Portfolio Additional
Estimates Statements2016–17

SocialServicesPortfolio

Explanations of Additional Estimates 2016–17

© Commonwealth of Australia 2017

ISBN978-1-925318-51-7

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The Hon Christian Porter MP

Minister forSocial Services

PARLIAMENT HOUSE
CANBERRA 2600

President of the Senate

Australian Senate

Parliament House

CANBERRA ACT 2600

Speaker

House of Representatives

Parliament House

CANBERRA ACT 2600

Dear Mr President

Dear Mr Speaker

I hereby submit Portfolio Additional Estimates Statements in support of the
2016–17AdditionalEstimates for the SocialServicesPortfolio.

These statements have been developed, and are submitted to the Parliament, as a statement on the funding requirements being sought for the Portfolio.

I present these statements by virtue of my ministerial responsibility for accountability to the Parliament and, through it, the public.

Yours sincerely

The HonChristianPorterMP

Abbreviations and conventions

The following notations may be used:

NEC/necnot elsewhere classified

–nil

..not zero, but rounded to zero

nanot applicable (unless otherwise specified)

nfpnot for publication

$m$ million

$b$ billion

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

If you have any enquiries regarding this publication, please contact Scott Dilley,
Chief Finance Officer, in the DepartmentofSocialServices on 1300 653 227.

A copy of this document can be found on the Australian Government Budget website at

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User guide
to the
Portfolio Additional Estimates Statements

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User guide

The purpose of the Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements (PB Statements), is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by agencies within the portfolio. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES includes an Entity Resource Statement to inform Parliament of the revised estimate of the total resources available to an entity, the focus of the PAES is on explaining the changes in resourcing by outcome(s) since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or non-financial planned performance of programs supporting those outcomes.

The PAES facilitates understanding of the proposed appropriations in
Appropriation Bills (No. 3 and No. 4) 2016–17. In this sense, the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook 2016–17 is a mid-year budget report which provides updated information to allow the assessment of the Government’s fiscal performance against its fiscal strategy, the PAES update the most recent budget appropriations for entities within the portfolio.

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User guide

Structure of the Portfolio Additional Estimates Statements

The PAES are presented in three parts with subsections.

User guide
Provides a brief introduction explaining the purpose of the PAES.
Portfolio Overview
Provides an overview of the portfolio, including a chart that outlines the outcomes for entities in the portfolio.
Entity Additional Estimates Statements
A statement (under the name of the entity) for each entity affected by Additional Estimates.
Section 1: Entityoverview and resources / This section details the changes in total resources available to an entity, the impact of any measures since Budget, and impact on Appropriation Bills No. 3 and 4.
Section 2: Revisions to outcomes and planned performance / This section details changes to Government outcomes and/or changes to the planned performance of entityprograms.
Section 3: Special account flows and budgeted financial statements / This section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.
Glossary/Abbreviations

Explains key terms and acronyms relevant to the portfolio

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Contents

Portfolio overview...... 1

Social Services portfolio overview...... 3

Entity Additional Estimate Statements...... 7

DepartmentofSocialServices...... 9

Portfolio glossary...... 104

Abbreviations ...... 108

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Portfolio Overview

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SocialServices Portfolio Overview

This document provides information about the changes within the SocialServicesPortfolio since the publication of the 2016–17 Portfolio Budget Statements.

Ministers and portfolio responsibilities

A new Assistant Minister for the Social Services Portfolio was sworn in on 19July 2016. The minister and assistant ministers responsible for the portfolio and its entities are:

From 2016-17 Budget to 18 July 2016 / From 19 July 2016
Minister for Social Services
The Hon Christian Porter MP / Minister for Social Services
The Hon Christian Porter MP
Assistant Minister for Disability Services
The Hon Jane Prentice MP / Assistant Minister for Social Services and Disability Services
The Hon Jane Prentice MP
Assistant Minister for Multicultural Affairs
The Hon Craig Laundy MP / Assistant Minister for Social Services and Multicultural Affairs
Senator the Hon Zed Seselja

Overview of additional estimates sought for the portfolio

Additional appropriations of $168.470 million are being sought through Appropriation Bill (No. 3) 2016–17 and $79.928 million through Appropriation Bill (No. 4) 2016–17as a result of new measures and variations. In addition, these statements reflect decreased estimates of $1.805 billionfor the portfolio’s special appropriations.

Structure of the portfolio

There has not been substantial changes to the structure of the Social Services Portfolio since the 2016–17 Budget.

