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Department of Social Services—Report for 2017-18


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Improving lifetime wellbeing

Annual Report 2017-18

Department of Social Services I Annual Report 2017-18

© Commonwealth of Australia 2018

ISSN: 2203 9880 (print)

ISSN: 2203 9899 (online)

Copyright notice — 2018

This document, Department of Social Services Annual Report, is licensed under the Creative Commons Attribution 4.0 International Licence

Licence URL: https://creativecommons.org/licenses/by/4.0/legalcode

Please attribute: © Commonwealth of Australia (Department of Social Services) 2018

Notice:

1. If you create a derivative of this document, the Department of Social Services requests the following notice be placed on your derivative: Based on Commonwealth of Australia (Department of Social Services) data.

2. Inquiries regarding this licence or any other use of this document are welcome. Please contact: Branch Manager, Communication and Media Branch, Department of Social Services. Phone: 1300 653 227. Email: communications@dss.gov.au

Notice identifying other material or rights in this publication:

1. Australian Commonwealth Coat of Arms — not Licensed under Creative Commons, see https://www.itsanhonour.gov.au/coat-arms/index.cfm

2. Certain images and photographs (as marked) — not licensed under Creative Commons

If you are deaf or have a hearing or speech impairment, you can use the National Relay Service to contact any of the Department of Social Services listed phone numbers.

TTY users — phone 133 677 and ask for the phone number you wish to contact

Speak and Listen users — phone 1300 555 727 and ask for the phone number you wish to contact

Internet relay users — visit the National Relay Service at http://relayservice.gov.au

Contact us:

For enquiries regarding this report, please contact: Branch Manager, Budget Development, Department of Social Services. Mail: GPO Box 9820, Canberra ACT 2601 Email: annual.report@dss.gov.au

Phone: 1300 653 227 or international +61 2 6146 0001

This annual report is available online, go to dss.gov.au/annualreport

Cover image: Belinda Oregan, Connor Oregan, Craig Young

About this report This report describes the operations and performance of the Department of Social Services during 2017-18. It was prepared to meet legislated reporting requirements.

How to use this report

Part 1 Introduces the Department of Social Services with a description of our department and its portfolio.

Part 2 Presents our annual performance statement for 2017-18.

Part 3 Details management and accountability processes, including corporate governance, external scrutiny, human resources management and a review of financial management for the past year.

Part 4 Presents our audited financial statements for 2017-18.

Part 5 Provides additional information including an index of requirements and where to find this information in the report.

Annual Report 2017-18

ii

Contents

Letter of transmittal vi

Secretary’s review 1

Part 1 — Overview 5

Chapter 1.1 Our department 6

Chapter 1.2 The portfolio 11

Part 2 — Annual performance statement 15 Chapter 2.1 Purpose 1 Social Security 19

Chapter 2.2 Purpose 2 Families and Communities 46

Chapter 2.3 Purpose 3 Disability and Carers 63

Chapter 2.4 Purpose 4 Housing 77

Part 3 — Management and accountability 87 Chapter 3.1 Governance structure 88

Chapter 3.2 External scrutiny 94

Chapter 3.3 Managing our people 98

Chapter 3.4 Managing our finances 104

1

2

3

iii

4 5

Part 4 — Financial statements 109

Financial statements 113

Part 5 — Appendices 165

Appendix A Resource statements 166

Appendix B Staffing statistics 175

Appendix C Advertising and market research 180

Appendix D Ecologically sustainable development and environmental performance 183

Appendix E Compliance with the Carer Recognition Act 187

Appendix F Changes to disability reporting 189

Appendix G Glossary of abbreviations and acronyms 190

Indexes 192

Compliance index 193

Index of figures and tables 198

Alphabetical index 202

iv

Social Security

Families and Communities

Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance.

Programs

» Family Tax Benefit

» Child Payments

» Income Support for Vulnerable People

» Income Support for People in Special Circumstances

» Supplementary Payments and Support for Income Support Recipients

» Income Support for Seniors

» Allowances and Concessions for Seniors

» Income Support for People with Disability

» Income Support for Carers

» Working Age Payments

» Student Payments

» Program Support for Outcome 1

» Rent Assistance (Cross Program)

Contribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives.

Programs

» Families and Communities

» Paid Parental Leave

» Social and Community Services

» Program Support for Outcome 2

1 2

Figure 0.1: Outcome and program structure as at 30 June 2018

v

Disability and Carers

Housing

Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Programs

» Disability Mental Health and Carers

» National Disability Insurance Scheme

» Program Support for Outcome 3

Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Programs

» Housing and Homelessness

» Affordable Housing

» Program Support for Outcome 4

3 4

vi

Kathryn Campbell CSC Secretary

The Hon Paul Fletcher MP Minister for Families and Social Services Parliament House CANBERRA ACT 2600

Dear Minister

I am pleased to submit the Department of Social Services (the department) Annual Report for the year ending 30 June 2018, as required by section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The report has been prepared in accordance with the Resource Management Guide No. 135 - Annual reports for non- corporate Commonwealth entities issued by the Department of Finance.

The Annual Report includes the department’s audited financial statements as required by section 43(4) of the PGPA Act. The report meets the reporting requirements under the Social Security (Administration) Act 1999, the A New Tax System (Family Assistance) (Administration) Act 1999, the Child Support (Assessment) Act 1989, and the Child Support (Registration and Collection) Act 1988.

In accordance with section 10 of the Public Governance, Performance and Accountability Rule 2014, I certify that the department has prepared fraud risk assessments and fraud control plans, and has in place appropriate fraud prevention, detection, investigation and reporting mechanisms that meet its specific needs. Reasonable measures have also been taken to appropriately deal with fraud relating to the department.

Yours sincerely

Kathryn Campbell

September 2018

GPO Box 9820, Canberra ACT 2601 • Tel (02) 6146 0010 • Facsimile (02) 6204 4505 Internet www.dss.gov.au

1

Secretary’s review The Department of Social Services (the department), through our policies and programs, provides assistance to individuals and families in Australian communities. A fair and sustainable welfare system is central to supporting Australians to have the opportunity to get ahead and build a better life for themselves and their families. In 2017-18 our main focus has been to ensure the welfare system is well targeted and designed to help people find employment, progressing the implementation of a quality National Disability Insurance Scheme (NDIS) and standing up a National Redress Scheme for the survivors of institutional child sexual abuse.

The department worked with Treasury on a $260 million Budget measure to improve the incomes

of pensioners in retirement through the introduction of new means test rules, which will enable eligible social security pensioners to earn more money through employment without being counted under the income test.

The Welfare Reform Bill passed through the Parliament, establishing the new Jobseeker Payment, a step towards reducing the complexity of welfare payment arrangements.

Building on the success of the original No Jab, No Pay policy, from 1 July 2018 parents who do not immunise their children will have their Family Tax Benefit payments reduced each fortnight, rather than losing entitlement to the end of year supplement. The original measure resulted in the families of more than 246,000 children taking action to meet immunisation requirements.

The department is also investing in data analytics by building internal capability, seeking collaboration opportunities and ensuring strong links between policy and analytics projects.

By 30 June 2018, there were 183,965 Australians being supported by the NDIS. A total of 54,802 participants, or almost one in three had not received state, territory or Commonwealth disability support before the NDIS. The department has finalised full scheme agreements with the New South Wales and South Australian governments and is negotiating full scheme agreements with other states while continuing to work closely with the National Disability Insurance Agency (NDIA) on scheme implementation.

The department also worked with the states and territories to establish the NDIS Quality and Safeguards Commission. As responsibility for specialist disability services shifts from the states and territories to a national system through the NDIS, the Australian Government has established new, significant and comprehensive safeguards designed to prevent abuse and protect the rights of people with disability under the NDIS.

2

The introduction of Disability Employment Services reforms will give people with disability greater choice and flexibility in finding work.

The National Redress Scheme for the survivors of institutional child sexual abuse was developed and implemented on 1 July 2018. The department played a key role in negotiations to get the states and territories and major institutions to opt-in to the scheme. The department worked closely with the Department of Human Services to deliver a survivor focused scheme. The scheme will make a difference to the lives of many Australians who have been traumatised by abuse.

The Cashless Debit Card was introduced to a third trial site in the Goldfields region of Western Australia. This expansion provides the opportunity to continue to evaluate the benefits and test the implementation of a new way of delivering welfare payments with the aim of reducing welfare cash in communities that are facing challenges from alcohol and drug abuse and unacceptable levels of violence.

The new Humanitarian Settlement Program was developed in collaboration with five other departments with the aim of increasing employment outcomes for refugees. The department also worked with all levels of government and service providers to establish the first new regional settlement location for many years in Armidale. At 30 June 2018, 312 humanitarian entrants from Syria and Iraq have now settled there.

Significant reforms to the 1800RESPECT service model were also implemented. These changes have meant that over 98,500 people in 2017-18 received the family, domestic violence and sexual assault support they needed. Amongst other work the department undertook to reduce violence against women and their children was the ‘Stop it at the Start’ campaign. These television commercials for phase one attracted more than 43 million views. The department has commenced work on phase two of the campaign.

The department supported the commencement of the National Housing and Homelessness Agreement on 1 July 2018. It provides ongoing funding to states and territories totalling $1.5 billion each year to improve housing outcomes and reduce the incidence of homelessness.

The department coordinated the Commonwealth’s response to the Northern Territory Royal Commission into the Protection and Detention of Children in the Northern Territory, including establishing a tripartite forum between the Commonwealth, Northern Territory Government and the community sector.

The Community Grants Hub (the Hub), a key contributor to the Government’s commitment to streamline and improve grants administration, substantially increased the number of agreements it manages with more than 3,000 organisations. The Hub now supports the delivery of more than three million services to around five million Australians.

3

Looking forward The department will continue to focus on sustainability of the welfare system and to encourage people to be socially and economically independent.

Negotiating full scheme agreements for the NDIS with the remaining states will be a key priority. Growing the disability workforce to support NDIS participants is also critical. The department will work closely with the NDIA and states and territories to support the development of a robust and responsive disability support services sector.

People with disability and their carers will also remain an important focus. There will be ongoing development of the Integrated Carer Support Service, with an expansion of the Carer Gateway to provide carers with access to new online counselling and peer support.

We will continue to deliver on the National Redress Scheme. The National Office for Child Safety will continue to provide national leadership to enhance children’s safety and reduce future harm to children across Australia.

An important part of the family safety agenda will be to develop, in consultation with stakeholders, the Fourth Action Plan of the National Plan to Reduce Violence against Women and their Children 2010-2022. This is due to commence in 2019.

The department will evaluate and monitor the Cashless Debit Card trials and work on the future of income management.

Improving the collection and use of performance data will continue to be a priority and the department will build on the success of the Data Exchange, which measures the effectiveness of client-based grant programs. The Hub will also increase its activities with work expected to more than double to about 15,000 funding arrangements with the transition of Department of Health grant activities.

The department is committed to providing quality policy advice, and effective program design and management, through our people, culture and performance.

I would like to thank all staff for their dedication and commitment to our mission to improve the wellbeing of individuals and families in Australian communities. Each day, I am inspired by their commitment and passion for public service.

Kathryn Campbell

Secretary

Help at hand for teens

Sophia is a young parent who had her son when she was 16 years old. She now divides her time between raising Spencer and studying for a Certificate III in Health Service Assistance at Hobart College.

“When I became pregnant I remember frantically looking for someone to help me and talk to me. It was really hard to find somewhere with information specifically for young parents.”

That’s why Sophia jumped at the chance to work with the Brave Foundation to come up with new ways to help young parents. She participated in a group of young parents who looked at different ideas that might help expecting and parenting teens, and she was able to give her views as a young working parent on how some of these new ideas could work.

It was through this process that the Brave Foundation developed the Supporting Expecting and Parenting Teens (SEPT) initiative.

SEPT is one of 14 initiatives being trialled under the first tranche of the $96 million Try, Test and Learn Fund administered by the Department of Social Services. The department is funding organisations such as the Brave Foundation to develop new and innovative policy responses to assist groups of people, such as young parents, at risk of long-term welfare dependency move into stable, sustainable employment.

This initiative will provide up to 350 young parents with access to a mentor, and connects expecting and parenting teens across Australia with health, housing, education, childcare and employment support before and after the birth of their baby. The initiative is

being trialled over two years across 11 hubs in Darwin, Melbourne, Geelong, Wyong, Newcastle, greater Hobart, and greater Brisbane.

“You see, it is one thing to go through your life one day at a time and a very different thing to have a pathway. Having the support to get onto a pathway means your life can be more than just a hamster wheel.”

All Try, Test and Learn Fund initiatives will be evaluated by the department to obtain new insights into what increases the likelihood of stable employment for vulnerable people, and to help even more people at risk of being trapped in the welfare cycle.

above: Young parent, Sophia.

See part 2 chapter 2.1 for more information.

1

Chapter 1.1 Our department ............................................................................ 6

Chapter 1.2 The portfolio................................................................................ 11

Overview

6 Annual Report 2017-18 Department of Social Services

Part 1—Overview I Chapter 1.1 Our department

1

Chapter 1.1

Our department The Department of Social Services is responsible for a diverse range of policies, payments, programs and services that improve the lifetime wellbeing of people and families in Australia.

The department works in partnership with other government and non-government organisations to ensure the effective development, management and delivery of these initiatives.

We fund services and payments that assist families, children and older people, provide a safety net for those who cannot fully support themselves, enhance the wellbeing of people with high needs, assist those who need help with care, and support a diverse and harmonious society.

Our mission Our mission is to improve the lifetime wellbeing of individuals and families in Australia.

Purpose We work in partnership with government and non-government organisations to achieve our mission through the effective development, management and delivery of payments, policies, programs and services.

Our purposes reflect four core areas in which we seek to assist people:

Purpose 1: Social Security Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance.

Purpose 2: Families and Communities Contribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives.

Purpose 3: Disability and Carers Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Purpose 4: Housing Improved access to affordable housing, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

7 Department of Social Services Annual Report 2017-18

Part 1—Overview I Chapter 1.1 Our department

1

Our priorities During the past year, our organisational priorities focused on:

» ensuring government policies and programs operated effectively and efficiently, maximising their contribution to lifetime wellbeing for people and families

» ensuring government priorities were implemented and monitored effectively and efficiently, maintained and evaluated

» providing evidence-based, whole-of-department, social policy advice to ministers and government focused on improving the lifetime wellbeing of people and families

» building productive and collaborative relationships with our stakeholders, including other departments, service providers, and the states and territories to achieve outcomes in respective areas of responsibility

» creating a productive and supportive workplace, managing our financial and other resources effectively, and maintaining the capability needed to deliver government priorities into the future.

Our values Our values are those of the Australian Public Service and require us to be impartial, committed to service, accountable, respectful and ethical. These values are central to the way we work with our ministers, colleagues and stakeholders.

Organisational structure Our department is led by the Secretary and supported by Deputy Secretaries operating across four streams. Before the NDIS Quality and Safeguards Commission was established as an independent Commonwealth body on 1 July 2018, the Commissioner-Designate was an officer of the department responsible for establishing the commission. The department’s organisational structure at 30 June 2018 is shown at Figure 1.1.1.

8 Annual Report 2017-18 Department of Social Services

1

Figure 1.1.1 Organisational structure, as at 30 June 2018

NDIS Quality and Safeguards Commission Graeme Head Commissioner-Designate

NDIS Quality and Safeguards Commission Chief Operating Officer Jason Stott Branch Manager

Kathryn Campbell Secretary

Figure 0.0 Organisational structure as at June 2018

Chief Operating Officer Roxanne Kelley

Finance and Services Russell de Burgh Acting Chief Finance Officer

Chief Counsel Janean Richards Chief Legal Counsel and Group Manager

Corporate Services Adrian Hudson Group Manager

Strategy and Design, Community Grants Hub Iain Scott Group Manager

Delivery Strategy and Operations, Community Grants Hub Margaret McKinnon Group Manager

Information Management and Technology Peter Qui Chief Information Officer and Group Manager

Budget Development Robert Hurman Acting Branch Manager

Assurance and Performance Stephen Avery Acting Branch Manager

Communication Services Tracey Bell Branch Manager

Program Relationships and Design Richard Baumgart Branch Manager

Operations Christine Bruce Principal Advisor

Client Services Andrew Seebach Branch Manager

Financial Accounting Stephen Sheehan Branch Manager

Legal Services Melanie Metz Branch Manager

People Services Alison Fitzgerald Branch Manager

Program Systems and Support Rob Stedman Branch Manager

Delivery— Network Operations Warren Pearson Branch Manager

Digital Business Solutions Watson Blaikie Branch Manager

Financial Management and Procurement Tracy Hobden Branch Manager

Government and Executive Services Stephen Moger Acting Branch Manager

Organisation Strategy Services Lara Purdy Branch Manager

Program Strategy and Governance Greg Keen Branch Manager

Delivery— Streamlining Grants Administration Kurt Munro Branch Manager

IT Operations Dayne Da Pozzo Acting Branch Manager

Property, Security and Business Continuity Lyn Murphy Branch Manager

Delivery— Operations Policy Brendan Moyle Branch Manager

Selections and Establishment Chris Mitchell Acting Branch Manager

Corporate and Data Services Steve McCauley Branch Manager

Social Security Nathan Williamson Deputy Secretary

Payments Policy Shane Bennett Group Manager

Welfare and Housing Policy Allyson Essex Acting Group Manager

Policy Office Tim Reddel Group Manager

Work and Study Payments Emma Kate McGuirk Branch Manager

Payment Conditionality Design and Policy Roxarne Armstrong Acting Branch Manager

Policy Capability and Evaluation Murray Kimber Branch Manager

Families and Pensions Kath Paton Acting Branch Manager

Payment Structures Mary McLarty Branch Manager

Policy Analysis and Reporting Jillian Moses Branch Manager

International Policy and Payment Support Anita Davis Branch Manager

Housing Policy Sidesh Naikar Branch Manager

Policy Strategy and Investment Phil Brown Branch Manager

Data Strategy

and Development David Dennis Branch Manager

Families and Communities Barbara Bennett Deputy Secretary

Families and Communities Reform Bruce Taloni Group Manager

Settlement Services Evan Lewis Group Manager

Families and Communities Policy and Programs Cath Halbert Group Manager

Welfare, Quarantining and Gambling Selena Pattrick Acting Branch Manager

Settlement Policy Sharon Bailey Branch Manager

Housing Programs and Homelessness Stewart Thomas Branch Manager

Family Safety Chantelle Stratford Branch Manager

Settlement Support Leo Kennedy Branch Manager

Children’s Policy Kath Mandla Branch Manager

Redress Policy and Legislation Brooke Hartigan Branch Manager

Family Policy and Programs Tristan Reed Branch Manager

Redress Implementation Tracy Creech Branch Manager

National Rental and Affordability Scheme Taskforce John Riley Branch Manager

Disability and Carers Michael Lye Deputy Secretary

NDIS Market Reform Andrew Whitecross Group Manager

NDIS Mainstream Linkages Group Flora Carapellucci Group Manager

NDIS Transition Oversight Helen McDevitt Group Manager

Disability, Employment and Carers Paul McBride Group Manager

Quality and Safeguards Policy Bruce Smith Branch Manager

Integration and Support Kirralee Thomas Acting Branch Manager

NDIS Transition Oversight and Governance Julie Yeend Branch Manager

Supported Employment Policy, Access and Engagement Christian Callisen Branch Manager

NDIS Market Oversight Thomas Abhayaratna Branch Manager

NDIS Financial Policy and Performance Nerida Hunter Branch Manager

Disability and Carer Policy Sharon Stuart Branch Manager

Program Transition Eliza Strapp Branch Manager

Disability Employment Services Peter Broadhead Branch Manager

1 1

Registrar-Designate Samantha Taylor

Complaints Commissioner-Designate Miranda Bruyniks

9 Department of Social Services Annual Report 2017-18

1

NDIS Quality and Safeguards Commission Graeme Head Commissioner-Designate

NDIS Quality and Safeguards Commission Chief Operating Officer Jason Stott Branch Manager

Kathryn Campbell Secretary

Figure 0.0 Organisational structure as at June 2018

Chief Operating Officer Roxanne Kelley

Finance and Services Russell de Burgh Acting Chief Finance Officer

Chief Counsel Janean Richards Chief Legal Counsel and Group Manager

Corporate Services Adrian Hudson Group Manager

Strategy and Design, Community Grants Hub Iain Scott Group Manager

Delivery Strategy and Operations, Community Grants Hub Margaret McKinnon Group Manager

Information Management and Technology Peter Qui Chief Information Officer and Group Manager

Budget Development Robert Hurman Acting Branch Manager

Assurance and Performance Stephen Avery Acting Branch Manager

Communication Services Tracey Bell Branch Manager

Program Relationships and Design Richard Baumgart Branch Manager

Operations Christine Bruce Principal Advisor

Client Services Andrew Seebach Branch Manager

Financial Accounting Stephen Sheehan Branch Manager

Legal Services Melanie Metz Branch Manager

People Services Alison Fitzgerald Branch Manager

Program Systems and Support Rob Stedman Branch Manager

Delivery— Network Operations Warren Pearson Branch Manager

Digital Business Solutions Watson Blaikie Branch Manager

Financial Management and Procurement Tracy Hobden Branch Manager

Government and Executive Services Stephen Moger Acting Branch Manager

Organisation Strategy Services Lara Purdy Branch Manager

Program Strategy and Governance Greg Keen Branch Manager

Delivery— Streamlining Grants Administration Kurt Munro Branch Manager

IT Operations Dayne Da Pozzo Acting Branch Manager

Property, Security and Business Continuity Lyn Murphy Branch Manager

Delivery— Operations Policy Brendan Moyle Branch Manager

Selections and Establishment Chris Mitchell Acting Branch Manager

Corporate and Data Services Steve McCauley Branch Manager

Social Security Nathan Williamson Deputy Secretary

Payments Policy Shane Bennett Group Manager

Welfare and Housing Policy Allyson Essex Acting Group Manager

Policy Office Tim Reddel Group Manager

Work and Study Payments Emma Kate McGuirk Branch Manager

Payment Conditionality Design and Policy Roxarne Armstrong Acting Branch Manager

Policy Capability and Evaluation Murray Kimber Branch Manager

Families and Pensions Kath Paton Acting Branch Manager

Payment Structures Mary McLarty Branch Manager

Policy Analysis and Reporting Jillian Moses Branch Manager

International Policy and Payment Support Anita Davis Branch Manager

Housing Policy Sidesh Naikar Branch Manager

Policy Strategy and Investment Phil Brown Branch Manager

Data Strategy

and Development David Dennis Branch Manager

Families and Communities Barbara Bennett Deputy Secretary

Families and Communities Reform Bruce Taloni Group Manager

Settlement Services Evan Lewis Group Manager

Families and Communities Policy and Programs Cath Halbert Group Manager

Welfare, Quarantining and Gambling Selena Pattrick Acting Branch Manager

Settlement Policy Sharon Bailey Branch Manager

Housing Programs and Homelessness Stewart Thomas Branch Manager

Family Safety Chantelle Stratford Branch Manager

Settlement Support Leo Kennedy Branch Manager

Children’s Policy Kath Mandla Branch Manager

Redress Policy and Legislation Brooke Hartigan Branch Manager

Family Policy and Programs Tristan Reed Branch Manager

Redress Implementation Tracy Creech Branch Manager

National Rental and Affordability Scheme Taskforce John Riley Branch Manager

Disability and Carers Michael Lye Deputy Secretary

NDIS Market Reform Andrew Whitecross Group Manager

NDIS Mainstream Linkages Group Flora Carapellucci Group Manager

NDIS Transition Oversight Helen McDevitt Group Manager

Disability, Employment and Carers Paul McBride Group Manager

Quality and Safeguards Policy Bruce Smith Branch Manager

Integration and Support Kirralee Thomas Acting Branch Manager

NDIS Transition Oversight and Governance Julie Yeend Branch Manager

Supported Employment Policy, Access and Engagement Christian Callisen Branch Manager

NDIS Market Oversight Thomas Abhayaratna Branch Manager

NDIS Financial Policy and Performance Nerida Hunter Branch Manager

Disability and Carer Policy Sharon Stuart Branch Manager

Program Transition Eliza Strapp Branch Manager

Disability Employment Services Peter Broadhead Branch Manager

1 1

Registrar-Designate Samantha Taylor

Complaints Commissioner-Designate Miranda Bruyniks

10 Annual Report 2017-18 Department of Social Services

Part 1—Overview I Chapter 1.1 Our department

1

Our people We operate across Australia with 82.3 per cent of our staff based in our national office located in Canberra, and 17.7 per cent in the delivery network located within state, territory and regional offices.

The contribution, expertise and diversity of our people is highly valued and reflects our significant portfolio responsibilities.

Figure 1.1.2 Our national presence, as at 30 June 2018

Darwin

Kununurra

Perth Port Augusta

Adelaide

Bendigo

Melbourne

Hobart

Orange Sydney

Hunter Region

Dubbo

Brisbane

Townsville

Cairns

Mt Isa

Delivery Network

National Office

Staff numbers in our Delivery Network

Staff numbers in our National Office

Total Department of Social Services Staff

46

18

49

67

30

115

2305

1898

407

82

Canberra

1898

11 Department of Social Services Annual Report 2017-18

Part 1—Overview I Chapter 1.2 The portfolio

1

Chapter 1.2

The portfolio The Social Services portfolio consisted of the department and two portfolio bodies as at 30 June 2018.

Portfolio bodies Australian Institute of Family Studies Outcome: Increased understanding of factors affecting how families function by conducting research and communicating findings to policy-makers, service providers and the broader community.

The Australian Institute of Family Studies provides advice, shares knowledge and builds evidence about what works for families to accelerate positive outcomes.

aifs.gov.au

National Disability Insurance Agency Outcome: To implement a National Disability Insurance Scheme that provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, social and economic participation of eligible people with disability, their families and carers, and associated referral services and activities.

The National Disability Insurance Agency (NDIA) was established under the National Disability Insurance Act 2013 and has responsibility for administering the National Disability Insurance Scheme. The Act (in conjunction with other laws) gives effect to Australia’s obligations under the United Nations Convention on the Rights of Persons with Disabilities.

ndis.gov.au

12 Annual Report 2017-18 Department of Social Services

Part 1—Overview I Chapter 1.2 The portfolio

1

Ministers and portfolio responsibilities

Figure 1.2.1: Social Services portfolio, as at 30 June 2018

Minister for Social Services

Assistant Minister for Social Services and Disability Services

Assistant Minister for Children and Families

Department of Social Services

Australian Institute of Family Studies Director Ms Anne Hollonds

National Disability Insurance Agency Chief Executive Officer Mr Rob De Luca

Department of State (non-corporate Commonwealth entity)

Ministers responsible for our portfolio

Portfolio body (corporate Commonwealth entity) Portfolio body (non-corporate Commonwealth entity)

The Hon Dan Tehan MP (from 20 December 2017)

The Hon Jane Prentice MP (from 19 July 2016)

The Hon Dr David Gillespie MP (from 20 December 2017)

Secretary

Ms Kathryn Campbell CSC

13 Department of Social Services Annual Report 2017-18

Part 1—Overview I Chapter 1.2 The portfolio

1

Changes to the Portfolio 2017-18 As a result of the Administrative Arrangements Order issued on 20 December 2017, the Multicultural Affairs function was transferred to the Department of Home Affairs.

A great fit

Before last year, Frank had never had a job. He is a 40-year old, living with schizophrenia.

Wanting to work, Frank sought help from a Disability Employment Services provider, who was able to help him apply for suitable jobs and prepare for interviews.

Disability Employment Services is a program funded by the Department of Social Services. The program provides assistance for people with disability, injury or health condition to prepare for, find and keep a job.

For Frank, his experience with Disability Employment Services gave him an opportunity to work. This has changed his life. Disability Employment Services organised an interview for Frank at a Metfasteners store in Melbourne. Shortly afterwards he began working as a factory hand at the back of the store under new boss Tony.

“I was naturally a little nervous when I first started, but I overcame it,” Frank said. “The other workers are really helpful and my boss is very nice.”

Programs like Disability Employment Services help people with disability overcome barriers to employment and help employers find the right candidate for their business.

In 2017-18, 242,017 people have been assisted by Disability Employment Services and 42,265 people have been placed in jobs by Disability Employment Services providers.

Working with Disability Employment Services has been a fantastic experience not only for Frank, but for Tony and Metfasteners as well.

“A Disability Employment Services provider took the time to really understand my business and that’s how they matched Frank to my organisation,” Tony explained. “He’s a great fit, we’re very lucky to have him on board.

“Our provider supported us through the recruitment stage and we can still contact them now whenever we need them.”

When asked about the difference he had made to Frank’s life by hiring him, Tony was quick to say that he hadn’t changed Frank’s life — Frank had changed his life and he was happy to have him as part of the team.

Frank’s story is just one of the many successful examples of how Disability Employment Services have assisted people with disability to enjoy the benefits that come with participating in work.

above: Frank and his

supervisor, Tony.

See part 2 chapter 2.3 for more information.

A great fit

2

Introduction ................................................................................................... 17

Chapter 2.1 Purpose 1 — Social Security ....................................................... 19

Chapter 2.2 Purpose 2 — Families and Communities ..................................... 46

Chapter 2.3 Purpose 3 — Disability and Carers .............................................. 63

Chapter 2.4 Purpose 4 — Housing ................................................................. 77

Annual performance statement

16

2

Annual Report 2017-18 Department of Social Services

Department of Social Services

Introductory statement

I, Kathryn Campbell, as the accountable authority of the Department of Social Services, present the 2017-18 Annual Performance Statement of the Department of Social Services, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013. In my opinion, this annual performance statement is based on properly maintained records, accurately reflects the performance of the entity, and complies with subsection 39(2) of the Public Governance, Performance and Accountability Act 2013.

Kathryn Campbell

Secretary

September 2018

17

2

Department of Social Services Annual Report 2017-18

Our 2017-18 annual performance statement provides a comprehensive overview of how the department has performed throughout the past year.

Each section begins with a summary and analysis of performance, followed by a table listing the performance criteria and indicators outlined in our 2017-18 Corporate Plan. The end of each section provides results for each performance criterion from both our Corporate Plan and Portfolio Budget Statements (PBS) for the 2017-18 financial year.

We provide information on programs and program component objectives on our website at www.dss.gov.au under corporate performance measurement detail.

Our purposes Our four purposes reflect the core areas in which we seek to help people to improve their lifetime wellbeing, as outlined in our 2017-18 Corporate Plan.

3 4

Social Security

Families and Communities

Disability and Carers

Housing

1 2

Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance.

Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Contribute to stronger and more resilient individuals, families and communities by providing targeted services and initiatives.

Improved access to affordable housing, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

18

2

Annual Report 2017-18 Department of Social Services

Our performance During 2017-18, our focus was to ensure the sustainability and responsiveness of the social security system, and to work with states and territories to develop and implement strategies that improve long-term outcomes for the most vulnerable. Our results include:

» a sustainable social security system designed to encourage independence and participation in employment

» implementation of the National Disability Insurance Scheme with a focus on building a capable workforce

» roll out of the National Redress Scheme

» implementation of the Cashless Debit Card trial in the Goldfields, Western Australia

» continued implementation of the Third Action Plan 2016-2019 of the National Plan to Reduce Violence against Women and their Children 2010-2022 and the Third Action Plan (2015-2018) of the National Framework for Protecting Australia’s Children 2009-2020

» expansion of the Community Grants Hub, which offers end-to-end grants administration services to eight client agencies, including our department.

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Chapter 2.1

Purpose 1 — Social Security Encourage self-reliance and support people who cannot fully support themselves by providing sustainable social security payments and assistance.

Programs

1.1 Family Tax Benefit

1.2 Child Payments

1.3 Income Support for Vulnerable People

1.4 Income Support for People in Special Circumstances

1.5 Supplementary Payments and Support for Income Support Recipients

1.6 Income Support for Seniors

1.7 Allowances and Concessions for Seniors

1.8 Income Support for People with Disability

1.9 Income Support for Carers

1.10 Working Age Payments

1.11 Student Payments

1.12 Program Support for Outcome 1

Activities We support those most in need and help people become and remain financially self-reliant. We provide a range of payments through the administration of a social security system, including family payments, student payments, income support payments for people of workforce age, people with disability and carers, and for seniors. Additional payments and non-cash benefits include Commonwealth Rent Assistance1 and concession cards.

1 Performance results for Commonwealth Rent Assistance are reported under Purpose 4 — Housing.

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Summary and analysis of performance The performance of the welfare system depends on the success of the structural elements in place. These include incentives to find a job, breaking the cycle of long-term welfare dependence, and the capacity of the system to respond to economic and demographic challenges. Improvements in self-reliance are dependent on pathways to employment and the development, maintenance and renewal of skills. Performance is also influenced by factors outside the direct influence of our department such as labour market conditions, availability of education and job opportunities, and the fact we are living longer. These factors have an impact on people’s capacity to support themselves financially, both in the short and longer-term.

Key results

Results over the past year are consistent with our longer-term objectives to provide a sustainable and targeted welfare system including:

» an estimate of the total future lifetime costs of Australia’s social security system and insights on cohorts at risk of long-term welfare dependency through the Australian Priority Investment Approach

» the first tranche of projects under the Try, Test and Learn Fund, which aims to trial innovative and new ways of reducing long term welfare dependency among at-risk cohorts

» a continued decline in numbers of people on the Disability Support Pension to less than 760,000, which reflects previous policy changes to the assessment process and eligibility criteria

» the Age Pension qualification age changed to 65.5 years from 1 July 2017. The number of Age Pension recipients has remained steady.

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Performance criteria The following table outlines our corporate plan performance criteria and indicators, which show how we intend to measure what we achieved, how well we did and how much we did.

Our performance is reported in the Results section. Not all programs report against every performance criterion.

Table 2.1.1: Performance criteria for Purpose 1 Social Security

Performance criteria Indicator/Output

Outcome — What did we achieve? Sustainability of the payments system

Average future lifetime cost (in current year dollars) of total welfare payments to individuals

Extent to which payment recipients have improved financial self-reliance

Expected average proportion of future years not receiving income support payments

Percentage of recipients who are not receiving income support within 3/6/12 months after exiting student payments

Percentage of recipients who exit income support within 3/6/12 months

Percentage of recipients reporting employment income

Percentage of recipients receiving a part-rate of payment due to the income or assets test

Intermediate Outcome — How well did we do?

Extent to which payments are made to, or with respect to, people unable to fully support themselves

Percentage of targeted population who receive payment

Percentage of recipients aligned to specific policy objectives or payment conditions

Extent to which delivery meets program objective Program performance criteria and associated milestones/standards (PBS)

Payment accuracy (PBS)

Percentage of recipients with debts by type and status

Output — How much did we do? Delivery measures Number of recipients (PBS) Number of children (PBS)

Administered outlays (PBS)

Sources: Corporate Plan 2017-18, page 14. Portfolio Budget Statements 2017-18, pages 49-61.

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Results Sustainability of the payments system This criterion measures the sustainability of the payment system by estimating the expected average future welfare payments to be made over the remaining future lifetimes of the Australian resident population. The analysis is taken from the Australian Priority Investment Approach to Welfare actuarial model. This model can also be used to contribute to longer-term thinking about costs and sustainability of the welfare system. The assessment of projected future lifetime costs will help identify where interventions may improve sustainability outcomes.

Average future lifetime cost (in current year dollars) of total welfare payments to individuals In the actuarial model, welfare recipients are assigned to a unique welfare class grouping that reflects their life situation and welfare usage. Classes are defined by the payment types currently being received. Further detail about this is provided in the 30 June 2017 Valuation Report.

The total future lifetime cost for the Australian resident population is estimated to be $4.7 trillion as at 30 June 2017. This is an increase from the valuation at 30 June 2016 (total lifetime cost of $4.5 trillion) and a decrease since the baseline valuation at 30 June 2015 (total lifetime cost of $4.8 trillion). The tables below show the contribution of each welfare class and population group to the total future lifetime cost and the average future lifetime cost for each group.

Table 2.1.2a: Total future lifetime cost (in current year dollars) by current welfare class, June 2017

Outcome performance measure Total future lifetime costa

Cross program

Current welfare recipients

• Studying Payment recipients $79b

• Working Age Payment recipients $411b

• Parenting Payment recipients $210b

• Carer Payment recipients $125b

• Disability Support Pension recipients $351b

• Age Pension recipients $542b

• Recipients of non-Income Support Family Payments $303b

• Recipients of non-Income Support Carer Payments $42b

• Recipients of other non-Income Support Payments $72b

Previous welfare recipients $735b

Rest of Australian resident population $1,812b

Total — Australian resident population $4,681b

a Future lifetime cost is defined at the valuation date as the net present value of future in-scope payments made to people over the remainder of their natural lifetimes. Due to rounding, numbers may not add up precisely to the total provided.

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Table 2.1.2b: Average future lifetime cost (in current year dollars) by current welfare class, June 2017

Outcome performance measure Average future lifetime costa

Cross program

Current welfare recipients

• Studying Payment recipients $212,000

• Working Age Payment recipients $316,000

• Parenting Payment recipients $485,000

• Carer Payment recipients $449,000

• Disability Support Pension recipients $462,000

• Age Pension recipients $209,000

• Recipients of non-Income Support Family Payments $197,000

• Recipients of non-Income Support Carer Payments $207,000

• Recipients of other non-Income Support Payments $129,000

Previous welfare recipients $164,000

Rest of Australian resident population $150,000

Total — Australian resident population $190,000

a Future lifetime cost is defined at the valuation date as the net present value of future in-scope payments made to people over the remainder of their natural lifetimes. Average future lifetime cost refers to the per person lifetime cost for a group of people.

Extent to which payment recipients have improved financial self-reliance This criterion comprises a number of proxy indicators for financial self-reliance that measure contact with the social security payment system. These indicators are designed to capture the extent to which people that have the capacity to do so can access financial resources beyond the payment they are receiving.

These indicators are:

» expected average proportion of future years not receiving income support payments

» percentage of recipients who are not receiving income support within three, six and 12 months after exiting student payments

» percentage of recipients who exit income support within three, six and 12 months

» percentage of recipients reporting employment income

» percentage of recipients receiving a part-rate of payment due to the income or assets test.

The five indicators apply differently across payments, based on payment objectives and the extent of financial independence and duration on payment expected for different groups of people. More measures apply to activity-tested programs as these are explicitly trying to improve self-reliance and exit from the income support system.

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Expected average proportion of future years not receiving income support payments This indicator measures the expected average proportion of future years that an individual does not receive income support payments over their expected future lifetime as simulated by the Australian Priority Investment Approach to Welfare actuarial model. This helps us understand expected future reliance on the social security system for Australian residents.

Table 2.1.3: Expected average proportion of future lifetime years not receiving income support payments, June 2017

Outcome performance measure

Expected average proportion of future lifetime years not receiving income support paymentsa

Cross program

• Studying Payment recipients 60%

• Working Age Payment recipients 38%

• Parenting Payment recipients 36%

• Carer Payment recipients 16%

• Disability Support Pension recipients 6%

• Age Pension recipients 6%

• Recipients of non-Income Support Family Payments 62%

• Recipients of non-Income Support Carer Payments 57%

• Recipients of other non-Income Support Payments 63%

Previous welfare recipients 59%

Rest of Australian resident population 66%

Total — Australian resident population 59%

a This measure captures information on an annual basis; that is, the number of future years for which no income support payment would be made to the individual (expressed as a percentage of their expected future lifetime years). It is not a measure of the number of fortnightly payment periods in which individuals do not receive payment.

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Percentage of recipients who are not receiving income support within 3/6/12 months after exiting student payments This indicator measures the reliance of former recipients of student payments on income support three, six and 12 months after leaving student payments. It is a proxy indicator for sustained self-reliance.

