Portfolio Budget Statements 2017-18 - Budget Related Paper No. 1.15B

Portfolio Budget Statements 201718

Budget Related Paper No. 1.15B

Social Services Portfolio

(Department of Human Services)

Budget Initiatives and Explanations of

Appropriations Specified by Outcomes

andProgramsby Entity

ISBN 978-1-76044-810-3

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MrMark Jenkin, Chief Financial Officer, CFO Division, Department of Human Services, PO Box 7788,Canberra BC, ACT 2600 Australia.

The Hon Alan Tudge MP

MINISTER FOR HUMAN SERVICES

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 Budget Statements in support of the 2017-18 Budget for the Social Services Portfolio(Department of Human Services).

These statements have been developed, and are submitted to the Parliament, as a statement on the outcomes for the portfolio.

I present these statements to provide accountability to the Parliament and, through it, the public.

Yours sincerely

SIGNED

Alan Tudge

Abbreviations and conventions

The following notation 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

Should you have any enquiries regarding this publication please contactMr Mark Jenkin, Chief Financial Officer in the Department of Human Services on (02)6223 4350.

Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Statements) can be located on the Australian Government Budget website at: budget.gov.au.

User Guide
To The
Portfolio Budget Statements

User guide

The purpose of the 2017-18 Portfolio Budget Statements (PB Statements) is to inform Senators and Members of Parliament of the proposed allocation of resources to government outcomes by entities within the portfolio. Entities receive resources from the annual appropriations acts, special appropriations (including standing appropriations and special accounts), and revenue from other sources.

A key role of the PB Statements is to facilitate the understanding of proposed annual appropriations in Appropriation Bills (No. 1 and No. 2)2017-18 (or Appropriation (Parliamentary Departments)Bill (No. 1)2017-18 for the parliamentary departments). In this sense, the PB Statements are Budget related papers and are declared by the Appropriation Acts to be ‘relevant documents’ to the interpretation of the Acts according to section 15AB of the Acts Interpretation Act 1901.

The PB Statements provide information, explanation and justification to enable Parliament to understand the purpose of each outcome proposed in the Bills.

As required under section 12 of the Charter of Budget Honesty Act 1998, onlyentities within the general government sector are included as part of the Commonwealth general government sector fiscal estimates and produce PB Statements where they receive funding (either directly or via portfolio departments) through the annual appropriation acts.

The Enhanced Commonwealth Performance Framework.

The following diagram outlines the key components of the enhanced Commonwealth performance framework. The diagram identifies the content of each of the publications and the relationship between them. Links to the publications for each entity within the portfolio can be found in the introduction to Section 2: Outcomes and planned performance.

Contents

Portfolio Overview......

Department of Human Services Portfolio Overview

Entity resources and planned performance

Department of Human Services

Portfolio glossary

Portfolio Overview

Portfolio overview

Department of Human Services

Portfolio overview

Ministers and portfolio responsibilities

The ministers responsible for the Social Services portfolio and its entities are:

The Hon Christian Porter MP, Minister for Social Services
The Hon Alan Tudge MP, Minister for Human Services
The Hon Jane Prentice MP, Assistant Minister for Social Services and Disability Services
Senator the Hon Zed Seselja, Assistant Minister for Social Services and Multicultural Affairs.

The Department of Human Services (the department) is part of the Social Services portfolio. Full details of the Social Services portfolio appear in the Portfolio Budget Statements 2017-18, Budget Related Paper No. 1.15A, Social Services Portfolio.

For information on resourcing across the Social Services portfolio, please refer to Part 1: Agency Financial Resourcing in Budget Paper No. 4: Agency Resourcing.

Department of Human Services

The department is responsible for providing advice to government on design, development, delivery, co-ordination and monitoring of government services, social security, child support, students, families, aged care and health programmes (excluding Health provider compliance), superannuation release and Australian Hearing Services.

Legislation administered by the Minister for Human Services includes the:

Human Services (Centrelink) Act 1997
Human Services (Medicare) Act 1973, except to the extent administered by the Minister for Health
Australian Hearing Services Act 1991, except to the extent administered by the Minister for Health.

The department is subject to the Public Governance, Performance and Accountability Act2013 (PGPA Act). The department has one outcome and delivers a range of government and other payments and services to almost every Australian, including:

Centrelink payments and services for retirees, the unemployed, families, carers, parents, students, people with disability, Aboriginal and Torres Strait Islander peoples, people from culturally and linguistically diverse backgrounds, people living overseas and provision of services at times of major change, including disaster recovery payments.
Agedcare payments to services funded under the Aged Care Act 1997 including residential care, home care and flexible care services.
Healthservices and payments that support Australians such as Medicare, the Pharmaceutical Benefits Scheme, digital health, Private Health Insurance Rebate, the Australian Immunisation Register, the National Bowel Cancer Screening Register, the Australian Organ Donor Register, and related services for eligible veterans, their spouses and dependants.
Child Support services for separated parents to provide the financial and emotional support necessary for their children’s wellbeing.