Under the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the portfolio comprises two non-corporate Commonwealth entities (one Department of State and one listed entity) and one corporate Commonwealth entity. Refer to Figure 1 for further information on the portfolio’s structure.

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Portfolio overview

The DepartmentofHumanServices(DHS) is administered separately to DSS. For information on DHS, refer to DHS’ Additional Estimates Statements.

DepartmentofSocialServices

DSS was formed in September2013 and is subject to the PGPAAct. DSS is a critical source of social policy advice for the Australian Government. It works in partnership with other government and nongovernment organisations, particularly with DHS, to ensure the effective development, management and delivery of a diverse range of policies, programs and services that are focused on improving the lifetime wellbeing of people and families in Australia.

DSS has four active outcomes, with an additional outcome for which all functions transferred to the Department of Health as a result of the Administrative Arrangements Order (AAO) changes of 30September2015. This additional outcome is temporarily retained to enable DSS to report the part-year financial impact for which it had responsibility.

Australian Institute of Family Studies

The Australian Institute of Family Studies(AIFS) is a statutory body established under the Family Law Act 1975. Its role is to increase understanding of factors affecting how Australian families function by conducting research and disseminating findings. AIFS’work provides an evidence base for developing policy and practice relating to the wellbeing of families in Australia. AIFS is a non-corporate Commonwealth entity under the PGPA Act.

National Disability Insurance Agency

The National Disability Insurance Agency(NDIA) is a statutory authority established under the National Disability Insurance Scheme Act 2013 to deliver the NationalDisability Insurance Scheme. It provides individual control and choice in the delivery of reasonable and necessary care and supports to improve the independence, and the social and economic participation of eligible people with disability, their families and carers. NDIA will also play a key role in building community awareness and understanding of disability matters to reduce the barriers to community inclusion for people with disability, their families and carers. NDIA is a corporate Commonwealth entity under the PGPA Act.

Figure 1: SocialServices portfolio structure and outcomes

Minister for Social Services
The Hon Christian Porter MP
Assistant Minister for Social Services and Disability Services
The Hon Jane Prentice MP
Assistant Minister for Social Services and Multicultural Affairs
Senator the Hon Zed Seselja
Department of Social Services
Secretary: Mr Finn Pratt AO PSM
Outcome 1: Social Security
Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system.
Outcome 2: Families and Communities
Stronger families and more resilient communities by developing civil society and by providing family and community services.
Outcome 3: Disability and Carers
Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.
Outcome 4: Housing
Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.
Australian Institute of Family Studies
Director: Ms Anne Hollonds
Outcome 1:
To increase understanding of factors affecting how Australian families function by conducting research and communicating findings to policy-makers, service providers and the broader community.
National Disability Insurance Agency
Chief Executive Officer: Mr David Bowen
Outcome 1:
To implement a National Disability Insurance Scheme that provides individual controland 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.

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Entity Additional Estimates Statements

DepartmentofSocialServices...... 9

1

Department of

SocialServices

Entity Additional Estimates Statements

1

DepartmentofSocialServices

Section 1: Entity overview and resources...... 13

1.1 Strategic direction statement...... 13

1.2 Entity resource statement...... 15

1.3 Entity measures since Budget...... 19

1.4 Additional estimates and variations...... 23

1.5 Breakdown of Additional Estimates by Appropriation Bill...... 27

Section 2: Revisions to outcomes and planned performance...... 28

2.1 Budgeted expenses and performance for Outcome 1...... 28

2.2 Budgeted expenses and performance for Outcome 2...... 60

2.3 Budgeted expenses and performance for Outcome 3...... 73

2.4 Budgeted expenses and performance for Outcome 4...... 84

Section 3: Special account flows and budgeted financial statements...... 92

3.1 Special account flows ...... 92

3.2 Budgeted financial statements...... 93

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DepartmentofSocialServices

Section 1: Entity overview and resources

1.1Strategic direction statement

The Department of Social Services’ mission is to improve the lifetime wellbeing of Australians and their families.

The Department’spolicies and programs are designed to do this by:

  • maintaining a strong social security safety net in which the right financial support goes to the right people at the right time
  • supporting social and economic participation, in particular by requiring people who have the capacity to work, to do so
  • strengthening families and building community resilience
  • enhancing the independence of people with disability and assisting carers
  • improving access to affordable housing, and services and support for people experiencing homelessness.