Table 2.1.4: Percentage of recipients who are not receiving income support within 3/6/12 months after exiting Student Payments

Outcome performance measure 2017-18 2016-17 2015-16

Student Paymentsa

Austudy

Percentage of Austudy recipients who are not receiving income support 3/6/12 months after exiting Student Payments:a

• within 3 months 63.2% 63.7% 62.6%

• within 6 months 65.7% 66.4% 65.6%

• within 12 months 70.5% 70.9% 70.2%

Youth Allowance (student)

Percentage of Youth Allowance (student) recipients who are not receiving income support 3/6/12 months after exiting Student Payments:b

• within 3 months 71.5% 70.8% 68.4%

• within 6 months 75.4% 74.5% 72.5%

• within 12 months 80.4% 80.2% 78.2%

ABSTUDY (Secondary and Tertiary)

Percentage of ABSTUDY recipients who were not receiving income support 3/6/12 months after exiting Student Payments:c

• within 3 months 53.1% 52.1% 51.3%

• within 6 months 52.2% 51.5% 50.0%

• within 12 months 54.4% 51.3% 50.2%

a Group comprises recipients who exited from Student Payments in calendar year 2016.

b Includes Australian apprentices.

c ABSTUDY Living Allowance only.

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Percentage of recipients who exit income support within 3/6/12 months This indicator demonstrates how quickly activity tested recipients have been able to exit from income support and is a proxy measure of self-reliance. Activity tested recipients are those who have mutual obligation requirements to look for work or undertake other activities and who are normally expected to have a short duration on payment.

The proportion of people exiting Newstart Allowance, Youth Allowance (other) and Special Benefit within 12 months has remained broadly consistent. The number of people exiting Special Benefit within three and six months has increased significantly. This is mainly due to an increase in the proportion of working age people claiming Special Benefit, who are more likely to exit payment earlier than people on non-working age payments.

Recipients exit income support for a variety of reasons, including employment, personal income from other sources, partner income, parental income (for Youth Allowance (other) recipients only), or assets.

Table 2.1.5: Percentage of recipients who exit income support within 3/6/12 months

Outcome performance measure 2017-18 2016-17 2015-16

Income Support for Vulnerable People

Special Benefit

Percentage of Special Benefit activity tested recipients who exit income support:

• within 3 months 23.7% 15.6% 18.2%

• within 6 months 40.8% 34.7% 38.3%

• within 12 months 60.6% 62.1% 66.1%

Working Age Payments

Newstart Allowance

Percentage of Newstart Allowance recipients who exit income support:

• within 3 months 24.0% 22.9% 22.7%

• within 6 months 41.7% 41.6% 42.2%

• within 12 months 63.0% 64.1% 63.0%

Youth Allowance (other)

Percentage of Youth Allowance (other) recipients who exit income support:

• within 3 months 22.9% 21.2% 22.7%

• within 6 months 42.5% 41.1% 43.3%

• within 12 months 62.1% 63.8% 61.2%

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Percentage of recipients reporting employment income This indicator uses receipt of employment income to demonstrate a person’s connection to the workforce. Reporting income from employment is a proxy for improved financial self-reliance.

The results for this measure will vary by payment. For some groups, such as secondary students, principal carers of children under school age, carers, people with disability and seniors, it is recognised there is a reduced capacity to undertake paid work. Students are provided with additional incentives to work through a higher personal income-free area and income bank. This is consistent with the Government’s objectives of increasing financial self reliance.

Only 1.5 per cent of all Special Benefit recipients report employment income as most recipients are over Age Pension age.

Age Pension recipients reporting employment income has decreased slightly over the last three years, from 4.4 per cent in 2015-16 to 4.2 per cent in 2017-18 (reported end June of each financial year). The decline in the number and proportion of new entrants to Age Pension with employment income as at June 2017 continued during 2017-18.

Disability Support Pension recipients reporting employment income declined slightly to 8.0 per cent in 2017-18 compared to 8.2 per cent for the previous two financial years. Australian Disability Enterprises are the source of income for a significant proportion of recipients. They are generally not-for-profit organisations providing supported employment to people with disability who are able to work at least eight hours per week.

The low percentage of Carer Payment recipients reporting employment income (between nine and 10 per cent over the past three financial years) reflects the targeting of the payment to carers who have limited capacity to engage in employment.

The proportion of working age payment recipients reporting employment income has remained steady, influenced by labour market conditions and payment design.

Parenting Payment Single has a higher income limit than other working age payments, which allows recipients with higher levels of earnings to remain entitled to the payment.

Parenting Payment Partnered, Sickness Allowance, Partner Allowance and Widow Allowance recipients are less likely to have employment income as these recipients are not subject to mutual obligation requirements.

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Table 2.1.6: Percentage of recipients reporting employment income

Outcome performance measure 2017-18 2016-17 2015-16

Income Support for Vulnerable People

Special Benefit 1.5% 1.7% 1.1%

Income Support for Seniors

Age Pension (new entrants) 9.4% 10.5% 10.7%

Age Pension (all recipients) 4.2% 4.3% 4.4%

Income Support for People with Disability

Disability Support Pension 8.0% 8.2% 8.2%

Income Support for Carers

Carer Payment 9.1% 9.3% 9.6%

Wife Pension (Disability Support Pension) 21.7% 22.2% 22.8%

Working Age Payments

Newstart Allowance 20.3% 21.0% 21.3%

Parenting Payment (Partnered) 10.0% 9.9% 9.9%

Parenting Payment (Single) 26.9% 26.2% 25.5%

Partner Allowance 6.1% 5.8% 5.9%

Sickness Allowance 8.8% 8.3% 8.1%

Widow Allowance 5.9% 6.4% 7.2%

Youth Allowance (other) 19.3% 19.5% 19.1%

Student Payments

Austudy 33.1% 32.1% 31.1%

Youth Allowance (student)a 37.7% 36.7% 36.1%

ABSTUDY (Secondary and Tertiary)b 17.4% 16.1% 15.0%

a Includes Australian apprentices.

b ABSTUDY Living Allowance only.

Percentage of recipients receiving a part-rate of payment due to the income or assets test This indicator shows the proportion of payment recipients with additional means (income or assets over free areas in the means test) who need less support from the payments system. A higher proportion of the population in receipt of a part-rate of payment indicates a higher financial capacity to provide some level of self-support. Some payments only apply income tests.

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Payment rates may be reduced under the income test due to income earnt by the recipient or their partner or, for Youth Allowance only, parental income.

The high proportion of Special Benefit recipients receiving a part-rate is due to the strict Special Benefit income test whereby all income and the value of in kind support, such as free board and lodgings, reduces the Special Benefit rate by that amount.

The proportion of Age Pension recipients on part-rate due to the means test remained steady from 2016-17 to 2017-18 at 38.2 per cent.

Over the longer-term, the proportion of Age Pension recipients on the part-rate has been increasing because newer retirees are more likely to have accumulated superannuation savings due to the introduction of compulsory superannuation in 1992.

The downward trend of Disability Support Pension recipients on part-rate is partially influenced by improved assessments and tightened eligibility for recipients.

There has been a slight reduction in the percentage of Carer Payment recipients receiving a part-rate of pension due to the means test over the past three years, from 24.4 per cent in 2015-16 to 22.5 per cent in 2017-18.

This indicator captures recipients on a part-rate due to the income test only for working age payments. This is because these payments are not payable at a part-rate under the assets test. These payments are subject to personal and partner income tests, and for dependent Youth Allowance (other) recipients, a parental income test and where applicable, a maintenance income test where child support is being received in respect of the young person and that amount is above the maintenance income-free area. The proportion of working age payment recipients receiving a part-rate has remained steady across most payment types.

Table 2.1.7a: Percentage of recipients receiving a part-rate of payment due to the income or assets test — Family Tax Benefit

Intermediate outcome performance measure

As ata

June 2016 June 2015 June 2014

Percentage of recipients receiving a part-rate of payment due to the income or assets testb

Family Tax Benefit

Family Tax Benefit Part A c

• Income testd 40.9% 41.6% 42.9%

• Maintenance income teste 20.3% 20.4% 20.6%

Family Tax Benefit Part B

• Income test 28.0% 28.2% 28.9%

a Family Tax Benefit instalment population as at 30 June each year.

b Family Tax Benefit recipients are not subject to an assets test.

c In this measure, a recipient may be captured in more than one category, that is, both income test and maintenance income test for Family Tax Benefit Part A. In Table 2.1.9a, recipients are captured in one category only.

d This measure captures any recipient whose entitlement is reduced by an income test.

e This measure captures any recipient whose entitlement is reduced by the maintenance income test.

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Table 2.1.7b: Percentage of recipients who did not meet the Family Tax Benefit Maintenance Action Test

Intermediate outcome performance measureab

As at

June 2016 June 2015 June 2014

Percentage of children who did not meet the Family Tax Benefit Maintenance Action Testc

10.8% 10.2% 9.6%

Percentage of families who did not meet the Family Tax Benefit Maintenance Action Testd

14.2% 13.4% 12.6%

a This is a new measure for 2017-18.

b The Family Tax Benefit maintenance action test requires a child’s primary carer to seek financial support from the other parent when parents separate. If a parent does not take action they are limited to the base rate of Family Tax Benefit Part A for that child. In certain circumstances, parents may be exempt from the Maintenance Action Test.

c Denominator includes all Family Tax Benefit Part A Children who are required to go through Maintenance Action Test.

d Denominator includes all Family Tax Benefit Part A families who are required to take reasonable action to obtain maintenance.

Table 2.1.7c: Percentage of recipients receiving part-rate of payment due to income or assets test — welfare payments (excluding Family Tax Benefit)

Outcome performance measure 2017-18 2016-17 2015-16

Income Support for Vulnerable People

Special Benefit a 77.7% 79.1% 80.8%

Income Support for Seniors

Age Pension 38.2% 38.2% 42.0%

• Income test 25.4% 25.3% 24.1%

• Assets test 12.8% 12.8% 17.8%

Widow B Pension 39.0% 41.6% 41.0%

• Income test 39.0% 41.6% 40.7%

• Assets test 0.0% 0.0% 0.3%

Wife Pension (Disability Support Pension) 18.7% 19.3% 20.0%

• Income test 17.0% 17.5% 16.7%

• Assets test 1.7% 1.8% 3.2%

Income Support for People with Disability

Disability Support Pension 14.4% 14.7% 15.4%

• Income test 13.5% 13.7% 13.7%

• Assets test 1.0% 1.0% 1.6%

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Income Support for Carers

Carer Payment 22.5% 23.0% 24.4%

• Income test 20.0% 20.4% 20.2%

• Assets test 2.5% 2.6% 4.2%

Wife Pension (DSP) 27.8% 27.8% 29.5%

• Income test 26.2% 26.4% 26.8%

• Assets test 1.6% 1.4% 2.7%

Working Age Payments

Newstart Allowanceb 23.2% 23.6% 23.8%

Parenting Payment (Partnered)b 26.7% 27.6% 28.1%

Parenting Payment (Single)b 24.7% 24.2% 23.2%

Partner Allowanceb 14.9% 14.9% 14.7%

Sickness Allowanceb 16.1% 16.5% 15.7%

Widow Allowanceb 21.4% 21.1% 20.8%

Youth Allowance (other)b 16.3% 16.8% 14.5%

Student Payments

Austudy 15.4% 14.9% 14.5%

Youth Allowance (student)c 26.4% 25.6% 23.3%

ABSTUDY (Secondary)d 13.7% 13.5% 4.4%

ABSTUDY (Tertiary)e 16.2% 15.8% 13.3%

a Recipients on a part-rate due to the income test only. This is because Special Benefit is not payable at a part-rate under the assets test.

b Recipients on a part-rate due to the income test only. This is because working age payments are not payable at a part-rate under the assets test.

c Excludes Australian apprentices.

d ABSTUDY Living Allowance only.

e This indicator takes into account higher education and vocational education and training students.

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Extent to which payments are made to, or with respect to, people unable to fully support themselves This criterion shows the reach of the major components of the payments system, expressed as a proportion of a particular population that receives payment. Trends in reach demonstrate the effectiveness of policy measures in increasing or restricting eligibility to payments, as well as changes in the characteristics of the populations of interest.

Percentage of the targeted population who receive payment These measures provide a comparison of the number of people receiving particular welfare payments with the estimated population relevant to the payment type. They provide useful information on the coverage of particular payments in the population, such as families with children, senior Australians and carers.

There has been a downward trend in the Family Tax Benefit instalment population since its peak in 2004-05. In the Family Tax Benefit Part A population, this is due to indexation pauses and policy changes. For the Family Tax Benefit Part B population, the downward trend is primarily due to reducing the income threshold of the primary income earner to $150,000 from 2008-09 and then to $100,000 in 2015-16.

The long-term trend of a gradual reduction in the proportion of senior Australians receiving the Age Pension resumed in 2017-18. There was a higher than normal one-off reduction in this proportion in 2016-17 due to the changes to the assets test from 1 January 2017.

There has been a slight decrease in the percentage of people with disability who receive Disability Support Pension payments, down from 17.7 per cent in 2016-17 to 17.6 per cent in 2017-18. Similarly, the ratio of Disability Support Pension recipients to the total Australian working age population has also fallen slightly from 4.3 per cent in 2016-17 to 4.2 per cent in 2017-18. The continued decrease in Disability Support Pension recipients can primarily be attributed to previous policy changes associated with improved assessments and tightened eligibility.

Table 2.1.8a: Percentage of the targeted population who receive payment — Family Tax Benefit

Intermediate outcome performance measure

Entitlement yeara

2015-16 2014-15 2013-14

Family Tax Benefit

Percentage of estimated population of families with children under 16 years of age receiving Family Tax Benefit Part A b

58.8% 61.5% 62.9%

Percentage of estimated population of families with children under 16 years of age receiving Family Tax Benefit Part B b

49.6% 55.0% 56.2%

a Reconciliation data reported at June 2018 for 2015-16, June 2017 for 2014-15 and June 2016 for 2013-14.

b Families are only able to receive Family Tax Benefit Part A for children aged 16 and over if they are in full time study towards Year 12 or equivalent. For this reason, comparison against the total population is limited to families with children under 16 years of age. Updated Australian Bureau of Statistics survey data was used to calculate data for 2015-16. For consistency, the 2013-14 and 2014-15 data have been revised using the same data.

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Table 2.1.8b: Percentage of the targeted population who receive payment — welfare payments (excluding Family Tax Benefit)

Outcome performance measure 2017-18 2016-17 2015-16

Income Support for Seniors

Percentage of estimated population of senior Australians over 65 years who receive Age Pensiona

65.3% 65.8% 69.0%

Income Support for People with Disability

Percentage of estimated population of people with disability who receive Disability Support Pensionb

17.6% 17.7% 18.5%

Percentage of estimated Australian working age population who receive Disability Support Pensionc

4.2% 4.3% 4.6%

Income Support for Carers

Percentage of primary carers who are receiving Carer Paymentd 32.1% 30.8% 33.9%

Percentage of primary carers who are receiving Carer Allowance (Adult) and (Child)e 72.7% 71.3% 78.7%

a These results are point-in-time counts of Age Pension recipients and the Australian Bureau of Statistics (cat. no. 3222.0 Population Projections, Australia, 2012 (base) to 2101) data on the seniors population aged 65.5 years and over.

b These results are derived from the Australian Bureau of Statistics Survey of Disability, Ageing, and Carers (cat. no. 4430.0) and report the number of people with disability. Not all people with disability have a work limitation or rely on the Disability Support Pension. Results from 2017-18 and 2016-17 are based on 2015 Australian Bureau of Statistics Survey of Disability, Ageing and Carers report, while 2015-16 results are based on 2012 Australian Bureau of Statistics Survey of Disability, Ageing and Carers report.

c These results are point-in-time counts of Disability Support Pension recipients of working age and the Australian Bureau of Statistics (cat. no. 3222.0 Population Projections, Australia, 2012 (base) to 2101) data on the working-age population aged 15-64 years.

d The result of this performance measure relies on the definition of primary carer used by the Australian Bureau of Statistics Survey of Disability, Ageing and Carers (cat. no. 4430.0) and the number of people who provided the most informal help needed by a person with disability. Eligibility for Carer Payment and Carer Allowance is not determined by the Australian Bureau of Statistics definition of primary carer.

The number of primary carers in 2015-16 is sourced from the 2012 Australian Bureau of Statistics Survey of Disability, Ageing and Carers (cat. no. 4430.0) while the 2016-17 and 2017-18 are sourced from the 2015 edition of the Australian Bureau of Statistics Survey of Disability, Ageing and Carers (cat. no. 4430.0). This survey is run by the Australian Bureau of Statistics triennially.

e Excludes carers whose care receiver qualified for a Health Care Card only.

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Percentage of recipients aligned to specific policy objectives or payment conditions This indicator explores a range of payment-specific policy requirements or parameters, such as immunisation and health checks. These provide insight into the characteristics of the payment populations and the effectiveness of policy conditions in influencing recipient behaviour.

From 1 January 2016, families could only receive the Family Tax Benefit Part A end of year supplement for their child if they reconciled their entitlement within 12 months of the entitlement year, were up to date with immunisations as specified in the child vaccination schedule, or they had a medical exemption.2 If a person received Family Tax Benefit and an Income Support Payment, and their child turned four during the entitlement year, their child needed to undergo a health check for the supplement to be paid.

In the 2015-16 entitlement year, the amount of child support received has reduced the amount of Family Tax Benefit Part A paid by $739 million, a small decrease on the $743 million reduction in the 2014-15 entitlement year.

Table 2.1.9a: Percentage of recipients aligned to specific policy objectives or payment conditions — Family Tax Benefit by income test categories

Intermediate outcome performance measure

As ata

June 2016 June 2015 June 2014

Family Tax Benefit

Percentage of families in receipt of Family Tax Benefit Part A within income test categories

• Families on Income Support

- Maximum rate 28.8% 28.6% 27.9%

- Maintenance reduced rate 13.3% 13.4% 13.6%

- Base rate 2.5% 2.3% 2.0%

- Regular care rate 0.3% 0.3% 0.3%

• Families not on Income Support

- Maximum rate 10.1% 9.7% 9.4%

- Maintenance reduced rate 3.1% 3.0% 2.9%

- Broken rate below high income free area 19.9% 20.8% 20.6%

- Broken rate above high income free area 6.0% 3.5% 2.6%

- Base rate 11.2% 13.1% 14.7%

- Tapered base rate 4.4% 4.9% 5.5%

- Regular care rate 0.5% 0.5% 0.5%

2 From 1 January 2016 the Family Tax Benefit Part A immunisation requirement applies to all children aged from 12 months up to 20 years for the Family Tax Benefit Part A supplement. Objection to vaccination is not a valid exemption.

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Intermediate outcome performance measure

As ata

June 2016 June 2015 June 2014

Family Tax Benefit

Percentage of families in receipt of Family Tax Benefit Part B within income test categories

• Families on Income Support

- Maximum rate single families 37.1% 34.6% 34.1%

- Maximum rate couple families 2.1% 2.1% 2.0%

- Broken rate couple families 12.8% 12.1% 12.3%

• Families not on Income Support

- Maximum rate single families 15.8% 15.0% 14.6%

- Maximum rate couple families 16.9% 20.1% 20.4%

- Broken rate couple families 15.2% 16.1% 16.7%

a Instalment population as at June each year. Totals may not add to 100 per cent due to rounding.

Table 2.1.9b: Percentage of recipients aligned to specific policy objectives or payment conditions — Family Tax Benefit immunisation and maintenance income reduction

Intermediate outcome performance measure

Entitlement yeara

2015-16 2014-15 2013-14

Percentage of children who meet the Family Tax Benefit immunisation requirement by age check point:

• Children aged one in entitlement year 97.3% 97.7% 97.7%

• Children aged two in entitlement year 97.9% 97.9% 97.6%

• Children aged five in entitlement year 98.5% 98.3% 97.9%

Percentage of children who meet the Family Tax Benefit health check requirement 87.9% 90.2% 90.3%

Reduction of Family Tax Benefit as a result of maintenance income testb $739m $743m $740m

a Reconciliation data reported at June 2018 for 2015-16, June 2017 for 2014-15 and June 2016 for 2013-14.

b The Child Support Scheme contributes to this indicator through assessment, collection and transfer of child support between separated parents.

Table 2.1.9c: Percentage of recipients aligned to specific policy objectives or payment conditions — Income Support for Seniors

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Income Support for Seniors

Age Pension

Ratio of assessed income of pensioners to their total income $22.18:$100 $22.36:$100 $23.98:$100

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Extent to which delivery meets program objective This criterion assesses whether funds have been spent consistent with the program objective with a focus on appropriate delivery of payments.

Program performance criteria and associated milestones/standards

Table 2.1.10: Program performance criteria and associated milestones/standards

Intermediate outcome performance measure PBS performance criteria 2017-18 2016-17

Family Tax Benefit

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments/programs below are made in accordance with relevant legislation, policy and guidelines: • Family Tax Benefit Part A • Family Tax Benefit Part B • Child Support Scheme

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Child Payments

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Double Orphan Pension • Single Income Family Supplement • Stillborn Baby Payment • Assistance for Isolated Children

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Income Support for Vulnerable People

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Special Benefit

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Income Support for People in Special Circumstances

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Bereavement Allowance • Payments under Special Circumstances

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

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Intermediate outcome performance measure PBS performance criteria 2017-18 2016-17

Supplementary Payments and Support for Income Support Recipients

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Low Income Supplement • Utilities Allowance • Essential Medical Equipment Payment

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Income Support for Seniors

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Age Pension • Widow B Pension • Wife Pension (Age)

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Allowances and Concessions for Seniors

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Allowances and Concessions for Seniors

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Income Support for People with Disability

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Disability Support Pension • Mobility Allowance

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Income Support for Carers

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Carer Payment • Carer Allowance (Adult) and (Child) • Carer Supplement • Child Disability Assistance Payment • Wife Pension (Disability Support Pension)

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

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Intermediate outcome performance measure PBS performance criteria 2017-18 2016-17

Working Age Payments

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Newstart Allowance • Youth Allowance (other) • Sickness Allowance • Parenting Payment • Partner Allowance • Widow Allowance

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Student Payments

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Austudy • ABSTUDY • Youth Allowance (student) • Student Start-up Loan

Milestone/ standard: Agreement is in place Result: met

Milestone/ standard: Agreement is in place Result: met

Program Support for Outcome 1

Total departmental funding for Outcome 1 Milestone/ standard: Departmental funding is expended to achieve agency outcomes $101.997m

Milestone/ standard: Departmental funding is expended to achieve agency outcomes $118.370m

Payment accuracy The Random Sample Survey provides assurance over the accuracy of social security payments. Reviews are conducted by the Department of Human Services using a random sample of the population for the major payment types provided by our department.

The survey provides a point-in-time assessment of recipient circumstances to establish the accurately-paid value of total outlays and provides reasons for any debt, error or change in payment rate. It provides benchmark data on the level of inaccurate payments.

In 2017-18, 20,674 recipients were surveyed.

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The survey is one of the methods we use to measure social security service delivery performance. The target performance level is 95 per cent or greater accuracy across all payments, with individual targets set for each payment. In 2017-18 the overall accuracy result was 95.14 per cent (see Table 2.1.11).

Table 2.1.11: Payment accuracy

Intermediate outcome performance measure

Payment type

2017-18

Number of recipients surveyed Accuracy

Confidence interval +/-

ABSTUDY 500 74.88% 4.06%

Austudy 700 84.66% 2.75%

Newstart Allowance 4,986 91.71% 0.85%

Parenting Payment (Partnered) 1,101 83.60% 2.70%

Parenting Payment (Single) 2,097 93.98% 1.10%

Partner Allowance 120 99.62% 0.34%

Sickness Allowance 400 63.78% 5.32%

Widow Allowance 200 96.21% 2.20%

Youth Allowance (other) 822 87.12% 2.50%

Youth Allowance (student) 1,300 87.07% 1.97%

Age Pension 3,471 97.53% 0.40%

Disability Support Pension 1,050 95.52% 1.17%

Carer Payment 175 95.31% 3.42%

Carer Allowance 1,902 91.81% 1.32%

Family Tax Benefit 1,500 97.34% 1.42%

Special Benefit 350 95.65% 2.44%

Overall rate of accuracy 20,674 95.14% 0.37%

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Percentage of recipients with debts by type and status This indicator monitors the number and types of debts to assess the efficiency and responsiveness of the social security payments system design. The Department of Human Services manages debt identification and recovery on behalf of our department.

Table 2.1.12: Percentage of recipients with debts by type and status

Intermediate outcome performance measurea

Entitlement Yearb

2015-16 2014-15 2013-14

Family Tax Benefit

Percentage of all recipients who had a qualification debt raised 10.2% 9.1% 5.7%

Percentage of all recipients whose qualification debt remains outstanding 1.2% 0.9% 0.5%

Percentage of all recipients who had a debt raised following reconciliation 14.9% 12.6% 12.2%

Percentage of all recipients whose reconciliation debt remains outstanding 2.9% 2.1% 2.1%

Percentage of all recipients who had a non-lodger debt raised 1.5% 1.3% 1.2%

Percentage of all recipients whose non-lodger debt remains outstanding 1.4% 1.2% 1.1%

a This table includes any recipient that has had a debt raised in relation to an entitlement year.

b Reconciliation data reported at June 2018 for 2015-16, June 2017 for 2014-15 and June 2016 for 2013-14. From 2016-17, Table 2.1.12 reports Family Tax Benefit debts against the Family Tax Benefit population (1,859,774 in 2015-16, 1,957,699 in 2014-15, 1,975,558 in 2013-14). This recognises that Family Tax Benefit debts raised for a recipient may result from their entitlement (or non-entitlement) to Family Tax Benefit Part A and/or Part B.

Delivery measures

Number of recipients

Table 2.1.13a: Number of recipients — Family Tax Benefit Part A and B

Output performance measure

Entitlement Yeara

2015-16 2014-15 2013-14

Family Tax Benefit

Family Tax Benefit A 1,723,741 1,778,408 1,791,006

Family Tax Benefit B 1,449,237 1,581,164 1,589,454

a Reconciliation data reported at June 2018 for 2015-16, June 2017 for 2014-15 and June 2016 for 2013-14.

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Table 2.1.13b: Number of recipients — welfare payments (excluding Family Tax Benefit Part A and B)

Output performance measure 2017-18 2016-17 2015-16

Child Payments

Child Support Scheme (number of cases)a 777,884 778,687 783,078

Double Orphan Pensionb 1,036 1,107 1,122

Single Income Family Supplement n/ac 208,151d 207,495d

Stillborn Baby Payment 886 1,005 1,010

Assistance for Isolated Childrene 11,330 11,032 10,958

Income Support for Vulnerable People

Special Benefit 6,823 6,966 5,335

Income Support for People in Special Circumstances

Bereavement Allowancef 872 875 936

Payments under Special Circumstances 36 40 28

Supplementary Payments and Support for Income Support Recipients

Low Income Supplement n/ag 6,275 6,778

Utilities Allowance 40,753 45,854 54,250

Essential Medical Equipment Payment (number of payments) 43,220 42,556 39,601

Income Support for Seniors

Age Pension 2.48m 2.50m 2.54m

Widow B Pension 328 361 388

Wife Pension (Age) 4,715 5,175 5,849

Allowances and Concessions for Seniors

Energy Supplement for holders of the Commonwealth Seniors Health Card 327,309 351,354 270,979

Income Support for People with Disability

Disability Support Pension 756,960 758,911 782,891

Mobility Allowance 32,799 45,236 59,971

Income Support for Carers

Carer Payment 274,414 263,874 260,592

Carer Allowance (Adult and Child)h 622,423 610,068 605,773

Carer Supplement 642,537 639,986 629,005

Child Disability Assistance Payment 159,065 158,648 154,420

Wife Pension (Disability Support Pension) 4,541 4,937 5,697

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Output performance measure 2017-18 2016-17 2015-16

Working Age Payments

Newstart Allowance 727,533 733,088 732,100

Parenting Payment (Partnered) 82,541 94,198 100,210

Parenting Payment (Single) 244,296 255,801 259,434

Partner Allowance 1,956 2,528 3,952

Pensioner Education Supplement 24,315 26,542 35,521

Sickness Allowance 6,101 6,336 7,708

Widow Allowance 12,802 14,548 18,245

Youth Allowance (other) 94,009 101,045 98,100

Student Payments

Austudyi 39,170 43,837 45,656

ABSTUDY — Secondaryi 18,984 19,332 20,526

ABSTUDY — Tertiaryi 9,702 9,958 10,316

Youth Allowance (student)ij 187,114 200,808 211,082

Student Start-up Loankl 104,248 48,344 -

Student Start-up Loan — ABSTUDYk 1,948 926 -

a Data for number of cases is point-in-time as at 30 June of the relevant financial year.

b From 2016-17, the official data source for Double Orphan Pension is the DHS’ SAS Visual Analytic. Double Orphan Pension data was previously sourced from DHS’ SuperCross. The two data sources produce slightly different population counts.

c Family Tax Benefit recipients are automatically assessed for Single Income Family Supplement when their Family Tax Benefit entitlement is reconciled. Data for 2016-17 is not available as the reconciliation process for Family Tax Benefit is not yet finalised.

d Number has been revised due to the further reconciliation.

e These figures are for the month of December each year due to the nature of the payment.

f This is the number of grants for each financial year.

g The Low Income Supplement ceased on 30 June 2017.

h Excludes carers whose care receiver qualified for a Health Care Card only.

i These figures are monthly averages due to the seasonal nature of Student Payments.

j Includes Australian apprentices.

k This is a new performance measure 1 January 2016. These figures are unique counts of recipients across the calendar year due to the nature of the payment.

l Youth Allowance and Austudy recipients only.

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Number of children

Table 2.1.14a: Number of children — Family Tax Benefit

Output performance measure

Entitlement Year

2015-16 2014-15

Number of childrena

Family Tax Benefit

Number of eligible Family Tax Benefit Part A children 3,403,411 3,504,693

Number of children in eligible Family Tax Benefit Part B families b 2,811,937 3,075,799

a Reconciliation data reported at June 2018 for 2015-16 and June 2017 for 2014-15.

b Family Tax Benefit Part B is a per family payment.

Table 2.1.14b: Number of children — Child Payments

Output performance measure 2017-18 2016-17 2015-16

Child Payments

Double Orphan Pensiona 1,512 1,635 1,635

a Data as at 30 June 2018 for 2017-18, as at 30 June 2017 for 2016-17 and as at 30 June 2016 for 2015-16.

Administered outlays

Table 2.1.15: Administered outlays

Output performance measure 2017-18 2016-17 2015-16

Family Tax Benefit

Family Tax Benefit A $13.94b $14.13b $15.52b

Family Tax Benefit B $4.08b $4.24b $4.31b

Child Payments

Double Orphan Pension $3.11m $3.23m $3.30m

Single Income Family Supplement $28.46m $30.53m $50.46m

Stillborn Baby Payment $1.89m $1.99m $2.14m

Assistance for Isolated Children $74.94m $70.92m $70.72m

Income Support for Vulnerable People

Special Benefit $99.79m $80.39m $64.75m

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Output performance measure 2017-18 2016-17 2015-16

Income Support for People in Special Circumstances

Bereavement Allowance $3.93m $3.76m $4.39m

Payments under Special Circumstances $0.53m $0.66m $0.59m

Supplementary Payments and Support for Income Support Recipients

Low Income Supplement n/aa $1.88m $2.01m

Utilities Allowance $21.53m $21.06m $26.69m

Essential Medical Equipment Payment $6.80m $6.55m $6.12m

Income Support for Seniors

Age Pension $44.80b $44.22b $43.23b

Widow B Pension $5.46m $6.17m $6.44m

Wife Pension (Age) $83.24m $91.22m $102.02m

Allowances and Concessions for Seniors

Energy Supplement for holders of the Commonwealth Seniors Health Cardb $98.21m $91.40m $81.49m

Income Support for People with Disability

Disability Support Pension $16.44b $16.25b $16.42b

Mobility Allowance $103.37m $135.50m $151.37m

Income Support for Carers

Carer Payment $5.39b $5.05b $4.83b

Carer Allowance (Adult) $1.64b $1.61b $1.57b

Carer Allowance (Child) $605.94m $580.85m $562.99m

Carer Supplement $590.59m $578.88m $567.17m

Child Disability Assistance Payment $182.41m $180.50m $175.25m

Wife Pension (Disability Support Pension) $75.37m $82.55m $94.15m

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Output performance measure 2017-18 2016-17 2015-16

Working Age Payments

Newstart Allowance $10.01b $9.99b $9.91b

Parenting Payment (Partnered) $0.92b $0.98b $1.01b

Parenting Payment (Single) $4.68b $4.63b $4.64b

Partner Allowance $29.35m $39.36m $58.55m

Pensioner Education Supplement $46.56m $54.03m $66.50m

Sickness Allowance $102.79m $95.81m $107.71m

Widow Allowance $221.74m $251.25m $307.39m

Youth Allowance (other) $0.94b $0.99b $1.04b

Student Payments

Austudy $509.73m $583.65m $645.44m

Youth Allowance (student) $1.85b $2.15b $2.44b

ABSTUDY — Secondary $152.68m $151.51m $145.25m

ABSTUDY — Tertiary $113.77m $114.59m $114.22m

Student Start-up Loan $129.43m $81.23m $14.44m

Student Start-up Loan — ABSTUDY $2.46m $1.51m $0.34m

a Low Income Supplement ceased on 30 June 2017.

b Previous years reported Seniors Supplement. This ceased in June 2015 and only the Energy Supplement continues to be paid.

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Chapter 2.2

Purpose 2 — Families and Communities Contribute to stronger and more resilient individuals, families and

communities by providing targeted services and initiatives.

Programs

2.1 Families and Communities

2.2 Paid Parental Leave

2.3 Social and Community Services

2.4 Program Support for Outcome 2

Activities We support families and children, as well as migrants and humanitarian entrants settling in Australia, to improve their lifetime wellbeing by responding to specific needs and encouraging independence and participation in the community. We provide assistance through numerous programs of grants, procurements and subsidies. We support new parents through Paid Parental Leave arrangements. Through this assistance, we help individuals and families, and strengthen community capacity to provide support and meet local needs.

We work across the Australian and state and territory governments to foster inclusive social norms that strengthen social cohesion — such as mutual respect, trust and belonging. We support family and community harmony by providing support and early intervention to people facing domestic and family violence, child abuse and neglect, sexual assault against women and children, and racism and discrimination. We also established the National Redress Scheme which offers redress and support to people who have experienced institutional child sexual abuse.

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Summary and analysis of performance We operate in an environment in which the strength of families and communities is influenced by a complex array of circumstances, social norms and people’s personal aspirations and motivations. Parenting, relationship and financial management skills also contribute to positive outcomes for families and children.

Our performance contributes to positive outcomes alongside the significant effort made by state jurisdictions, local communities and other government agencies.

Key results

To contribute to family and community outcomes during the past year we:

» worked with Commonwealth agencies, the states and territories and non government institutions to develop and pass legislation to enable the National Redress Scheme to launch on 1 July 2018

» delivered strong results for the Cashless Debit Card trial in current sites and successfully implemented the initiative in the Goldfields region of Western Australia

» delivered key activities under the National Plan to Reduce Violence against Women and their Children 2010-2022 and continued to progress the Council of Australian Governments’ Women’s Safety agenda to Reduce Violence against Women and their Children with the national campaign, Stop it at the Start

» delivered key activities under the Third Action Plan 2015-2018 of the National Framework for Protecting Australia’s Children 2009-2020

» delivered families and children services to approximately 2.7 million individuals.

» launched the Be Connected program

» implemented the new Humanitarian Settlement Program

» implemented the new Strong and Resilient Communities Activity grant programs

» established Armidale as a new regional settlement location for humanitarian entrants affected by the conflicts in Syria and Iraq.

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Performance criteria The following table outlines our corporate plan performance criteria and indicators, which show how we intend to measure what we achieved, how well we did, and how much we did.

Our performance is reported in the Results section of this report. Not all programs report against every performance criterion.

Table 2.2.1: Performance criteria for Purpose 2 Families and Communities

Performance criteria Indicator/Output

Outcome — What did we achieve? Extent to which assisted individuals and families

have improved individual and family functioning

Percentage of assisted individuals and families with improved circumstances in areas relevant to individuals/family needs

Percentage of assisted individuals and families who achieve individual/family goals related to building capacity and connections

Intermediate Outcome — How well did we do?

Extent of contribution to implementing national initiatives

Extent of progress in implementing the National Plan to Reduce Violence against Women and their Children 2010-2022

Extent of progress in implementing the National Framework for Protecting Australia’s Children 2009-2020

Extent to which payments and service provision meet program objective

Program performance criteria and associated milestones/standards (PBS)

Extent of satisfaction with services

Extent of community and service system capacity and capability improvement

Percentage of assisted individuals who are from priority groups or locations

Percentage of new parents supported to take paid parental leave

Output — How much did we do? Delivery measures Number of individuals assisted (PBS) Number of organisations contracted or

receiving grant funding to deliver services (PBS)

Administered outlays (PBS)

Sources: Corporate Plan 2017-18 page 16. Portfolio Budget Statements 2017-18, pages 70-72.

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Results Extent to which assisted individuals and families have improved individual and family functioning This criterion captures elements of the outcome purpose: stronger and more resilient individuals, families and communities. It represents the main areas where improved individual and family functioning is an expected outcome of service provision. It is measured through two indicators, which focus on improved circumstances and achievement of, or progress towards, goals.

Percentage of assisted individuals and families with improved circumstances in areas relevant to individual/family needs This indicator captures the main areas where improved circumstances for individuals and families are an expected outcome of service provision.

This indicator considers a range of areas (such as family functioning, financial resilience, age appropriate development and personal safety) to provide a high-level summary on how a family functions. Specific measures track improvements by individuals being assisted through programs for families and children, and financial wellbeing and capability programs.

There are a number of activities that may have contributed to clients reporting improved circumstances, including:

» delivery of the Home Interaction Program for Parents and Youngsters in 100 communities across Australia, including 50 Indigenous-focused sites

» delivery of Children and Parenting Support services in 139 locations across Australia and extending service delivery in Western Australia and South Australia to support the Cashless Debit Card trial

» delivery of Intensive Family Support Services in the Northern Territory and Anangu Pitjantjatjara Yankunytjatjara Lands in South Australia, providing intensive support to families with children aged 0-12 years of age and where child neglect concerns are present

» delivery of the Adult Specialist Support Services — Find and Connect Support Services, Forced Adoption Support Services and Royal Commission Community-Based Support Services to improve outcomes and enhance wellbeing for people adversely affected by past institutional and child welfare practices and policies

» community-based support services for children, young people and their family members before, during and after their interaction with the Royal Commission into the Protection and Detention of Children in the Northern Territory

» delivery of Family and Relationship Services in 530 locations across Australia, including counselling services to families and individuals at critical family transition points such as family formation, extension or family separation, and education and skills training to strengthen family relationships

» delivery of settlement programs to assist newly-arrived humanitarian entrants to participate in the Australian community.

