Community programs complement the income support system by providing services for those greatest in need. Vulnerable individuals and families are supported to build financial capability and resilience through a range of assistance. This includes income management, emergency relief, financial counselling, money management information and education, and local community building projects. Key target groups for assistance include people with low incomes, people on income management, people in financial stress and people in transition to retirement.
FaHCSIA provides funding to front line community organisations to support vulnerable and disadvantaged Australians, including secure, ongoing funding for emergency relief and financial counselling services, and for innovative projects such as low interest loans and matched savings schemes.
This Budget provides secure, ongoing funding for emergency relief and financial counselling services. Emergency relief services provide vulnerable families and individuals with life essentials such as food and clothing, pharmacy and transport vouchers, and help with accommodation and utility bills. The ongoing investment over the next four years recognises that the strong demand for these services remains high across Australia.
Funding for innovative projects such as no-interest loan schemes, matched savings schemes and financial literacy projects for Indigenous Australians is also being extended in this Budget and will help people develop long term savings habits and build their understanding of financial products.
FaHCSIA provides grants and assistance to community organisations to help them respond to local community needs, build service delivery partnerships, support volunteers and build capacity in the community sector.
FaHCSIA also provides assistance, through the payment of Special Benefit, to people in severe financial hardship who are not eligible for any other type of payment and who have no other means of support or capacity to earn a sufficient livelihood.
The government will align the rules for accessing Special Benefit for Provisional Partner Visa (PPV) holders with other new migrants within the two-year Newly Arrived Residence Waiting Period.
To access Special Benefit, in addition to being in hardship PPV holders will need to demonstrate they have also experienced a ‘substantial change of circumstances beyond their control’ such as domestic violence, death of a partner or an injury or accident after their arrival in Australia. This change removes more generous access to income support for the partners of Australian citizens and residents while they are awaiting permanent residency as compared to other new migrants. This reflects the community’s expectation that new migrants to Australia should be able to support themselves, or be supported by their families and partners.
The Government will change the rules to allow Parenting-Single Payment recipients to transfer to Bereavement Allowance on the death of a partner. This approach aligns the treatment of single recipients with that of surviving members of a couple who have dependent children and provides additional assistance during their bereavement period.
As part of the Building Australia’s Future Workforce package of measures, and to help ensure vulnerable families are providing their children with the necessities of life, the Australian Government will expand child protection, voluntary and vulnerable income management to five additional locations across Australia. The Western Australian and Cape York Welfare reform trials are also being continued for an additional 12 months.
Outcome 3 expense statement
Table 2.3 provides an overview of the total expenses for Outcome 3, by program.
Table 2.3: Budgeted expenses for Outcome 3
(continued on next page)
Table 2.3: Budgeted expenses for Outcome 3 (continued)
Contributions to Outcome 3
Program 3.1: Financial Management
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Program 3.1 objective
To improve the financial knowledge, skills, capabilities and financial resilience of vulnerable individuals and families to alleviate the immediate impact of financial stress, and to progress initiatives in relation to problem gambling.
Program component objectives
Financial Management Information and Assistance
To improve the financial resilience of vulnerable individuals and families through financial counselling, information and education, crisis assistance and asset-building incentives such as matched savings and low-interest loans, and responding to the Productivity Commission’s recommendations in its report on gambling.
Income Management
To help people take responsibility for themselves and their families by ensuring money is available for life’s essentials and limiting the expenditure of income support payments on excluded items, including alcohol and tobacco products, pornography, gambling goods and activities.
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Linked to: Administration of the School Enrolment and Attendance Measure is managed by the Department of Education, Employment and Workplace Relations (DEEWR). For information on this measure, refer to DEEWR’s 2011–12 PB Statements.
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Program 3.1 expenses
The change in program expenses across the forward years reflects projected changes in indexation parameters and the impact of policy initiatives.
The relevant policy initiatives are additional funding provided in this Budget for emergency relief, financial counselling, financial literacy and microfinance programs and incentives for the new model of Income Management.
The decrease in estimates in 2014–15 is because current funding for Financial Support Services to support income management in the Northern Territory finishes in 2013–14.
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Table 2.3.1: Budgeted expenses for Financial Management
Program 3.1 deliverables
Financial Management Information and Assistance
• Number of clients assisted through the Financial Management Program
Income Management
• Number of people on Income Management by measure18
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Program 3.1 key performance indicators
Financial Management Information and Assistance
• Percentage and number of clients that have their immediate crisis needs met
• Percentage and number of clients with increased money management knowledge and skills
• Percentage and number of clients adhering to agreed financial management strategies to manage life transitions
Income Management
• Amount and percentage of income-managed funds spent on priority needs19
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Financial Management Information and Assistance key performance indicators targets
Program 3.2: Community Investment
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Program 3.2 objective
To provide grants and ongoing funding to improve the responsiveness and integration of local community services to increase participation of vulnerable people in community life.
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Program 3.2 expenses
The change in program expenses across the forward years reflects projected changes in indexation parameters and the impact of policy initiatives.