The Department’s Outcome structure reflects the core areas in which DSS assists people:

  1. Social Security
  2. Families and Communities
  3. Disability and Carers
  4. Housing

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DepartmentofSocialServices Additional Estimates Statements

Key changes to policy priorities since the 2016–17 Budget

The Government has committed to make the payments system more sustainable, including by:

  • implementing several components of the Omnibus Legislative Package, including reforms to Family Tax Benefit
  • maintaining certain Family Tax Benefit and Paid Parental Leave income thresholds at current levels
  • introducing regular automated income stream reviews to strengthen income and assets testing of income support recipients and reduce customer debts.

The Government has committed to improve existing policies and programs through:

  • additional support to assist regional and remote students access education
  • development of digital literacy and on-line safety for older Australians
  • increased flexibility of Commonwealth funding arrangements to continue reducing the risk of service gaps in the National Disability Insurance Scheme (NDIS)
  • introduction of a 12 month transitional National Partnership Agreement on Homelessness (NPAH) from July 2017 while longer term arrangements are considered
  • re-direction of the Wage Connect Wage Subsidy program to offset two initiatives to increase workforce participation for people with disability and improve DisabilityEmployment Services
  • introduction of a two year trial offering incentives to increase the number of job seekers who undertake seasonal horticultural work
  • provision of support services to children and families involved in the RoyalCommission into the Protection and Detention of Children in the NorthernTerritory.

1.2Entity resource statement

The Entity Resource Statement details the resourcing for DSS at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2016–17 Budget year, including variations through Appropriation Bills No. 3 and No. 4, SpecialAppropriations and Special Accounts.

Table 1.1: DepartmentofSocialServices resource statement — Additional Estimates for 2016–17 as at Additional EstimatesFebruary2017

Actual / Estimate / Proposed / Total
available / as at / Additional / estimate at
appropriation / Budget / Estimates / Additional
2015–16 / 2016–17 / 2016–17 / Estimates
$'000 / $'000 / $'000 / 2016–17
$'000
Departmental
Annual appropriations - ordinary annual services1
Prior year appropriations available2 / 172,960 / 144,034 / (15,907) / 128,127
Departmental appropriation / 475,322 / 394,619 / (6,378) / 388,241
s 74 Retained revenue receipts3 / 87,946 / 37,497 / 57,613 / 95,110
Departmental capital budget4 / 40,133 / 14,763 / 19,026 / 33,789
Annual appropriations - other services -
non-operating5
Equity injections / 50,853 / 34,003 / 832 / 34,835
Total departmental annual appropriations / 827,214 / 624,916 / 55,186 / 680,102
Total departmental resourcing / 827,214 / 624,916 / 55,186 / 680,102
Administered
Annual appropriations - ordinary annual services1
Outcome 1 / 13,564 / 31,277 / – / 31,277
Outcome 26 / 781,564 / 756,168 / (39,059) / 717,109
Outcome 3 / 1,768,466 / 1,639,642 / (24,328) / 1,615,314
Outcome 4 / 73,571 / 86,423 / (310) / 86,113
Former Outcome 37 / 674,361 / – / – / –
Non–appropriated revenue / 35,846 / 10,926 / 164 / 11,090
Payments to corporate entities8 / 565,896 / 1,598,466 / – / 1,598,466
Annual appropriations - other services - non-operating
Payments to corporate entities / 57,756 / 116,197 / – / 116,197
Total administered annual appropriations / 3,971,024 / 4,239,099 / (63,533) / 4,175,566

Prepared on a resourcing (i.e. appropriations available) basis.

Please note: All figures shown above are GST exclusive – these may not match figures in the cash flow statement.

1Appropriation Act (No. 1) 2016–17 and Appropriation Bill (No. 3) 2016–17.

2Estimated adjusted balance carried forward from previous year for annual appropriations.

3Estimated retained revenue receipts under section74 of the PGPAAct.

4Departmental capital budgets are not separately identified in Appropriation Act (No.1) and Bill (No. 3) and form part of ordinary annual services items. Please refer to Table 3.6 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner'.

5Appropriation Act (No.2)2016–17 and Appropriation Bill (No. 4) 2016–17.

6Child care policy and programs and coordination of early childhood development policy transferred to the Department ofEducation and Training as a result of the AAO of 21 September 2015. DSS reports the 2015–16 part-year financial impact for which it had responsibility.

7All aging and aged care functions transferred to the Department ofHealth as a result of the AAO of
30 September 2015. DSS reports the 2015–16 part-year financial impact for which it had responsibility.

8‘Corporate entities' are corporate Commonwealth entities and Commonwealth companies as defined under the PGPAAct.