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Table 2.2.2: Percentage of assisted individuals and families with improved circumstances in areas relevant to individual/family needs

Outcome performance measures 2017-18 2016-17 2015-16

Cross program

Percentage of assisted individuals and families with improved circumstances in areas relevant to individual/family needsabcde

• All circumstancesf 77.9% 76.0% -

• Age-appropriate development 65.3% 59.1% -

• Community participation and networks 72.9% 72.7% -

• Employment, education and training 72.6% 71.3% -

• Family functioning 65.1% 62.0% -

• Housing 67.6% 70.9% -

• Material wellbeing 74.1% 71.6% -

• Mental health, wellbeing and self-care 65.5% 60.7% -

• Money management 67.3% 67.3% -

• Personal health and safety 56.6% 50.5% -

• Physical health 59.2% 60.7% -

Families and Children

Percentage of clients with improved individual and family functioning, including child wellbeing, safety and developmentg

71.8% 68.0% 75.5%

Financial Wellbeing and Capability

Percentage of clients with improved financial wellbeing, capability and resilienceh 79.9% 79.2% 78.9%

a Data relating to Family Law Services is excluded as it is funded by, and under the policy responsibility of, the Attorney-General’s Department.

b The number of activities funded under the Families and Communities Program may vary across financial years.

c This is a count of individual clients assisted. Families are not reported in DEX. New performance measure for 2016-17.

d Strong and Resilient Communities Activity replaced Strengthening Communities from 1 April 2018. Data is not comparable as a reduced number of organisations were funded to deliver services before the commencement of the Strong and Resilient Communities Activity.

e This excludes clients reported as support persons.

f Outcome performance measures are collated from programs supporting people in achieving different outcome circumstances.

g The submission of outcomes data is voluntary and only a subset of service providers have submitted the additional data. During 2017-18, more service providers have commenced reporting outcomes data which has improved the quality of this measure compared to 2016-17. To measure outcomes, only clients with both a pre and post-assessment for a domain have been counted. For this measure all domains relating to the circumstance outcome type have been included.

h Measured as service provider self-reports of clients whose needs were met through Financial Crisis and Material Aid, Commonwealth Financial Counselling and Financial Capability services.

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Percentage of assisted individuals and families who achieve individual/ family goals related to building capacity and connections This indicator captures the main areas where goal setting is a function of service provision and reporting is applicable.

Of those clients assessed by service providers, a significant proportion receiving services under Settlement Grants achieved a positive outcome. An examination of the program finalised in 2017-18 provided additional evidence it is meeting clients’ needs and informed enhancements to the program. The program was renamed Settlement Engagement and Transition Support and an open selection round was conducted.

Activities that may have contributed to clients reporting improved knowledge, skills, behaviours and engagement with services include:

» delivery of Children and Parenting Support Services in 139 priority service areas including community playgroups, supported playgroups, parenting courses, school readiness programs, home visiting, web-based services and resources and peer support groups for parents and carers

» delivery of Family and Relationship Services in 530 locations across Australia, providing education and skills sessions to improve relationship skills and to assist couples and families, including those with children, to develop skills to foster positive, stable relationships.

Table 2.2.3: Percentage of assisted individuals and families who achieve individual/family goals related to building capacity and connections

Outcome performance measure 2017-18 2016-17 2015-16

Cross program

Percentage of assisted individuals and families who achieve individual/family goals related to building capacity and connectionsabc

• All goalsd 85.2% 81.7% -

• Under 15 years 80.5% 78.4% -

• 15-64 years 84.6% 82.1% -

• 65 years and over 88.9% 87.1% -

• Culturally and linguistically diverse 90.6% 90.9% -

• Not culturally and linguistically diverse 81.4% 78.7% -

Families and Children

Percentage of clients with improved knowledge, skills, behaviours and engagement with servicese 79.2% 73.0% 79.3%

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Outcome performance measure 2017-18 2016-17 2015-16

Settlement Services

Percentage of assisted migrants and humanitarian entrants with improved engagement with support servicesf

90.3% 94.1% -

Financial Wellbeing and Capability

Percentage of clients achieving individual goals related to financial counselling, capability and resilienceg

88.8% 91.5% 90.4%

a Data relating to Family Law Services is excluded as it is funded by, and under the policy responsibility of, the Attorney-General’s Department.

b The number of activities funded under the Families and Communities Program may vary across financial years.

c This is a count of individual clients assisted. Families are not reported in DEX. New performance measure for 2016-17.

d Outcome performance measures are collated from programs supporting people in achieving different outcome circumstances.

e The submission of outcomes data is voluntary and only a subset of service providers have submitted the additional data. During 2017-18, more service providers have commenced reporting outcomes data which has improved the quality of this measure compared to 2016-17. To measure outcomes only clients with both a pre and post-assessment for a domain have been counted. For this measure all domains relating to the circumstance outcome type have been included.

f This relates specifically to Grants for Community Settlement outcomes only. The submission of outcomes data is voluntary and only a subset of service providers has submitted the additional data. During 2017-18, more service providers have commenced reporting outcomes data that has improved the quality of this measure compared to 2016-17. To measure outcomes only clients with both a pre and post-assessment for a domain have been counted. For this measure all domains relating to the goal outcome type have been included.

g Measured as Commonwealth Financial Counselling and Financial Capability service provider self-assessment of the extent to which their clients were assisted to improve their financial capability; and pathways to mainstream financial services.

Extent of contribution to implementing national initiatives This criterion captures the high-level contribution by our department to the larger effort made by state jurisdictions, local communities and other government agencies on key national initiatives.

Extent of progress in implementing the National Plan to Reduce Violence against Women and their Children 2010-2022 Under the National Plan to Reduce Violence against Women and their Children 2010-2022, each state and territory has primary responsibility for delivering services for women who have experienced violence. We provide funding to:

» drive long-term attitudinal and behavioural change, by funding organisations like Our Watch and Australia’s National Research Organisation for Women’s Safety

» support complementary national support services such as 1800RESPECT and Domestic Violence Response Training (DV-alert)

» build the evidence base through our research publications and data releases.

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We continue to implement the Commonwealth’s Women’s Safety Package to help keep women and children safe through a range of technology trials and the expansion of 1800RESPECT and DV-alert.

The National Plan targets two main types of violence — domestic and family violence and sexual assault.

Over the last decade, the proportion of women who experienced partner violence has remained relatively stable at around 1.5 to 1.7 per cent.

Table 2.2.4: Extent of progress in implementing the National Plan to Reduce Violence against Women and their Children 2010-2022

Intermediate outcome performance measure 2017-18 2016-17

Cross program

Extent of progress in implementing the National Plan to Reduce Violence against Women and their Children 2010-2022

Result: met Result: met

Extent of progress in implementing the National Framework for Protecting Australia’s Children 2009-2020 The Third Action Plan (2015-2018) of the National Framework for Protecting Australia’s Children 2009-2020 included three strategies focused on national efforts to improve the wellbeing of Australian children:

» Strategy 1: early intervention with a focus on the early years, particularly the first 1,000 days for a child

» Strategy 2: helping young people in out-of-home care to thrive into adulthood

» Strategy 3: organisations responding better to children and young people to keep them safe.

The Aboriginal and Torres Strait Islander Working Group aimed to support full implementation of the Aboriginal and Torres Strait Islander Child Placement Principle.

Three trial activities commenced relating to the National Framework research priorities:

» community awareness raising activities, including engaging Aboriginal and Torres Strait Islander parents

» the Building Capacity in Australian Parents trial, which aims to increase parenting skills and help seeking behaviour of new and expectant parents in three Queensland sites: Rockhampton, Ipswich and Toowoomba

» the Western Australian Towards Independent Adulthood trial, testing a one-on-one mentoring model that aims to assist young people leaving out-of-home care in engaging with training and education, getting a job and securing a place to live, and developing the skills to live independently.

All recommendations of the 2015 Review of the Transition to Independent Living Allowance were implemented.

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Table 2.2.5: Extent of progress in implementing the National Framework for Protecting Australia’s Children 2009-2020

Intermediate outcome performance measure 2017-18 2016-17

Cross program

Extent of progress in implementing the National Framework for Protecting Australia’s Children 2009-2020

Result: met Result: met

Extent to which payments and service provision meet program objective This criterion explores a range of payment and service provision parameters that indicate progress towards outcomes, rather than impact. These include whether funds have been spent consistent with the program objective, satisfaction with services, community and service system capacity, service usage by priority groups and payment coverage.

Program performance criteria and associated milestones/standards This indicator assesses whether funds have been spent consistent with the program objective. It focuses on appropriate delivery of grants, procurements and subsidies for which our department receives appropriations.

Table 2.2.6: Program performance criteria and associated milestones/standards

Intermediate performance measure PBS performance criteria 2017-18 2016-17

Families and Communities

Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and the department. Agreements and contracts require: • support and capacity building that

contribute to strengthening individual and family functioning and communities, or • national leadership and representation for services to build capacity within the

families and communities sector that works to strengthen family and community functioning

Milestone/standard: Standard of delivery is performed in accordance with the terms and conditions of organisations’ contracts and agreements with the department Result: met

Milestone/standard: Standard of delivery is performed in accordance with the terms and conditions of organisations’ contracts and agreements with the department Result: met

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Intermediate performance measure PBS performance criteria 2017-18 2016-17

Paid Parental Leave

Agreement is in place with the Department of Human Services to provide assurance that the delivery of the payments below are made in accordance with relevant legislation, policy and guidelines: • Parental Leave Pay • Dad and Partner Pay

Milestone/standard: Agreement is in place Result: met

Milestone/standard: Agreement is in place Result: met

Social and Community Services

Delivery complies with relevant legislation The funds appropriated to the department are issued to meet the Australian Government’s share of the pay increases

Milestone/standard: Payments were made as described Result: met

Milestone/standard: Payments were made as described Result: met

Program Support for Outcome 2

Total departmental funding for Outcome 2 Milestone/standard: Departmental funding is expended to achieve agency outcomes $236.448m

Milestone/standard: Departmental funding is expended to achieve agency outcomes $236.739m

Extent of satisfaction with services Feedback from individuals, service providers or stakeholders on the impacts of services helps our department better understand how well funded services meet the needs of individuals and communities.

Table 2.2.7: Extent of satisfaction with services

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Strengthening Communities and Strong and Resilient Communitiesa

Percentage of individuals satisfied with service provisionb 92% 94.4% 93%

Families and Communities Service Improvement

Extent of stakeholders’ satisfaction with leadership and representation

81%c 90%d 90%e

a Strong and Resilient Communities Activity replaced Strengthening Communities from 1 April 2018.

b. Data relates to Community Capacity Building from 1 July 2017 to 31 March 2018, Strong and Resilient Communities from 1 April 2018 and Digital Literacy for Older Australians from 1 July 2017.

c Note the data used in the 2017-18 financial year is not comparable to previous years. Data reflects surveys conducted by three of the six funded organisations.

d Estimate based on qualitative data. The majority of stakeholders reported high levels of satisfaction through surveys.

e Includes a combined membership of over 4,000 service providers and organisations across six peaks.

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Extent of community and service system capacity and capability improvement The Families and Children Expert Panel project helps service providers plan and implement programs, measure outcomes and conduct evaluations to improve outcomes for families and children.

The panel has included a number of distinct projects. These include:

» helping providers improve the way they measure outcomes

» helping Children and Parenting Support providers improve program planning and implementation

» developing a Family Dispute Resolution outcomes measurement tool

» helping Communities for Children Facilitating Partners operating in regional and remote areas to meet evidence-based program requirements.

Table 2.2.8: Extent of community and service system capacity and capability improvement

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Settlement Services

National Accreditation Authority for Translators and Interpreters provides a high-quality credentialing service supported by members

Result: met Result: met Result: met

Families and Communities Service Improvement

Extent of national leadership and representation Result: met Result: met Result: met

Percentage of assisted individuals who are from priority groups or locations This indicator shows the extent to which Indigenous and culturally and linguistically diverse people are accessing services.

Providers of Family and Children activities aim to ensure their services are sensitive and accessible to anyone who faces a real or perceived barrier to receiving assistance. This includes delivery of Children and Parenting Support services as part of the Cashless Debit Card package, through Aboriginal Community Controlled Organisations in the communities of Kununurra, Wyndham, Ceduna, Koonibba, Yalata and Oak Valley, as well as providers’ access to culturally appropriate activities and supports.

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Table 2.2.9: Percentage of assisted individuals who are from priority groups or locations

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Families and Children

Percentage of individuals from priority groups:a 12.6% 14.0% 13.4%

• Indigenous 7.8% 8.6% 8.5%

• Culturally and linguistically diverse 4.8% 5.5% 4.9%

Strengthening Communities and Strong and Resilient Communitiesb

Percentage of individuals assisted from priority groups:c 12.8% 15.1% 18%

• Indigenous 1.2% 2.8% 3%

• Culturally and linguistically diverse 11.6% 12.3% 14%

Volunteer Management Activity

Percentage of individuals assisted from priority groups: 18.2% 17.9% 13.5%

• Indigenous 1.3% 0.8% 1.1%

• Culturally and linguistically diverse 16.9% 17.1% 12.4%

Financial Wellbeing and Capability

Percentage of clients from priority groups:d 24.0% 23.0% 21.6%

• Indigenous 18.5% 17.9% 16.8%

• Culturally and linguistically diverse 5.5% 5.2% 4.7%

a Data across the three years is not comparable due to program changes (for example commencement of new services and cessation of some programs). Individuals identified as Indigenous and culturally and linguistically diverse clients. Disaggregated results were able to be reported for the first time in 2015-16. Data for the Home Interaction Program for Parents and Youngsters is included in the 2017-18 reporting period only.

b Strong and Resilient Communities Activity replaced the Strengthening Communities Activity from 1 April 2018.

c Data relates to Strengthening Communities — Community Capacity Building Program from 1 July 2017 to 31 March 2018, Digital Literacy for Older Australians from 1 July 2017 to 30 June 2018, and Strong and Resilient Communities Activity from 1 April 2018.

d Data for Indigenous and culturally and linguistically diverse clients do not add up to total for priority groups due to rounding, or clients who identify as a member of multiple priority groups.

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Percentage of new parents supported to take Paid Parental Leave This indicator shows the reach of the Paid Parental Leave scheme among new parents, including the proportion of mothers who received Parental Leave Pay, how they received their payment, and the proportion of parents paid the full 18 weeks of Parental Leave Pay or two weeks of Dad and Partner Pay.

There are two payments under the Paid Parental Leave scheme — Parental Leave Pay, and Dad and Partner Pay. Parental Leave Pay provides eligible working parents up to 18 weeks pay based on the rate of the national minimum wage ($695.00 per week). Dad and Partner Pay provides eligible working fathers and partners two weeks pay based on the rate of national minimum wage.

In 2017-18, a total of 159,372 parents started receiving Parental Leave Pay and a total of 81,882 fathers or partners received the Dad and Partner Pay.

The proportion of mothers receiving Parental Leave Pay has decreased from 52.7 per cent of all mothers with newborns in 2016-17 to 48.5 per cent in 2017-18.

Table 2.2.10: Percentage of new parents supported to take paid parental leave

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Parental Leave Pay

Percentage of mothers for whom Parental Leave Pay has been paid as a proportion of all mothers in the same yeara

48.5% 52.7% 53.3%

Percentage of parents paid government funded Parental Leave Pay by employers 68.5% 68.5% 70.4%

Percentage of families who have taken the full 18 weeks of Parental Leave Pay 96.6% 96.7% 96.8%

Dad and Partner Pay

Percentage of dads and other partners who have taken the full two weeks of Dad and Partner Pay 95.9% 96.4% 96.1%

a Annual figures for all mothers in the same year are based on the Australian Bureau of Statistics (ABS) publication ABS report 3222.0 — Population Projections, Australia, 2012 (base) to 2101, Table B9. Population projections, by age and sex, Australia — Series B estimates of persons aged 0 for June 2016, 2017 and 2018.

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Delivery measures

Number of individuals assisted

Table 2.2.11: Number of individuals assisted

Output performance measure 2017-18 2016-17 2015-16

Families and Children

Number of individuals assisteda 2,697,409 2,101,901 539,240

Transition to Independent Living Allowance

Number of recipients 1,221 1,260 1,389

Settlement Services

Number of individuals and families assisted:

• Humanitarian Settlement Programb 15,349 24,376 10,961

• Australian Cultural Orientationc 7,971 12,641 7,761

• Grants for Community Settlementd 57,078 51,399 40,076

• Free Translating and Interpreting services provided 251,089 261,984 244,167

Financial Wellbeing and Capability

Number of individuals assistede 669,804 626,104 453,443

Number of individuals engaged with Income Management:f 24,800 25,502 25,309

• Vulnerable Welfare Payment Recipient Measure 1,581 1,689 2,303

• Long-term Welfare Payment Recipient Measureg 14,944 14,487 12,962

• Disengaged Youth Measureg 4,096 4,280 4,149

• Voluntary Income Management 3,857 4,400 5,167

• Child Protection Measure 185 205 342

• Cape York Welfare Reform — Income Management n/ph 166 159

• Supporting People at Risk Measurei <5h 275 227

Number of people on the Cashless Debit Card Trial 5,207 2,088 1,945

Strengthening Communities and Strong and Resilient Communitiesj

Number of individuals assistedk 57,590 373,474 410,929

Volunteer Management Activityl

Number of individuals assisted 112,244 130,247 157,192

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Output performance measure 2017-18 2016-17 2015-16

Volunteer Grantsm

Number of individuals assisted 0 95,920 127,368

National Initiatives

Number of contacts answered by 1800RESPECT — the National Sexual Assault, Domestic Family Violence Counselling Service (telephone and online)n

98,466 68,772 59,578

Paid Parental Leave

Number of individuals assisted:o

• Parental Leave Pay 159,372 170,925 170,501

• Dad and Partner Pay 81,882 83,600 79,126

a This is a count of individual and group clients assisted. Data for the Home Interaction Program for Parents and Youngsters is included in the 2017-18 reporting period only.

Figures reported from 2016-17 onward are not comparable with previous years as organisations have continued to transition to the new way in which information is now reported through DEX, e.g. a shift from reporting primarily on the number of services delivered to also include the number of individuals and families assisted.

b The 2016-17 number includes the number of arrivals under the base Humanitarian Program plus arrivals under the additional 12,000 Syrian and Iraqi intake. The 2017-18 number represents the total number of clients assisted under the Humanitarian Settlement Program and the former Humanitarian Settlement Services and Complex Case Support programs.

c Data represents the total number of clients that attended an AUSCO class as reported by the service provider.

d This is a count of individual clients assisted. Families are not reported in DEX.

e Data are not comparable across years due to the implementation of DEX. Data for 2015-16 excluded data for some organisations not yet reporting through DEX.

f Income Management and Cashless Debit Card data is a point in time snapshot. Income Management and Cashless Debit Card data is at 29 June 2018 for the 2017-18 financial year.

g The Long-term Welfare Payment Recipient and Disengaged Youth Measures were combined and reported as the ‘Parenting/Participation measure’ in previous annual performance statements.

h Numbers less than five have been withheld for privacy reasons. Numbers have not been provided (n/p) to ensure figures less than five cannot be derived from totals.

i For 2015-16 and 2016-17, participation in the Supporting People at Risk (SPaR) measure was dependent on referrals from the Northern Territory Alcohol Mandatory Management Tribunal. In 2017-18, the Banned Drinker Registrar replaced the tribunal as the SPaR referring body.

j Strong and Resilient Communities Activity replaced Strengthening Communities from 1 April 2018.

k Most Strengthening Communities grants ceased on 30 June 2017. Strong and Resilient Communities Activity began 1 April 2018.

l 2015-16 and 2016-17 data for Volunteer Management was included in the Strengthening Communities data.

m As 2017-18 Volunteer Grants funds were moved forward to support a combined round in 2018-19, there was no selection round in 2017-18.

n Data is not comparable with 2015-16 and previous years due to changes in data protocols and collection.

o For Parental Leave Pay this is the number of individuals and families who started receiving payment in the financial year. For Dad and Partner Pay this is the number of individuals and families who received payment in the financial year.

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Number of organisations contracted or receiving grant funding to deliver services

Table 2.2.12: Number of organisations contracted or receiving grant funding to deliver services

Output performance measure 2017-18 2016-17

Number of organisations contracted or receiving grant funding to deliver servicesa

Families and Communities

Families and Children 410 421

Settlement Servicesb 112 135

Financial Wellbeing and Capabilityc 346 365

Families and Communities Service Improvement 6 6

Strong and Resilient Communitiesd 106 4,256e

Volunteer Management Activity 52 n/ae

Volunteer Grants n/af n/ae

National Initiativesg 100 42

a New performance measure for 2016-17.

b This figure includes organisations that deliver Settlement Grants, Youth Transition Support, Career Pathways Pilot for Humanitarian Entrants, National Community Hubs Program, Settlement Peak Bodies, the, Humanitarian Settlement Services (now ceased) and Complex Case Support program (now ceased), Humanitarian Settlement Program and the National Accreditation Authority for Translators and Interpreters.

c Data are not comparable across years due to a small number of organisations altering reporting arrangements for subsidiaries or delivery partners.

d Strong and Resilient Communities Activity replaced Strengthening Communities from 1 April 2018. Data is not comparable as reduced number of organisations were funded to deliver services prior to the commencement of the Strong and Resilient Communities Activity.

e In 2016-17 Volunteer Management Activity and Volunteer Grants were included in the number of organisations reported under Strengthening Communities.

f As 2017-18 Volunteer Grants funds were moved forward to support a combined round in 2018-19, there was no selection round in 2017-18.

g This figure includes organisations contracted or receiving grant funding under both the National Plan to Reduce Violence against Women and their Children 2010-2022, and the National Framework for Protecting Australia’s Children 2009-2020.

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Administered outlays

Table 2.2.13: Administered outlays

Output performance measure 2017-18 2016-17 2015-16

Families and Communitiesa

Families and Children $258.27m $249.93m -

Transition to Independent Living Allowance $1.65m $1.63m -

Settlement Services $163.68m $230.56m -

Financial Wellbeing and Capability $99.97m $102.92m -

Families and Communities Service Improvement $2.60m $2.70m -

Strong and Resilient Communitiesb $36.76m $31.32mc -

Volunteer Management Activity $2.92m n/ac -

Volunteer Grants n/ad n/ac -

National Initiatives $72.48m $53.44m -

Paid Parental Leave

Parental Leave Pay $2.08b $2.03b $1.97b

Dad and Partner Pay $111.74m $110.17m $100.72m

Social and Community Services

Social and Community Services $430.72m $145.16m $236.12m

a New performance measure for 2016-17.

b Strong and Resilient Communities activity replaced Strengthening Communities from 1 April 2018.

c In 2016-17, Volunteer Management Activity and Volunteer Grants were included in the figure reported under Strengthening Communities.

d As 2017-18 Volunteer Grants funds were moved forward to support a combined round in 2018-19 there was no selection round in 2017-18.

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Chapter 2.3

Purpose 3 — Disability and Carers Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

Programs

3.1 Disability Mental Health and Carers

3.2 National Disability Insurance Scheme

3.3 Program Support for Outcome 3

Activities We deliver a number of targeted programs and work across the Commonwealth, with the National Disability Insurance Agency (NDIA), and with state and territory governments and sector stakeholders, to support the independence and wellbeing of children and adults with disability, carers and people with or at risk of mental illness. We oversee the delivery of the National Disability Strategy 2010-2020 and the National Disability Insurance Scheme (NDIS).

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Summary and analysis of performance We operate in an environment in which market dynamics, as well as social norms and workplace cultures, impact the range of opportunities available for people with disability to improve their wellbeing. Mainstream policies and programs are run by state jurisdictions and, within the Commonwealth, by agencies other than our department. Our performance is also reliant on influencing other jurisdictions, agencies and employers to reduce barriers to social and economic participation for people with disability and improve their access to support.

Key results

Our contributions to improving outcomes for people with disability during the past year include:

» collaboration with the NDIA to implement the NDIS across Australia, agreement with Western Australia to join the nationally-delivered NDIS and the full scheme Agreements for the NDIS in New South Wales and South Australia

» legislation to establish the NDIS Quality and Safeguards Commission (NDIS Commission), which received Royal Assent on Wednesday 13 December 2017

» Disability Employment Services reform

» development of Job Access (jobaccess.gov.au) as the information hub to support people with disability achieve employment in the open labour market

» development of the Australian Government Plan to Improve Outcomes for Aboriginal and Torres Strait Islander People with Disability and the National Disability Strategy 2010-2020 Australian Government Action Plan.

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Performance criteria The following table outlines our corporate plan performance criteria and indicators, which show how we intend to measure what we achieved, how well we did and how much we did.

Our performance is reported in the Results section. Not all programs report against every performance criterion.

Table 2.3.1: Performance criteria for Purpose 3 Disability and Carers

Performance criteria Indicator/Output

Outcome — What did we achieve? Extent of improved independence and

participation

Percentage of assisted job seekers in employment three months following participation in Disability Employment Services

Percentage of assisted people with disability, mental illness and carers with improved knowledge, skills, behaviours and engagement with services

Intermediate Outcome — How well did we do?

Extent of contribution to creating and implementing national approaches

Progress in implementing the National Disability Strategy 2010-2020

Extent of contribution to create an effective and sustainable National Disability Insurance Scheme

Extent to which service provision meets program objective

Program performance criteria and associated milestones/standards (PBS)

Extent of satisfaction with services

Percentage of assisted individuals who are from priority groups

Output — How much did we do? Delivery measures Number of individuals assisted (PBS) Number of organisations contracted or

receiving grant funding to deliver services (PBS)

Value of Commonwealth program funding transitioned to the National Disability Insurance Scheme (PBS)

Value and number of Sector Development Fund projects supporting the market, sector and workforce to transition to the National Disability Insurance Scheme (PBS)

Administered outlays (PBS)

Sources: Corporate Plan 2017-18, page 18. Portfolio Budget Statements 2017-18, pages 80-82.

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Results Extent of improved independence and participation This criterion is intended to report progress by people with disability towards goals for improved independence and participation, for individuals, families and carers. Collectively the set of indicators is able to provide an indication of improved independence and participation by people with disability.

Percentage of assisted job seekers in employment three months following participation in Disability Employment Services This indicator tracks the proportion of people in employment three months after a period of assistance in Disability Employment Services. Sustaining employment is a proxy measure for improved financial independence and participation. The measure assesses the performance of Disability Employment Services in supporting people with disability to find and maintain employment.

In the latest Employment Services Outcomes Report, 31.7 per cent of Disability Employment Services participants were in employment three months after their participation in the program.

Table 2.3.2: Percentage of assisted jobseekers in employment three months following participation in Employment Services

Outcome performance measure 2017-18 2016-17 2015-16

Disability Employment Services

Percentage of jobseekers in employment three months following participation in Employment Servicesa

31.7% 31.5% 30.7%

• Disability Management Service 32.8% 34.2% 33.1%

• Employment Support Services 30.9% 29.1% 28.9%

a The Employment Services Outcomes Report: Disability Employment Services report publishes the key outcomes data for Disability Employment Services every three months. These figures are calculated over a rolling 12-month period. Full reports are available on the Department of Jobs and Small Business website. December 2017 release is the latest available.

Percentage of assisted people with disability, mental illness and carers with improved knowledge, skills, behaviours and engagement with services This indicator tracks the extent that carers, people with disability and people with mental illness who access support programs are building their capability through improved knowledge, skills and behaviours, and engagement with services. It provides an indication of the extent of their progress towards greater capability and participation goals.

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Table 2.3.3: Percentage of assisted people with disability, mental illness and carers with improved knowledge, skills, behaviours and engagement with services

Outcome performance measure 2017-18 2016-17 2015-16

Disability and Carer Support

Percentage of assisted carers, with improved knowledge, skills, behaviours and engagement with servicesa

89.2% 85.8% -

Community Mental Health

Percentage of assisted people with mental illness with improved knowledge, skills, behaviours and engagement with servicesb

75.3% 84.5% 81.2%

a New performance measure in 2016-17.

b This indicator was previously measured by a survey that providers sent to selected participants. It is now collected from the DEX. Results for 2015-16, 2016-17 and 2017-18 are not comparable with previous years.

Extent of contribution to creating and implementing national approaches This criterion captures the high-level contribution to the larger effort made by state jurisdictions, local communities and other government agencies.

Progress in implementing the National Disability Strategy 2010-2020 This indicator captures high-level progress made in implementing the National Disability Strategy 2010-2020. The strategy provides a 10-year national policy framework for all levels of government to improve the lives of people with disability. On 2 September 2016 the Council of Australian Governments’ Disability Reform Council members agreed to reinvigorate all governments’ efforts to drive progress under the strategy.

The Australian Government Plan to Improve Outcomes for Aboriginal and Torres Strait Islander People with Disability (the Plan for Aboriginal and Torres Strait Islander people) and the National Disability Strategy 2010-2020 Australian Government Action Plan (the Action Plan) were delivered as actions of the Second Implementation Plan Driving Action 2015-2018. The solutions in the Plan for Aboriginal and Torres Strait Islander people complement existing strategies to improve outcomes for Aboriginal and Torres Strait Islander people with disability, while the Action Plan details actions related to disability-specific and mainstream policies and programs that work towards achieving the vision of the National Disability Strategy 2010-2020.

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Table 2.3.4: Progress in implementing the National Disability Strategy 2010-2020

Intermediate outcome performance measure 2017-18 2016-17

Cross program

Delivery of the National Disability Strategy 2010-2020 Second Implementation Plan and biennial progress reports in partnership with state and territory governments and other Commonwealth agencies

The Second Implementation Plan was released 1 December 2016

Delivery of the Australian Government Plan to improve Outcomes for Aboriginal and Torres Strait Islander People with Disability as an action of the National Disability Strategy 2010-2020 Second Implementation Plan

Released 16 October 2017 -

Delivery of the National Disability Strategy 2010-2020 Australian Government Action Plan as an action of the National Disability Strategy Second Implementation Plan

Released 20 November 2017 -

Extent of engagement with Commonwealth agencies to drive improvements in access to mainstream services for people with disability

Engagement supported development of the National Disability Strategy 2010-2020 Australian Government Action Plan and the Australian Government Plan to Improve Outcomes for Aboriginal and Torres Strait Islander People with Disability as an action of the National Disability Strategy Second Implementation Plan

Commonwealth agencies have provided ongoing advice on implementation of the strategy and input into the Second Implementation Plan and the 2016 Progress Report

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Intermediate outcome performance measure 2017-18 2016-17

Extent of engagement with representative organisations of people with disability to support implementation of the strategy

We engaged with stakeholders to deliver three solutions focused workshops on improving outcomes for Aboriginal and Torres Strait Islander people with disability, disability and the criminal justice system, and on employment for people with disability under the strategy’s Second Implementation Plan. Stakeholders contributed to the Australian Government Action Plan and Australian Government Plan to Improve Outcomes for Aboriginal and Torres Strait Islander People with Disability

We engaged with stakeholders to develop the Second Implementation Plan. We engaged with stakeholders to deliver the first solution-focused workshop under the National Disability Strategy Second Implementation Plan on improving outcomes for Aboriginal and Torres Strait Islander people with disability. The National Disability and Carers Advisory Council was established in December 2016 to provide advice on the strategy

Extent of contribution to create an effective and sustainable National Disability Insurance Scheme

Table 2.3.5: Extent of contribution to create an effective and sustainable National Disability Insurance Scheme

Intermediate outcome performance measure 2017-18 2016-17

Cross program

Policy, financial and partnership arrangements are in place to create an effective and sustainable NDIS

Results reported against performance criterion ‘Extent to which service provision meets program objective’

Results reported against performance criterion ‘Extent to which service provision meets program objective’

Extent to which service provision meets program objective This criterion explores a range of payment and service provision parameters that indicate progress towards outcomes, rather than impact. These include whether funds have been spent consistent with the program objective, satisfaction with services and service usage by priority groups.

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Program performance criteria and associated milestones/standards This indicator assesses whether funds have been spent consistent with the program objective, with a focus on appropriate delivery of grants, procurements and subsidies for which our department receives appropriations.

As at 30 June 2018, 176,197 people with disability had an approved NDIS plan with a further 7,768 participants referred to Early Childhood Early Intervention arrangements. A total of 54,802, or approximately 31 per cent, of NDIS participants had not previously been receiving government-funded disability services before they accessed the NDIS.

In December 2017, Western Australia agreed to join the nationally-delivered NDIS, making it a truly national Scheme. From 1 July 2018, the National Disability Insurance Agency (NDIA) took over responsibility for rolling out the NDIS across Western Australia.

The Prime Minister signed bilateral full scheme agreements with the NSW and South Australian premiers in May and June 2018, setting the benchmark for reaching agreements with the other states and territories.

Table 2.3.6: Program performance criteria and associated milestones/standards

Intermediate performance measure PBS performance criteria 2017-18 2016-17

Disability, Mental Health and Carers

Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and DSS. Agreements and contracts require: • employment assistance and other

services to people with disability • direct advocacy support to people with disability • support to carers • support through community-based

initiatives to assist people with, or at risk of, mental illness • national leadership and representation for services to build capacity within the

disability, carers or community mental health sectors

Milestone/standard: Standard of delivery is in accordance with the terms and conditions of organisations’ contracts and agreements with the department. Result: All contracts and agreements were delivered in accordance with the terms and conditions specified.

Milestone/standard: Standard of delivery is in accordance with the terms and conditions of organisations’ contracts and agreements with the department. Result: All contracts and agreements were delivered in accordance with the terms and conditions specified.

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Intermediate performance measure PBS performance criteria 2017-18 2016-17

National Disability Insurance Scheme

Policy, financial and partnership arrangements are in place to create an effective and sustainable NDIS including:

Developing and implementing policy settings for full scheme Milestone/standard: timely and effective policy

advice. Result: policy settings requiring finalisation before end of transition are being designed and implemented. Reaching agreement with WA to join the nationally-delivered NDIS makes it a truly national scheme. Full scheme agreements with NSW and SA embed enduring arrangements for the NDIS in those states.

Milestone/standard: timely and effective policy advice. Result: policy settings requiring finalisation prior to the end of transition have been identified for development and implementation. Secured national agreement to the NDIS Quality and Safeguards Framework. The National Disability Insurance Scheme Amendment (Quality and Safeguards Commission and Other Measures) Bill 2017 was introduced in the House of Representatives on 31 May 2017.

Implementing funding mechanisms for transition Milestone/standard: management of the

NDIS cash flow. Result: the funding mechanism is agreed and is in place for all jurisdictions transitioning to full scheme NDIS.

Milestone/standard: Management of the NDIS cash flow. Result: the funding mechanism is agreed and in place for all jurisdictions transitioning to full scheme NDIS.

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Intermediate performance measure PBS performance criteria 2017-18 2016-17

Negotiating and implementing agreements with states and territories for transition to full scheme

Milestone/standard: negotiations of bilateral agreements are undertaken. Result: bilateral transition agreements are in place for all states and territories including WA, which agreed to join the nationally-delivered scheme in December 2017.

Milestone/standard: negotiations of bilateral agreements are undertaken. Result: bilateral agreements in place for all states and territories, except the Australian Capital Territory which had a whole of jurisdiction trial.

Establishment of the NDIS Quality and Safeguards Commission The legislation to establish the NDIS Quality and

Safeguards Commission (NDIS Commission) received Royal Assent on 13 December 2017.

n/aa

Program Support for Outcome 3

Total departmental funding for Outcome 3 Milestone/standard: Departmental funding is expended to achieve agency outcomes. $106.633m

Milestone/standard: Departmental funding is expended to achieve agency outcomes. $99.431m

a New performance measure for 2017-18.

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Extent of satisfaction with services This indicator helps us better understand how funded services are meeting the needs of individuals and communities through feedback from individuals, service providers or stakeholders on the impacts of services provided.

Table 2.3.7: Extent of satisfaction with services

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Disability and Carer Support

Percentage of individuals and families satisfied with the service provided by Carer Gateway a

• Call satisfaction 93% 92% -

• Website satisfactionb 67% 74% -

Percentage of assisted carers, accessing carer support programs, who report that they are satisfied that the service they received was appropriate to their needsa

97.6% 98.4% -

Community Mental Health

Percentage of participants who report that they are satisfied that the service they received was appropriate to their needs

96.9% 97.5% 91.9%

a New performance measure for 2016-17, therefore only two years data is available.

b Website satisfaction ratings were changed in late July 2017, therefore only data from August 2017 to June 2018 (11 months) has been reported.

Percentage of assisted individuals who are from priority groups This indicator shows the extent to which Indigenous and culturally and linguistically diverse people are accessing services.

Table 2.3.8: Percentage of assisted individuals who are from priority groups

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Community Mental Health

Percentage of participants/clients from Indigenous and culturally and linguistically diverse backgrounds:

• Indigenous 18.4% 15.0% 10.5%

• Culturally and linguistically diversea 3.7% 6.3% 4.6%

a Prior to 2015-16 the culturally and linguistically diverse count for Community Mental Health was self-identified. The count is now standardised across our department and based on country of birth and main language spoken at home. Results for 2015-16, 2016-17 and 2017-18 are not comparable with previous years.

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Delivery measures

Number of individuals assisted

Table 2.3.9: Number of individuals assisted

Outcome performance measure 2017-18 2016-17 2015-16

Disability Employment Services

Number of commencements 90,521 86,764 86,729

Total job placements achieved 49,328 52,219 49,757

Disability Management Service

Number of commencements 43,082 41,049 41,781

Total job placements achieved 22,412 23,684 22,153

Employment Support Services

Number of commencements 47,439 45,715 44,948

Total job placements achieved 26,916 28,535 27,604

Disability and Carer Support

Number of assisted carersa 108,192 99,023 -

Number of carers accessing Carer Gatewayab 441,311 345,004 -

Number of people with disability provided with direct advocacy support 8,867c 12,821 12,928

Community Mental Health

Number of people whose lives are affected by mental illness accessing support servicesd 66,792 75,827 237,825

a New performance measure for 2016-17, therefore only two years data is available.

b Figure includes calls, web forms, call backs, website visits and Facebook engagements.

c At the beginning of 2017-18, the National Disability Advocacy Program transitioned to a new program performance reporting system, the Data Exchange. The figures in this report are based on data collected using a different methodology to previous, historical reporting systems. As such, this data should be treated as a one-off transition period and not compared to historical or future reporting trends.

d In 2015-16, this measure previously included Personal Helpers and Mentors and Mental Health Respite: Carer Support programs which are now transitioning to the National Disability Insurance Scheme.

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Number of organisations contracted or receiving grant funding to deliver services

Table 2.3.10: Number of organisations contracted or receiving grant funding to deliver services

Output performance measure 2017-18 2016-17

Number of organisations contracted or receiving grant funding to deliver servicesa

Disability, Mental Health and Carers

Disability Employment Services 117b 118

Employment Assistance and Other Servicesc 147 158

Disability and Carer Supportd 83 86

Community Mental Health 70 67

a New performance measure for 2016-17.

b As at end June 2018, more than 193,000 participants were being assisted by 117 distinct Disability Employment Services providers.

c Distinct count of entities that have used funding in relation to employment assistance fund, supported wage system, wage subsidy scheme, ongoing support assessments and jobaccess.

d This measure refers to the number of organisations contracted or receiving carer support grant funding.

Value of Commonwealth program funding transitioned to the National Disability Insurance Scheme

Table 2.3.11: Value of funding transitioned to the National Disability Insurance Scheme

Output performance measure 2017-18 2016-17

National Disability Insurance Scheme

Value of Commonwealth program funding transitioned into the National Disability Insurance Scheme $168.79m $77.41m

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Value and number of Sector Development Fund projects supporting the market, sector and workforce to transition to the National Disability Insurance Scheme

Table 2.3.12: Value and number of Sector Development Fund projects supporting the market, sector and workforce to transition to the National Disability Insurance Scheme

Output performance measure 2017-18 2016-17

National Disability Insurance Scheme

Valuea and numberb of Sector Development Fundc projects supporting the market, sector and workforce to transition to the National Disability Insurance Scheme

$18.61m 40 projects

$29.45m 46 projects

a This measure captures actual spending only. The total value of the projects is higher.

b This figure captures all projects that were current as at 30 June including projects that may have been fully funded in previous financial years.

c Includes the Boosting the Local Care Workforce Program (2017-18 Budget measure) as one project.