The department also delivers other services including the Tasmanian Freight Equalisation Scheme and Early Release of Superannuation, as well as whole of government services such as myGov.

Australian Hearing

Australian Hearing is a non-General Government Sector entity established under the

Australian Hearing Services Act 1991. As such, Australian Hearing is not consolidated into the Commonwealth General Government Sector fiscal estimates. Accordingly, Australian Hearing is not reported in the Portfolio Budget Statements or Portfolio Additional Estimates Statements. Australian Hearing is a corporate Commonwealth entity under the PGPA Act and is governed by a board that is appointed by the Minister for Human Services.

Figure 1: Department of Human Servicesportfolio structure and outcomes

Minister for Social Services
The Hon Christian Porter MP
Minister for Human Services
The Hon Alan Tudge MP
Department of Human Services
Secretary: Ms Kathryn Campbell CSC
Outcome 1: Support individuals, families and communities to achieve greater self-sufficiency; through the delivery of policy advice and high quality accessible social, health and child support services and other payments; and support providers and businesses through convenient and efficient service delivery. / Australian Hearing
Managing Director:
Mr Bill Davidson

Portfolio overview

Entity resources and
planned performance

Department of Human Services...... 9

Portfolio overview

Department of Human Services

Entity resources and planned performance

Portfolio overview

Department of Human Services

Section 1: Entity overview and resources

1.1Strategic direction statement

1.2Entity resource statement

1.3Budget measures

Section 2: Outcomes and planned performance

2.1 Budgeted expenses and performance for Outcome 1

Section 3: Budgeted financial statements

3.1Budgeted financial statements

3.2Budgeted financial statements tables

DHS Budget Statements

Department of Human Services

Section 1: Entity overview and resources

1.1Strategic directionstatement

The department delivers payments and associated services on behalf of partner agencies, and provides related advice to government on social welfare, health and child support service delivery policy.

The department delivers payments to the community on behalf of the Australian Government either directly via face-to-face and telephone or through digital channels. A key aim of the department is to deliver digital services that support individuals, families and communities to be self-sufficient and manage their own affairs.

The contribution of the department to the government’s agenda is reflected in its Outcome Statement which is to:

Support individuals, families and communities to achieve greater self-sufficiency; through the delivery of policy advice and high quality accessible social, health and child support services and other payments; and support providers and businesses through convenient and efficient service delivery.

To shape more effective and efficient service delivery, the department plays an active role in developing new approaches to social and health related policy with our partner agencies. The department also builds on its foundation of service excellence to the Australian community, through close collaboration with the community and third parties.

The department is the face of government to the majority of Australians and underpins the Commonwealth’s relationship with its people – as children and parents; as patients and carers; in study, in work and in retirement.

The department provides support to Australians facing financial hardship or structural adjustment and works with them through every stage of their lives.

The department’s mission is ‘connecting Australians to the services they need’. The department’s priorities include the following:

Transforming and simplifyingthe department’s ICT environment to supportsecure digital access to our services when people need it and to enable rapid, flexible responses to the government’s digital transformation agenda
Making the delivery of services and regulatoryfunctions as efficient as possible, including reducingred tape, while providing effective government andrecipient outcomes
Seeking opportunities to enhance efficiencies andincrease service effectiveness by partnering withindustry and not-for-profit organisations
Working closely with partner agencies to shape thedevelopment and delivery of joined-up government services
Designing and developing new, innovative and effective service approaches that encourage responsibility and enable self-sufficiency, while identifying and supporting those most in need.

1.2Entity resource statement

Table 1.1 shows the total funding from all sources available to the entity for its operations and to deliver programs and services on behalf of the Government.

The table summarises how resources will be applied by outcome (government strategic policy objectives)and by administered (on behalf of the Government or the public) and departmental (for the entity’s operations) classification.

For more detailed information on special accounts and special appropriations, please refer to Budget Paper No. 4 – Agency Resourcing.

Information in this table is presented on a resourcing (that is,appropriations/cash available) basis, whilst the ‘Budgeted expenses by Outcome’ tables in Section 2 and the financial statements in Section 3 are presented on an accrual basis.

Table 1.1: Department of Human Services resource statement — Budget estimates for 2017-18 as at Budget May 2017