Table 1.1: DepartmentofSocialServices resource statement —Additional Estimates for 2016–17 as at Additional Estimates, February2017 (continued)

Actual / Estimate / Proposed / Total
available / as at / Additional / estimate at
appropriation / Budget / Estimates / Additional
2015–16 / 2016–17 / 2016–17 / Estimates
$'000 / $'000 / $'000 / 2016–17
$'000
Special appropriations
Social Security (Administration) Act 1999 / 89,855,449 / 90,721,528 / (1,500,879) / 89,220,649
A New Tax System
(Family Assistance)
(Administration) Act 1999 / 23,462,615 / 19,385,628 / (632,020) / 18,753,608
Paid Parental Leave Act 2010 / 2,073,896 / 1,750,486 / 318,267 / 2,068,753
Student Assistance Act 1973 / 339,093 / 340,637 / 10,549 / 351,186
Public Governance, Performance and Accountability Act 2013 / 181 / – / – / –
Business Services Wage Assessment Tool Payment
Scheme Act 20159 / 860 / nfp / nfp / nfp
Total administered special appropriations / 115,732,094 / 112,198,279 / (1,804,083) / 110,394,196
Special accounts10
Opening balance / 309,787 / 203,770 / 27,721 / 231,491
Appropriation receipts11 / 266,928 / 325,061 / – / 325,061
Non–appropriated receipts / 9,079 / 1,700 / 3,248 / 4,948
Total special accounts receipts / 585,794 / 530,531 / 30,969 / 561,500
less administered appropriations drawn from annual/special appropriations and credited to special accounts / 266,928 / 325,061 / – / 325,061
less payments to corporate entities from annual/special appropriations / 623,652 / 1,714,663 / – / 1,714,663
Total administered resourcing / 119,398,332 / 114,928,185 / (1,836,647) / 113,091,538
Total resourcing for DSS / 120,225,546 / 115,553,101 / (1,781,461) / 113,771,640
2015-16 / 2016-17
Average staffing level (number) / 2,369 / 2,037

9The provision set aside for the Business Services Wage Assessment Tool (BSWAT) Payment Scheme is not for publication (nfp) so as not to prejudice the Commonwealth in relation to legal claims brought against it.

10Excludes ‘Special Public Money’ held in accounts like Other Trust Monies accounts (OTM), Services for Other Government and Non-agency Bodies accounts (SOG) or Services for Other Entities and Trust Moneys accounts (SOETM). For further information on special accounts, see Table 3.1.

11Amounts credited to the special accounts from DSS annual and special appropriations.

Table 1.1: DepartmentofSocialServices resource statement – Additional Estimates for 2016–17 as at Additional Estimates, February2017 (continued)

Third-party payments from and on behalf of other entities

Actual / Estimate / Proposed / Total
as at / Additional / estimate at
Payments / Budget / Estimates / Additional
2015–16 / 2016–17 / 2016–17 / Estimates
$'000 / $'000 / $'000 / 2016–17
$'000
Payments made by the Department of Human Services on behalf of DSS:
Special appropriations – A New Tax System (Family Assistance) (Administration) Act 1999 / 22,050,671 / 20,802,323 / (138,341) / 20,663,982
Special appropriations – Social Security (Administration) Act 1999 / 89,695,371 / 92,178,364 / (1,571,821) / 90,606,543
Special appropriations – Paid Parental Leave Act 2010 / 2,073,849 / 1,764,011 / 310,005 / 2,074,016
Special appropriations – Student Assistance Act 1973 / 340,247 / 348,032 / 7,618 / 355,650
Annual administered appropriations / 5,792 / 3,967 / 3,693 / 7,660
Payments made by the Department of Veterans' Affairs on behalf of DSS:
Special appropriations – A New Tax System (Family Assistance) (Administration) Act 1999 / 1,163 / 1,302 / (161) / 1,141
Special appropriations – Social Security (Administration) Act 1999 / 49,559 / 48,397 / (2,401) / 45,996
Payments made to other entities for the provision of services:
Australian Taxation Office / 602 / 586 / 1 / 587
Department of Veterans' Affairs / 157 / 192 / 9 / 201
Payments made to corporate entities within the Portfolio:
National Disability Insurance Agency12 / 581,070 / 1,714,663 / – / 1,714,663
Note: All figures are GST exclusive.

12Funding under Appropriation Act (No.1) is appropriated to DSS and then paid to NDIA. All appropriations paid to the NDIA are considered to be departmental for all purposes.