Administered outlays

Table 2.3.13: Administered outlays

Output performance measure 2017-18 2016-17

Disability, Mental Health and Carers

Disability Employment Services $765.45m $753.59m

Employment Assistance and Other Services $31.34m $30.88m

Disability and Carer Support $127.35m $127.19m

Community Mental Healtha $47.36m $53.69m

National Disability Insurance Scheme

National Disability Insurance Scheme Research and Evaluation $0.65m $0.97m

National Disability Insurance Scheme Transition $511.71m $521.94m

National Disability Insurance Scheme Participant Plansb $2,088.86m n/a

National Disability Insurance Scheme Information, Linkages and Capacity Buildingb $70.99m n/a

Establishment of the NDIS Quality and Safeguards Commissionb $0.82m n/a

Boosting the Local Care Workforceb $10.56m n/a

a Funding for Personal Helpers and Mentors is transitioning to the National Disability Insurance Scheme.

b These programs only became the responsibility of DSS on 1 July 2017.

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Chapter 2.4

Purpose 4 — Housing Improved access to affordable housing, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Programs

Rent Assistance (cross program)3

4.1 Housing and Homelessness

4.2 Affordable Housing

4.3 Program Support for Outcome 4

Activities We administer Commonwealth Rent Assistance, which assists individuals and families with the additional costs associated with renting in the private rental market and community housing.

We also provide incentives to non-government housing providers to deliver affordable housing to low and moderate income households through the National Rental Affordability Scheme (NRAS).

We work with other government agencies, states and territories to improve the supply of social and affordable housing and reduce the level of homelessness.

3 Cross program — Rent Assistance reports under Outcome 1 in the Portfolio Budget Statements. Results are reported here as it is included under Purpose 4 in the corporate plan.

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Summary and analysis of performance The policy tools to support the availability of affordable and stable housing for low and moderate income households are shared between Australian Government departments and jurisdictions. These tools include financial, regulatory and tax settings, and planning and zoning policy. More broadly, factors such as housing market performance and the labour market conditions are important influences on housing opportunities and outcomes. The department works with the Commonwealth Treasury and state and territory housing departments, including through the National Housing and Homelessness Agreement, to improve housing outcomes.

Key results

Our contribution to improving housing affordability for low to moderate income households in 2017-18 includes:

» together with the Commonwealth Treasury, supported implementation of the Government’s housing affordability plan, which seeks to improve Australians’ access to secure and affordable housing

» together with the Commonwealth Treasury, established the $1.5 billion National Housing and Homelessness Agreement (NHHA), which replaces the National Affordable Housing Agreement and the transitional National Partnership Agreement on Homelessness. The NHHA improves accountability and transparency for housing and homelessness outcomes and provides ongoing, indexed funding for homelessness

» strengthened the regulatory framework for administering the National Rental Affordability Scheme

» together with states and territories and the Commonwealth Treasury, worked to establish a review of the National Regulatory System for Community Housing to ensure a well governed, well-managed and viable sector that meets the housing needs of tenants and provides assurance for governments and investors.

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Performance criteria The following table outlines our corporate plan performance criteria and indicators, which show how we intend to measure what we achieved, how well we did and how much we did.

Our performance is reported in the Results section. Not all programs report against every performance criterion.

Table 2.4.1: Performance criteria for Purpose 4 Housing

Performance criteria Indicator/Output

Outcome — What did we achieve? Extent of improvement in rental affordability for

low and moderate income households

Percentage of Commonwealth Rent Assistance income units in rental stress before and after receiving Commonwealth Rent Assistance

Percentage of National Rental Affordability Scheme (NRAS) households in rental stress before and after NRAS discounted rent

Intermediate Outcome — How well did we do?

Extent of contribution to national initiatives DSS contribution to Commonwealth/state agreements for housing and homelessness

Extent to which payments are made to, or with respect to, people unable to fully support themselves

Percentage of Commonwealth Rent Assistance income units paying enough rent to receive the maximum rate of assistance

Extent to which delivery meets program objective Program performance criteria and associated milestones/standards (PBS)

Percentage of dwellings that were paid an incentive for the relevant NRAS year (PBS)

Output — How much did we do? Delivery measures Number of Commonwealth Rent Assistance income units (PBS)

Number of NRAS incentives issued for the relevant NRAS year (Cash and Refundable Tax Offsets (RTO)) (PBS)

Sources: Corporate Plan 2017-18, page 20. Portfolio Budget Statements 2017-18, pages 61, 88-90.

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Results Extent of improvement in rental affordability for low and moderate income households This criterion comprises two similar indicators for measuring improved rental affordability for low and moderate income households. The two indicators enable an assessment of whether the receipt of Commonwealth Rent Assistance and provision of discounted rents through the NRAS improves rental affordability for those assisted.

Percentage of Commonwealth Rent Assistance income units in rental stress before and after receiving Commonwealth Rent Assistance This indicator reports on the impact of Commonwealth Rent Assistance payments in helping social security payment or Family Tax Benefit recipients with the cost of private rental housing or community housing. It is a proxy measure of whether recipients can rent affordably in the private market. For the purposes of this indicator, Commonwealth Rent Assistance recipients are considered to be in rental stress if rent is more than 30 per cent of income.

The amount of Commonwealth Rent Assistance payable is based on the amount of rent paid and the person’s family situation (single, couple, number of children, if any, and for single people, whether they are sharing accommodation).

As at the fortnight ending 29 June 2018, Commonwealth Rent Assistance reduced the proportion of income units4 paying more than 30 per cent of their income in rent from 68.3 per cent to 40.3 per cent.

Table 2.4.2: Percentage of Commonwealth Rent Assistance income units in rental stress before and after receiving Commonwealth Rent Assistance

Outcome performance measure 2017-18 2016-17 2015-16

Cross program — Rent Assistance

Percentage of Commonwealth Rent Assistance income units in rental stress before and after receiving Commonwealth Rent Assistancea

• Before 68.3% 68.5% 68.2%

• After 40.3% 41.6% 41.2%

a Refers to last fortnight in June during the reporting year.

4 An income unit comprises a single person (with or without dependent children) or a couple (with or without dependent children).

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Percentage of National Rental Affordability Scheme (NRAS) households in rental stress before and after NRAS discounted rent This indicator reports on the impact of providing dwellings under the NRAS at lower than market rents (a rate that is at least 20 per cent less than market rent). For the purposes of this indicator, an NRAS household is considered to be in rental stress when rent is more than 30 per cent of gross income.5 This may not reflect actual rental stress.

NRAS has increased the availability of affordable rental housing to low and moderate income households and has reduced the rent for dwellings in the scheme. As at 30 April 2017,6 NRAS reduced the proportion of NRAS households in rental stress by over 22 percentage points.

Table 2.4.3: Percentage of NRAS households in rental stress before and after NRAS discounted rent

Outcome performance measure 2016-17 NRAS year 2015-16 NRAS year

Affordable Housing

Percentage of NRAS households in rental stress before and after NRAS discounted rent

• Before 84.2% 86.7%

• After 61.6% 63.5%

a New performance measure in 2016-17 for the 2015-16 NRAS year.

Extent of contribution to national initiatives This criterion captures the high-level contribution to the larger effort made by state jurisdictions, local communities and other government agencies.

DSS contribution to Commonwealth/state agreements for housing and homelessness We work closely with other government agencies and states and territories to develop policy options to increase housing affordability, increase the supply of social and affordable housing, and reduce the level of homelessness.

Other mechanisms for cross-jurisdictional housing policy and delivery in 2017-18 were the National Affordable Housing Agreement (NAHA) and the National Partnership Agreement on Homelessness (NPAH). Reporting on performance against these agreements is managed by the Productivity Commission.

5 NRAS households may receive Commonwealth Rent Assistance. This is included in gross income as the amount of Commonwealth Rent Assistance received is not separately identified. 6 Results for the 2016-17 NRAS year (1 May 2016 to 30 April 2017) are reported, as full occupancy and payment data for 2017-18 were not available at time of publication.

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In 2017-18, the Commonwealth negotiated the $1.5 billion a year National Housing and Homelessness Agreement (NHHA), which commenced on 1 July 2018. The NHHA replaces the NAHA and Transitional NPAH and provides funding certainty to states and territories as funding is ongoing and indexed.

As part of the 2017-18 Budget, the Government committed to work with state and territory governments to strengthen the national regulation of community housing providers. We are continuing to work with state and territory officials to ensure a well-governed, well managed and viable community housing sector that meets the housing needs of tenants and provides assurance for governments and investors.

Table 2.4.4: DSS contribution to Commonwealth/state agreements for housing and homelessness

Intermediate outcome performance measure 2017-18 2016-17

Cross program

DSS contribution to Commonwealth/state agreements for housing and homelessness

Contributed to development of National Housing and Homelessness Agreement that commenced on 1 July 2018

Commencement of reform of NAHA and NPAH. Agreement to Transitional NPAH

Extent to which payments are made to, or with respect to, people unable to fully support themselves This criterion uses the maximum rate of assistance as a proxy measure of identifying recipients who are unable to fully support themselves.

Percentage of Commonwealth Rent Assistance income units paying enough rent to receive the maximum rate of assistance This indicator is used to assess the extent to which income units are receiving the maximum rate of Commonwealth Rent Assistance. Meeting the rent condition for maximum rate of Commonwealth Rent Assistance is an indication financial support is being provided to people who are unable to fully support themselves. The indicator also shows whether Commonwealth Rent Assistance is increasing or decreasing relative to private rental market rents between years.

As at the fortnight ending 29 June 2018, 79.9 per cent of Commonwealth Rent Assistance recipients were paying enough rent to be eligible to receive the maximum rate of Commonwealth Rent Assistance. This is in line with the June 2017 result of 79.8 per cent.

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Table 2.4.5: Percentage of Commonwealth Rent Assistance income units paying enough rent to receive the maximum rate of assistance

Intermediate outcome performance measure 2017-18 2016-17 2015-16

Cross program — Rent Assistance

Percentage of Commonwealth Rent Assistance income units paying enough rent to receive the maximum rate of assistancea

79.9% 79.8% 79.4%

a Refers to the last fortnight in June during the reporting year.

Extent to which delivery meets program objective This criterion assesses whether funds have been spent consistent with the program objective, with a focus on appropriate delivery of the payments.

Program performance criteria and associated milestones/standards

Table 2.4.6: Program performance criteria and associated milestones/standards

Intermediate outcome performance measure PBS performance criteria 2017-18 2016-17

Cross program — Rent Assistance

Agreement is in place with the Department of Human Services to provide assurance that payments below are made in accordance with relevant legislation, policy and guidelines: • Rent Assistance

Milestone/standard: Agreement is in place Result: met

Milestone/standard: Agreement is in place Result: met

Housing and Homelessness

Delivery by organisations is in accordance with specified requirements, which may include service level standards, of the contracts and agreements between organisations and the departmenta

Milestone/standard: Standard of delivery is performed in accordance with the terms and conditions of Homes for Homes’ contract and agreement with the department Result: met

Milestone/standard: Standard of delivery is performed in accordance with the terms and conditions of the Australian Housing and Urban Research Institute’s contract with the department Result: met

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Intermediate outcome performance measure PBS performance criteria 2017-18 2016-17

Affordable Housing

Delivery complies with relevant legislation to ensure that incentives are issued accurately to approved participants who comply with the regulations, so NRAS dwellings are made available at reduced rents for eligible low and moderate income households

Milestone/standard: Incentives are only issued when compliance to the regulations has been adhered to. Result: 34,060 incentives were issued to approved participants in accordance with the regulations for the 2016-17 NRAS year

Milestone/standard: Incentives are only issued when compliance with the regulations has been adhered to. Result: 31,984 incentives were issued to approved participants in accordance with the regulations for the 2015-16 NRAS year

Program Support for Outcome 4

Total departmental funding for Outcome 4 Milestone/standard: Departmental funding is expended to achieve agency outcomes $18.545m

Milestone/standard: Departmental funding is expended to achieve agency outcomes $18.939m

a New performance measure for 2017-18.

Percentage of dwellings that were paid an incentive for the relevant NRAS year This indicator measures the compliance outcomes of approved participants to ensure they meet the regulatory requirements of the Scheme.

Table 2.4.7: Percentage of dwellings that were paid an incentive for the relevant NRAS year

Outcome performance measure 2016-17 NRAS year 2015-16 NRAS year

Affordable Housing

Percentage of dwellings that were paid a full incentive for the relevant NRAS year 95.8% 94.6%

Percentage of dwellings that were paid a partial incentive for the relevant NRAS yeara

2.8% -

a New performance measure in 2017-18 for the 2016-17 NRAS year.

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Delivery measures

Number of Commonwealth Rent Assistance income units As at 29 June 2018, Commonwealth Rent Assistance had assisted 1,311,187 income units. This was at a cost of $4.44 billion in 2017-18.

Table 2.4.8: Number of Commonwealth Rent Assistance income units as at end of June of reporting year

Output performance measure 2017-18 2016-17 2015-16

Cross program — Rent Assistance

Number of Commonwealth Rent Assistance income unitsa 1,311,187 1,343,432 1,345,983

a Refers to last Friday in June during the reporting year.

Table 2.4.9: Number of NRAS incentives issued for the relevant NRAS year (Cash and Refundable Tax Offsets (RTO))

Outcome performance measure 2016-17 NRAS year 2015-16 NRAS year

Affordable Housing

Number of NRAS incentives issued for the relevant NRAS year (Cash and Refundable Tax Offsets (RTO))

• Cash 9,076 8,548

• RTO 24,984 23,436

From darkness to light

After seven years in refugee camps in Syria and Turkey, Khudidah and his family are happily integrating into Australian society.

Khudidah, his wife Kali Suleiman and four children Qasim, Dalya, Jakilan and Diyaree are originally from Iraq. They are Ezidis (Yazidis), a religious minority from the Sinjar mountain region of the country.

”As an Ezidi (Yazidi) person it was hard to get a job because in many places I was not allowed to work. So there was a big discrimination against me. In many cases I had to deny my identity to get a job,” said Khudidah.

Since their arrival in Australia, the family has accessed a range of services through the Humanitarian Settlement Program which supports humanitarian entrants to build the skills and knowledge they need to become self-reliant and active members of the Australian community.

“The Humanitarian Settlement Program turned my life upside down from the darkness to the brightness”, he said.

“We are all pursuing education, which will improve our future opportunities. My wife and I, who’ve never been to school, enrolled at TAFE. My four kids also enrolled at schools and we are learning English.”

Khudidah says his wife now has her driver’s licence and they have been able to buy a car after getting some help and support from the community.

“I feel very happy and most importantly very safe, especially when I look through the window in the morning and see my kids going to school on a school bus, because I know their future will be better than mine.”

above: Humanitarian

Settlement Program participant, Khudidah and his family.

See part 2 chapter 2.2 for more information.

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Chapter 3.2 External scrutiny ......................................................................... 94

Chapter 3.3 Managing our people .................................................................. 98

Chapter 3.4 Managing our finances .............................................................. 104

Management and accountability

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Chapter 3.1

Governance structure Our governance structure is designed to ensure accountability for delivering on the strategic direction for the department. It enables us to deliver outcomes in an efficient, effective and transparent manner.

Committees supporting our business Committees reporting to the Secretary Our governance committee structure at 30 June 2018 included the Executive Management Group and six supporting governance committees that provided advice and assurance to the Secretary on the administration and operation of the department.

Executive Management Group The Executive Management Group, our most senior committee, is chaired by the Secretary. This group provides guidance on overall strategic direction, priorities, management and performance, and oversees our financial position by allocating resources, monitoring performance and risk, and ensuring regulatory requirements are met. The Executive Management Group meets weekly and comprises the Secretary and Deputy Secretaries.

Audit and Assurance Committee This committee provides independent assurance and advice to the Executive Management Group on financial and performance reporting responsibilities, risk oversight and management, and our system of internal control. The Financial Statements Sub-Committee reports directly to the Audit and Assurance Committee and was established to give assurances to the members with regards to the department’s financial responsibilities.

The committee has an independent Chair, three external experts, and two internal members appointed by the Secretary. It meets up to six times a year.

Committees reporting to the Executive Management Group

Infrastructure, Communications and Technology Committee This committee is the departmental governance body for Property (Infrastructure), and Information Communication and Technology strategic planning and projects. It is responsible for ensuring strategy and operations align with departmental priorities. The committee is chaired by the Chief Operating Officer and membership includes Deputy Secretaries, Group Managers and a Branch Manager.

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People and Culture Committee This committee provides advice through the Chief Operating Officer to the Secretary and the Executive Management Group. It is responsible for advising on matters relating to people, corporate services, government and executive, legal, communications, property, security and business continuity. The committee is chaired by the Group Manager, Delivery Strategy and Operations, and membership includes Group and Branch Managers.

Policy and Regulatory Reform Committee This committee has responsibility for the quality and performance of policy and deregulation activities. It is chaired by the Deputy Secretary, Social Security and membership includes Deputy Secretaries and Group Managers.

Program and Delivery Board The board provides strategic direction and oversees the development and implementation of major programs, including the Streamlining Grants Administration Program. It is chaired by the Deputy Secretary, Families and Communities and membership includes Deputy Secretaries and Group Managers.

Figure 3.1.1: Our governance structure, as at 30 June 2018

Financial Statements

Chair: External

Infrastructure, Communications and Technology Chair: Deputy Secretary

People and Culture

Chair: Group Manager

Policy and Regulatory Reform Chair: Deputy Secretary

Program and Delivery

Chair: Deputy Secretary

Audit and Assurance

Chair: External

Secretary

Executive Management Group Chair: Secretary

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Business planning and risk management Strategic and business planning Our cascading planning process engages staff at all levels to understand how they contribute to delivering on required outcomes. There is a clear pathway from each staff member’s individual performance plan through to our key corporate documents.

The 2017-18 Corporate Plan outlines policy, program and corporate objectives and guides the way in which we achieve results.

Further information is available in our corporate plan at www.dss.gov.au

Risk management We base our approach to risk management on the Australian/New Zealand International Standard on Risk Management (AS/NZS ISO 31000:2009). It aligns with the nine elements of the Commonwealth Risk Management Policy, meeting our obligations under the Public Governance, Performance and Accountability Act 2013.

In the past year, we commenced an independent review of our Risk Management Framework which will be finalised in early 2018-19. The review will provide clear direction for improving and embedding risk management across the department.

Business continuity management We have a structured business continuity program and undertake exercises to test its effectiveness. This year, the department engaged an external provider to assess current emergency response procedures.

We are committed to managing business interruptions that may affect critical services and assets. Our business continuity management framework including our Disaster Coordination Plan ensures we can deliver our critical work in the event of a disruption and aims to provide support to the communities affected by disasters.

Internal audit assurance activities Internal audit is an independent, objective assurance and advisory function designed to add value and improve our operations.

The rolling Audit Work Program establishes internal audit priorities for the coming 12 months.

The department developed the program in consultation with the Audit and Assurance Committee and it is approved by the Secretary. We made changes to the 2017-18 program in response to emerging risks, which the Secretary and the Audit and Assurance Committee endorsed.

In the past year, we conducted internal audits into the transitioning and storage of longitudinal data; the management of the contractor and temporary workforce; and work health and safety arrangements. Multi-stage audits provided assurance relating to the integrity of IT systems; the quality of performance reporting; the implementation of the Community Grants Hub; the reform of Disability Employment Services and the establishment of the National Disability Insurance Scheme Quality and Safeguards Commission.

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We report the findings from all internal audits, and progress towards implementing audit recommendations, to the Audit and Assurance Committee.

Compliance framework We developed our compliance framework to maintain the integrity and accountability of the business and services we provide. It focuses on:

» assessing and planning risk management

» decision-making informed by risk

» documenting why decisions are made

» reviewing the quality of processes and how we are performing

» identifying, escalating and reporting compliance activities

» learning and seizing opportunities for improvement.

We review our compliance framework annually or when there is a change in better practice, relevant legislation and standards, or when the Government changes our responsibilities.

Compliance with finance law Under section 19(1)(e) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), we are required to notify our Minister and the Minister for Finance of significant issues of non-compliance with the finance law (including the PGPA Act, any rules and instruments created under the PGPA Act, and Appropriation Acts) as soon as practicable after identification. In 2017-18 no significant issues of non-compliance with the finance law were identified or reported.

Fraud and corruption control The department manages fraud control through a number of mechanisms, including:

» a zero-tolerance approach to fraud and how we manage fraud risks

» making our employees aware of their fraud control responsibilities through online and face to face training

» integrated fraud prevention, detection and investigation arrangements, including the use of data analytics to identify fraud trends and issues

» transparency and accountability in relation to internal and external fraud reporting obligations.

We reviewed and updated our Fraud and Corruption Control Plan to ensure it continues to reflect our business activities.

We undertake fraud risk assessments of our programs regularly to improve understanding of our exposure to fraud. These risk assessments involve identifying possible areas where fraud could be committed, evaluating existing risk mitigation strategies and identifying possible new or emerging risks that may require treatment. These fraud risk assessments form an integral part of our overall risk assessment framework.

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Fraud and corruption awareness In 2017-18, we delivered online and face-to-face fraud and corruption awareness training to staff, along with a series of fraud and corruption-related messages.

The training had a specific focus on corruption, emphasising how staff can identify corruption and what they can do to reduce opportunities for corruption to occur in their workplace.

Fraud investigation In the past year we investigated allegations of fraud and criminal behaviour involving staff and funding recipients. We conducted these investigations in line with Australian Government Investigation Standards. All departmental investigators have at least the minimum qualifications stipulated in the standards.

We submitted two briefs-of-evidence recommending prosecution to the Commonwealth Director of Public Prosecutions for consideration and we referred a further two matters for advice on whether a prosecution would be commenced.

In 2017-18, we became a participating member of the Australian Federal Police Fraud Anti-Corruption Centre.

Agreements with third parties To enable effective delivery of outcomes, the department enters into a range of agreements with third parties, including other Australian Government entities, state and territory government entities, and external agencies. These agreements govern the way in which one party delivers programs, payments and services on behalf of the other.

Ethical standards We promote ethical standards and behaviours relating to our workplace and employment, including:

» the APS Code of Conduct; the APS Values and the APS Employment Principles

» information on bullying and harassment

» guidance on acceptance of gifts and benefits

» information on conflict of interest and outside employment

» guidance on ethical behaviour in practice

» information about the Public Interest Disclosure Act 2013.

Our intranet provides links to external websites that deal with related material, including the Australian Public Service Commission.

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The department incorporates the APS Code of Conduct and the APS Values in each employee’s individual performance agreement.

In 2017-18 we ran orientation sessions that included information about ethical behaviour, the APS Code of Conduct, the APS Values, and the Public Interest Disclosure Act 2013. Staff are able to access a range of courses relating to ethical and respectful behaviours through the department’s learning management system.

Service charter Our service charter sets out the standards of service our clients can expect, and ways to help us improve our customer service. The charter also helps our staff understand their roles and responsibilities.

For further information on our service charter, visit www.dss.gov.au

Complaints management We encourage people to provide feedback on their experiences with our department or department funded service providers. This ensures we continue to improve quality service to all Australians.

In 2017-18, 319 formal complaints were received through the department’s feedback management system.

The highest numbers of complaints were about the following:

» 56 complaints about the National Rental Affordability Scheme

» 36 complaints about Early Intervention for Children with Disability programs

» 31 complaints about Disability Employment Services.

Freedom of information Information Publication Scheme For further information on our Information Publication Scheme plan, visit www.dss.gov.au

Office of the Australian Information Commissioner The Privacy Commissioner did not review any privacy complaints involving our department this financial year. Our privacy policy is available at www.dss.gov.au

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Chapter 3.2

External scrutiny Our operations are scrutinised by external entities such as the Australian National Audit Office (ANAO), the Commonwealth Ombudsman and committees of the Australian Parliament.

Reports by the Australian National Audit Office During 2017-18, the Australian National Audit Office tabled four cross-agency performance audit reports involving our department:

» Efficiency of the Australia Council’s Administration of Grants

» Administration of the Freedom of Information Act 1982

» Efficiency through Contestability Programme

» Management of Special Appropriations.

The Australian National Audit Office also completed an interim report from its external audit of our 2017-18 financial statements.

The following four performance audits were underway at 30 June 2018, and involve other agencies in addition to the department:

» Disability Support Pension — follow-on audit

» National Disability Insurance Scheme fraud control program

» Implementation and Performance of the Cashless Debit Card Trial

» Coordination and targeting of domestic violence funding and actions.

Australian National Audit Office reports are available at www.anao.gov.au

Reports by the Commonwealth Ombudsman In 2017-18 the Commonwealth Ombudsman did not release any reports relevant to our department.

Judicial decisions No judicial decisions impacted our operations during the year.

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Administrative tribunal decisions In 2017-18, no decisions of an administrative tribunal significantly impacted our operations.

Reports by parliamentary committees The Senate Standing Committees on Community Affairs The Senate Standing Committees on Community Affairs covers the Social Services, Human Services and Health Portfolios. Its work is divided between two committees — the Legislation Committee and the References Committee.

The Legislation Committee » On 25 July 2017 the department provided a submission to the inquiry into the National Disability Insurance Scheme Amendment (Quality and Safeguards Commission and Other Measure) Bill 2017. The department attended a hearing

on 5 September 2017.

» On 4 August 2017 the department provided a submission to the inquiry into the Social Security Legislation Amendment (Better Targeting Student Payments) Bill 2017.

» On 4 August 2017 the department provided a submission to the inquiry into the Social Services Legislation Amendment (Payment Integrity) Bill 2017. The department attended a hearing on 31 August 2017 and provided responses to Questions on Notice on 4 September 2017.

» On 30 August 2017 the department attended a hearing on the inquiry into the Social Security Legislation Amendment (Welfare Reform) Bill 2017 and provided answers to Questions on Notice on 4 and 5 September 2017.

» On 29 September 2017 the department presented a submission to the inquiry into the Social Services Legislation Amendment (Cashless Debit Card) Bill 2017. The department attended a hearing on 2 November 2017 and provided responses to Questions on Notice between 13 and 17 November 2017.

» The department appeared before the Legislation Committee at its Senate Estimates hearings on 25 October 2017 (Supplementary Estimates), 1 March 2018 (Additional Estimates) and 31 May to 1 June 2018 (Budget Estimates).

» On 14 November 2017 the department attended a hearing for the inquiry into the Social Services Legislation Amendment (Housing Affordability) Bill 2017 and provided responses to Questions on Notice on 17 November 2017.

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» On 6 February 2018 the department provided a submission to the inquiry into the Commonwealth Redress Scheme for Institutional Child Sexual Abuse Bill 2017 and Commonwealth Redress Scheme for Institutional Child Sexual Abuse (Consequential Amendments) Bill 2017. The department attended hearings on 16 February and 6 March 2018 and provided responses to Questions on Notice on 2 March and 16 March 2018.

» On 11 April 2018 the department provided a submission to the inquiry into the Social Services Legislation Amendment (Drug Testing Trial) Bill 2018. The department attended a hearing on 24 April 2018 and provided responses to Questions on Notice on 1 May 2018.

» On 11 April 2018 the department provided a submission to the inquiry into the Social Services Legislation Amendment (Self Sufficiency for Newly Arrived Migrants) Bill 2018. The department provided responses to Questions on Notice on 24 April 2018.

» On 31 May 2018 the department provided a submission to the inquiry into the National Redress Scheme for Institutional Child Sexual Abuse Bill 2018 and National Redress Scheme for Institutional Child Sexual Abuse (Consequential Amendments) Bill 2018.

The References Committee » On 1 November 2017 the department attended a hearing of the Senate Community Affairs References Committee’s inquiry into the delivery of outcomes under the National Disability Strategy 2010-2020 to build inclusive and

accessible communities. The department responded to Questions on Notice on 20 November 2017.

Finance and Public Administration References Committee The Finance and Public Administration Committee covers the following portfolios: Prime Minister and Cabinet and Finance. The committee also maintains oversight over three Parliamentary departments: the Department of the Senate, the Department of Parliamentary Services and the Parliamentary Budget Office. During 2017-18, the department had the following engagement with the committee:

» On 6 October 2017 the department provided a submission to the Senate Finance and Public Administration References Committee’s inquiry into the Delivery of National Outcome 4 of the National Plan to Reduce Violence against Women and their Children 2010-2022. We attended a hearing on 8 November 2017 and responded to Questions on Notice on 16 November 2017.

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The House of Representatives Standing Committee on Social Policy and Legal Affairs The House of Representatives Standing Committee on Social Policy and Legal Affairs may inquire into and report on any matter referred to it by either the House or a Minister, including any pre-legislation proposal, bill, motion, petition, vote or expenditure, other financial matter, report or document. During 2017-18, the department had the following engagement with the committee:

» On 15 May 2018 the department provided a submission to the Social Policy and Legal Affairs Committee’s inquiry into local adoption and attended a hearing on 22 May 2018.

The Joint Standing Committee on the National Disability Insurance Scheme The Joint Standing Committee on the National Disability Insurance Scheme initiates inquiries into various aspects of the National Disability Insurance Scheme, including the scheme’s operation and performance. Either House of Parliament can refer these inquiries. During 2017-18, the department had the following engagement with the committee:

» On 20 October 2017 the department attended a hearing of the inquiry into the transitional arrangements for the National Disability Insurance Scheme.

» On 8 November 2017 the department attended a hearing of the inquiry into the Provision of services under the NDIS Early Childhood Early Intervention Approach.

» On 28 March 2018 the department attended a private hearing of the inquiry into Market Readiness and provided responses to Questions on Notice on 16 May 2018.

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Chapter 3.3

Managing our people

Overview We implemented a range of strategies and initiatives in 2017-18 to continue to develop our workforce capability in line with current and emerging organisational priorities and foster an inclusive organisational culture which reflects the diversity of the Australian community.

Effectiveness in managing and developing staff Workforce planning A workforce planning gap analysis was undertaken in 2017-18 to identify what critical skills and characteristics are needed. This analysis will inform the development of a forward workforce plan and investment in targeted workforce strategies.

We undertook operational workforce planning in line with the business planning cycle, enabling the senior executive to monitor and make informed decisions about workforce capability and capacity.

The senior executive used regular workforce reporting and analysis, including the 2017 APS Employee Census results, as the primary evidence basis for setting organisational priorities in relation to the workforce.

Leadership and capability development Our Workforce Capability Strategy outlines our approach to building personal and departmental capability. This includes continued enhancements to our Learning Management System to include job family profiles and capture recommended capability development based on role.

In 2017-18, our staff had access to more than 35 different eLearning programs through LearnHub, of which 4,560 courses were completed. We also delivered over 58 centrally funded face-to-face training courses to build a range of skills, including leading high performing teams and project management. This was complemented by unlimited, on-demand access to a library of high quality, current and engaging video tutorials on Lynda.com. In the past year, staff viewed 16,645 learning videos.

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We invest in developing the skills of our managers, with external leadership opportunities offered or provided to high performing staff at all levels. During the year 20 staff took part in these leadership and management programs including Jawun secondments, the Sir Roland Wilson Scholarship, Career Development Assessment Centre and the Australian and New Zealand School of Government Executive Master of Public Administration Program.

Workplace diversity We continue to support a diverse and inclusive workplace. Our Aboriginal and Torres Strait Islander Workforce Strategy, Disability Workforce Action Plan and the DSS Gender Equality Action Plan, build on our existing framework and commitment to diversity and inclusion.

In the past year our staff participated in the International Day of People with Disability, Hearing Awareness Week, NAIDOC Week, National Reconciliation Week, Carers Week, Harmony Day, Wear it Purple Day, Mental Health Week, International Day Against Homophobia, Biphobia, Intersexism and Transphobia, and Families Week.

Employment of Aboriginal and Torres Strait Islander peoples We value, acknowledge and respect diversity and actively use life experiences, skills and knowledge of Aboriginal and Torres Strait Islander peoples as a source of advice on policy and delivery.

More than 5 per cent of our staff identified as being Aboriginal or Torres Strait Islander in June 2018, compared with an APS rate of 3.3 per cent in December 2017. Of those, 109 were ongoing and one was non-ongoing.

Our Reconciliation Action Plan 2017-2020 and Aboriginal and Torres Strait Islander Workforce Strategy 2015-2018 guide our commitment to the recruitment, retention and career development of Aboriginal and Torres Strait Islander staff across all policy and program areas.

We continue to participate in entry level recruitment programs to provide employment pathways for Aboriginal and Torres Strait Islander peoples, including through the Department of Jobs and Small Business’s Indigenous Australian Government Development Program, the Department of Human Services Indigenous Apprenticeship Program and a department-specific Indigenous Internship Program.

Support for Aboriginal and Torres Strait Islander staff and supervisors is provided through our Indigenous Liaison Officer, who coordinates initiatives around our Reconciliation Action Plan and Aboriginal and Torres Strait Islander Workforce Strategy.

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Our Indigenous Champion, a role performed at the Deputy Secretary level, has provided leadership in supporting the executive to implement our Indigenous employment strategies. Our champion also works with the Aboriginal and Torres Strait Islander Staff National Committee to provide strategic advice on workforce initiatives for Indigenous employees.

Employment of people with disability Increasing employment outcomes for people with disability is a priority for our department. A total of 7.2 per cent of our staff identified as having a disability in June 2018, compared with an APS rate of 3.6 per cent in December 2017.

Our Disability Workforce Action Plan 2015-2018 guides our approach to recruiting, developing and retaining people with disability.

We provide entry-level employment pathways for people with disability, through participation in the Australian Network on Disability’s Stepping Into Internship Program. We also apply APS RecruitAbility to all our recruitment processes.

We provide support and guidance to employees with disability and their managers through:

» maintaining the role of a Disability Access Coordinator

» centralised funding to provide reasonable adjustment for employees with disability

» specialised training for managers of staff who have an intellectual disability

» through working closely with rehabilitation managers.

Our Disability Champion, a role performed at the Deputy Secretary level, drives workforce initiatives for employees with disability.

Support for Lesbian, Gay, Bisexual, Trans, Queer and Intersex Staff In the 2017-18 Australian Public Service Commission State of the Service Survey, 4.2 per cent of our staff identified as lesbian, gay, bisexual, trans and/or intersex. We have established a Pride Committee and Network, as well as champions to support lesbian, gay, bisexual, trans, queer and intersex staff and allies at work.

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Figure 3.3.1 Diversity in our people

DSS 7.2% DSS 5.1%

APS 3.6% APS 3.3%

Disability Employment Levels

Indigenous Employment Levels

Female SES

Employees aged over 55

DSS 49.4% DSS 15.1%

APS 43.8% APS 18.6%

*DSS figures as at 30 June 2018. APS figures as at 31 December 2017 (sourced from the Australian Public Service Employment Database).

Graduate Program In 2017-18 we recruited 69 staff through our Graduate Program.

Our graduates undertake a 10-month program that offers comprehensive internal and external training, networking opportunities, and broad opportunities for career development.

The program exposes participants to social policy development and programs that improve the wellbeing of people and families in Australia. Graduates are provided with opportunities to formulate and support Australian Government initiatives and influence the social policy agenda.

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Workplace arrangements Enterprise agreement The Department of Social Services Enterprise Agreement 2015 to 2018 commenced on 21 October 2015 and covers non-SES employees. The agreement has a nominal expiry date of 21 October 2018. Bargaining for a new agreement was undertaken from April 2018 to July 2018 and a new agreement was supported by employees in August 2018 for the period 2018 to 2021.

Individual Flexibility Arrangements for non-Senior Executive Services (SES) employees In accordance with the Fair Work Act 2009, Individual Flexibility Arrangements can be used to provide varied terms and conditions for non-SES employees. We also used Individual Flexibility Arrangements to attract and retain staff, which recognises highly valued skills and critical roles.

As at 30 June 2018, we had 62 Individual Flexibility Arrangements in place.

Performance pay Performance payments were not made to non-SES employees in 2017-18.

Senior Executive Service remuneration The Secretary reviews SES remuneration annually after completion of the annual performance cycle. The individual SES employee’s performance review takes into account factors including organisational performance, relevant remuneration data and the size and complexity of the role when determining remuneration outcomes.

As at 30 June 2018, 67 SES employees were remunerated through a Section 24 (1) determination.

Common law contracts We do not use common law contracts to employ staff.

Non-salary benefits to employees Our Enterprise Agreement offers a range of non-salary benefits to our people, including leave, flexible working arrangements, access to salary packaging and remote locality assistance.

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Work health and safety We acknowledge and are committed to fulfilling our responsibilities under the Work Health and Safety Act 2011, the Work Health and Safety Regulations 2011 and the Safety, Rehabilitation and Compensation Act 1988.

The department‘s strong focus on work health and safety has resulted in sustainable reductions in workers’ compensation claims. The department’s achievements include:

» a decrease in the number of workers’ compensation claims submitted in 2017-18 to eight, compared to 33 in 2013-14 » accepting two workers’ compensation claims in 2017-18, compared to 30 in 2013-14 » maintaining a low number of psychological claims accepted with one claim in

2017-18, which is the same as in 2016-17 » maintaining a decrease in the department’s Comcare workers compensation premium rate for a third consecutive year from 2.1 per cent of payroll in 2015-16 to 1.1 per cent for 2018-19

» achieving an 89 per cent conformance rate in its 2017-18 internal audit of the department’s rehabilitation management system.

We will continue to focus on encouraging early identification, reporting and response to workplace hazards and injuries in the workplace to further improve work health and safety and return to work performance.

We have used new furniture and equipment in our new premises in Tuggeranong as a key strategy to address muscular skeletal health. We fitted the new building with sit/ stand desks for all National Office staff and offered the same to employees across the organisation on an as-required basis.

Other initiatives implemented in 2017-18 to ensure the health, safety and welfare of workers include:

» supporting ill or injured employees through the department’s early intervention program to help them remain at work or return to work safely » implementing a dedicated electronic case management system to help the department’s case managers effectively manage return to work

» participating in APS working groups to provide input into the ongoing management of the Comcare Scheme, which provides all scheme employers with an integrated safety, rehabilitation, compensation system

» inviting employees to participate in the annual influenza vaccination program to reduce unscheduled absences during the influenza season.

Notifiable incidents In 2017-18 there were two notifiable incidents in relation to a serious injury of a person.

No investigations were carried out under part 10 of the Work Health and Safety Act 2011.

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Chapter 3.4

Managing our finances The 2017-18 financial statements in this report reflect our effective financial management. We were responsible for expenditure of $117.7 billion during the year, including $109.3 billion in expenses for outlays to individuals and $6.8 billion for programs, subsidies and grants to support the community.

How we are funded The Australian Parliament, via the Appropriation Acts, provides the department with two types of funding: departmental and administered.

Departmental resources are used to develop and implement policies and deliver services (programs).

We also administer payments, subsidies, revenues and other resources on behalf of the Australian Government. A shaded background in our financial statements indicates information that relates to an administered resource (see Part 4).

Table 3.4.1: Trends in departmental finances

2017-18 $ million

2016-17 $ million

Change $ million

Revenue from the Australian Government 406.8 403.1 3.7

Other revenue 86.1 105.4 (19.3)

Total income 492.9 508.5 (15.6)

Employee benefits 259.0 256.5 2.5

Suppliers 203.7 212.9 (9.2)

Other expenses 73.0 66.8 6.2

Total expenses 535.7 536.2 (0.5)

Deficit attributed to the Australian Government

(42.8) (27.7) (15.1)

Add back non-appropriated depreciation and amortisation expense 72.1 62.8 9.3

Surplus attributed to the department 29.3 35.1 (5.8)

Financial assets A 83.0 128.4 (45.4)

Non-financial assets B 275.8 254.1 21.7

Liabilities C 156.2 152.3 3.9

Net assets (A+B-C) 202.6 230.2 (27.6)

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Table 3.4.2: Trends in administered finances

2017-18 $ million

2016-17 $ million

Change $ million

Recoveries 54.3 58.7 (4.4)

Interest 1.0 1.5 (0.5)

Other revenue 13.5 18.4 (4.9)

Total revenue 68.8 78.6 (9.8)

Suppliers 965.5 967.4 (1.9)

Subsidies 84.9 85.0 (0.1)

Personal benefits 109,346.3 109,503.4 (157.1)

Grants 1,495.6 1,264.7 230.9

Payments to corporate Commonwealth entities 3,210.8 1,598.5 1,612.3

Other expenses 1,034.1 364.0 670.1

Total expenses 116,137.2 113,783.0 2,354.2

Financial assets 6,240.3 5,586.9 653.4

Liabilities 6,402.6 6,026.0 376.6

Assets management Our assets are managed under the authority of section 20A of the PGPA Act, relevant accounting standards and Department of Finance requirements.

