Can the following information be provided on the impact of the Government's policy on coalescence in relation to nursing home care subsidies: For each of the following 3 scenarios, what would the Resident Classification Scale Level 1 subsidy be in each state in each of the financial years from 1998-99 to 2006-07 assuming an annual indexation rate of 1.4 per cent: (a) under the original funding arrangements prior to coalescence; (b) under the policy of coalescence; and (c) under the policy of funding equalisation announced on 6 December 1999.

The following tables show the Resident Classification Scale Level 1 subsidy in each of the States and Territories for each of Senator Evans' scenarios. It must be noted that they use Senator Evans' assumption of an annual indexation rate of 1.4 per cent.

Under the Labor Government funding arrangements prior to coalescence:

Under the policy of coalescence:

Under the Funding Equalisation and Assistance Package announced on 6 December 1999 States will reach uniform national rates at different times, over different periods, to give an equitable outcome. The funding equalisation and assistance package provides for an extra $148 million over 6 years to 2005-06 in recurrent payments.

Those States below the national average will reach the national average in 2002 instead of never under Labor's policy and 2004 under coalescence.

Queensland will gain $83.6m, South Australia will gain $14.7m, Western Australia will gain $3.5m and the Australia Capital Territory will gain $0.3m. For these states, this new money will dramatically accelerate their increase in funding. This response clearly addresses the issue of equity between states and provides for uniform national rates to be achieved two years earlier on 1 July 2002.

Victoria will gain $39.6m and Tasmania will gain $6.3m. For these states, this will ensure ongoing annual increases in funding, each year. The response will also enable more time for the sector to manage the transition, as uniform national rates for Victoria and Tasmania will instead be achieved two years later on 1 July 2006.