The reduction in 2011–12 reflects the end of the 2008-09 Budget measure that provided supplementary funding of $15 million over three years for the Volunteer Grants program expansion to help with petrol costs; the transfer of volunteering policy and management to the Department of the Prime Minister and Cabinet; and the transfer of community programs focusing on children and parenting to the Family Support Program (Outcome 1).
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Table 2.3.2: Budgeted expenses for Community Investment
Program 3.2 deliverables20,21
• Number of individuals assisted through Volunteer Grants
• Number of individuals assisted through the Community Investment Program22
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Community Investment deliverables targets
Program 3.2 key performance indicators
Community Investment
• Percentage and number of individuals who indicated they were satisfied with the Community Support Service and Community Projects
• Percentage and number of individuals assisted from Indigenous and culturally and linguistically diverse backgrounds
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Program 3.3: Income Support for Vulnerable People
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Program 3.3 objective
To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support.
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Linked to: As of 1 July Personal benefits payments under this program are to be delivered by DHS. For more information refer to DHS’s 2011–12 PB Statements.
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Program 3.3 expenses
The increase in program expenses across the forward years reflects projected changes in customer trends and indexation parameters.
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Table 2.3.3: Budgeted expenses for Income Support for Vulnerable People
Program 3.3 deliverables
• Payments are made through Centrelink to eligible claimants under the provisions of social security law.
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Program 3.3 key performance indicators
Income Support for Vulnerable People (Special Benefit)
• Percentage and number of recipients on part rate due to the income and assets test23
• Number of recipients
• Administered outlays
• Duration on payment
• Payment accuracy
• Agreements are in place with all service providers
• Strategies are in place to ensure that requirements are fulfilled under agreements with service delivery agencies
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Program 3.4 objective
To make payments to Australians in circumstances beyond their control to support them in overcoming those circumstances and maintaining their financial wellbeing.
Program component objectives
Bereavement Allowance
To make payments for up to 14 weeks to a recently widowed person following the death of their partner to enable them to maintain an adequate standard of living during that time.
Payments under Special Circumstances
Payments under Special Circumstances include Act of Grace payments made under section 33 of the FMA Act and ex gratia payments to individuals and families affected by disasters and other crises.
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Linked to: As of 1 July Personal benefits payments under this program are to be delivered by DHS. For more information refer to DHS’s 2011–12 PB Statements.
National Disaster Recovery Relief arrangements are administered through AGD. For further information, refer to AGD’s 2011–12 PB Statements.
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Program 3.4 expenses
The reduction in program expenses in 2011–12 reflects the transfer of the Australian Government Disaster Recovery Payment to the Attorney-General's Department as a result of the 2010 Administrative Arrangements Orders.
The increase in program expenses across the forward years reflects projected changes in the customer trends and indexation parameters for Bereavement Allowance.
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Table 2.3.4: Budgeted expenses for Support for People in Special Circumstances
Program 3.4 deliverables
Bereavement Allowance
• Payments are made through Centrelink to eligible claimants under the provisions of social security law and the FMA Act 1997.
Payments under Special Circumstances
• Payments are made through Centrelink to eligible claimants under the provisions of social security law and the FMA Act 1997.
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Program 3.4 key performance indicators24
Bereavement Allowance
• Number of recipients
• Administered outlays
Payments under Special Circumstances
• Number of recipients
• Administered outlays
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Program 3.5: Supplementary Payments and Support for Income Support Recipients
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Program 3.5 objective
To make payments and subsidise services to certain income support recipients to assist them financially and to help them continue to participate economically and socially.
Program component objectives
Reimbursement to Great Southern Rail for Concessional Fares
To reimburse Great Southern Rail for the provision of concessional fares on its services (the Indian Pacific, the Ghan and the Overland) to pensioners, certain veterans and holders of the Commonwealth Seniors Health Card and state Seniors Card holders.
Utilities Allowance
Payments are made through Centrelink to eligible claimants under the provisions of social security law.
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Linked to: As of 1 July Personal benefits payments under this program are to be delivered by DHS. For more information refer to DHS’s 2011–12 PB Statements.
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Program 3.5 expenses
The increase in program expenses across the forward years reflects projected changes in customer trends and indexation parameters for the Utilities Allowance.
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Table 2.3.5: Budgeted expenses for Supplementary Payments and Support for Income Support Recipients
Program 3.5 deliverables
Reimbursement to Great Southern Rail for Concessional Fares
• Great Southern Rail is under agreement to provide concessional fares on its services to pensioners, certain veterans and holders of Commonwealth Seniors Health Card and state Senior Card holders.
Utilities Allowance
• Payments are made through Centrelink to eligible claimants under the provisions of social security law.
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Program 3.5 key performance indicators
Reimbursement to Great Southern Rail for Concessional Fares
• Administered outlays
• Number of recipients
• Number of journeys
Utilities Allowance
• Administered outlays
• Number of recipients
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Outcome 4: Seniors
An adequate standard of living and improved capacity to productively manage resources and life-transitions for senior Australians through the delivery of payments, concessions and information services.
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