We invest in new assets to improve our systems and processes. We manage capital investment through an annual capital plan that reflects both government priorities and ongoing business needs.

Consultants During 2017-18, 60 new consultancy contracts were entered into involving total actual expenditure of $12 million. In addition, 45 ongoing consultancy contracts were active during the period, involving total actual expenditure of $9 million.

We contract providers for specialist expertise or when independent research, review or assessment is required. Decisions to engage consultants were made after considering the skills and resources required for the task, internal capacity, and the cost effectiveness of contracting an external service provider. Consultants were engaged in line with the PGPA Act and related regulations.

Annual Reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.

Summary information on consultancy services is set out in Tables 3.4.3 and 3.4.4.

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Table 3.4.3: Consultancies in 2017-18

Number

Expenditure

($ million, GST inc.)

New consultancies let 60 12.0

Ongoing consultancies active 45 9.0

Total 105 21.0

Table 3.4.4: Total expenditure on new and ongoing consultancy contracts — 2015-16 to 2017-18

Expenditure ($ million, GST inc.)

2017-18 2016-17 2015-16

21.0 15.1 15.9

Australian National Audit Office access clauses All departmental contracts let in the past year required the Auditor-General to have access to the contractor’s premises.

Exempt contracts In 2017-18 no contracts were exempted from reporting on AusTender.

Purchasing Our purchasing activities are consistent with the Secretary’s Instructions and internal procurement guidelines, which are in accordance with the Commonwealth Procurement Rules 2018.

Purchasing is made in an accountable and transparent manner, complying with Australian Government policies and meeting relevant international obligations.

In 2017-18, the department exceeded its targets under the Indigenous Procurement Policy by awarding more than three per cent of contracts to Indigenous businesses.

Procurement initiatives to support small business The Department of Social Services supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SMEs) and Small Enterprise participation statistics are available on the Department of Finance’s website.

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We support the use of SMEs through various means including:

» using standardised contracts for low-risk procurements valued under $200,000

» using an electronic invoice processing system

» incorporating Australian Industry Participation Plans in procurement where applicable.

The Department of Social Services recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Department of Treasury’s website, www.treasury.gov.au

Grants administration The Community Grants Hub, which offers end to end grants administration services, continues to mature and now provides services to eight client agencies including our department.

The Hub processed 333 grants rounds for its client agencies in the past year and manages over 7,000 funding arrangements with more than 3,100 organisations. Importantly, the Hub has successfully delivered several major rounds for client agencies, such as the Community Child Care Fund for the Department of Education and Training, and Disability Employment Services for our department. The workload of the Hub is expected to increase significantly in 2018-19.

In the past year, the Hub has completed two major reforms to its operations through the Streamlining Grants Administration and One Delivery programs. These reforms have improved the Hub’s capability to deliver effective and efficient grant administration services at scale for its client agencies.

The Hub also manages the Data Exchange, which measures the effectiveness of client-based grant programs and provides visibility of outcomes achieved for clients of grant funded services. Over 2,400 organisations and 12,600 users are on the Data Exchange and this will increase as more agencies on-board programs to the Data Exchange system. In 2017-18, the Hub commenced enhancements to the Data Exchange to support increased usage and enhanced reporting and analytical capability. The Data Exchange is currently used by four Commonwealth agencies and negotiations are underway with other Commonwealth and state agencies to use the exchange, including sharing data to provide greater insights into client pathways across and between Commonwealth and state funded related programs.

Information on grants advertised during the last financial year is available at www.communitygrants.gov.au/grants

Information on grants awarded since 1 January 2018 is available at www.grants.gov.au and information on grants awarded up to 31 December 2017 is available at www.dss.gov.au

It’s amazing what a difference 12 months can make in the life of a person with disability, who now has access to care and support through the National Disability Insurance Scheme (NDIS).

One year after joining the NDIS, 62-year-old Port Macquarie man Geoffrey has a new lease on life.

“This time last year I would never go out of my house. Ever since the NDIS I can get out more,” Geoffrey explained.

He spent most of his time inside his house, only venturing out for regular doctor’s appointments to manage Parkinson’s disease, and weekly visits to his nearby church. His carers, or his ‘friends’ as he calls them, make all the difference.

“They’re helping me get out and enjoy life instead of withering away. I can smile again.”

The addition of a motorised NDIS-funded scooter make it possible for Geoffrey to be even more independent.

“I take it into town three times a week just to clean it... Everybody in town wants to be seen with me,” Geoffrey jokes.

Throughout 2017-18, the Department of Social Services worked with states and territories to continue the NDIS roll out and design the NDIS Quality and Safeguards Commission. The commission will ensure high standards of quality and safety in NDIS services for Australians with a disability.

The NDIS supported 183,965 Australians by 30 June 2018.

above: NDIS participant,

Geoffrey, says his NDIS-funded motorised scooter gives him greater independence.

See part 2 chapter 2.3 for more information.

All the difference in the world

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Financial statements

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Department of Social Services Statement of comprehensive income for the period ended 30 June 2018

2

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

NET COST OF SERVICES

Expenses

Employee benefits 1.1A 258,979 256,517 263,110

Suppliers 1.1B 203,723 212,939 178,861

Depreciation and amortisation 3.2A 72,123 62,771 63,455

Finance costs 3.4A 5 12 -

Write-down and impairment of assets 3.1A, 3.2A 760 3,243 -

Payments for service delivery 152 768 -

Other expenses 4 - 4,506

Total expenses 535,746 536,250 509,932

Own-Source Income

Own-source revenue

Rendering of services 1.2A 81,947 99,045 30,932

Rental income 1.2B 2,082 2,208 -

Other revenue 1.2C 1,776 1,893 6,565

Total own-source revenue 85,805 103,146 37,497

Gains

Gains from sale of assets 1.2D 211 133 -

Other gains 1.2E 90 2,095 1,350

Total gains 301 2,228 1,350

Total own-source income 86,106 105,374 38,847

Net cost of services (449,640) (430,876) (471,085)

Revenue from Government 406,779 403,092 407,630

Deficit (42,861) (27,784) (63,455)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve 57 4,636 -

Total other comprehensive income 57 4,636 -

Total comprehensive loss 5.3 (42,804) (23,148) (63,455)

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3A.

GPO Box 707 CANBERRA ACT 2601 19 National Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777

Auditor-General for Australia

INDEPENDENT AUDITOR’S REPORT

To the Minister for Families and Social Services

Opinion

In my opinion, the financial statements of the Department of Social Services for the year ended 30 June 2018:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and

(b) present fairly the financial position of the Department of Social Services as at 30 June 2018 and its financial performance and cash flows for the year then ended.

The financial statements of the Department of Social Services, which I have audited, comprise the following statements as at 30 June 2018 and for the year then ended:

 Statement by the Secretary and Chief Finance Officer;  Statement of Comprehensive Income;  Statement of Financial Position;  Statement of Changes in Equity;  Cash Flow Statement;  Administered Schedule of Comprehensive Income;  Administered Schedule of Assets and Liabilities;  Administered Reconciliation Schedule;  Administered Cash Flow Statement; and  Notes to and forming part of the financial statements, comprising a Summary of significant accounting

policies and other explanatory information.

Basis for Opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Department of Social Services in accordance with the relevant ethical requirements for financial statement audits conducted by me. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Key Audit Matters

Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.

Key audit matter

Accuracy and occurrence of grants expenses

Refer to Note 2.1B ‘Grants’

I focused on this area as there are a large number of grants programs with differing legislative and

How the audit addressed the matter

The audit procedures undertaken to address this matter included:

1. evaluating the information technology controls specifically access controls, change

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Department of Social Services Statement of comprehensive income for the period ended 30 June 2018

2

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

NET COST OF SERVICES

Expenses

Employee benefits 1.1A 258,979 256,517 263,110

Suppliers 1.1B 203,723 212,939 178,861

Depreciation and amortisation 3.2A 72,123 62,771 63,455

Finance costs 3.4A 5 12 -

Write-down and impairment of assets 3.1A, 3.2A 760 3,243 -

Payments for service delivery 152 768 -

Other expenses 4 - 4,506

Total expenses 535,746 536,250 509,932

Own-Source Income

Own-source revenue

Rendering of services 1.2A 81,947 99,045 30,932

Rental income 1.2B 2,082 2,208 -

Other revenue 1.2C 1,776 1,893 6,565

Total own-source revenue 85,805 103,146 37,497

Gains

Gains from sale of assets 1.2D 211 133 -

Other gains 1.2E 90 2,095 1,350

Total gains 301 2,228 1,350

Total own-source income 86,106 105,374 38,847

Net cost of services (449,640) (430,876) (471,085)

Revenue from Government 406,779 403,092 407,630

Deficit (42,861) (27,784) (63,455)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve 57 4,636 -

Total other comprehensive income 57 4,636 -

Total comprehensive loss 5.3 (42,804) (23,148) (63,455)

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3A.

policy requirements which make the management of grant processes complex and impact the accuracy and occurrence of grant expenses. In addition there are inherent information technology challenges relating to the expansion of the existing grant management infrastructure to accommodate a shared service operation for other entities.

For the year ended 30 June 2018 the grants expenses were $1.5 billion.

management, approvals and delegations for grants and payment processing;

2. assessing manual controls supporting grants management focusing on risk management and compliance processes; and

3. examining supporting documentation for a sample of grant agreements to assess the accuracy and occurrence of expenditure amounts.

Key audit matter

Accuracy and occurrence of personal benefits expense

Refer to Note 2.1C ‘Personal Benefits’

I focused on this area as the accuracy and occurrence of personal benefits expense is dependent on the correct disclosure of personal circumstances by a large number of recipients across diverse social economic groups. The accuracy of personal benefits expense is also reliant on a complex information technology system for the processing of high volume of payments across numerous personal benefit types with varying complexities.

For the year ended 30 June 2018 the expense related to personal benefits was $109.3 billion.

How the audit addressed the matter

The audit procedures undertaken to address this matter included:

1. assessing the internal controls in place over the personal benefits payments, focusing on processes for monitoring compliance with requirements to disclose accurate personal information;

2. assessing the information technology controls, specifically access controls to personal circumstances data and controls designed to prevent and detect unauthorised changes to the information technology environment; and

3. recalculating a sample of personal benefits payments made to recipients, based on relevant legislation and personal circumstances data held by the Australian Government.

Key audit matter

Valuation of personal benefits provisions and personal benefit receivables

Refer to Note 4.3A ‘Personal Benefits and Other Provisions’ and Note 4.1B ‘Receivables’

I focused on this area as the valuation of the provisions and receivables involve estimation models which require significant judgements and assumptions, and are dependent on a number of factors. These factors include, but are not limited to, new budget measures affecting benefit programs, timing of payments, personal circumstances of recipients and the economic environment. The accuracy and completeness of the source data used by the actuary in developing the estimation of the provisions and receivables is also a key component of the valuation process.

As at 30 June 2018 the provisions totalled $4.2 billion and the receivables totalled $4.0 billion.

How the audit addressed the matter

The audit procedures undertaken to address this matter included:

1. evaluating the appropriateness of

management’s processes to assess whether judgements and assumptions used in the estimation models remain appropriate;

2. engaging an actuarial expert to assist me in assessing the work undertaken by the Department of Social Services’ actuary; and

3. assessing the sources of data used in the estimation models for accuracy and reliability.

Accountable Authority’s Responsibility for the Financial Statements

As the Accountable Authority of the Department of Social Services the Secretary is responsible under the Public Governance, Performance and Accountability Act 2013 for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under that Act. The Secretary is also responsible for such internal control as the Secretary determines is necessary to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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Annual Report 2017-18 Department of Social Services

Department of Social Services Statement of comprehensive income for the period ended 30 June 2018

2

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

NET COST OF SERVICES

Expenses

Employee benefits 1.1A 258,979 256,517 263,110

Suppliers 1.1B 203,723 212,939 178,861

Depreciation and amortisation 3.2A 72,123 62,771 63,455

Finance costs 3.4A 5 12 -

Write-down and impairment of assets 3.1A, 3.2A 760 3,243 -

Payments for service delivery 152 768 -

Other expenses 4 - 4,506

Total expenses 535,746 536,250 509,932

Own-Source Income

Own-source revenue

Rendering of services 1.2A 81,947 99,045 30,932

Rental income 1.2B 2,082 2,208 -

Other revenue 1.2C 1,776 1,893 6,565

Total own-source revenue 85,805 103,146 37,497

Gains

Gains from sale of assets 1.2D 211 133 -

Other gains 1.2E 90 2,095 1,350

Total gains 301 2,228 1,350

Total own-source income 86,106 105,374 38,847

Net cost of services (449,640) (430,876) (471,085)

Revenue from Government 406,779 403,092 407,630

Deficit (42,861) (27,784) (63,455)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve 57 4,636 -

Total other comprehensive income 57 4,636 -

Total comprehensive loss 5.3 (42,804) (23,148) (63,455)

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3A.

In preparing the financial statements, the Secretary is responsible for assessing the Department of Social Services’ ability to continue as a going concern, taking into account whether the entity’s operations will cease as a result of an administrative restructure or for any other reason. The Secretary is also responsible for disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;  obtain an understanding of internal control relevant to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control;  evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority;  conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern; and  evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Australian National Audit Office

Grant Hehir

Auditor-General

Canberra

6 September 2018

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Department of Social Services Annual Report 2017-18

Department of Social Services

Statement by the Secretary and Chief Finance Officer In our opinion, the attached financial statements for the year ended 30 June 2018 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Department of Social Services (the department) will be able to pay its debts as and when they fall due.

Kathryn Campbell CSC

Secretary

6 September 2018

Andrew Harvey

Chief Finance Officer

6 September 2018

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Annual Report 2017-18 Department of Social Services

Department of Social Services Statement of comprehensive income for the period ended 30 June 2018

2

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

NET COST OF SERVICES

Expenses

Employee benefits 1.1A 258,979 256,517 263,110

Suppliers 1.1B 203,723 212,939 178,861

Depreciation and amortisation 3.2A 72,123 62,771 63,455

Finance costs 3.4A 5 12 -

Write-down and impairment of assets 3.1A, 3.2A 760 3,243 -

Payments for service delivery 152 768 -

Other expenses 4 - 4,506

Total expenses 535,746 536,250 509,932

Own-Source Income

Own-source revenue

Rendering of services 1.2A 81,947 99,045 30,932

Rental income 1.2B 2,082 2,208 -

Other revenue 1.2C 1,776 1,893 6,565

Total own-source revenue 85,805 103,146 37,497

Gains

Gains from sale of assets 1.2D 211 133 -

Other gains 1.2E 90 2,095 1,350

Total gains 301 2,228 1,350

Total own-source income 86,106 105,374 38,847

Net cost of services (449,640) (430,876) (471,085)

Revenue from Government 406,779 403,092 407,630

Deficit (42,861) (27,784) (63,455)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve 57 4,636 -

Total other comprehensive income 57 4,636 -

Total comprehensive loss 5.3 (42,804) (23,148) (63,455)

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3A.

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Department of Social Services Annual Report 2017-18

Department of Social Services Statement of financial position as at 30 June 2018

3

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

ASSETS

Financial Assets

Cash and cash equivalents 6,602 17,192 5,075

Trade and other receivables 3.1A 76,385 111,166 71,242

Total financial assets 82,987 128,358 76,317

Non-Financial Assets

Leasehold improvements 3.2A 58,787 39,127 51,317

Property, plant and equipment 3.2A 30,257 32,508 29,000

Intangibles 3.2A 158,288 156,010 160,071

Prepayments 28,149 26,397 23,369

Total non-financial assets 275,481 254,042 263,757

Assets held for sale 3.2A 298 71 -

Total assets 358,766 382,471 340,074

LIABILITIES

Payables

Suppliers 3.3A 30,432 30,254 18,202

Other payables 3.3B 44,180 41,113 42,174

Total payables 74,612 71,367 60,376

Provisions

Employee provisions 6.1A 80,478 80,055 59,671

Other provisions 3.4A 1,087 849 3,189

Total provisions 81,565 80,904 62,860

Total liabilities 156,177 152,271 123,236

Net assets 202,589 230,200 216,838

EQUITY

Contributed equity 433,961 417,189 529,726

Asset revaluation reserve 72,392 72,335 67,699

Accumulated deficit (303,764) (259,324) (380,587)

Total equity 202,589 230,200 216,838

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3A.

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Annual Report 2017-18 Department of Social Services

Department of Social Services Statement of changes in equity for the period ended 30 June 2018

4

2018 2017

Original Budget 2018

CONTRIBUTED EQUITY Notes $'000 $'000 $'000

Opening balance

Balance carried forward from previous period 417,189 363,416 472,700

Transactions with owners

Equity injection - Appropriations 40,692 34,835 40,412

Departmental capital budget 16,614 18,938 16,614

Restructuring 8.1A 35 - -

Appropriations repealed (40,569) - -

Total transactions with owners 16,772 53,773 57,026

Closing balance as at 30 June 433,961 417,189 529,726

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period 72,335 67,699 67,699

Comprehensive income

Other comprehensive income 57 4,636 -

Total comprehensive income 57 4,636 -

Closing balance as at 30 June 72,392 72,335 67,699

ACCUMULATED DEFICIT

Opening balance

Balance carried forward from previous period (259,324) (231,550) (317,132)

Comprehensive income

Deficit for the period (42,861) (27,784) (63,455)

Appropriations repealed (1,579) - -

Other movements - 10 -

Total comprehensive income (44,440) (27,774) (63,455)

Closing balance as at 30 June (303,764) (259,324) (380,587)

TOTAL EQUITY

Opening balance

Balance carried forward from the previous period 230,200 199,565 223,267

Comprehensive loss for the period (42,804) (23,148) (63,455)

Other movements (1,579) 10 -

Transactions with owners 16,772 53,773 57,026

Closing balance as at 30 June 202,589 230,200 216,838

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3A.

Accounting Policy

Equity Injections

Amounts appropriated and designated as 'equity injections' for a financial year (less any formal reductions) and Departmental Capital Budgets are recognised directly in Contributed Equity in that financial year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructure of administrative arrangements are adjusted at their book value directly against Contributed Equity.

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Department of Social Services Annual Report 2017-18

Department of Social Services Cash flow statement for the period ended 30 June 2018

5

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

OPERATING ACTIVITIES

Cash received

Appropriations 468,850 526,384 432,718

Rendering of services 91,948 104,704 30,932

GST received 27,321 27,953 -

Other 173 - 6,565

Total cash received 588,292 659,041 470,215

Cash used

Employees 257,803 264,047 268,112

Suppliers 230,683 210,362 189,566

Payments for service delivery 152 768 -

Section 74 receipts transferred to Official Public Account 92,460 104,646 -

Other - - 4,506

Total cash used 581,098 579,823 462,184

Net cash from / (used by) operating activities 7,194 79,218 8,031

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment 648 212 -

Total cash received 648 212 -

Cash used

Purchase of property, plant and equipment 40,922 37,858 65,057

Purchase of intangibles 56,997 65,808 -

Total cash used 97,919 103,666 65,057

Net cash used by investing activities (97,271) (103,454) (65,057)

FINANCING ACTIVITIES

Cash received

Appropriations - Equity injections 57,049 23,239 57,026

Appropriations - Departmental capital budget 22,438 13,114 -

Total cash received 79,487 36,353 57,026

Net cash from financing activities 79,487 36,353 57,026

Net increase / (decrease) in cash held (10,590) 12,117 -

Cash and cash equivalents at the beginning of the reporting period 17,192 5,075 5,075

Cash and cash equivalents at the end of the reporting period 6,602 17,192 5,075

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3A.

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Annual Report 2017-18 Department of Social Services

Department of Social Services Administered schedule of comprehensive income for the period ended 30 June 2018

6

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

NET COST OF SERVICES

Expenses

Suppliers 2.1A 965,529 967,387 1,075,615

Subsidies 84,934 84,981 85,880

Grants 2.1B 1,495,629 1,264,700 1,433,080

Personal benefits 2.1C 109,346,281 109,503,446 110,534,732

Write-down and impairment of assets 2.1D 872,901 215,415 964,995

Payments to National Disability Insurance Agency 3,210,826 1,598,466 3,726,268

Other expenses 2.1E 161,134 148,640 247,738

Total expenses 116,137,234 113,783,035 118,068,308

Income

Revenue

Non-taxation revenue

Recoveries 2.2A 54,345 58,731 -

Interest 1,045 1,528 19,725

Special accounts revenue 5,966 11,480 -

Other revenue 7,425 6,831 14,695

Total non-taxation revenue 68,781 78,570 34,420

Total revenue 68,781 78,570 34,420

Gains

Fair value gains 2.2B 16,300 - -

Total gains 16,300 - -

Total income 85,081 78,570 34,420

Net cost of services (116,052,153) (113,704,465) (118,033,888)

Deficit (116,052,153) (113,704,465) (118,033,888)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserve 897,854 691,711 -

Total other comprehensive income 897,854 691,711 -

Total comprehensive loss (115,154,299) (113,012,754) (118,033,888)

The above schedule should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3B. The budget statements information has been reclassified and presented on a consistent basis with the corresponding financial statement.

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Department of Social Services Annual Report 2017-18

Department of Social Services Administered schedule of assets and liabilities as at 30 June 2018

7

2018 2017

Original Budget 2018

Notes $'000 $'000 $'000

ASSETS

Financial Assets

Cash and cash equivalents 4.1A 344,311 403,275 195,673

Receivables 4.1B 4,063,704 4,249,182 5,061,328

Investments 4.1C 1,832,325 934,471 242,760

Total financial assets 6,240,340 5,586,928 5,499,761

Total assets administered on behalf of Government 6,240,340 5,586,928 5,499,761

LIABILITIES

Payables

Suppliers 44,187 56,086 12,856

Subsidies 38,898 60,727 153,648

Personal benefits 4.2A 1,972,918 1,657,644 1,935,329

Grants 4.2B 35,680 15,446 40,027

Other payables 81,085 6,246 44,773

Total payables 2,172,768 1,796,149 2,186,633

Provisions

Personal benefits and other provisions 4.3A 4,229,878 4,229,821 4,125,480

Total provisions 4,229,878 4,229,821 4,125,480

Total liabilities administered on behalf of Government 6,402,646 6,025,970 6,312,113

Net liabilities (162,306) (439,042) (812,352)

The above schedule should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.3B. The budget statements information has been reclassified and presented on a consistent basis with the corresponding financial statement.

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Annual Report 2017-18 Department of Social Services

Department of Social Services Administered reconciliation schedule for the period ended 30 June 2018

8

2018 2017

$'000 $'000

Opening assets less liabilities as at 1 July (439,042) (3,330,950)

Net cost of services

Income 85,081 78,570

Expenses

Payments to entities other than corporate Commonwealth entities (112,926,408) (112,184,569) Payments to corporate Commonwealth entities (3,210,826) (1,598,466)

Other comprehensive income

Revaluations transferred to reserves 897,854 691,711

Transfers (to) / from the Australian Government

Appropriation transfers from Official Public Account

Annual appropriations

Payments to entities other than corporate Commonwealth entities 2,380,061 2,557,002 Payments to National Disability Insurance Agency 1,050,979 1,714,663

Payments to National Disability Insurance Agency for reimbursement

of goods and services 2,159,847 -

Special appropriations

Payments to individuals and entities other than corporate

Commonwealth entities 110,248,928 112,031,651

Appropriation transfers to Official Public Account

Transfers to Official Public Account (276,421) (313,827)

Net withholdings of personal benefit overpayments through equity (126,947) (91,366)

Other non-reportable items recognised (5,412) 6,539

Closing assets less liabilities as at 30 June (162,306) (439,042)

The above schedule should be read in conjunction with the accompanying notes.

Accounting Policy

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the department for use by the Government rather than the department is reported as administered revenue. Collections are transferred to the Official Public Account which is maintained by the Department of Finance. Cash is drawn from the Official Public Account by the department to make payments under Parliamentary appropriation on behalf of the Government. These transfers to and from the Official Public Account are adjustments to the administered cash held by the department on behalf of the Government and reported as such in the administered cash flow statement and in the administered reconciliation schedule.

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Department of Social Services Annual Report 2017-18

Department of Social Services Administered cash flow statement for the period ended 30 June 2018

9

2018 2017

$'000 $'000

OPERATING ACTIVITIES

Cash received

Interest 310 1,675

New Zealand Reciprocal Agreement - 8,961

Special accounts 6,824 10,707

GST received 208,820 229,264

Personal benefits recoveries 711,096 671,745

Other 15,856 10,890

Total cash received 942,906 933,242

Cash used

Grants 1,724,513 1,534,943

Subsidies 106,780 105,414

Personal benefits 110,355,612 112,260,103

Suppliers 1,078,802 1,082,241

Payments to National Disability Insurance Agency 3,135,031 1,598,466

Other 7,390 7,787

Total cash used 116,408,128 116,588,954

Net cash used by operating activities (115,465,222) (115,655,712)

INVESTING ACTIVITIES

Cash received

Repayments of advances and loans 51,435 63,036

Total cash received 51,435 63,036

Cash used

Corporate Commonwealth entity investments - 116,197

Advances and loans made 208,571 115,123

Total cash used 208,571 231,320

Net cash used by investing activities (157,136) (168,284)

Net decrease in cash held (115,622,358) (115,823,996)

Cash from Official Public Account:

Appropriations 115,839,815 116,303,316

Total cash from official public account 115,839,815 116,303,316

Cash to Official Public Account:

Appropriations (276,421) (313,827)

Total cash to official public account (276,421) (313,827)

Cash and cash equivalents at the beginning of the reporting period

403,275 237,782

Cash and cash equivalents at the end of the reporting period1 4.1A 344,311 403,275

The above schedule should be read in conjunction with the accompanying notes.

1. Cash and cash equivalents at the end of the reporting period includes special account balances held in the Official Public Account of $338.921 million (2017: $397.425 million).

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Department of Social Services Notes to and forming part of the financial statements

10

Overview ......................................................................................................................................................... 11 

1.  Financial Performance .......................................................................................................................... 15 

Expenses ............................................................................................................................................... 15 

Own-Source Revenue and Gains .......................................................................................................... 17 

2.  Income and Expenses Administered on Behalf of Government ...................................................... 19 

Administered - Expenses ...................................................................................................................... 19 

Administered - Income .......................................................................................................................... 21 

3.  Departmental Financial Position .......................................................................................................... 22 

Financial Assets ..................................................................................................................................... 22 

Non-Financial Assets ............................................................................................................................. 24 

Payables ................................................................................................................................................ 27 

Other Provisions .................................................................................................................................... 27 

4.  Assets and Liabilities Administered on Behalf of Government ....................................................... 28 

Administered - Financial Assets ........................................................................................................... 28 

Administered - Payables ....................................................................................................................... 30 

Administered - Other Provisions ........................................................................................................... 31 

5.  Funding ................................................................................................................................................... 32 

Appropriations ........................................................................................................................................ 32 

Administered Special Accounts ............................................................................................................. 39 

Net Cash Appropriation Arrangements.................................................................................................. 41 

6.  People ..................................................................................................................................................... 42 

Employee Provisions ............................................................................................................................. 42 

Key Management Personnel Remuneration ......................................................................................... 43 

Related Party Disclosures ..................................................................................................................... 43 

7.  Managing Uncertainties ........................................................................................................................ 44 

Contingent Assets and Liabilities ........................................................................................................... 44 

Financial Instruments ............................................................................................................................ 45 

7.3 Administered - Financial Instruments ................................................................................................... 45 

8.  Other Information .................................................................................................................................. 47 

Restructuring ......................................................................................................................................... 47 

Breach of Section 83 of the Constitution ............................................................................................... 48 

Explanations of Major Variances to Budget .......................................................................................... 49 

123

127

127

129

131

131

133

134

134

136

139

139

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140

142

143

144

144

151

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Overview

The Basis of Preparation

The financial statements are general purpose financial statements as required by section 42 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

 

The financial statements have been prepared in accordance with:

 

 Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and  Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board that apply for the reporting period.

 

The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets and liabilities that are reported at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars, exclusive of Goods and Services Tax (GST) and values are rounded to the nearest thousand dollars unless otherwise specified.

Administrative Rearrangements

As a result of the Administrative Arrangements Order issued 20 December 2017, the responsibilities for Multicultural Affairs transferred to the Department of Home Affairs, refer to Note 8.1A.

New and Future Australian Accounting Standards

Adoption of New and Future Australian Accounting Standard Requirements

No new standards applicable to the 2018 financial year were issued by the Australian Accounting Standards Board (AASB) prior to signoff.

Comparative Figures Amendment for 2017 Financial Year

Certain comparative amounts have been reclassified to conform with the 2018 financial year’s reporting presentation.

Departmental

Treatment of capital related revenue

During the 2016 and 2017 financial years, the department transferred Appropriation Act 1 funding between operating and capital as the funds were to be used for capital acquisitions.

Accounting standards prevent this reclassification of funding between operating and capital. The department has restated the 2016 and 2017 financial years and this is detailed in the table below:

Financial Statement Line item

Original

$’000

Adjustment

$’000

Restated

$’000

2017

Statement of Comprehensive Income Revenue from Government 368,959 34,133 403,092

Statement of Financial Position Contributed equity 472,700 (55,511) 417,189

Accumulated deficit (314,835) 55,511 (259,324)

Statement of Changes in Equity Departmental capital budget 53,071 (34,133) 18,938

Deficit for the period (61,917) 34,133 (27,784)

Cash Flow Statement Operating activities - Appropriations 492,251 34,133 526,384

Financing activities - Appropriations Departmental capital budget 47,247 (34,133) 13,114

2016

Statement of Comprehensive Income Revenue from Government 475,322 21,378 496,700

Statement of Financial Position Contributed equity 384,794 (21,378) 363,416

Accumulated deficit (252,928) 21,378 (231,550)

Statement of Changes in Equity Departmental capital budget 40,772 (21,378) 19,394

Deficit for the period (55,291) 21,378 (33,913)

Cash Flow Statement Operating activities - Appropriations 576,505 21,378 597,883

Financing activities - Appropriations Departmental capital budget 41,307 (21,378) 19,929

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Comparative Figures Amendment for 2017 Financial Year (continued)

Treatment of reimbursements of expenses

In addition during the 2018 financial year, the department determined that departmental own-sourced revenue and expenses were overstated in the 2017 financial statements, as reimbursements of expenses were recognised as revenue.

The correct treatment would have been to recognise the reimbursements received against the expense incurred if both transactions were in the same financial year. This restatement from revenue to expenses had no financial impact on the department’s operating result or the statement of financial position.

The department has corrected the prior period by restating the amounts for the 2017 financial year in the departmental statement of comprehensive income.

Restatements for the prior year are detailed in the table below:

Line item 2017 Original

$‘000

Adjustment $‘000 Reclassification $‘000

2017 Restated $‘000

Own-source revenue - Rendering of services 107,265 (8,220) - 99,045

Own-source revenue - Other revenue 2,617 (724) - 1,893

Expenses - Employee benefits 262,875 (7,068) 710 256,517

Expenses - Suppliers 215,525 (1,876) (710) 212,939

Administered

Special Accounts Cash Flow Statement

1. Treatment of Social and Community Services Pay Equity Special Account

During the 2018 financial year, the department restated the administered annual contribution amount to the Social and Community Services Pay Equity Special Account in the administered cash flow statement. This annual contribution, or credit to the account as per the Social and Community Services Pay Equity Special Account Act 2012, should be reported solely as cash from the Official Public Account.

In the 2017 financial statements, this administered annual contribution, in addition to being reported as cash from the Official Public Account, was also reported as cash received with a corresponding cash used offset. The department has restated the amounts for the 2017 financial year in the administered cash flow statement and this is detailed in the table below.

2. Treatment of special accounts operating cash used

During 2017 and prior years, operating cash used in the administered cash flow statement reported payments for Special Accounts. As the individual transactions within Special Accounts relate to either grants or supplier payments the transactions for 2017 have been reclassified and this is detailed in the table below.

Line item 2017

Original $‘000

Adjustment 1 $‘000 Adjustment 2 $‘000

2017 Restated $‘000

Operating Activities: Cash received - Special accounts 330,636 (319,929) - 10,707

Operating Activities: Cash used - Grants 1,728,144 (319,929) 126,728 1,534,943

Operating Activities: Cash used - Suppliers 1,066,023 - 16,218 1,082,241

Operating Activities: Cash used - Special accounts 142,946 - (142,946) -

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Comparative Figures Amendment for 2017 Financial Year (continued)

Treatment of Student Financial Supplement Scheme

During the 2018 financial year, the department reviewed the reporting of the Student Financial Supplement Scheme loan carrying value in the administered financial instruments note and determined that the loan’s appropriate financial asset category is financial assets at fair value through profit or loss (designated). In the 2017 financial statements the Student Financial Supplement Scheme was reported in the loans and receivables financial asset category in the administered financial instruments note.

The department has corrected the prior period to reflect this change in the financial asset category in the administered financial instruments note as detailed in the table below:

Line item 2017 Original

$‘000

Adjustment $‘000

2017 Restated $‘000

Loans and receivables - Advances and loans 359,500 (359,500) -

Financial assets at fair value through profit or loss (designated) - Student Financial Supplement Scheme - 359,500 359,500

Treatment of personal benefit recoveries

During the 2018 financial year, the department reported administered cash receipts collected by the Department of Human Services on the department’s behalf for personal benefit recoveries of overpayments as a reduction in special appropriations transferred from the Official Public Account. As these cash receipts relate to the recovery of special appropriation payments made to individuals and entities other than corporate Commonwealth entities, the department is required to reduce the appropriation transfers from the Official Public Account. In the 2017 financial statements these cash receipts were reported as appropriation transfers to the Official Public Account.

The department has corrected the prior period by restating the amounts for the 2017 financial year in the administered reconciliation schedule and the administered cash flow statement.

Restatements for the prior year are detailed in the table below:

Financial Statement

Line item 2017 Original

$‘000

Adjustment $‘000 2017 Restated $‘000

Administered Reconciliation Schedule

Appropriation transfers from Official Public Account - Special appropriations 112,703,396 (671,745) 112,031,651

Appropriation transfers to Official Public Account - Special appropriations (985,572) 671,745

(313,827)

Administered Cash Flow Statement

Cash from Official Public Account 116,975,061 (671,745) 116,303,316

Cash to Official Public Account (985,572) 671,745 (313,827)

Taxation

The department is exempt from all forms of taxation except Fringe Benefits Tax and GST.

Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Events After the Reporting Period

Departmental

Community Services Grants Hub Transfer

During the reporting period, Department of Health staff transferred to the department to participate in the Community Services Grants Hub. As the transfers were made under section 26 of the Public Service Act 1999, departmental staff are not considered to have moved under a restructure arrangement.

In addition to the staff transfer within the 2018 financial year to support the Community Services Grants Hub in the department, a further staff transfer will be undertaken during the 2019 financial year.

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Events After the Reporting Period (continued)

National Disability Insurance Scheme Quality and Safeguards Commission Establishment

The National Disability Insurance Scheme Quality and Safeguards Commission was established on 1 July 2018 by the National Disability Insurance Scheme Act 2013, as amended by the National Disability Insurance Scheme Amendment (Quality and Safeguards Commission and Other Measures) Act 2017. The National Disability Insurance Scheme Quality and Safeguards Commission is a non-corporate entity and is subject to the PGPA Act.

Transfer of associated assets and liabilities will occur in the 2019 financial year.

Budget Based Funded and Community Support Programs Transfer

On 1 July 2018 services funded under the Budget Based Funded and Community Support Programs transferred to alternate funding arrangements. Some 29 non-Indigenous services, funded through Budget Based Funded and Community Support Programs transferred to the department from the Department of Education and Training.

Transfer of associated assets and liabilities will occur in the 2019 financial year.

Aged Care Gateway Information Technology Systems Asset Transfer

The department and the Department of Health are in the process of confirming arrangements to transfer responsibility for the Aged Care Gateway Information Technology systems application platform to the Department of Health, scheduled to occur in the 2019 financial year.

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1. Financial Performance Expenses 2018 2017

$'000 $'000

Note 1.1A: Employee Benefits

Wages and salaries 198,133 199,168

Superannuation:

Defined contribution plans 17,051 16,293

Defined benefit plans 21,393 22,312

Leave and other entitlements 17,268 16,966

Separation and redundancies 5,134 1,778

Total employee benefits 258,979 256,517

Accounting Policy

Accounting policies for employee related expenses is contained in Section 6: People.

Note 1.1B: Suppliers

Goods and services supplied or rendered

Consultants and contractors 89,026 97,713

IT and communications 48,342 46,341

Travel and accommodation 5,837 6,028

Motor vehicle expenses 696 749

Building expenses (excluding operating lease rentals) 7,841 8,799

Training 3,035 5,206

Recruitment 1,464 970

Other 9,857 9,848

Total goods and services supplied or rendered 166,098 175,654

Goods supplied 4,839 3,711

Services rendered 161,259 171,943

Total goods and services supplied or rendered 166,098 175,654

Other suppliers

Operating lease rentals 34,647 32,024

Workers’ compensation expenses 2,978 5,261

Total other suppliers 37,625 37,285

Total suppliers 203,723 212,939

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1.1 Expenses (continued)

Note 1.1B: Suppliers (continued)

Leasing commitments

The department in its capacity as lessee has 14 leases (2017: 11 leases) relating to office accommodation including two data centre leases. The Enid Lyons Building is the only office location with a significant accommodation lease commitment. The department also occupies office accommodation under memorandum of understanding agreements with Commonwealth agencies in 14 locations (2017: 14 locations).

The department’s lease payments are subject to review by a variety of mechanisms; these include predetermined fixed escalations, a link to Labour Price Index and Consumer Price Index movements, or in accordance with a market review of comparable leases. Contingent rental payments are determined by market review and indexation movements.

2018 2017

$'000 $'000

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows (GST inclusive):

Within 1 year 36,962 29,809

Between 1 to 5 years 127,498 113,309

More than 5 years 246,685 256,695

Total operating lease commitments 411,145 399,813

Accounting Policy

Leases

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

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Own-Source Revenue and Gains 2018 2017

$'000 $'000

Own-Source Revenue

Note 1.2A: Rendering of Services

Rendering of services 81,947 99,045

Total rendering of services 81,947 99,045

Accounting Policy

Rendering of Services

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised on the basis of:

a) the amount of revenue, stage of completion and transaction costs incurred; or

b) the probable economic benefits associated with the transaction flowing to the department; or

c) the proportion of costs incurred to date as compared to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at the end of the reporting period. An allowance is made when collectability of the debt is no longer probable.

Note 1.2B: Rental Income

Operating lease:

Contingent rentals 2,082 2,208

Total rental income 2,082 2,208

Subleasing rental income commitments

The department in its capacity as lessor has one sublease arrangement (2017: one arrangement) and a number of fixed and open ended memorandum of understanding agreements with Commonwealth agencies in four tenancies (2017: four tenancies).

