savings have sought to balance fiscal constraints, sustainability of outlays and the continuing support of effective measures that focus on the needs of disadvantaged Australians.

1.2 Agency resource statement

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: FaHCSIA resource statement—Budget estimates for 2011–12 as at Budget May 2011

Table 1.1: FaHCSIA resource statement—Budget estimates for 2011–12 as at Budget May 2011 (continued)

Table 1.1: FaHCSIA resource statement—Budget estimates for 2011–12 as at Budget May 2011 (continued)

Third-party payments from and on behalf of other agencies

1.3 Budget measures

Budget measures relating to FaHCSIA are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: FaHCSIA 2011–12 Budget measures

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Table 1.2: FaHCSIA 2011–12 Budget measures (continued)

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