Commitments for sublease rental income receivables are as follows (GST inclusive): Within 1 year 1,420 883

Between 1 to 5 years 3,040 2,338

More than 5 years 265 474

Total sublease rental income commitments 4,725 3,695

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1.2 Own-Source Revenue and Gains (continued) 2018 2017

$'000 $'000

Note 1.2C: Other Revenue

Resources received free of charge:

Remuneration of auditors 1,470 1,350

Employee secondment 133 143

Other 173 400

Total other revenue 1,776 1,893

Accounting Policy

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Gains

Note 1.2D: Gains from Sale of Assets

Property, plant and equipment:

Proceeds from sale 648 212

Carrying value of assets sold (437) (79)

Net gain from sale of assets 211 133

Accounting Policy

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

Note 1.2E: Other Gains

Reversal of makegood 40 1,402

Assets recognised 7 693

Other 43 -

Total other gains 90 2,095

Accounting Policy

Contributions of Assets at No Cost

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (refer to Note 8.1A).

Revenue from Government

Amounts appropriated for departmental appropriations for the financial year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the department gains control of the appropriation, except for certain amounts relating to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. The Appropriations receivable are recognised at nominal amounts, refer to Note 3.1A.

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2. Income and Expenses Administered on Behalf of Government Administered - Expenses 2018 2017

$'000 $'000

Note 2.1A: Suppliers Goods and services supplied or rendered Consultants and contractors 50,549 20,541

Advertising, legal and marketing costs 6,839 6,054

Settlement services 85,559 130,052

Disability employment services 791,546 780,198

Other 31,036 30,542

Total goods and services supplied or rendered 965,529 967,387

Goods supplied 10,484 39,512

Services rendered 955,045 927,875

Total goods and services supplied or rendered 965,529 967,387

Total suppliers 965,529 967,387

Note 2.1B: Grants Public sector: Australian Government entities 287,857 23,262

Local Governments 8,361 8,703

Private sector: External parties 106,917 99,555

Non-profit organisations 1,092,494 1,133,180

Total grants 1,495,629 1,264,700

Accounting Policy

Grants and Subsidies

The department administers grant and subsidy schemes on behalf of the Government. These schemes include grants to local governments, non-government, not-for-profit organisations and other recipients for activities associated with community development and supporting individuals.

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2.1 Administered - Expenses (continued)

2018 2017

$'000 $'000

Note 2.1C: Personal Benefits Direct:

Income Support for Seniors 44,899,613 44,333,925

Family Tax Benefit 17,758,639 18,266,512

Working Age Payments 16,544,640 17,034,830

Income Support for People with Disability 16,521,888 16,393,247

Income Support for Carers 8,465,345 8,070,281

Student Payments 2,578,794 3,027,168

Paid Parental Leave 2,193,536 2,140,531

Child Payments 108,267 35,712

Income Support for Vulnerable People 100,166 80,245

Allowances and Concessions for Seniors 98,206 90,124

Other 75,700 30,871

Indirect 1,487 -

Total personal benefits 109,346,281 109,503,446

Accounting Policy

Personal Benefits

The department administers personal benefit payments on behalf of the Government that provide income support, family assistance and other entitlements to individuals. Payments to recipients are determined in accordance with provisions under social security law and other legislation. Payments made under social security law are assessed, determined and paid by the Department of Human Services and the Department of Veterans’ Affairs under delegation from the department.

The department receives and reports appropriations for payments made by the Department of Human Services and the Department of Veterans’ Affairs on behalf of the department.

The Social Security (Administration) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999 impose an obligation on recipients to disclose to the Department of Human Services and the Department of Veterans’ Affairs information about financial and personal circumstances that affect entitlement to payment. This is a necessary part of the Department of Human Services and the Department of Veterans’ Affairs’ administration, which acknowledges that, at the time certain information is required, only the recipient is in a position to provide that information.

Unreported changes in circumstances can lead to incorrect payment, even if no deliberate fraud is intended. Risks associated with relying on voluntary disclosure by recipients are mitigated by a comprehensive portfolio risk management plan, underpinned by compliance strategies, which have been built up over many years. The compliance framework has been designed to meet the requirements of social security legislation.

The compliance framework does not rely solely on information provided by recipients to determine their entitlement. A comprehensive risk management strategy minimises the potential for incorrect payment by subjecting recipients to a variety of review processes. If debts are identified, the Department of Human Services seeks recovery in a lump sum or by instalments. While the risk management strategy is principally directed at minimising debts, the detection of underpayments will also result in an adjustment to their level of entitlement.

Student payments are determined in accordance with either the Student Assistance Act 1973 or the Social Security (Administration) Act 1999.

Payments to recipients under Paid Parental Leave are determined in accordance with the Paid Parental Leave Act 2010.

Personal benefits recoveries for the overpayments made during the year are offset against personal benefit expenses.

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2.1 Administered - Expenses (continued)

2018 2017

$'000 $'000

Note 2.1D: Write-Down and Impairment of Assets Impairment of receivables 872,897 215,381

Other 4 34

Total write-down and impairment of assets 872,901 215,415

Note 2.1E: Other Expenses Other special accounts expense 144,456 126,726

Other 16,678 21,914

Total other expenses 161,134 148,640

Accounting Policy

Payments to National Disability Insurance Agency

Payments to the National Disability Insurance Agency from amounts appropriated for that purpose are classified as administered expenses. The appropriation to the department is disclosed in the appropriations note, refer to Note 5.1.

Administered - Income Revenue

Non-Taxation Revenue Note 2.2A: Recoveries Personal benefits recoveries 17,964 27,446

Other 36,381 31,285

Total recoveries 54,345 58,731

Fair Value Gains

Note 2.2B: Fair Value Gains

Student Financial Supplement Scheme 16,300 -

Total fair value gains 16,300 -

Accounting Policy

Revenue

All administered revenues are revenues relating to ordinary activities performed by the department on behalf of the Government. As such administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Personal Benefits Recoveries

Personal benefits recoveries mainly relate to fees on the recovery of personal benefit payments and are recognised on an accrual basis.

Interest

Interest revenue is recognised using the effective interest method as set out in AASB 139 - Financial Instruments: Recognition and Measurement.

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3. Departmental Financial Position Financial Assets 2018 2017

$'000 $'000

Note 3.1A: Trade and Other Receivables

Goods and services receivables 4,691 2,932

Total goods and services receivables 4,691 2,932

Appropriations receivables:

For ordinary annual appropriation 62,462 40,091

For equity injection 5,091 62,017

Total appropriations receivables 67,553 102,108

Other receivables:

GST receivable from the Australian Taxation Office 3,458 3,624

Other 683 2,557

Total other receivables 4,141 6,181

Total trade and other receivables (gross) 76,385 111,221

Less impairment allowance - (55)

Total trade and other receivables (net) 76,385 111,166

During the 2018 financial year, credit terms for goods and services were within 30 days (2017: 30 days).

Reconciliation of the Impairment Allowance

Movements in total impairment allowance

2018 2017

$'000 $'000

Opening balance as at 1 July 55 121

Increase / (decrease) recognised in net cost of services 12 (62)

Amounts written off (14) (4)

Amounts reversed (53) -

Closing balance as at 30 June - 55

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3.1 Financial Assets (continued)

Note 3.1A: Trade and Other Receivables (continued)

Accounting Policy

Financial Assets

The department classifies its financial assets in the following categories:

a) available-for-sale financial assets; and

b) loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’.

Effective Interest Method

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Available-for-Sale Financial Assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.

Available-for-sale financial assets are recorded at fair value. Gains and losses arising from changes in fair value are recognised directly in the reserves (equity) with the exception of impairment losses. Where the asset is disposed of or is determined to be impaired, part (or all) of the cumulative gain or loss previously recognised in the reserve is included in the surplus and deficit for the period.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Available-for-sale financial assets - if there is objective evidence that an impairment loss on an available-for-sale financial asset has been incurred, the difference between its cost, less principal repayments and amortisation, and its current fair value, less any impairment loss previously recognised in expenses, is transferred from Equity to the statement of comprehensive income.

Financial assets held at amortised cost - if there is objective evidence an impairment loss has been incurred for loans and receivables, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets. The carrying amount is reduced by way of an allowance account. The loss is recognised in the statement of comprehensive income.

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Non-Financial Assets

Note 3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles 2018

Leasehold improvements Property, plant &

equipment

Computer software internally developed

Computer software purchased

Total

$’000 $’000 $’000 $’000 $’000

As at 1 July 2017

Gross book value 44,267 43,127 234,765 60,246 382,405

Accumulated depreciation, amortisation and impairment (5,140) (10,548) (110,434) (28,567) (154,689)

Net book value as at 1 July 2017 39,127 32,579 124,331 31,679 227,716

Additions:

By purchase or internally developed 27,617 8,538 55,150 1,910 93,215

By recognition - 7 - - 7

Impairments recognised in net cost of services - (92) (656) - (748)

Depreciation and amortisation (7,957) (10,088) (43,141) (10,937) (72,123)

Reclassification - 48 (129) 81 -

Disposals:

Disposals with proceeds - (437) - - (437)

Net book value as at 30 June 2018 58,787 30,555 135,555 22,733 247,630

Net book value as at 30 June 2018 represented by: Gross book value 67,711 50,247 285,237 59,393 462,588

Accumulated depreciation, amortisation and impairment (8,924) (19,692) (149,682) (36,660) (214,958)

Net book value as at 30 June 2018 58,787 30,555 135,555 22,733 247,630

In the 2018 financial year:

 no leasehold improvements were identified as impaired and written-down (2017: $0.757 million);

 property, plant and equipment with a carrying amount of $0.092 million (2017: $0.157 million) were identified as impaired and written-down;

 intangibles with a carrying amount of $0.656 million (2017: $2.339 million) were identified as impaired and written-down; and

 property, plant and equipment with a carrying amount of $0.437 million (2017: $0.079 million) were sold via independent contract auction houses Pickles and Allbids.

A net book value of $0.298 million (2017: $0.071 million) for property, plant and equipment is expected to be sold or disposed of within the next 12 months. These sales will be arranged through an independent auction house.

Intangible assets relating to Aged Care Gateway Information Technology systems application platform are expected to transfer to the Department of Health within the next 12 months.

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3.2 Non-Financial Assets (continued) 2018 2017

$'000 $'000

Contractual commitments for the acquisition of property, plant equipment are payable as follows (GST inclusive):

Within 1 year 130 840

Total property, plant and equipment commitments 130 840

Accounting Policy

Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amount at which these items were recognised in the transferor’s accounts immediately prior to the restructuring.

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases of less than $2,000, which are expensed in the financial year of acquisition (other than where these assets form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to makegood provisions in property accommodation leases reported by the department where an obligation to restore the property to its original condition exists. These costs are included in the value of the department’s leasehold improvements with a corresponding provision for the makegood recognised. Leasehold improvement assets have a recognition threshold of $10,000.

The department’s intangibles comprise purchased software and internally developed software for internal use. Intangibles are capitalised when their gross values are greater than $50,000 for externally acquired software and $200,000 for internally developed software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Revaluations

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Assets are subject to a formal valuation every three years. A complete revaluation was conducted in the 2016 financial year by an independent qualified valuer Jones Lang LaSalle Public Sector Valuations (previously known as Australian Valuation Solutions) to confirm the value of property, plant and equipment assets.

Revaluation adjustments are made on a class by class basis. Any revaluation increment is credited to Equity under the heading of asset revaluation reserve except to the extent it reverses a previous revaluation decrement of the same asset class previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent these amounts reverse a previous revaluation increment for the class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

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3.2 Non-Financial Assets (continued)

Fair Value Measurement

All property, plant and equipment assets are measured at fair value. The department did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2018.

Valuation Processes

The department engaged the service of Jones Lang LaSalle Public Sector Valuations to conduct a detailed materiality review of all tangible non-financial assets at 30 June 2018. This annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. Intangible non-financial assets are carried at cost. Comprehensive valuations are carried out at least once every three years. Jones Lang LaSalle Public Sector Valuations has provided written assurance to the department that the models developed are in compliance with AASB 13 - Fair Value Measurement.

The methods utilised to determine and substantiate the unobservable inputs are derived and evaluated as follows:

 Physical depreciation and obsolescence - assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost approach. Under the cost approach the estimated cost to replace the asset is calculated and adjusted to take into account physical depreciation and obsolescence. Physical depreciation and obsolescence is determined on the basis of professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration.  For all leasehold improvement assets, the consumed economic benefit / asset obsolescence deduction is

determined on the basis of the term of the associated lease.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation.

Software is amortised on a straight-line basis over its anticipated useful life.

Depreciation rates applying to each class of depreciable asset are based on the following estimated useful lives:

2018 2017

Leasehold improvements

Lesser of 10 years or lease term

Lesser of 10 years or lease term

Plant and equipment 3 to 10 years 3 to 10 years

Artwork 1 to 50 years 1 to 50 years

Software 2 to 8 years 2 to 8 years

Impairment

All non-financial assets were assessed by the department for impairment as at 30 June 2018. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the department were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Transfers

The department transfers assets between categories to ensure the nature and useful lives of assets are disclosed in line with departmental asset policy.

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Payables 2018 2017

$'000 $'000

Note 3.3A: Suppliers

Trade creditors and accruals 30,377 29,959

Operating lease rentals 55 295

Total suppliers 30,432 30,254

During the 2018 financial year, settlement was usually made within 30 days.

Note 3.3B: Other Payables

Salaries and wages 1,490 1,513

Superannuation 291 286

Separations and redundancies 1,891 2,538

Lease incentive 29,522 28,920

Operating leases straight-lining 4,621 431

Unearned income 1,813 3,942

Other 4,552 3,483

Total other payables 44,180 41,113

Accounting Policy

Financial Liabilities

Financial liabilities are initially measured at fair value, net of transaction costs. These financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. Financial liabilities are recognised and derecognised upon ‘trade date’.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating the interest expense over the relevant period. The effective interest rate is the rate that discounts the estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (irrespective of whether payment has occurred).

Other Provisions

Note 3.4A: Other Provisions

Provision for restoration

$’000

Carrying amount as at 1 July 2017 849

Change in provisions held 290

Revaluation (57)

Change in bond rate 5

Closing balance as at 30 June 2018 1,087

The department currently has four agreements (2017: four agreements) for the leasing of premises which have provisions requiring restoration of the premises to their original condition at the conclusion of the lease. The department has made a provision to reflect the present value of these obligations.

Accounting Judgements and Estimates

Makegood Provision

The fair value of makegood for leasehold improvements is based on estimated costs per square metre on a site by site basis and is included as a provision for makegood. The value of the provision for each property will depend on the rate and assessed cost of the makegood obligation applied to the premises. The department’s property management advisors have determined that not all properties have a makegood obligation.

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4. Assets and Liabilities Administered on Behalf of Government Administered - Financial Assets 2018 2017

$'000 $'000

Note 4.1A: Cash and Cash Equivalents

Cash in special accounts1 338,921 397,425

Cash at bank 5,390 5,850

Total cash and cash equivalents 344,311 403,275

Note 4.1B: Receivables

Personal benefits:

Recovery of personal benefit payments2 5,015,532 4,498,863

Total personal benefits 5,015,532 4,498,863

Advances and loans:

Advance payments for personal benefits 446,081 438,257

Student Financial Supplement Scheme3 336,700 359,500

Student Start-Up Loan 335,368 142,954

Pension Loan Scheme 28,749 28,154

Total advances and loans 1,146,898 968,865

Other receivables:

GST receivable from the Australian Taxation Office 12,429 16,377

Other receivables 1,982 5,317

Total other receivables 14,411 21,694

Total receivables (gross) 6,176,841 5,489,422

Less impairment allowance:

Personal benefits (1,900,021) (1,149,842)

Loans (212,192) (90,176)

Other (924) (222)

Total impairment allowance (2,113,137) (1,240,240)

Total receivables (net) 4,063,704 4,249,182

Reconciliation of the Impairment Allowance:

Movement in total impairment allowance

2018 2017

$'000 $'000

Opening balance as at 1 July 1,240,240 1,024,859

Increase recognised in net cost of services 872,897 215,381

Closing balance as at 30 June 2,113,137 1,240,240

1. Cash in special accounts relate to the Social and Community Services Pay Equity Special Account, the Services for Other Entities and Trust Moneys Special Account and the National Disability Research Special Account cash balances held in the Official Public Account. Special account cash balances details are disclosed at Note 5.2.

2. Personal benefits mainly relate to Family Tax Benefit of $2,018.900 million (2017: $1,751.600 million), Newstart Allowance of $899.064 million (2017: $783.965 million), Parenting Payments of $849.606 million (2017: $816.879 million), and Disability Support Pension of $299.248 million (2017: $292.411 million).

3. Student Financial Supplement Scheme loan receivable is recognised at net value.

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4.1 Administered - Financial Assets (continued)

Accounting Policy

Loans and Receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through the administered schedule of comprehensive income. Where loans are subject to concessional treatment, these items are calculated using the discounted cash flow method. The discount and unwinding components of the concessional loans are recognised through the administered schedule of comprehensive income.

The Student Financial Supplement Scheme loans and receivables are measured at fair value. The Student Start-Up Loan and Pension Loan Scheme are carried at amortised cost. The carrying amounts of administered loans and receivables not measured at fair value are considered a reasonable approximation of their fair value.

Significant Accounting Judgements and Estimates

Family Tax Benefit

At any point in time, there are a number of eligible recipients who have received a benefit in excess of their entitlement and owe money to the Commonwealth. The Australian Government Actuary has provided advice on the likely level of debt recovery.

The Australian Government Actuary also calculates the impairment allowance associated with the Family Tax Benefit receivable. The allowance relies on periodic analysis of longitudinal unit record data to estimate the proportion of the outstanding non-lodger debt, which might be considered receivable, and the doubtful debt associated with each category of debt. An allowance is also made for debt, which is not yet recorded on the Department of Human Services Debt Management Information System but is likely to have occurred. There is uncertainty associated with all elements of the estimation process, particularly given policy and apparent behavioural responses over recent years.

Student Financial Supplement Scheme

The Student Financial Supplement Scheme was a voluntary loan scheme for tertiary students to help cover their expenses while they studied. The Student Financial Supplement Scheme closed on 31 December 2003 and no new loans have been issued since this date. Existing Student Financial Supplement Scheme debts are collected through the tax system and voluntary repayments can also be made.

For the 2018 financial year, the department engaged the Australian Government Actuary to provide the fair value estimate of the Student Financial Supplement Scheme receivable as at 30 June 2018.

The model used by the Australian Government Actuary generates individual income profiles for all those who have an outstanding debt at the valuation date. The income projections are based on analysis of data provided by the Australian Taxation Office on the historical income distributions of those who have completed their study in the past. The model has a projection period of 45 years and the incomes generated are used to calculate the future compulsory repayments which are expected to be settled against the outstanding debt.

The fair value of the receivable is then derived by discounting the nominal value of projected repayments using the yield curve for Commonwealth Government securities as at 30 June 2018.

2018 2017

$'000 $'000

Note 4.1C: Investments

National Disability Insurance Agency1 1,831,348 933,494

Yarra Community Housing2 977 977

Total investments 1,832,325 934,471

1. The Commonwealth has 100% of the equity interest in the National Disability Insurance Agency. 2. The Commonwealth has an interest in a property occupied by the Yarra Community Housing located in Melbourne. The principal activity of the entity is the provision of community housing facilities. The Commonwealth owns 31% of the unimproved market value of the land.

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4.1 Administered - Financial Assets (continued)

Accounting Policy

Administered Investments

Administered investments in subsidiaries, joint ventures and associates are not consolidated because their consolidation is relevant only at the whole of government level.

Administered investments other than those held for sale are classified as available-for-sale and are measured at their fair value as at 30 June 2018. Fair value has been taken to be the Australian Government's proportional interest in the net assets or unimproved market value of the entities as at the end of the reporting period.

Administered - Payables 2018 2017

$'000 $'000

Note 4.2A: Personal Benefits

Direct:

Income Support for Seniors 738,485 581,247

Working Age Payments 340,730 281,753

Family Tax Benefit 297,020 273,848

Income Support for People with Disability 289,969 232,651

Income Support for Carers 210,789 207,537

Student Payments 54,400 42,356

Paid Parental Leave 36,673 34,496

Other 4,852 3,756

Total personal benefits 1,972,918 1,657,644

Note 4.2B: Grants

Private sector:

Non-profit organisations 30,767 9,708

Other grants 4,913 5,738

Total grants 35,680 15,446

During the 2018 financial year, settlement of supplier payables was usually made within 30 days. Settlement of grants payables was made according to the terms and conditions of each grant and usually within 30 days of performance or eligibility.

Accounting Policy

Administered payables are measured at fair value where possible. The carrying amounts of administered liabilities not measured at fair value are considered to be a reasonable approximation of their fair value.

Grants

Grant liabilities are recognised to the extent that required services have been performed or the eligibility criteria have been satisfied by the grantee, but payments due have not been made.

Grant commitments are when the Government enters into an agreement to make grant payments, but services have not yet been performed or criteria satisfied.

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Administered - Other Provisions

Note 4.3A: Personal Benefits and Other Provisions

Family Tax

Benefit

Claims in

Progress

Pension

Bonus

Scheme

Single

Income

Family

Supplement

Schoolkids

Bonus Other Total

$'000 $'000 $'000 $'000 $'000 $'000 $'000

Carrying amount as at

1 July 2017 3,917,200 - 249,000 43,606 20,000 15 4,229,821

Provisions made 3,645,700 319,119 - 26,225 - - 3,991,044

Provisions expired

or settled (3,645,000) - (65,000) (42,822) (14,302) (10) (3,767,134)

Changes in provision (279,000) - 59,000 - (3,848) (5) (223,853)

Closing balance as at

30 June 2018 3,638,900 319,119 243,000 27,009 1,850 - 4,229,878

Significant Accounting Judgements and Estimates

During 2018, the department engaged the Australian Government Actuary to estimate the following provisions:

Family Tax Benefit

At any point in time, there are eligible recipients, entitled to receive the Family Tax Benefit, who have not yet received their full entitlement from the Department of Human Services. The provision calculates the current financial year and earlier financial years’ liability for claims that have yet to be realised. The methodology considers the likely lodgement profiles associated with reconciliation top-ups, lump sum claims and supplement payments, including the impact of new measures.

Claims in progress

At any point in time, there are claims for personal benefits payments that have been submitted and are in the process of being assessed. While some of these claims are granted, others are determined not to be eligible for payment. Under current legislation, individuals may be eligible for payment from the date their claim was submitted (the date of effect). The provision calculates the estimated liability for claims with a date of effect prior to 30 June 2018 that have not been fully assessed as at that date. The methodology considers average payment amounts and the proportion of claims expected to be eligible for payment.

Pension Bonus Scheme

The Pension Bonus Scheme provides a tax free lump sum payment to those who continue in employment and defer receiving the Age Pension. The future Pension Bonus Scheme liability relates to those who are currently registered and have not yet received a bonus payment or exited for some other reason.

The assumptions used by the Australian Government Actuary are based on historical experience and other factors which are considered reasonable, including actual average payments, claim rates and the period over which claims are expected to be made. These factors have been reviewed for 2018 based on the behaviour of recipients up to 31 December 2017 and projected over the estimated remaining life of the scheme. The Australian Government Actuary has adopted the zero coupon bond rate as at 30 June 2018 (2018: 2.26 per cent, 2017: 1.95 per cent) as the discount rate to determine the present value of this long term provision.

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5. Funding Appropriations

Note 5.1A: Annual and Unspent Appropriations ('Recoverable GST Exclusive') 2018 2017

Departmental $'000 $'000

Annual Appropriation Ordinary annual services 424,623 422,030

PGPA Act

Section 74 receipts 92,460 104,646

Section 75 transfers1 (1,230) -

Total annual appropriation 515,853 526,676

Appropriation applied (current and prior years) 501,876 527,381

Variance2 13,977 (705)

Opening unspent appropriation balance 69,448 70,153

Prior year section 75 transfers1 (615) -

Appropriations repealed

Appropriation Act (No.1) 2013-143 (1,458) -

Appropriation Act (No.1) 2014-154 (12,167) -

Appropriation Act (No.1) 2014-155 (121) -

Closing unspent appropriation balance 69,064 69,448

Balance comprises appropriations as follows: Appropriation Act (No.1) 2013-14 - 1,458

Appropriation Act (No.1) 2014-15 - 12,288

Appropriation Act (No.1) 2016-17 - 32,686

Appropriation Act (No.1) 2016-17 - Capital Budget - 3,719

Supply Act (No.1) 2016-17 - Capital Budget - 2,105

Appropriation Act (No. 1) 2017-18 62,462 -

Cash and cash equivalents 6,602 17,192

Total unspent appropriation - Ordinary annual services 69,064 69,448

Other Services Annual Appropriation Equity Injection 40,692 34,835

Total annual appropriation 40,692 34,835

Appropriation applied (current and prior years) 57,049 23,239

Variance2 (16,357) 11,596

Opening unspent appropriation balance 62,017 50,421

Appropriations repealed Appropriation Act (No. 2) 2012-13 - Non Operating - Equity Injection3 (8,955) -

Appropriation Act (No. 2) 2013-14 - Non Operating - Equity Injection3 (31,614) -

Closing unspent appropriation balance 5,091 62,017

Balance comprises appropriations as follows: Appropriation Act (No. 2) 2012-13 - Non Operating - Equity Injection - 8,955

Appropriation Act (No. 2) 2013-14 - Non Operating - Equity Injection - 31,614

Appropriation Act (No. 2) 2015-16 - Non Operating - Equity Injection - 6,284

Supply Act (No. 2) 2016-17 - Non Operating - Equity Injection - 4,518

Appropriation Act (No. 2) 2016-17 - Non Operating - Equity Injection - 9,814

Appropriation Act (No. 4) 2016-17 - Non Operating - Equity Injection - 832

Appropriation Act (No. 2) 2017-18 - Non Operating - Equity Injection 5,091 -

Total unspent appropriation - other services 5,091 62,017

Total unspent appropriation 74,155 131,465

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Appropriations (continued) Note 5.1A: Annual and Unspent Appropriations ('Recoverable GST exclusive') (continued)

1. The departmental appropriation section 75 transfer includes an amount of $1.230 million of current year appropriation and $0.615 million of prior year appropriation which relates to the transfer of the Multicultural Affairs function to the Department of Home Affairs. Refer to Note 8.1A.

2. The variance in the departmental appropriation relates to the movement in cash and appropriation receivable between the current and prior financial year.

3. Schedule 3 of Appropriation Act (No. 4) 2017-18 repealed Appropriation Act (No. 2) 2012-13, Appropriation Act (No.1) 2013-14 and Appropriation Act (No. 2) 2013-14 on 28 March 2018. 4. In 2016-17 there was a $12.167 million adjustment for departmental ordinary annual services that met the recognition criteria of a formal reduction in revenue (in accordance with the Public Governance, Performance and

Accountability (Financial Reporting) Rule 2015 Part 6 Div 3). 5. 2014-15 annual Appropriation Acts automatically repealed on 1 July 2017.

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5.1 Appropriations (continued)

Note 5.1A: Annual and Unspent Appropriations ('Recoverable GST Exclusive') (continued)

2018 2017

Administered $'000 $'000

Ordinary annual services

Appropriation Act - Annual Appropriation

Operating 5,151,112 4,111,976

Payments to Corporate Commonwealth entities 1,050,979 -

PGPA Act

Section 74 receipts 1,637 2,462

Total available appropriation 6,203,728 4,114,438

Appropriation applied (current and prior years) 4,335,178 3,923,754

Appropriation applied - payments to Corporate Commonwealth Entities 1,050,979 -

Variance1 817,571 190,684

Opening unspent appropriation balance2 995,520 804,836

Appropriations repealed

Appropriation Act (No.1) 2012-133 (4,281) -

Appropriation Act (No.1) 2013-143 (6,225) -

Appropriation Act (No.3) 2013-143 (547) -

Appropriation Act (No.1) 2014-154 (165,502) -

Appropriation Act (No.3) 2014-154 (59,723) -

Appropriation Act (No.5) 2014-154 (103) -

Appropriation Act (No.1) 2014-15 - National Disability Insurance Scheme Launch Transition Agency4 (21,329) -

Closing unspent appropriation balance 1,555,381 995,520

Balance comprises appropriations as follows:

Appropriation Act (No.1) 2012-133 - 4,281

Appropriation Act (No.1) 2013-143 - 6,225

Appropriation Act (No.3) 2013-143 - 547

Appropriation Act (No.1) 2014-154 - 165,502

Appropriation Act (No.3) 2014-154 - 59,723

Appropriation Act (No.5) 2014-154 - 103

Appropriation Act (No.1) 2014-15 - National Disability Insurance Scheme Launch Transition Agency4 - 21,329

Appropriation Act (No.1) 2015-16 305,442 305,442

Appropriation Act (No.3) 2015-16 78,415 78,415

Appropriation Act (No.1) 2015-16 - National Disability Insurance Scheme Launch Transition Agency 1,036 1,036

Appropriation Act (No.1) 2016-17 224,555 334,146

Supply Act (No.1) 2016-17 178 18,771

Appropriation Act (No.1) 2017-18 933,928 -

Appropriation Act (No.3) 2017-18 11,827 -

Total unspent appropriation - ordinary annual services 1,555,381 995,520

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5.1 Appropriations (continued)

Note 5.1A: Annual and Unspent Appropriations ('Recoverable GST Exclusive') (continued)

2018 2017

$'000 $'000

Other services

Appropriation Act - Annual Appropriation

Non-operating - 116,197

Total available appropriation - 116,197

Appropriation applied (current and prior years) - 116,197

Variance - -

Opening unspent appropriation balance 500 500

Appropriations repealed

Appropriation Act (No.2) 2013-14 - SPP3 (500) -

Closing unspent appropriation balance - 500

Balance comprises appropriations as follows:

Appropriation Act (No.2) 2013-14 - SPP3 - 500

Total unspent appropriation - other services - 500

Total unspent appropriation 1,555,381 996,020

1. The variance attributable to administered ordinary annual services consists of $128.184 million for payment of prior year expense accruals during 2018 offset by $945.755 million that represents unspent available appropriations for administered items.

2. The administered ordinary annual services items include quarantined amounts under section 51 of the PGPA Act. Quarantined amounts include: $377.315 million from prior year administered items and $1.036 million relating to payments to corporate Commonwealth entities.

3. Schedule 3 of Appropriation Act (No. 4) 2017-18 (Cth) repealed Appropriation Act (No. 1) 2012-13, Appropriation Act (No. 1) 2013-14, Appropriation Act (No.2) 2013-14 and Appropriation Act (No. 3) 2013-14 on 28 March 2018. 4. 2014-15 Appropriation Acts automatically repealed on 1 July 2017.

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5.1 Appropriations (continued) Note 5.1B: Special Appropriations ('Recoverable GST exclusive')

Authority

Type

Purpose

Appropriation applied

2018

2017

$'000

$'000

Social Security (Administration) Act 1999,

Administered

1,2

Unlimited Amount

To enable the payment of income support payments. Most of the amount relates to payments for Age Pension and Disability Support Pension.

89,292,139

89,665,166

A New Tax System (Family Assistance) (Administration) Act 1999, Administered

1,2

Unlimited Amount

To enable the payment of family income support payments. Most of the amount relates to payments for Family Tax Benefit and Schoolkids Bonus.

18,716,338

20,200,088

Paid Parental Leave Act 2010,

Administered

2

Unlimited Amount

To enable payments to working parents to enhance maternal and child health and shared caring responsibilities.

2,146,144

2,152,101

Student Assistance Act 1973

- Section 55A (Administered)

2

Unlimited Amount

To enable payment of student assistance benefits for Isolated Children and the Aboriginal Study Assistance Scheme.

349,892

346,600

Social and Community Services

Pay Equity Special Account

Act 2012

Limited Amount

An Act to establish the Social and Community Services Pay Equity Special Account, and for related purposes including wage supplementation payments to eligible social and community services workers.

381,775

319,929

Business Services Wage Assessment Tool Payment Scheme Act 2015 -- Section 99, Administered

Limited Amount

An Act to establish the Business Services Wage Assessment Tool payment scheme for making payments in relation to the use of the Business Services Wage Assessment Tool.

73,616

10,199

Public Governance, Performance and Accountability Act 2013

- Section 77, Administered

Refund

To provide an appropriation where an Act or other law requires or permits the repayment of an amount received by the Commonwealth and apart from this section there is no specific appropriation for the repayment.

42

9,313

Data-matching Program (Assistance and Tax) Act 1990

Unlimited Amount

An Act to provide for the matching of data in relation to certain assistance and tax and to amend the Privacy Act 1988.

-

-

Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Act 2012

Unlimited Amount

An Act to amend the law relating to family assistance and veterans’ entitlements, and for other purposes.

-

-

Social Security and Other Legi

slation Amendment (Economic

Security Strategy) Act 2008

Unlimited Amount

An Act to amend laws in order to provide economic security strategy payments, and for related purposes.

-

-

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5.1. Appropriations (continued)

Note 5.1B: Special Appropriations ('Recoverable GST exclusive')

(continued)

Authority

Type

Purpose

Appropriation applied

2018

2017

$'000

$'000

Social Security and Veter

ans' Entitlements Legislation

Amendment (One-off Payments to Increase Assistance for Older Australians and Carers

and Other Measures) Act 2006

Unlimited Amount

An Act to amend the law relating to social security and veterans’ affairs, and for other purposes.

-

-

Social Security and Veterans' Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007

Unlimited Amount

An Act to amend the law relating to social security and veterans’ affairs, and for other purposes.

-

-

Social Security and Veter

ans' Entitlements Legislation

Amendment (One-off Payments and Other Budget Measures) Act 2008

Unlimited Amount

An Act to amend the law relating to social security and veterans’ entitlements, and for other purposes.

-

-

Social Security Legislation Amendment (One-off Payments for Carers) Act 2005

Unlimited Amount

An Act to provide for one-off payments to carers, and for related purposes.

-

-

Families Assistance Legislation Amendment (More Help for Families - One-off Payments) Act 2004

Unlimited Amount

An Act to provide for one-off payments to families and carers, and for related purposes.

-

-

Clean Energy (Household Assistance Amendments) Act 2011

Unlimited Amount

An Act to amend the law relating to social security, family assistance, veterans’ entitlements, military rehabilitation and compensation, farm household support and aged care, and for related purposes.

-

-

Household Stimulus Package Act (No.2) 2009

Unlimited Amount

An Act to amend laws in order to provide payments relating to the household stimulus package, and for other purposes.

-

-

Total special appropriations applied

110,959,946

112,703,396

1.

The Department of Veterans’ Affa

irs spent money from the Consolidated Revenue Fund on behalf of the department against the special appropriations for Social Security

(Administration) Act 1999

, Administered; and

A New Tax System (Family Assistance) (Administration) Act 1999

, Administered.

2. During 2018, the department received Public Governance, Performance and Accountability Act 2013

section 74 cash receipts from the Department of Human Services for

recovery of personal benefit ove

rpayments. These amounts are included against the relevant special appropriation as follows: Social Security (Administration) Act 1999,

Administered $409.732 million (2017: $421.577 million), A New Tax System (Family Assistance) (Administration) Act 1999,

Administered $287.472 million

(2017: $245.432 million),

Paid Parental Leave Act 2010, Administered $9.949 million (2017: $0.288 million) and Student Assistance Act 1973 - Section 55A (Administered)

$3.865 million (201

7: $4.448 million).

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5.1 Appropriations (continued)

Note 5.1C: Disclosure by Agent in Relation to Annual and Special Appropriations ('Recoverable GST exclusive')

2018 $'000

Attorney-General's Department1

Total receipts 162,764

Total payments (162,764)

Department of Veterans' Affairs2

Total receipts 3,936

Total payments (3,936)

2017 $'000

Attorney-General's Department

Total receipts 156,653

Total payments (156,653)

Department of Veterans' Affairs

Total receipts -

Total payments -

1. The department has third party drawing rights for the Attorney-General's Department annual appropriation for the Family Relationship Services and Justice Services programs.

2. The department has third party drawing rights for the Department of Veterans’ Affairs annual appropriation for the Veterans’ Community Care and Support, War Graves and Commemorations and Assistance and Other Compensation for Veterans and Dependants programs.

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Administered Special Accounts

Social and Community Services Pay Equity Special Account2

Services for Other Entities and Trust Moneys Special Account3

2018 2017 2018 2017

$'000 $'000 $'000 $'000

Balance brought forward from previous period 377,610 202,195 16,439 23,629

Increases:

Total increase 382,029 320,578 6,570 10,058

Available for payments 759,639 522,773 23,009 33,687

Decreases:

Administered

Payments made (430,544) (145,163) (15,744) (17,248)

Total administered (430,544) (145,163) (15,744) (17,248)

Total decreases (430,544) (145,163) (15,744) (17,248)

Total balance carried to the next period1 329,095 377,610 7,265 16,439

National Disability Special Account4

National Disability Research Special Account 20165

2018 2017 2018 2017

$'000 $'000 $'000 $'000

Balance brought forward from previous period - 5,667 3,376 -

Increases:

Total increase - - - 5,463

Available for payments - 5,667 3,376 5,463

Decreases:

Administered

Payments made - (204) (815) (2,087)

Balance transferred to the National Disability Research Special Account - (5,463) - -

Total administered - (5,667) (815) (2,087)

Total decreases - (5,667) (815) (2,087)

Total balance carried to the next period1 - - 2,561 3,376

1. The total balance carried to the next period is represented by cash held in the Official Public Account.

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5.2 Administered Special Accounts (continued)

2. Social and Community Services Pay Equity Special Account

Appropriation: Public Governance, Performance and Accountability Act 2013; section 80

Establishing Instrument: Social and Community Services Pay Equity Special Account Act 2012; section 5

Purpose: To distribute the Commonwealth's contribution of its share of the equal remuneration order pay increases for social and community service sector workers in Commonwealth-funded programs.

This account was established on 8 November 2012 in accordance with the Social and Community Services Pay Equity Special Account Act 2012.

This account is non-interest bearing and the balance is held in the Official Public Account.

3. Services for Other Entities and Trust Moneys Special Account

Appropriation: Public Governance, Performance and Accountability Act 2013; section 78

Establishing Instrument: Financial Management and Accountability Determination 2010/14

Purpose: For the disbursement of amounts held on trust or otherwise for the benefit of a person other than the Commonwealth and for services relating to other governments and bodies that are not PGPA Act Agencies.

This account is non-interest bearing and the balance is held in the Official Public Account.

This Special Account consists of the following sub-accounts:

 National Framework

 National Campaign - Violence Against Women

 National Centre of Excellence

4. National Disability Special Account

Appropriation: Public Governance, Performance and Accountability Act 2013; section 78

Establishing Instrument: Financial Management and Accountability Determination 2006/30

Purpose: For expenditure on projects that relate to the National Disability Special Account.

This account is non-interest bearing and the balance is held in the Official Public Account.

The National Disability Special Account ceased on 1 October 2016. This account was superseded by the National Disability Research Special Account 2016 which was established on 23 August 2016.

5. National Disability Research Special Account 2016

Appropriation: Public Governance, Performance and Accountability Act 2013; section 78

Establishing Instrument: PGPA Act Determination (National Disability Research Special Account 2016) - Establishment

Purpose: For expenditure on projects that relate to the National Disability Research Special Account 2016.

This account is non-interest bearing and the balance is held in the Official Public Account.

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Net Cash Appropriation Arrangements 2018 2017

$'000 $'000

Total comprehensive loss attributable to the department (42,804) (23,148)

Plus: depreciation/amortisation expenses previously funded through revenue appropriation 72,123 62,771

Total comprehensive loss plus depreciation/amortisation expenses previously funded through revenue appropriations 29,319 39,623

Changes in asset revaluation reserve (57) (4,636)

Operating surplus attributable to the department1 29,262 34,987

1. In the 2018 financial year revenue of $18.307 million (2017: $34.133 million) was received for capital works. As a result, the underlying operating surplus attributable to the department is $10.955 million (2017: $0.854 million).

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6. People Employee Provisions 2018 2017

$'000 $'000

Note 6.1A: Employee Provisions

Leave 80,478 80,055

Total employee provisions 80,478 80,055

Accounting Policy

Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 - Employee Benefits) and termination benefits due within 12 months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave.

The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the department’s employer superannuation contribution rates to the extent the leave is likely to be taken during service rather than paid out on termination.

As at 30 June 2018, the liability for long service leave and annual leave expected to be settled beyond 12 months of the balance date has been determined by reference to the work of the Australian Government Actuary. The estimate of the present value of the liability takes into account employee attrition rates, inflation, increases in salary through promotion and estimated salary increases.

Separations and Redundancy

Provisions are made for employee separation and redundancy benefit payments. The department recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the plan.

Superannuation

Staff of the department are members of the Commonwealth Superannuation Scheme, the Public Sector Superannuation Scheme, the Public Sector Superannuation accumulation plan or other superannuation funds.

The Commonwealth Superannuation Scheme and Public Sector Superannuation Scheme are defined benefit schemes for the Australian Government. The Public Sector Superannuation accumulation plan is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and will be settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and disclosure notes.

The department makes employer contributions to each employee’s superannuation scheme at rates determined by an actuary and are deemed sufficient to meet the current cost to the Government. The department accounts for the contributions as if these payments were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June 2018 represents outstanding contributions for the financial year.

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Key Management Personnel Remuneration

Key management personnel are those individuals having authority and responsibility for planning, directing and controlling the activities of the department, directly or indirectly. The department has determined the key management personnel to be the members of the Executive Management Group, which generally comprises the Secretary and Deputy Secretaries. The note includes anyone acting in a key management personnel position, regardless of the length of the acting period.

Key management personnel remuneration is:

2018 2017

$ $

Short-term employee benefits 2,345,752 2,050,446

Post-employment benefits 399,026 333,874

Other long-term employee benefits 229,029 197,739

Total key management personnel remuneration expenses 2,973,807 2,582,059

The total number of key management personnel that are included in the above table is 17, being three substantive officers who held the position for the full year and 14 in the position for part of the year (2017: five substantive and five acting). The membership of the Executive Management Group increased for the period 26 September 2017 to 4 March 2018, with the Chief Finance Officer and Chief Legal Counsel forming part of the Executive Management Group whilst there was a transition of Deputy Secretaries.

There were no termination benefits paid in 2018.

The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister and Assistant Ministers. The Ministers' remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the department.

Related Party Disclosures

Related party relationships

The department is an Australian Government controlled entity. Related parties to this entity are key management personnel, including the Portfolio Minister and Assistant Ministers, as well as other Australian Government entities.

Transactions with related parties

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. These transactions have not been separately disclosed in this note.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period, the department has determined there are no related party transactions that require separate disclosure.

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7. Managing Uncertainties Contingent Assets and Liabilities

Departmental Contingencies

Guarantees Total

2018 2017 2018 2017

$'000 $'000 $'000 $'000

Contingent assets

Balance from previous period 2,095 2,095 2,095 2,095

New contingent asset recognised 150 - 150 -

Expired (1,047) - (1,047) -

Total contingent assets 1,198 2,095 1,198 2,095

As at 30 June 2018, the department had quantifiable contingent assets of $1.198 million (2017: $2.095 million) in relation to one bank guarantee for office accommodation fitout works and one bank guarantee for the provision of logistics and mail services.

There are no quantifiable liabilities, unquantifiable or significant remote contingent assets or liabilities (2017: Nil).

Unquantifiable Administered Contingencies

During the 2018 financial year, the department was involved in a number of cases before the Administrative Appeals Tribunal. These cases relate to appeals regarding income support payments and other payments under the social security legislation. It was not possible to estimate the amounts of any eventual payments that may be required in relation to these claims.

The National Redress Scheme for Institutional Child Sexual Abuse Act 2018 received royal assent on 23 May 2018 and commenced on 1 July 2018. Payments under the National Redress Scheme for Institutional Child Sexual Abuse Act 2018 help people who have experienced institutional child sexual abuse from participating institutions gain access to counselling and psychological services, a direct personal response from the responsible institution, and a monetary payment. At 30 June 2018, the full scope of participating institutions under the National Redress Scheme, and the resulting level of financial payments are highly uncertain. As a result, the financial liability to the Commonwealth for monetary payments that will be made under this Act cannot be reliably measured.

There are no quantifiable assets or liabilities or significant remote contingent assets or liabilities (2017: Nil).

Accounting Policy

Contingent Assets and Contingent Liabilities

Contingent assets and contingent liabilities are not recognised in the statement of financial position but are reported in the notes of disclosure. These items may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when the probability of settlement is greater than remote.

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Financial Instruments 2018 2017

$'000 $'000

Note 7.2A: Categories of Financial Instruments

Financial Assets

Loans and receivables:

Cash and cash equivalents 6,602 17,192

Trade and other receivables 4,691 2,932

Total loans and receivables 11,293 20,124

Total financial assets 11,293 20,124

Financial Liabilities

Financial liabilities measured at amortised cost:

Trade creditors 23,975 21,663

Total financial liabilities measured at amortised cost 23,975 21,663

Total financial liabilities 23,975 21,663

7.3 Administered - Financial Instruments

Note 7.3A: Categories of Financial Instruments

Financial Assets

Loans and receivables:

Cash and cash equivalents 344,311 403,275

Student Start-Up Loan 123,176 52,778

Pension Loan Scheme 28,749 28,154

Other receivables 1,982 5,095

Total loans and receivables 498,218 489,302

Financial assets at fair value through profit or loss (designated):

Student Financial Supplement Scheme 336,700 359,500

Total financial assets at fair value through profit or loss (designated) 336,700 359,500

Available-for-sale financial assets:

Investments in Commonwealth entities and other interests 1,832,325 934,471

Total available-for-sale financial assets 1,832,325 934,471

Total financial assets 2,667,243 1,783,273

Financial Liabilities

Financial liabilities measured at amortised cost:

Suppliers 44,187 56,086

Grants and subsidies 74,578 76,173

Total financial liabilities measured at amortised cost 118,765 132,259

Total financial liabilities 118,765 132,259

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7.3 Administered - Financial Instruments (continued) 2018 2017

$'000 $'000

Note 7.3B: Net Gains or Losses on Financial Assets

Loans and receivables:

Impairment (122,718) (79,884)

Net gains/(losses) on loans and receivables (122,718) (79,884)

Financial assets at fair value through profit or loss (designated)

Change in fair value 16,300 (8,400)

Net gains/(losses) on financial assets at fair value through profit or loss (designated) 16,300 (8,400)

Net gains/(losses) on financial assets (106,418) (88,284)

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8. Other Information Restructuring

Note 8.1A: Departmental Restructuring

2018 2017

Multicultural Affairs

Department of Home Affairs1 Total

$'000 $'000 FUNCTIONS RELINQUISHED

Assets relinquished

Appropriation receivable (615) -

Total assets relinquished (615) -

Liabilities relinquished

Employee provisions 650 -

Total liabilities relinquished 650 -

Net (assets) / liabilities relinquished 35 -

1. The Multicultural Affairs function was relinquished by the department to the Department of Home Affairs as a result of the Administrative Arrangements Order issued on 20 December 2017. The departmental appropriation section 75 transfer includes an amount of $1.230 million of current year appropriation and $0.615 million of prior year

appropriation.

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Breach of Section 83 of the Constitution

Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Table A - Summary 2018

Appropriations identified as subject to conditions

Payments in 2018

Review complete?

Breaches identified for payments made during 2018

Potential Breaches 2018

Amount $’000

Yes/No Yes/No Amount

$’000

Yes/No Indicative extent

SPECIAL APPROPRIATIONS1 A New Tax System (Family Assistance) (Administration) Act 1999 18,428,866 Yes No - Yes See footnote 2

Business Services Wage Assessment Tool Payment Scheme Act 2015 73,616 Yes No - Yes See footnote 3

Paid Parental Leave Act 2010 2,136,195 Yes No - Yes See footnote 4

Social Security (Administration) Act 1999 88,882,407 Yes No - Yes

See footnote 5 and 6

Student Assistance Act 1973 346,027 Yes No - Yes See footnote 7

SPECIAL ACCOUNTS National Disability Research Special Account 2016 815 Yes No - No -

Services for Other Entities and Trust Monies 15,744 Yes No - No -

Social & Community Services Pay Equity Special Account 430,544 Yes No - No -

ANNUAL APPROPRIATIONS Annual Appropriation Act No.1 2017-18 (National Rental Affordability Scheme) 89,438 Yes No - No -

Supply Act (No. 1) - Operating 18,593 Yes No - No -

Annual Appropriation Act (No.1) - Operating 4,225,510 Yes No - Yes See footnote 8

1. The department administers an additional seven special appropriations, from which no payments were made during 2017-18. As a consequence, no actual or potential breaches from these appropriations occurred. Refer to 5.1B Special Appropriations for the list of these special appropriations.

2. The value of potential contraventions in respect of payments under A New Tax System (Family Assistance) Act 1999 and A New Tax System (Family Assistance) (Administration) Act 1999 was $903.890 million representing 710,561 new debts raised. A total of $642.854 million was recovered during the 2018 financial year; a further $11.316 million was waived or written off.

3. The value of potential contraventions in respect of payments under Business Services Wage Assessment Tool Payment Scheme Act 2015 was $0.089 million representing four new debts raised. This amount was recovered during the 2018 financial year.

4. The value of potential contraventions in respect of payments under Paid Parental Leave Act 2010 was $12.236 million representing 5,100 new debts raised. A total of $10.418 million was recovered during the 2018 financial year; a further $0.554 million was waived or written off.

5. The value of potential contraventions in respect of payments under Social Security (Administration) Act 1999 was $1,166.905 million representing 1,576,582 new debts raised. A total of $779.845 million was recovered during the 2018 financial year; a further $115.333 million was waived or written off.

6. The department has identified that some payments to refugee and humanitarian visa holders may have occurred without legislative authority under social security law. This may amount to a breach of section 83 of the Constitution. 7. The value of potential contraventions in respect of payments under Student Assistance Act 1973 was $13.222 million representing 25,473 new debts raised. A total of $8.737 million was recovered during the 2018 financial year; a further

$1.008 million was waived or written off. 8. Through regular internal reconciliation processes, six instances totalling $624,798.78 of potential breaches have been identified as at 30 June 2018. These instances relate to adjustments from administered to departmental appropriation within Appropriation Bill (No. 1) 2017-18.

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Explanations of Major Variances to Budget The following provides explanations of major variances between the original budget as presented in the 2017-18 Social Services Portfolio Budget Statements and the 2017-18 financial statements as presented in accordance with Australian Accounting Standards. The 2017-18 Portfolio Budget Statements contain the original financial statements’ budget estimates presented to Parliament in respect of the 2018 financial year. The information presented below should be read in the context of the following:

- The original 2017-18 Social Services Portfolio Budget Statements were prepared before the 2017 final outcome was known. As a consequence, the statement of financial position and statement of changes in equity opening balances were estimated and, in some cases, variances between the 2017 final outcome and original budget estimates are a result of unanticipated movement in the prior financial year period amounts; - Variances attributable to factors which would not reasonably have been identifiable at the time of the budget

preparation, such as revaluation or impairment of assets have not been included in the explanations; - Major variances are those deemed relevant to an analysis of the department's performance and are not focused merely on numerical differences between the budget and actual amounts; - Variances relating to cash flows are a result of the factors explained for net cost of services, assets or liabilities

variations. Unless otherwise individually significant, no additional commentary has been included; and - The budget is not audited.

Note 8.3A: Departmental Major Budget Variances for 2018

Explanations of major variances Affected line items

Total net cost of services was $21.445 million lower than the original budget estimate as a result of: - The department providing additional corporate services to other departments beyond the original estimate, with some associated expenses settling to internally

developed software assets and consequently not reflected in the actual net cost of services. - Additional depreciation and amortisation expenses were incurred during the 2018 financial year due to higher than anticipated client agency software development

services.

Total assets were $18.692 million higher than the original budget estimate as a result of: - Increased cash and cash equivalents due to the timing of section 74 receipts received in late June 2018. - Increased leasehold improvements due to completion of national offices and the

National Disability Insurance Scheme Quality and Safeguards Commission establishment. - Lower original budget estimate for prepayments, reflecting timing differences.

Total liabilities were $32.941 million higher than the original budget estimate as a result of: - Uncertainty that surrounds the estimates for the timing of payments to suppliers. - Increased other payables due to changes in the department’s property portfolio. - Changes in estimating the department's total provision.

Total equity was $14.249 million lower than the original budget estimate and this is mainly due to: - The reversal of redesignated operating funding as capital funding recognised in contributed equity; and

- Offset by prior year appropriations repealed.

Suppliers Total own-source revenue

Depreciation and amortisation

Cash and cash equivalents

Leasehold improvements

Prepayments

Supplier payables Other payables Total provisions

Total equity

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8.3 Explanations of Major Variances to Budget (continued)

Note 8.3B: Administered Major Budget Variances for 2018

Explanations of major variances Affected line items

In 2017-18 the department administered expenses of $116.137 billion on behalf of the Government, 1.6 per cent within the original Budget estimates. The department also managed total administered assets of $6.240 billion and liabilities of $6.403 billion on behalf of the Government.

Approximately 94.2 per cent, or $109.346 billion, of the administered expenses relate to personal benefits and 2.8 per cent, or $3.211 billion, relate to payments to the National Disability Insurance Agency. These payments were administered within 1.5 per cent of the original Budget estimates.

Total administered expenses were $1.931 billion lower than the original Budget estimates and this result is mainly due to: - lower than projected personal benefits participant numbers as a result of demographic changes and policy initiatives; and

- lower than projected numbers for the National Disability Insurance Agency participant plans, and personal benefits payments.

Administered assets were $740.579 million higher than the original Budget estimate and this is mainly due to an increase in the valuation of the department's investment in the National Disability Insurance Agency, offset by increased receivable impairment allowances as a result of actuarial adjustments not allowed for in the budget.

Administered liabilities were $90.533 million higher than the original Budget estimate and this result is mainly due to claims in progress, partly offset by legislative changes and stronger labour force participation.

Total expenses

Investments Receivables

Personal benefits and other provisions

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Appendix A Resource statements ................................................................ 166

Appendix B Staffing statistics ....................................................................... 175

Appendix C Advertising and market research ............................................... 180

Appendix D Ecologically sustainable development and environmental performance ............................................................................. 183

Appendix E Compliance with the Carer Recognition Act ............................... 187

Appendix F Changes to disability reporting .................................................. 189

Appendix G Glossary of abbreviations and acronyms .................................... 190

Appendices

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Appendix A

Resource statements

Table A-1: Agency resource statement 2017-18

Actual available appropriation for 2017-18

$’000

Payments made 2017-18 $’000

Balance remaining 2017-18 $’000

(a) (b) (a)-(b)

Ordinary Annual Services1

Departmental appropriation2 570,940 501,876 69,064

Total 570,940 501,876 69,064

Administered expenses

Outcome 1 13,311 10,137

Outcome 2 691,524 643,012

Outcome 3 3,920,501 3,590,944

Outcome 4 85,923 91,082

Payments to corporate Commonwealth entities3

1,050,979 1,050,979

Total 5,762,238 5,386,154

Total ordinary annual services A 6,333,178 5,888,030

Other services4

Departmental non-operating

Equity injections5 62,140 57,049 5,091

Total 62,140 57,049 5,091

Total other services B 62,140 57,049 5,091

Total available annual appropriations and payments

6,395,318 5,945,079

Special appropriations

Paid Parental Leave Act 2010 2,146,144

Social Security (Administration) Act 1999 89,292,139

A New Tax System (Family Assistance) (Administration) Act 1999

18,716,338

Student Assistance Act 1973 — Section 55A (Administered)

349,892

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Actual available appropriation for 2017-18

$’000

Payments made 2017-18 $’000

Balance remaining 2017-18 $’000

(a) (b) (a)-(b)

Social and Community Services Pay Equity Special Account Act 2012

381,775

Public Governance, Performance and Accountability Act 2013 — Section 77, Administered

42

Business Services Wage Assessment Tool Payment Scheme Act 2015 — Section 99, Administered

73,616

Total special appropriations C 110,959,946

Special Accounts

Opening balance 397,425

Appropriation receipts6 386,775

Non-appropriation receipts to Special Accounts

1,700

Payments made 447,103

Total special accounts D 785,900 447,103 338,797

Total resourcing and payments A+B+C+D

7,181,218 117,352,128

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/ or corporate Commonwealth entities through annual appropriations

3,315,151 3,597,601

Total net resourcing and payments for the department7 3,866,067 113,754,527

2017-18 2016-17

Staffing resources (number) 1,992 1,979

1 Appropriation Act (No.1) 2017-18, Appropriation Act (No.3) 2017-18 and Appropriation Act (No.5) 2017-18. This may also include prior year departmental appropriation, section 74 retained revenue receipts, section 75 transfers and repealed appropriations.

2 This item includes an amount of $16.614 million in 2017-18 for the departmental capital budget. For accounting purposes, this amount has been designated as ‘contributions by owners’.

3 ‘Corporate entities’ are corporate Commonwealth entities and Commonwealth companies as defined under the Public Governance, Performance and Accountability Act 2013.

4 Appropriation Act (No.2) 2017-18 and Appropriation Act (No.6) 2017-18.

5 The equity injections may also include prior year appropriation and repealed appropriations.

6 Appropriation receipts from DSS annual and special appropriations for 2017-18 are included above.

7 The actual available appropriation for 2017-18 does not include total special appropriations.

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Table A-2: Expenses and resources for Outcome 1: Social Security

Estimated actuala 2017-18 $’000

Actual Expenses 2017-18 $’000

Variation 2017-18 $’000

(a) (b) (a)-(b)

Program 1.1: Family Tax Benefit

Administered expenses

Special Appropriations 18,487,325 18,009,939 477,386

Total for Program 1.1 18,487,325 18,009,939 477,386

Program 1.2: Child Payments

Administered expenses

Special Appropriations 107,191 108,398 (1,207)

Total for Program 1.2 107,191 108,398 (1,207)

Program 1.3: Income Support for Vulnerable People

Administered expenses

Special Appropriations 111,304 99,791 11,513

Total for Program 1.3 111,304 99,791 11,513

Program 1.4: Income Support for People in Special Circumstances

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

1,366 532 834

Special Appropriations 4,317 3,934 383

Total for Program 1.4 5,683 4,466 1,217

Program 1.5: Supplementary Payments and Support for Income Support Recipients

Administered expenses

Special Appropriations 29,302 28,333 969

Total for Program 1.5 29,302 28,333 969

Program 1.6: Income Support for Seniors

Administered expenses

Special Appropriations 45,084,649 44,890,441 194,208

Total for Program 1.6 45,084,649 44,890,441 194,208

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Estimated actuala 2017-18 $’000

Actual Expenses 2017-18 $’000

Variation 2017-18 $’000

(a) (b) (a)-(b)

Program 1.7: Allowances and Concessions for Seniors

Administered expenses

Special Appropriations 93,289 98,206 (4,917)

Total for Program 1.7 93,289 98,206 (4,917)

Program 1.8: Income Support for People with Disability

Administered expenses

Special Appropriations 16,576,392 16,546,439 29,953

Total for Program 1.8 16,576,392 16,546,439 29,953

Program 1.9: Income Support for Carers

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

2,800 1,850 950

Special Appropriations 8,510,342 8,491,503 18,839

Total for Program 1.9 8,513,142 8,493,353 19,789

Program 1.10: Working Age Payments

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

9,145 7,299 1,846

Special Appropriations 17,014,873 16,951,572 63,301

Total for Program 1.10 17,024,018 16,958,871 65,147

Program 1.11: Student Payments

Administered expenses

Special Appropriations 2,798,182 2,759,317 38,865

Total for Program 1.11 2,798,182 2,759,317 38,865

Program 1.12: Program Support for Outcome 1

Departmental expenses

Departmental appropriationb 104,148 101,997 2,151

Expenses not requiring appropriation in the Budget year 16,228 15,867 361

Total for Program 1.12 120,376 117,864 2,512

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Estimated actuala 2017-18 $’000

Actual Expenses 2017-18 $’000

Variation 2017-18 $’000

(a) (b) (a)-(b)

Outcome 1 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

13,311 9,681 3,630

Special Appropriations 108,817,166 107,987,873 829,293

Departmental expenses

Departmental appropriationb 104,148 101,997 2,151

Expenses not requiring appropriation in the Budget year 16,228 15,867 361

Total expenses for Outcome 1 108,950,853 108,115,418 835,435

a Represents estimated actual expenses for the 2017-18 financial year reported in the 2018-19 Portfolio Budget Statements.

b Departmental appropriation includes section 74 retained revenue receipts.

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Table A-3: Expenses and resources for Outcome 2: Families and Communities

Estimated actuala 2017-18 $’000

Actual Expenses 2017-18 $’000

Variation 2017-18 $’000

(a) (b) (a)-(b)

Program 2.1: Families and Communities

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

691,524 638,860 52,664

Special Appropriations 150 (77) 227

Special Accounts 15,746 15,743 3

Total for Program 2.1 707,420 654,526 52,894

Program 2.2: Paid Parental Leave

Administered expenses

Special Appropriations 2,184,429 2,194,055 (9,626)

Total for Program 2.2 2,184,429 2,194,055 (9,626)

Program 2.3: Social and Community Services

Administered expenses

Special Account 528,436 430,724 97,712

Total for Program 2.3 528,436 430,724 97,712

Program 2.4: Program Support for Outcome 2

Departmental expenses

Departmental appropriationb 229,284 236,448 (7,164)

Expenses not requiring appropriation in the Budget year

36,907 36,783 124

Total for Program 2.4 266,191 273,231 (7,040)

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Estimated actuala 2017-18 $’000

Actual Expenses 2017-18 $’000

Variation 2017-18 $’000

(a) (b) (a)-(b)

Outcome 2 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

691,524 638,860 52,664

Special Appropriations 2,184,579 2,193,978 (9,399)

Special Accounts 544,182 446,467 97,715

Departmental expenses

Departmental appropriationb 229,284 236,448 (7,164)

Expenses not requiring appropriation in the Budget year

36,907 36,783 124

Total expenses for Outcome 2 3,686,476 3,552,536 133,940

a Represents estimated actual expenses for the 2017-18 financial year reported in the 2018-19 Portfolio Budget Statements.

b Departmental appropriation includes section 74 retained revenue receipts.

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Table A-4: Expenses and resources for Outcome 3: Disability and Carers

Estimated actuala 2017-18 $’000

Actual Expenses 2017-18 $’000

Variation 2017-18 $’000

(a) (b) (a)-(b)

Program 3.1: Disability Mental Health and Carers

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

1,107,649 976,488 131,161

Special Account 2,736 815 1,921

Total for Program 3.1 1,110,385 977,303 133,082

Program 3.2: National Disability Insurance Scheme

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

2,812,852 2,702,194 110,658

Payments to corporate entities 1,050,979 1,050,979 -

Total for Program 3.2 3,863,831 3,753,173 110,658

Program 3.3: Program Support for Outcome 3

Departmental expenses

Departmental appropriationb 109,303 106,633 2,670

Expenses not requiring appropriation in the Budget year 17,143 16,588 555

Total for Program 3.3 126,446 123,221 3,225

Outcome 3 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

3,920,501 3,678,682 241,819

Payments to corporate entities 1,050,979 1,050,979 -

Special Accounts 2,736 815 1,921

Departmental expenses

Departmental appropriationb 109,303 106,633 2,670

Expenses not requiring appropriation in the Budget year 17,143 16,588 555

Total expenses for Outcome 3 5,100,662 4,853,697 246,965

a Represents estimated actual expenses for the 2017-18 financial year reported in the 2018-19 Portfolio Budget Statements.

b Departmental appropriation includes section 74 retained revenue receipts.

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Table A-5: Expenses and resources for Outcome 4: Housing

Estimated actuala 2017-18 $’000

Actual Expenses 2017-18 $’000

Variation 2017-18 $’000

(a) (b) (a)-(b)

Program 4.1: Housing and Homelessness

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

1,620 1,605 15

Total for Program 4.1 1,620 1,605 15

Program 4.2: Affordable Housing

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

84,303 84,303 -

Total for Program 4.2 84,303 84,303 -

Program 4.3: Program Support for Outcome 4

Departmental expenses

Departmental appropriationb 21,140 18,545 2,595

Expenses not requiring appropriation in the Budget year 3,286 2,885 401

Total for Program 4.3 24,426 21,430 2,996

Outcome 4 Totals by appropriation type

Administered expenses

Ordinary Annual Services (Appropriation Act No. 1)

85,923 85,908 15

Departmental expenses

Departmental appropriationb 21,140 18,545 2,595

Expenses not requiring appropriation in the Budget year 3,286 2,885 401

Total expenses for Outcome 4 110,349 107,338 3,011

a Represents estimated actual expenses for the 2017-18 financial year reported in the 2018-19 Portfolio Budget Statements.

b Departmental appropriation includes section 74 retained revenue receipts.

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Appendix B

Staffing statistics Tables B-1 and B-2 provide statistics on ongoing and non-ongoing staff as at 30 June 2018 by location, actual classification (including backfilling for leave) and gender. Table B-3 gives details on salary ranges as at 30 June 2018.

Table B-1: Ongoing staff employed, by actual classification, gender and location, as at 30 June 2018

Location and classification

Female Male

Part-time Full-time Part-time Full-time Total

Australian Capital Territory 284 944 35 598 1,861

APS Level 1 1 0 3 0 4

APS Level 2 2 2 2 2 8

APS Level 3 2 50 1 30 83

APS Level 4 12 66 0 24 102

APS Level 5 33 116 3 71 223

APS Level 6 101 230 9 133 473

Legal Officer 1 8 0 1 10

Senior Legal Officer 2 7 2 2 13

Principal Legal Officer 3 4 0 2 9

Public Affairs Officer Grade 2 1 8 0 0 9

Public Affairs Officer Grade 3 7 9 0 4 20

Senior Public Affairs Officer 4 6 0 1 11

EL 1 92 270 14 186 562

EL 2 21 128 1 99 249

SES Band 1 2 26 0 28 56

SES Band 2 0 10 0 13 23

SES Band 3 0 3 0 2 5

Secretary 0 1 0 0 1

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Location and classification

Female Male

Part-time Full-time Part-time Full-time Total

New South Wales 20 62 4 29 115

APS Level 3 0 1 0 1 2

APS Level 4 1 2 0 1 4

APS Level 5 6 23 1 6 36

APS Level 6 10 14 1 10 35

EL 1 1 16 1 6 24

EL 2 2 4 1 5 12

SES Band 1 0 1 0 0 1

SES Band 2 0 1 0 0 1

Northern Territory 0 14 0 3 17

APS Level 3 0 1 0 0 1

APS Level 5 0 2 0 0 2

APS Level 6 0 6 0 2 8

EL 1 0 4 0 1 5

EL 2 0 1 0 0 1

Queensland 15 33 2 17 67

APS Level 3 0 1 0 0 1

APS Level 4 0 1 0 1 2

APS Level 5 3 10 0 2 15

APS Level 6 8 10 2 8 28

EL 1 4 7 0 5 16

EL 2 0 4 0 1 5

South Australia 8 33 0 8 49

APS Level 3 0 0 0 1 1

APS Level 4 0 4 0 1 5

APS Level 5 4 9 0 1 14

APS Level 6 3 9 0 3 15

EL 1 1 9 0 0 10

EL 2 0 2 0 2 4

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Location and classification

Female Male

Part-time Full-time Part-time Full-time Total

Tasmania 10 9 1 5 25

APS Level 3 0 3 0 0 3

APS Level 5 4 3 0 1 8

APS Level 6 6 0 0 3 9

EL 1 0 1 1 0 2

EL 2 0 2 0 1 3

Victoria 21 33 1 26 81

APS Level 1 1 0 0 0 1

APS Level 3 0 0 0 1 1

APS Level 4 3 2 0 0 5

APS Level 5 2 6 0 5 13

APS Level 6 14 18 0 12 44

EL 1 0 3 1 8 12

EL 2 1 4 0 0 5

Western Australia 13 23 1 7 44

APS Level 4 1 2 0 1 4

APS Level 5 3 5 0 2 10

APS Level 6 5 8 0 1 14

EL 1 4 5 1 2 12

EL 2 0 3 0 0 3

SES Band 1 0 0 0 1 1

Department total 371 1,151 44 693 2,259

Notes:

APS equivalents for DSS classifications: Senior Public Affairs Officer = EL 2 Special Counsel / Deputy Branch Manager = EL 2 (top salary point) Public Affairs Officer 3 = EL 1 Principal Legal Officer = EL2

Public Affairs Officer 2 = APS Level 6 Senior Legal Officer = EL 1 Public Affairs Officer 1 = APS Level 4-5 Legal Officer = APS Level 3-6

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Table B-2: Non-ongoing staff, by actual classification, gender and location, as at 30 June 2018

Location and classification

Female Male

Part-time Full-time Part-time Full-time Total

Australian Capital Territory 4 14 2 17 37

APS Level 3 0 1 0 2 3

APS Level 4 1 8 0 1 10

APS Level 5 0 2 0 5 7

APS Level 6 2 2 0 3 7

Public Affairs Officer Grade 2 1 0 0 0 1

EL 1 0 0 2 2 4

EL 2 0 1 0 3 4

SES Band 3 0 0 0 1 1

New South Wales 0 0 0 0 0

Northern Territory 0 1 0 0 1

APS Level 4 0 1 0 0 1

Queensland 0 0 0 0 0

South Australia 0 0 0 0 0

Tasmania 0 3 0 2 5

APS Level 5 0 2 0 2 4

EL 1 0 1 0 0 1

Victoria 0 1 0 0 1

APS Level 6 0 1 0 0 1

Western Australia 0 1 1 0 2

APS Level 4 0 1 0 0 1

APS Level 5 0 0 1 0 1

Department total 4 20 3 19 46

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Table B-3: Salary ranges by APS classification level, as at 30 June 2018

Classification Range of salaries

APS Level 1 $49,747 - $49,747

APS Level 2 $53,516 - $57,815

APS Level 3 $60,044 - $65,376

APS Level 4 $68,027 - $74,277

APS Level 5 $73,461 - $79,785

APS Level 6 $81,831- $93,222

EL 1 $101,958 - $124,127

EL 2 $120,173 - $185,000

SES Band 1 $171,285 - $209,824

SES Band 2/ Band 3 $239,910 - $424,610

Notes:

Salaries are based on the lowest to the highest salaries paid to departmental employees against each classification as at 30 June 2018. This includes salary matching and Individual Flexibility Arrangements.

APS equivalents for DSS classifications: Senior Public Affairs Officer = EL 2 Special Counsel / Deputy Branch Manager = EL 2 (top salary point) Public Affairs Officer 3 = EL 1 Principal Legal Officer = EL2

Public Affairs Officer 2 = APS Level 6 Senior Legal Officer = EL 1 Public Affairs Officer 1 = APS Level 4-5 Legal Officer = APS Level 3-6

For the APS6, EL1 and EL2 classifications, where the non-SES Individual Individual Flexibility Arrangement salary is higher than the classification against the Department of Social Services Enterprise Agreement, the Individual Flexibility Arrangement salary for the classification is used.

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Part 5—Appendices I Appendix C Advertising and market research

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Appendix C

Advertising and market research

During 2017-18, the department conducted the following advertising campaign:

» Stop it at the Start.

The campaign aims to help break the cycle of violence by encouraging adults to reflect on their attitudes and talk with young people about respectful relationships and gender equality. It was jointly funded by the Australian and state and territory governments.

Further information on the advertising campaign is available at www.dss.gov.au and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance website at www.finance.gov.au

The organisations listed below provided advertising and market research activities that supported advertising campaigns and social policy design.

Table C-1 Payments to creative advertising agencies in 2017-18

Provider Service provided

Amount paid $ (inc GST)

The Trustee for the BMF Unit Trust Creative Services — Stop it at the Start 41,461

The Trustee for the BMF Unit Trust Creative Services — Stop it at the Start phase 2 383,790

Marmalade Melbourne Pty Ltd Creative Services — Building Employer Demand 156,002

Total 581,253

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Table C-2 Payments to market research and polling organisations in 2017-18

Provider Service Provided

Amount paid $ (incl GST)

Colmar Brunton Pty Ltd Data Services —

Longitudinal Study of Indigenous Children

240,347

The Trustee for Essence Communications Trust Market Research — Be Connected 147,620

Hall & Partners Pty Ltd Market Research — Stop it

at the Start

43,914

Hall & Partners Pty Ltd Market Research —

National Disability Insurance Scheme Quality and Safeguards Commission

58,674

Hall & Partners Pty Ltd Social Policy Research —

Community Cohesion

348,920

Orima Research Pty Ltd Market Research —

Building Employer Demand 73,333

Orima Research Pty Ltd Evaluation Services —

Cashless Debit Card

163,704

Orima Research Pty Ltd Market Research — 2017

APS Census Survey

61,055

Taylor Nelson Sofres Australia Pty Ltd Market Research — Building Employer Demand 306,570

Taylor Nelson Sofres Australia Pty Ltd Market Research — Stop it at the Start 497,200

Taylor Nelson Sofres Australia Pty Ltd Market Research — National Disability Insurance Scheme

273,581

Whereto Research Based Consulting Pty Ltd Market Research — National Disability Insurance Scheme Quality and Safeguards Commission

274,680

Whereto Research Based Consulting Pty Ltd Assessment and Evaluation Services — National Redress Scheme

65,060

Whereto Research Based Consulting Pty Ltd Market Research — National Redress Scheme 69,500

Whereto Research Based Consulting Pty Ltd Market Research — National Redress Scheme 399,320

Total 3,023,478

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Table C-3 Payments to direct mail organisations in 2017-18

Provider Service Provided

Amount paid $ (inc GST)

National Mailing & Marketing Pty Ltd Distribution of publications and products 92,719

Total 92,719

Table C-4 Payments to media advertising organisations in 2017-18

Provider Service Provided

Amount paid $ (inc GST)

Dentsu X Australia Pty Ltd Recruitment advertising 139,073

Dentsu X Australia Pty Ltd Advertising — Disability Employment Services 32,139

Dentsu X Australia Pty Ltd Advertising — International Day of People with Disability 31,228

Dentsu X Australia Pty Ltd Advertising — Stop it at the Start 5,974,323

Total 6,176,763

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Part 5—Appendices I Appendix D Ecologically sustainable development and environmental performance

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Appendix D

Ecologically sustainable development and environmental performance Section 516A of the Environment Protection and Biodiversity Conservation Act 1999 requires Commonwealth agencies to report against two core criteria:

» how the agency accords with and contributes to the principles of ecologically sustainable development

» the environmental performance of the agency, including the impact of its activities on the natural environment, how these are mitigated and how they will be further mitigated.

How the department accords with and contributes to environmentally sustainable development We do not administer any legislation that has a direct impact on ecologically sustainable development. The principles relating to scientific certainty and biological diversity are generally of limited application to our activities.

Our operations fall into five categories of environmental impact:

» electricity/gas consumption

» water use

» waste generation

» paper use

» transportation.

We continue to improve our collection and monitoring of data on energy use, water consumption and waste management in all National Office buildings. We also assess the effectiveness of current processes through our procurement policy and the Green Lease Schedule to property leases.

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Measures taken to minimise the effect of activities on the environment The following tables provide quantitative information on measures taken to minimise the effect of activities on the environment, and environmental performance data on our energy and waste production.

Table D-1: Energy, waste and water efficiency measures and monitoring mechanisms

Measures taken

Mechanisms for monitoring and review

Energy

The following sites have Green Lease Schedules in place: • Centennial Plaza (levels 8 and 9), Sydney • Holwell Street, Greenway • Jacana House (levels 2 and 3), Darwin • National Office, Enid Lyons Building,

71 Athllon Drive, Tuggeranong • Aviation House (levels 5-8), Phillip.

Conduct annual National Australian Built Environment Rating System assessments to ensure energy consumption is minimised.

Building Management Committee meetings are conducted as required under the Green Lease Schedule.

Continue to conduct Building Management Committee meetings.

Continue to reduce electricity through use of efficient lighting solutions including sensor lighting and fit-out design that takes advantage of natural light.

Careful consideration of fit-out design.

Our department participated in Earth Hour 2018. Continue to participate in Earth Hour each year.

Waste

Some initiatives promoted throughout the department’s leased office portfolio include: • significantly reducing the allocation of personal printers

• reducing the supply of paper to resource/utility areas • reducing storage requirements as a result of the department’s Electronic Document

and Records Management System and the digitisation of records.

Regularly monitor the amount of waste removed from Canberra based sites. Continue to examine new ways of reducing waste to landfill.

Organic waste from our National Office is separated and sent to a worm farm. Batteries and printer/multi-function device cartridges are recycled and default multi-function device settings are black and white, duplex.

Continue to look at processes/activities/ supplies to minimise our environmental impact.

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Measures taken

Mechanisms for monitoring and review

Water

The following water efficiency systems have been included in the National Office building: • four star toilets, six star basins, three star showers, six star urinals, and five star taps

to ensure water use is minimised within the building • landscaped areas incorporate a low water use system, native vegetation and use the

rain and grey water systems, minimising the requirement for potable water for irrigation • a rainwater collection and storage system has been installed alongside a grey water

treatment and recycling system, which minimises the use of potable water on site. • the hot water system is a solar pre-heat, gas boiler finishing system. This works by

partially heating the water via the solar tubes on the roof, with the gas system bringing the warm water up to its final temperature.

Continue to examine new ways of reducing water consumption.

Table D-2: Environmental performance indicators

Performance measure Indicator 2017-18 2016-17

Energy efficiency

Total consumption of energy in buildings Electricity consumption(kWh) 3,768,427 4,788,017

Total consumption of energy in vehicles Diesel (L)a 14,002 9,218

E10 (Biofuel) (L) 3,183.02 4,578.13

Unleaded petrol (L) 16,498 23,192

Total vehicle distance travelled Motor vehicle distance travelled (km) 391,998 399,126

Total air travel distance Air travel distance (km) 9,201,834 10,735,659

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Performance measure Indicator 2017-18 2016-17

Waste

Office paper waste production (National) Waste paper to recycling facilities (tonnes)b

254.4 148.2

Commingled Recycling (including cardboard but excluding office paper) (Canberra Sites)

Commingled waste to recycling facilities (tonnes)c 676.88 27.69

Organic waste (Canberra sites) Organic waste to worm farms (litres) 20,640 18,000

Landfill Landfill waste to ACT landfill

(tonnes)d

1,198 82

a The department has amended its fleet to include additional diesel vehicles.

b-d Figures for 2017-18 have increased due to the end of lease office clean-ups undertaken for the Tuggeranong Office Park.

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Part 5—Appendices I Appendix E Compliance with the Carer Recognition Act

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Appendix E

Compliance with the Carer Recognition Act The Australian Government recognises the exceptional contribution made by unpaid carers through the Carer Recognition Act 2010.

The Act stipulates that carers should have the same rights, choices and opportunities as other Australians.

Subsection 7(1) — Each public service agency is to take all practicable measures to ensure that its employees and agents have an awareness and understanding of the Statement for Australia’s Carers.

We promote staff awareness and understanding of the Carer Recognition Act 2010 and the Statement for Australia’s Carers through our intranet and other departmental resources.

We inform the public about the statement on Carer Gateway at carergateway.gov.au. We also fund Carers Australia to coordinate and manage National Carers Week activities each October. These activities raise the awareness of carers and their role, and inform carers about available services and assistance.

Subsection 7(2) — Each public service agency’s internal human resources policies, so far as they may significantly affect an employee’s caring role, are to be developed having due regard to the Statement for Australia’s Carers.

Our human resources policies comply with the principles contained in the statement.

Our Enterprise Agreement includes carers leave entitlements. Staff have access to health and diversity rooms to help manage unforeseen caring responsibilities.

Staff can access free counselling arranged through the Employee Assistance Program.

Our intranet also provides employees and managers with information about carers’ entitlements and internal and external resources.

Subsection 8(1) — Each public service care agency is to take all practicable measures to ensure that it, and its employees and agents, take action to reflect the principles of the Statement for Australia’s Carers in developing, implementing, providing or evaluating care supports.

Our standard funding agreement terms and conditions oblige funding recipients to comply with relevant laws, Australian Government policies, codes of ethics, regulations or industry standards relevant to the activity.

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Subsection 8(2) — Each public service care agency is to consult carers, or bodies that represent carers, when developing or evaluating care supports.

We continue to fund a peak body to represent carers’ issues to the Government and our department.

Announced by the Australian Government and formed in 2016, the National Disability and Carers Advisory Council advises Government on opportunities to drive implementation and reinvigoration of the National Disability Strategy 2010-2020, reforms to the employment of people with disability and in carer supports and services. The council established a Carer Reform Working Group which has agreed to:

» focus on integration of the carer role in the implementation of supports

» maximise the benefits for carers in the transition to the NDIS

» optimise outcomes for families and carers in health, education and employment

» review regulatory reform.

The council met twice during 2017-18.

On 5 March 2018 the Australian Government announced the roll out of new early intervention services for carers. These services will form part of the Integrated Carer Support Service developed in consultation with carers and the sector over two years. We will continue ongoing consultation with the council and its Carer Reform Working Group as part of the implementation. The Integrated Carer Support Service Sector Working Group, comprising service providers and carer associations, was established in May 2018 to provide operational advice on implementing the service.

In developing the new carer services we are using the Digital Service Standard, which requires an agile and user-centred process design service. Research has been undertaken that includes carers and the sector. The Integrated Carer Support Service Sector Working Group will have an important role in testing and validating the proposed services.

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Part 5—Appendices I Appendix F Changes to disability reporting

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Appendix F

Changes to disability reporting The National Disability Strategy 2010-2020 is Australia’s overarching framework for disability reform. It acts to ensure the principles underpinning the United Nations Convention on the Rights of Persons with Disabilities are incorporated into Australia’s policies and programs that affect people with disability, their families and carers.

Disability reporting is included in the APSC State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au

All levels of government will continue to be held accountable for the implementation of the strategy through biennial progress reporting to the Council of Australian Governments. The strategy’s first progress report is available at www.dss.gov.au

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Part 5—Appendices I Appendix G Glossary of abbreviations and acronyms

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Appendix G

Glossary of abbreviations and acronyms AASB Australian Accounting Standards Board

ABS Australian Bureau of Statistics

AIFS Australian Institute of Family Studies

ANAO Australian National Audit Office

APS Australian Public Service

APSC Australian Public Service Commission

AS/NZS Australian/New Zealand International Standards

AUSCO Australian Cultural Orientation Program

CSC Conspicuous Service Cross

DEX DSS Data Exchange

DHS Department of Human Services

DSS Department of Social Services

EL Executive Level

GST Goods and Services Tax

ISO International Standards Organisation

IT Information Technology

MP Member of Parliament

NAIDOC National Aboriginal and Islanders Day Observance Committee

NAHA National Affordable Housing Agreement

NDIA National Disability Insurance Agency

NDIS National Disability Insurance Scheme

NHHA National Housing and Homelessness Agreement

NPAH National Partnership Agreement on Homelessness

NRAS National Rental Affordability Scheme

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

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PGPA Public Governance, Performance and Accountability Act 2013

RTO Refundable Tax Offsets

SAS Statistical Analysis System

SEPT Supporting Expecting and Parenting Teens initiative

SES Senior Executive Service

SMEs Small and Medium Enterprises

SPaR Supporting People at Risk

TTY Teletypewriter

Abbreviations and conventions — Nil

n/a Not available

N/A Not Applicable

$m $ million

$b $ billion

Note: figures in tables and generally in text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding.

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Part 5—Appendices I Appendix G Indexes

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Indexes

Compliance index 193

Index of figures and tables 198

Alphabetical index 202

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Compliance index List of requirements Index of information provided in compliance with 2018 Requirements for Annual Reports for Non-corporate Commonwealth entities.

Description Location Requirement

Letter of transmittal vi Mandatory

Aids to access

Table of contents ii-iii Mandatory

Alphabetical index 202-213 Mandatory

Glossary 190-191 Mandatory

List of requirements 193-197 Mandatory

Details of contact officer Inside front cover Mandatory

Internet home page address Inside front cover Mandatory

Internet address for report Inside front cover Mandatory

Review by departmental secretary

Review by the departmental secretary 1-3 Mandatory

Overview of the department

Role and functions 6-7 Mandatory

Organisational structure 7-9 Mandatory

Outcomes and program structure iv-v Mandatory

Purpose 6 Mandatory

Portfolio structure 11-12 Portfolio departments

— Mandatory

Where the outcomes and program structures differ from PBS/PAES or other portfolio statements accompanying any other additional appropriation bills, details of variation and reasons for change

13 If applicable —

Mandatory

Report on the performance of the department

Annual performance statement

Annual performance statement in accordance with paragraph 39(1)(b) of the PGPA Act and section 16F of the PGPA Rule

15-85 Mandatory

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Description Location Requirement

Report on Financial Performance

Discussion and analysis of the department’s financial performance 109-162 Mandatory

Agency resource statement and total payments of the department 166-174 Mandatory

Discussion and details of any significant changes in financial results from previous or current reporting period

- If applicable —

Mandatory

Management and Accountability

Corporate Governance

Information on compliance with section 10 of the PGPA Rule (fraud systems) vi, 91-92 Mandatory

Certification by the Secretary that fraud risk assessments and fraud control plans have been prepared

vi Mandatory

Certification by the Secretary that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the department are in place

vi Mandatory

Certification by the Secretary that all reasonable measures have been taken to deal appropriately with fraud relating to the entity

vi Mandatory

Outline of structures and processes in place for the department to implement principles and objectives of corporate governance

88-90 Mandatory

Statement of significant issues reported to the Minister under paragraph 19(1)(e) of the PGPA Act that relates to non-compliance with finance law and action taken to remedy non-compliance

91 If applicable —

Mandatory

External Scrutiny

Significant developments in external scrutiny and the department’s response to the scrutiny 94-97 Mandatory

Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the department

94-95 Mandatory

Reports on operations of the department by the Auditor-General (other than reports under section 43 of the PGPA Act), a Parliamentary Committee, or the Commonwealth Ombudsman

94-97 Mandatory

Any agency capability review - If applicable —

Mandatory

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Description Location Requirement

Management of Human Resources

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

98 Mandatory

Statistics on the department’s APS employees on an ongoing and non-ongoing basis; including the following: • Staffing classification level • Full-time employees • Part-time employees • Gender • Staff location • Employees who identify as Indigenous.

99-100, 175-179

Mandatory

Enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999

102 Mandatory

Number of SES and non-SES employees covered by arrangements above 102 Mandatory

Salary ranges for APS employees by classification level 179 Mandatory

Non-salary benefits provided to employees 102 Mandatory

Number of employees at each classification level who received performance payments - If applicable —

Mandatory

Aggregate amounts of performance pay at each classification level - If applicable —

Mandatory

Average amount of performance payment, and range of such payments, at each classification level

- If applicable —

Mandatory

Aggregate amount of performance payments - If applicable —

Mandatory

Assets Management

Assessment of effectiveness of assets management where asset management is a significant part of the department’s activities

105 If applicable —

Mandatory

Purchasing

Assessment of the department’s performance against the Commonwealth Procurement Rules 106 Mandatory

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Description Location Requirement

Consultants

Summary statement detailing the number of new contracts engaging consultants entered into during the year; the total actual expenditure on all new consultancy contracts entered into during the year (inclusive of GST); the number of ongoing consultancy contracts that were entered into during prior year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST)

105-106 Mandatory

Summary statement regarding the engagement of consultants in the format specified at paragraph 17AG (7)(b) of the PGPA Rule

105 Mandatory

Summary of the policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged

105 Mandatory

Statement regarding information about actual expenditure on contracts for consultancies in the format specified at paragraph 17AG (7)(d) of the PGPA Rule

105-106 Mandatory

Australian National Audit Office Access Clauses

Absence of provisions in contracts allowing access by the Auditor-General 106 If applicable —

Mandatory

Exempt Contracts

Contracts exempted from publication in AusTender

106 If applicable —

Mandatory

Small Business

Summary statement detailing procurement initiatives supporting small business using the text as specified at paragraph 17AG (10)(a) of the PGPA Rule

106-107 Mandatory

Procurement practices to support small and medium enterprises 106-107 Mandatory

If the entity is considered by the Finance Minister as ‘material in nature’—a statement must be included using the text as specified at paragraph 17AG (10)(c) of the PGPA Rule

107 If applicable —

Mandatory

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Description Location Requirement

Financial statements

Financial statements 109-162 Mandatory

Other Mandatory Information

Statement in relation to advertising campaigns conducted as specified at paragraph 17AH (1)(a)(i) of the PGPA Rule

180-182 If applicable — Mandatory

Statement confirming that no advertising campaigns were conducted for the reporting period, as specified at paragraph 17AH (1)(a)(ii) of the PGPA Rule

- If applicable —

Mandatory

Statement providing information on grants awarded for the reporting period, as specified at paragraph 17AH (1)(b) of the PGPA Rule

107 If applicable —

Mandatory

Disability reporting, referencing the department’s website for further information 189 Mandatory

Webpage address where the department’s Information Publication Scheme statement pursuant to Part II of FOI Act can be located

93 Mandatory

Correction of material errors in previous annual report - If applicable —

Mandatory

Information required by other legislation (various) 103, 183-186, 187-188 Mandatory

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Index of figures and tables Figure 0.1: Department of Social Services outcome and program structure, as at June 2018

Figure 1.1.1: Organisational structure, as at June 2018

Figure 1.1.2: Our national presence, as at 30 June 2018

Figure 1.2.1: Social Services portfolio, as at 30 June 2018

Table 2.1.1: Performance criteria for Purpose 1 Social Security

Table 2.1.2a: Total future lifetime cost (in current year dollars) by current welfare class, June 2017

Table 2.1.2b: Average future lifetime cost (in current year dollars) by current welfare class, June 2017

Table 2.1.3: Expected average proportion of future lifetime years not receiving income support payments, June 2017

Table 2.1.4: Percentage of recipients who are not receiving income support within 3/6/12 months after exiting Student Payments

Table 2.1.5: Percentage of recipients who exit income support within 3/6/12 months

Table 2.1.6: Percentage of recipients reporting employment income

Table 2.1.7a: Percentage of recipients receiving a part-rate of payment due to the income or assets test — Family Tax Benefit

Table 2.1.7b: Percentage of recipients who did not meet the Family Tax Benefit Maintenance Action Test

Table 2.1.7c: Percentage of recipients receiving a part-rate of payment due to income or assets test — welfare payments (excluding Family Tax Benefit)

Table 2.1.8a: Percentage of the targeted population who receive payment — Family Tax Benefit

Table 2.1.8b: Percentage of the targeted population who receive payment — Welfare payments (excluding Family Tax Benefit)

Table 2.1.9a: Percentage of recipients aligned to specific policy objectives or payment conditions — Family Tax Benefit by income test categories

Table 2.1.9b: Percentage of recipients aligned to specific policy objectives or payment conditions — Family Tax Benefit immunisation and maintenance income reduction

Table 2.1.9c: Percentage of recipients aligned to specific policy objectives or payment conditions — Income Support for Seniors

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Table 2.1.10: Program performance criteria and associated milestones/standards

Table 2.1.11: Payment accuracy

Table 2.1.12: Percentage of recipients with debts by type and status

Table 2.1.13a: Number of recipients — Family Tax Benefit Part A and B

Table 2.1.13b: Number of recipients — welfare payments (excluding Family Tax Benefit Part A and B)

Table 2.1.14a: Number of children — Family Tax Benefit

Table 2.1.14b: Number of children — Child Payments

Table 2.1.15: Administered outlays

Table 2.2.1: Performance criteria for Purpose 2 Families and Communities

Table 2.2.2: Percentage of assisted individuals and families with improved circumstances in areas relevant to individual/family needs

Table 2.2.3: Percentage of assisted individuals and families who achieve individual/family goals related to building capacity and connections

Table 2.2.4: Extent of progress in implementing the National Plan to Reduce Violence against Women and their Children 2010-2022

Table 2.2.5: Extent of progress in implementing the National Framework for Protecting Australia’s Children 2009-2020

Table 2.2.6: Program performance criteria and associated milestones/standards

Table 2.2.7: Extent of satisfaction with services

Table 2.2.8: Extent of community and service system capacity and capability improvement

Table 2.2.9: Percentage of assisted individuals who are from priority groups or locations

Table 2.2.10: Percentage of new parents supported to take paid parental leave

Table 2.2.11: Number of individuals assisted

Table 2.2.12: Number of organisations contracted or receiving grant funding to deliver services

Table 2.2.13: Administered outlays

Table 2.3.1: Performance criteria for Purpose 3 Disability and Carers

Table 2.3.2: Percentage of assisted jobseekers in employment three months following participation in Employment Services

Table 2.3.3: Percentage of assisted people with disability, mental illness and carers with improved knowledge, skills, behaviours and engagement with services

Table 2.3.4: Progress in implementing the National Disability Strategy 2010-2020

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Table 2.3.5: Extent of contribution to create an effective and sustainable National Disability Insurance Scheme

Table 2.3.6: Program performance criteria and associated milestone/standard

Table 2.3.7: Extent of satisfaction with services

Table 2.3.8: Percentage of assisted individuals who are from priority groups

Table 2.3.9: Number of individuals assisted

Table 2.3.10: Number of organisations contracted or receiving grant funding to deliver services

Table 2.3.11: Value of funding transitioned to the National Disability Insurance Scheme

Table 2.3.12: Value and number of Sector Development Fund projects supporting the market, sector and workforce to transition to the National Disability Insurance Scheme

Table 2.3.13: Administered outlays

Table 2.4.1: Performance criteria for Purpose 4 Housing

Table 2.4.2: Percentage of Commonwealth Rent Assistance income units in rental stress before and after receiving Commonwealth Rent Assistance

Table 2.4.3: Percentage of NRAS households in rental stress before and after NRAS discounted rent

Table 2.4.4: DSS contribution to Commonwealth/State agreements for housing and homelessness

Table 2.4.5: Percentage of Commonwealth Rent Assistance income units paying enough rent to receive the maximum rate of assistance

Table 2.4.6: Program performance criteria and associated milestones/standards

Table 2.4.7: Percentage of dwellings that were paid an incentive for the relevant NRAS year

Table 2.4.8: Number of Commonwealth Rent Assistance income units as at end of June of reporting year

Table 2.4.9: Number of NRAS incentives issued for the relevant NRAS year (Cash and Refundable Tax Offsets (RTO))

Figure 3.1.1: Our governance structure, as at 30 June 2018

Figure 3.3.1: Diversity in our people

Table 3.4.1: Trends in departmental finances

Table 3.4.2: Trends in administered finances

Table 3.4.3: Consultancies in 2017-18

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Table 3.4.4: Total expenditure on new and ongoing consultancy contracts — 2015-16 to 2017-18

Table A-1: Agency resource statement 2017-18

Table A-2: Expenses and resources for Outcome 1: Social Security

Table A-3: Expenses and resources for Outcome 2: Families and Communities

Table A-4: Expenses and resources for Outcome 3: Disability and Carers

Table A-5: Expenses and resources for Outcome 4: Housing

Table B-1: Ongoing staff employed, by actual classification, gender and location, as at 30 June 2018

Table B-2: Non-ongoing staff, by actual classification, gender and location, as at 30 June 2018

Table B-3: Salary ranges by APS classification level, as at 30 June 2018

Table C-1: Payments to creative advertising agencies in 2017-18

Table C-2: Payments to market research and polling organisations in 2017-18

Table C-3: Payments to direct mail organisations in 2017-18

Table C-4: Payments to media advertising organisations in 2017-18

Table D-1: Energy, waste and water efficiency measures and monitoring mechanisms

Table D-2: Environmental performance indicators

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Alphabetical index A

A New Tax System (Family Child Support (Assessment) Act 1989, vi

Aboriginal and Torres Strait Islander Child Placement Principle, 53

Aboriginal and Torres Strait Islander peoples

Cashless Debit Card, 56

Children and Parenting Support services, 56

employment (DSS), 99-100, 101

Home Interaction Program for Parents and Youngsters, 49

Aboriginal and Torres Strait Islander Staff National Committee, 100

Aboriginal and Torres Strait Islander Workforce Strategy 2015-2018 (DSS), 99

Aboriginal and Torres Strait Islander Working Group, 53

ABSTUDY, 25, 38. see also student payments

achievements, 18

Administrative Arrangements Order, 13

administrative tribunal decisions, 95

Adult Specialist Support Services, 49

advertising, 180, 182

Affordable Housing. see also National Rental Affordability Scheme (NRAS)

dwellings paid incentive, 84

National Affordable Housing Agreement, 78, 81, 82

NRAS households in rental stress, 81

NRAS incentives, 85

performance criteria, 84

Age Pension

administered outlays, 44

performance criteria, 37

policy objectives/payment conditions, 35

qualification age, 20

recipients, 41

part-rate of payment, 29, 30

population percentage, 32, 33

reporting employment income, 27, 28

agency resource statement 2017-18, 166-7

agreements

housing and homelessness, 2, 78, 81, 82

NDIS full scheme, 3, 64, 70, 71, 72

with third parties, 92

workplace (DSS), 102, 187

Allowances and Concessions for Seniors program, 37, 41, 44

annual performance statement 2017-18, 16, 17

Appropriation Acts, 104

APS Code of Conduct, 92, 93

APS Employee Census, 98

APS Employment Principles, 92

APS RecruitAbility, 100

APS Statistical Bulletin, 189

APS Values, 92, 93

assets management, 105

Assistant Minister for Children and Families, 12

Assistant Minister for Social Services and Disability Services, 12

assurance

payments, 38

risk areas, 90-1

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Audit and Assurance Committee, 90, 91

Audit Work Program, 90

audits, 90-1, 103

AusTender, 106

Australia Council’s Administration of Grants audit report, 94

Australian and New Zealand School of Government Executive Master of Public Administration Program, 99

Australian Disability Enterprises, 27

Australian Federal Police, Fraud Anti-Corruption Centre, 92

Australian Government Investigation Standards, 92

Australian Government Plan to Improve Outcomes for Aboriginal and Torres Strait Islander People with Disability, 64, 67, 68, 69

Australian Housing and Urban Research Institute, 83

Australian Industry Participation Plans, 107

Australian Information Commissioner, 93

Australian Institute of Family Studies (AIFS), 11

Australian National Audit Office (ANAO)

access clauses, 106

Auditor’s Report, 110-12

reports, 94

Australian Network on Disability, Stepping Into Internship Program, 100

Australian Priority Investment Approach to Welfare, 20, 22, 24

Australian Public Service Commission

State of the Service Report, 189

State of the Service Survey, 100

values, 7, 92, 93

Austudy, 25. see also student payments

average future lifetime costs of welfare, 21, 22, 23

B

Be Connected program, 47

Bereavement Allowance, 36

Budget 2017-18, 82

Building Capacity in Australian Parents trial, 53

Building Management Committee, 184

business planning, 90

continuity program, 90

C

capability development, 98-9

Career Development Assessment Centre, 99

Carer Allowance, 37

Carer Gateway (carergateway.gov.au), 3, 187

Carer Payment recipients, 27, 29, 37

Carer Recognition Act 2010, 187-8

Carer Supplement, 37

carers. see also Disability and Carer Support; Disability, Mental Health and Carers program; Income Support for Carers program; Statement for Australia’s Carers

online counselling and peer support, 3, 188

Carers Australia, 187

Carers Week, 187

Cashless Debit Card trial, 2, 3, 18, 47, 49, 56

audit report, 94

Champions

of Aboriginal and Torres Strait Islander staff, 100

of staff with disabilities, 100

Child Disability Assistance Payment, 37

Child Payments

administered outlays, 43

child numbers, 43

performance criteria, 36

recipients, 41

child sexual abuse (institutional) redress scheme, 1, 2, 46, 47

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Child Support (Assessment) Act 1989, vi

Child Support (Registration and Collection) Act 1988, vi

Child Support Scheme, 36

children

immunisation, 1

sexual assault redress, 1, 2, 46, 47

Children and Parenting Support services, 49, 51, 56

COAG. see Council of Australian Governments (COAG)

Code of Conduct (APS), 92, 93

Comcare Scheme, 103

committees, 88-9

common law contracts, 102

Commonwealth Director of Public Prosecutions, 92

Commonwealth Disability Strategy. see National Disability Strategy

Commonwealth Ombudsman, 94

Commonwealth Procurement Rules 2018, 106

Commonwealth Redress Scheme for Institutional Child Sexual Abuse Bill 2017, 96

Commonwealth Redress Scheme for Institutional Child Sexual Abuse (Consequential Amendments) Bill 2017, 96

Commonwealth Rent Assistance

maximum rate of assistance, 82-3

number of income units assisted, 85

performance criteria, 79

purpose, 77

rental stress, 80

Commonwealth Risk Management Policy, 90

Commonwealth Treasury, 1, 78

Communities for Children Facilitating Partners, 56

Community Child Care Fund (DET), 107

Community Grants Hub, 2, 18, 90, 107

community housing

providers, 82

review of regulation, 80

community housing providers, 77, 82

Community Mental Health service, 67, 73, 74

complaints, 93

complaints management, 93

compliance

Carer Recognition Act 2010, 187-8

finance law, 91

framework, 91

consultants, 105-6

Contestability Programme audit report, 94

corporate plan 2017-18, 17, 21, 48, 65, 79, 90

corruption awareness, 92

corruption control, 91

cost of welfare (future lifetime), 21, 22-3

Council of Australian Governments (COAG)

Disability Reform Council, 67

Women’s Safety agenda, 47 (see also National Plan to Reduce Violence against Women and their Children 2010-2022)

D

Dad and Partner Pay, 58

data analytics, 1, 91

Data Exchange, 3, 107

debt identification and recovery, 40

Department of Education and Training, Community Child Care Fund, 107

Department of Health, 3

Department of Home Affairs, 13

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Department of Human Services, 2

debt identification and recovery, 40

payments by, 36, 37, 38, 83

Department of Jobs and Small Business, Indigenous Australian Government Development Program, 99

Department of Parliamentary Services, 96

Department of the Senate, 96

deputy secretaries, 7, 88, 89

Digital Service Standard, 188

Disability and Carer Support

numbers assisted, 74

percentage assisted, 67

service satisfaction, 73

Disability Champion, 100

disability employment (DSS), 100

Disability Employment Services, 14, 107

administered outlays, 76

assisted jobseekers, 66

changes, 2, 64, 65, 90

complaints, 93

Disability Management Service, 66, 74

Employment Support Services, 66, 74

numbers assisted, 74

providers, 14

Disability Management Service, 66, 74

Disability, Mental Health and Carers program

administered outlays, 76

grant funding, 75

organisations contracted, 75

performance criteria, 70, 75

Disability Reform Council (COAG), 67

disability reporting, 189

Disability Support Pension

administered outlays, 44

audit report, 94

performance criteria, 37

recipients, 41

part-rate of payment, 29, 30

population percentage, 20, 32, 33

reporting employment income, 27, 28

Disability Workforce Action Plan 2015-2018 (DSS), 99-100

domestic violence campaign, 2, 47, 180

domestic violence funding audit report, 94

Domestic Violence Response Training (DV-alert), 52

Double Orphan Pension, 36, 43

E

Early Intervention for Children with Disability programs, 93

ecologically sustainable development, 183-6

eLearning programs, 98

Employee Assistance Program (DSS), 187

Employment Services Outcomes Report, 66

Employment Support Services, 66, 74

energy measures, 184

Enterprise Agreement 2015-18, 102, 187

Environment Protection and Biodiversity Conservation Act 1999, 183

environmental performance indicators, 186-7

Essential Medical Equipment Payment, 37

ethical standards, 92-3

Executive Management Group, 88

expenditure, 104

consultants, 105-6

external scrutiny, 94-7

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F

Fair Work Act 2009, 102

Families and Children

number assisted, 59

percentage assisted, 50, 51, 57

Families and Children Expert Panel project, 56

Families and Communities. see also Purpose 2: Families and Communities

administered outlays, 62

capacity and capability improvement, 56

grant funding, 61

numbers assisted, 59-60

organisations contracted, 61

percentage assisted, 57

performance criteria, 54

satisfaction with services, 55

Families and Communities Service Improvement

capacity and capability improvement, 56

service satisfaction, 55

Family and Relationship Services, 49, 51

Family Dispute Resolution, 56

Family Tax Benefit

administered outlays, 43

children, 43

and immunisation, 1, 35

Maintenance Action Test, 30

Part A, 29, 32, 34, 36, 40, 41, 43

Part B, 29, 32, 36, 40, 41, 43

performance criteria, 36

policy objectives or payment conditions alignment, 34-5

recipients, 40

with debts, 40

part-rate of payment, 29

population receiving, 31

Finance and Public Administration Committee, 96

Finance portfolio, 96

financial management, 104-7

financial statements (DSS), 111-62

Financial Statements Sub-Committee, 88

Financial Wellbeing and Capability

numbers assisted, 59

percentage assisted, 50, 52, 57

Find and Connect Support Services, 49

Forced Adoption Support Services, 49

Fraud and Corruption Control Plan, 91

fraud awareness, 92

fraud investigation, 92

fraud risk assessments, 91

freedom of information, 93

Freedom of Information Act 1982, audit report, 94

funding DSS, 104

future lifetime cost, welfare, 21, 22-3

G

Gender Equality Action Plan (DSS), 99

governance structure, 88-9

graduate program, 101

grants administration, 2, 18, 107

Green Lease Schedule, 183

H

health and safety. see work health and safety

Home Interaction Program for Parents and Youngsters, 49

homelessness. see also Housing and Homelessness program

National Housing and Homelessness Agreement (NHHA), 2, 78, 82

House of Representatives Standing Committee on Social Policy and Legal Affairs

inquiry into local adoption, 97

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housing. see also Commonwealth Rent Assistance; Housing and Homelessness program; National Rental Affordability Scheme

performance criteria, 79

housing affordability. see Affordable Housing program

Housing and Homelessness program

DSS contribution to agreements, 81

performance criteria, 83

Hub. see Community Grants Hub

Humanitarian Settlement Program, 2, 47, 59, 86

I

immunisation policy, 1, 35

income management (welfare recipients), 3

Income Support for Carers program

administered outlays, 44

performance criteria, 37

recipients, 41

part-rate of payment, 31

population percentage, 33

reporting employment income, 28

Income Support for People in Special Circumstances

administered outlays, 44

performance criteria, 36

recipients, 41

Income Support for People with Disability program

administered outlays, 44

performance criteria, 37

policy objectives/payment conditions alignment, 35

recipients, 41

part-rate of payment, 30

population percentage, 33

reporting employment income, 28

Income Support for Seniors

administered outlays, 44

performance criteria, 37

policy objectives/payment conditions alignment, 35

recipients, 41

part-rate of payment, 30

population percentage, 33

reporting employment income, 28

Income Support for Vulnerable People

administered outlays, 43

performance criteria, 36

recipients, 41

exit support 3-12 months, 26

part-rate of payment, 30

reporting employment income, 28

Indigenous Apprenticeship Program (DHS), 99

Indigenous Australian Government Development Program (DJSB), 99

Indigenous Champion, 100

Indigenous Procurement Policy, 104

Individual Flexibility Arrangements (DSS), 102

Information Publication Scheme, 93

Infrastructure, Communications and Technology Committee, 88

Integrated Carer Support Service, 3, 188

Integrated Carer Support Service Sector Working Group, 188

Intensive Family Support Service (NT), 49

internal audits, 90-1, 103

investment approach to welfare, 20, 22, 24

J

Jawun secondments, 99

Job Access (jobaccess.gov.au), 64

Joint Standing Committee on the National Disability Insurance Scheme, 97

judicial decisions, 94

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L

leadership, 98-9

LearnHub, 98

Learning Management System, 93, 98

Legislation Committee, 95-6

letter of transmittal, vi

locations (offices), 10

Low Income Supplement, 37

M

maintenance income reduction, 35

Management of Special Appropriations audit report, 94

market, sector and workforce transition (NDIS), 65, 76

market research, 181-2

mental illness. see Disability, Mental Health and Carers program

Minister for Finance, 91

Minister for Social Services, 91

ministers, 12

mission, 6

Mobility Allowance, 37

Multicultural Affairs function transfer, 13

N

National Affordable Housing Agreement, 78, 81, 82

National Carers Week, 187

National Disability and Carers Advisory Council, 69, 188

National Disability Insurance Agency (NDIA)

purpose, 11

responsibilities, 70

National Disability Insurance Scheme (NDIS). see also NDIS Quality and Safeguards Commission; NDIS Quality and Safeguards Framework

administered outlays, 76

agreements, 3, 64, 70, 71, 72

audit report on fraud control program, 94

bilateral full scheme agreements, 70, 72

cash flow management, 71

funding transitioned, 75

implementation, 1

individuals with plans, 70

participants, 1

performance criteria, 71-2

Sector Development Fund projects, 76

National Disability Insurance Scheme Act 2013, 11

National Disability Insurance Scheme Amendment (Quality and Safeguards Commission and Other Measures) Bill 2017, 71, 95

National Disability Strategy 2010-2020, 63, 64, 65, 188

Australian Government Action Plan, 64, 67, 68

implementation, 67-9

purpose, 189

Second Implementation Plan, Driving Action 2015-2018, 67, 68, 69

Senate inquiry, 96

National Framework for Protecting Australia’s Children 2009-2020, 18, 47, 48, 53, 54

National Housing and Homelessness Agreement (NHHA), 2, 78, 82

National Initiatives, 60

National Office for Child Safety, 3

National Partnership Agreement on Homelessness, 78, 81, 82

National Plan to Reduce Violence against Women and their Children 2010-2022, 3, 18, 47, 48, 52, 53, 96

National Redress Scheme, 1, 2, 18, 46, 47

National Redress Scheme for Institutional Child Sexual Abuse Bill 2018, 96

National Redress Scheme for Institutional Child Sexual Abuse (Consequential Amendments) Bill 2018, 96

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National Regulatory System for Community Housing, 78

National Rental Affordability Scheme (NRAS), 77, 78

complaints, 93

rental stress households, 79, 80

National Research Organisation for Women’s Safety, 52

national sexual assault and domestic family violence counselling service (1800RESPECT), 2, 52, 53, 60

NDIS Early Childhood Early Intervention Approach, 70, 97

NDIS Quality and Safeguards Commission, 1, 7, 64, 72, 108

NDIS Quality and Safeguards Framework, 71

Newstart Allowance

administered outlays, 45

performance criteria, 38

recipients, 42

part-rate of payment, 31

reporting employment income, 28

No Jab, No Pay policy, 1

non-SES employee agreements (DSS), 102

notifiable incidents, 103

O

objectives, 20

Ombudsman, 94

1800RESPECT (telephone and online counselling service), 2, 52, 53, 60

organisational structure, 7-9

Outcome 1: Social Security

expenses and resources, 168-70

performance, 19-45

Outcome 2: Families and Communities

expenses and resources, 171-2

performance, 46-62

Outcome 3: Disability and Carers

expenses and resources, 173

performance, 63-76

Outcome 4: Housing

expenses and resources, 174

performance, 77-85

outcome and program structure, iv-v

P

Paid Parental Leave

administered outlays, 62

number assisted, 60

parents supported, 58

performance criteria, 55

Parental Leave Pay, 58

Parenting Payment Partnered, 27

Parenting Payment Single, 27

Parliamentary Budget Office, 96

parliamentary committees’ reports, 95-7

Partner Allowance (Benefit and Pension), 27, 38

payments

accuracy, 38-9

administered outlays, 43-5

children, 43

delivery measures, 40-2

delivery meets program objective, 36-8

recipients

with debts, 27, 40

Family Tax Benefit Maintenance Action Test, 30

financial self-reliance, 23-6

numbers, 40-1

part-rate of payment, 28-9, 30-1

reporting employment income, 23-6, 28

specific policy objectives or payment conditions, 34-5

unable to fully support themselves, 32-3

sustainability, 22-3

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Payments under Special Circumstances, 36

People and Communications Committee, 89

people with disabilities. see Disability and Carer Support; Income Support for People with Disability program; National Disability Insurance Scheme (NDIS); National Disability Strategy 2010-2020

performance pay, 102

performance summary, 18. see also under Purpose

Policy and Regulatory Reform Committee, 89

portfolio

bodies, 11

changes, 13

ministers, 12

responsibilities, 12

Portfolio Budget Statements (PBS) 2017-18, 17

Pride Committee and Network, 100

Prime Minister, 70

Prime Minister and Cabinet portfolio, 96

priorities, 7

Privacy Commissioner, 93

private rental market, 77, 82

procurement, 106-7

Productivity Commission, 81

Program and Delivery Board, 89

programs

disability and carers, 63

families and communities, 46

housing, 77

social security, 19

Public Governance, Performance and Accountability Act 2013, vi, 16, 90, 91, 105, 113

Public Interest Disclosure Act 2013, 92, 93

purchasing, 106

Purpose 1: Social Security

performance criteria, 21

programs, 19

results, 20, 22-45

summary, 20

Purpose 2: Families and Communities

performance criteria, 48

programs, 46

results, 47, 49-62

summary, 47

Purpose 3: Disability and Carers

performance criteria, 65

programs, 63

results, 64, 66-76

summary, 64

Purpose 4: Housing

performance criteria, 79

programs, 77

results, 78, 80-6

summary, 78

purposes, summary, 6, 17

R

Reconciliation Action Plan 2017-2020 (DSS), 99

References Committee, 96

refugee settlement. see Humanitarian Settlement Program; Settlement Services

regional offices, 10

rehabilitation management system (DSS), 103

remuneration (SES), 102

Rent Assistance. see Commonwealth Rent Assistance

rental affordability, 80. see also National Rental Affordability Scheme

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5

Department of Social Services Annual Report 2017-18

rental stress criteria, 80

resource statements 2017-18, 166-7

responsibilities, 6

results, summary, 18

Review of the Transition to Independent Living Allowance, 53

risk management, 90

Risk Management Framework, 90

Royal Commission Community-Based Support Services, 49

Royal Commission into the Protection and Detention of Children in the Northern Territory, 2, 49

S

Safety, Rehabilitation and Compensation Act 1988, 103

Secretary, 7,

committees reporting to, 88-9, 90

review, 1-3

Sector Development Fund projects (NDIS), 76

Senate Finance and Public Administration References Committee

Inquiry into the Delivery of National Outcome 4 of the National Plan to Reduce Violence against Women and their Children 2010-2022, 96

Senate Standing Committees on Community Affairs, 95

Senior Executive Service (SES), remuneration, 102

Service Charter, 93

Settlement Engagement and Transition Support, 51

Settlement Grants, 51

Settlement Services. see also Humanitarian Settlement Program

capacity and capability improvement, 56

number assisted, 59

percentage assisted, 52

Sickness Allowance, 27, 38

Single Income Family Supplement, 36

Sir Roland Wilson Scholarship, 99

Small and Medium Enterprises (SMEs) procurement, 106-7

Social and Community Services

administered outlays, 62

performance criteria, 54

Social Security (Administration) Act 1999, vi

Social Security Legislation Amendment (Better Targeting Student Payments) Bill 2017, 95

Social Services Legislation Amendment (Cashless Debit Card) Bill 2017, 95

Social Services Legislation Amendment (Housing Affordability) Bill 2017, 95

Social Services Legislation Amendment (Payment Integrity) Bill 2017, 95

Social Security Legislation Amendment (Welfare Reform) Bill 2017, 95

Social Services Legislation Amendment (Drug Testing Trial) Bill 2018, 96

Social Services Legislation Amendment (Self Sufficiency for Newly Arrived Migrants) Bill 2018, 96

Special Benefit. see also Income Support for Vulnerable People program

income support, 26

recipients, 26

part-rate of payment, 29, 30

reporting employment income, 27, 28

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Annual Report 2017-18 Department of Social Services

special circumstances payments. see Income Support for People in Special Circumstances

staff

Aboriginal and Torres Strait Islander, 99-100, 101

capability development, 98-9

delivery network, 10

with disability, 100, 101

enterprise agreements, 102

55 and over, 101

graduate program, 101

lesbian, gay, bisexual, trans and/or intersex, 100

non-ongoing staff, 175, 178

non-salary benefits, 102

numbers, 10

performance pay, 102

profile, 175-7

salary ranges, 179

statistics, 175-9

training and development, 93

women, 101

standard funding agreement (CR Act), 187

State of the Service Report (APSC), 189

Statement for Australia’s Carers, 187

Stillborn Baby Payment, 36

‘Stop it at the Start’ campaign, 2, 47, 180

Streamlining Grants Administration Program, 89, 107

Strengthening Communities

number assisted, 59

percentage assisted, 57

service satisfaction, 55

Strong and Resilient Communities

grants program, 47

number assisted, 59

percentage assisted, 57

service satisfaction, 55

student payments

administered outlays, 45

performance criteria, 38

recipients, 42

exit support 3-12 months, 25

part-rate of payment, 31

reporting employment income, 28

Supplementary Payments and Support for Income Support Recipients, 37, 41, 44

Supporting Expecting and Parenting Teens (SEPT) initiative, 4

Survey of Australian Government Payments to Small Business, 107

T

Third Action Plan (2015-2018) of the National Framework for Protecting Australia’s Children 2009-2020, 47, 53

Third Action Plan 2016-2019 of the National Plan to Reduce Violence against Women and their Children 2010-2022, 18

Towards Independent Adulthood trial (WA), 53

Transition to Independent Living Allowance, 53, 59

Try, Test and Learn Fund, 4, 20

U

United Nations Convention on the Rights of Persons with Disabilities, 11, 189

Utilities Allowance, 37

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Department of Social Services Annual Report 2017-18

V

values, 7, 92, 93

violence (domestic family)

campaign against, 2, 47, 180

counselling service, 2, 52, 53, 60

national plan, 3, 18, 47, 48, 52, 53, 96

Volunteer Grants, 60

Volunteer Management Activity

number assisted, 59

percentage assisted, 57

W

waste measures, 184

water measures, 185

Welfare Reform Bill, 1

Widow Allowance, 27, 38

Widow B Pension, 37

Wife Pension, age and disability, 37

women

safety, 52, 53

staff (DSS), 101

violence issues, 3, 18, 47, 48, 52, 53, 96

Women’s Safety Package (Commonwealth), 53

work health and safety, 103

Work Health and Safety Act 2011, 103

Work Health and Safety Regulations 2011, 103

Workforce Capability Strategy, 98

workforce planning, 98

Working Age Payments. see also Youth Allowance

administered outlays, 45

performance criteria, 38

recipients, 42

exit support 3-12 months, 26

part-rate of payment, 31

reporting employment income, 28, 29

workplace arrangements, 102

workplace diversity, 99-101

Y

Youth Allowance (other). See also Working Age Payments

Youth Allowance (student). See also Student Payments

Department of Social Services I Annual Report 2017-18

dss.gov.au Department of Social Services

DSS 2240.05.18