2016-17
Estimated
actual
$'000 / 2017-18
Budget
Estimate
$'000
Departmental
Annual appropriations - ordinary annual services (a)
Prior year appropriations available (b) / 957,518 / 898,204
Departmental appropriation (c) / 4,283,013 / 4,486,514
s 74 retained revenue receipts (d) / 266,038 / 263,821
Departmental capital budget (e) / 139,675 / 188,996
Annual appropriations - other services - non-operating (f)
Prior year appropriations available (b) / - / 179
Equity injection / 138,421 / 161,904
Total departmental resourcing / 5,784,665 / 5,999,618
Administered
Annual appropriations - ordinary annual services (a)
Prior year appropriations available (b) / 2,240 / 2,240
Outcome 1 (g) / 1,565 / 1,566
s 74 retained revenue receipts (h) / 1,534 / 1,566
Total administered annual appropriations / 5,339 / 5,372
Total administered special appropriations (i) (j) / 57,172 / 58,343
Special accounts (j) (k)
Opening balance / 61,517 / 61,517
Appropriation receipts (l) / 58,706 / 59,909
Non-appropriation receipts to special accounts (m) / 1,394,865 / 1,423,431
Total special account receipts / 1,515,088 / 1,544,857
less administered appropriations drawn from annual/special appropriations and credited to special accounts (l) / 58,706 / 59,909
Total administered resourcing / 1,518,893 / 1,548,663
Total resourcing for Department of Human Services / 7,303,558 / 7,548,281
2016-17 / 2017-18
Average staffing level (number) / 29,835 / 28,647

Prepared on a resourcing (that is, appropriations available) basis.

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

(a)Appropriation Bill (No.1) 2017-18.

(b)The 2016-17 and 2017-18 prior year appropriations available exclude $15.5millionsubject to quarantine by Department of Finance under section 51 of the PGPA Act.

(c)Excludes departmental capital budget (DCB).

(d)Estimated retained revenue receipts under section 74 of the PGPA Act.

(e)Departmental capital budgets are not separately identified in Appropriation Bill (No.1) and form part of ordinary annual services items. Please refer to Table 3.5 for further details. For accounting purposes, this amount has been designated as a 'contribution by owner’.

(f)Appropriation Bill (No.2) 2017-18.

(g)Appropriation Bill (No.1) 2017-18 provides funding for operating expenses only. The department does not have an administered capital budget.

(h)Administered repayments received by the department.

Table 1.1: Department of Human Services resource statement — Budget estimates for 2017-18 as at Budget May 2017 (continued)

(i)Special appropriations under the Child Support (Registration and Collection) Act 1988 provide temporary funding to cover unremitted deductions and unexplained remittances until deductions have been received and unexplained remittances have been attributed to the relevant paying parent.

(j)For further information on special appropriations and special accounts, please refer to Budget Paper No.4 Agency Resourcing.

(k)Excludes '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).

(l)Amounts credited to special accounts from annual administered appropriations and special appropriations relating to Child Support. Please also see Table 2.1.1 for further information on outcome and program expenses broken down by various funding sources, for example, annual appropriations, special appropriations and special accounts.

(m)Non-appropriation receipts mainly comprise receipts from non-custodial parents through the Child Support special account.

Table 1.1: Department of Human Services resource statement — Budget estimates for 2017-18 as at Budget May 2017 (continued)

Third party payments from and on behalf of other entities

2016-17
Estimated
actual
$'000 / 2017-18
Budget
Estimate
$'000
Payments made on behalf of other entities
(as disclosed in the respective entity's resource statement)
Attorney-General's Department
Special appropriation - Social Security (Administration) Act 1999
- Australian Victim of Terrorism Overseas Payment / 1,095 / 1,595
- Disaster Recovery Allowance / 14,712 / 191
- Disaster Recovery Payment / 78,047 / 955
Annual appropriation - Ex gratia assistance - New Zealand citizens / 873 / 120
Total / 94,727 / 2,861
Department of Agriculture and Water Resources
Special appropriation - Farm Household Support Act 2014 s 105
- payments for Farm Household Allowance and Exceptional
circumstances relief payments / 78,389 / 36,607
Total / 78,389 / 36,607
Department of Defence
Annual appropriation - Closure of Hunter River and Port Stephens
Fisheries - Assistance to individuals and Businesses / 2,156 / -
Total / 2,156 / -
Department of Education and Training
Special appropriation - A New Tax System (Family Assistance)
(Administration) Act 1999 / 1,447,249 / 1,466,752
Total / 1,447,249 / 1,466,752
Department of Employment
Annual appropriation - Job Commitment Bonus / 15,486 / -
Total / 15,486 / -
Department of Health
Special appropriation - Health Insurance Act 1973 - Medical Benefits / 22,092,457 / 22,897,861
Special appropriation - National Health Act 1953 - Pharmaceutical
Benefits / 11,297,940 / 11,950,710
Special appropriation - Private Health Insurance Act 2007 / 6,054,635 / 6,175,728
Special appropriation - Dental Benefits Act 2008 / 331,860 / 346,039
Special appropriation - National Health Act 1953 - Aids and
Appliances / 354,493 / 353,784
Special appropriation - Medical Indemnity Agreement Act 2002 / 91,800 / 96,900
Special Account - Australian Childhood Immunisation Register / 9,650 / 9,820
Special appropriation - Midwife Professional Indemnity
(Commonwealth Contribution) Scheme Act 2010 / 6,870 / 4,061
Special appropriation - Aged Care Act 1997 / 13,043,790 / 13,868,620
Special appropriation - National Health Act 1953 - Continence Aids
Assistance Scheme / 85,291 / 86,792
Ordinary annual Services - Hearing Services / 442,669 / 445,138
Total / 53,811,455 / 56,235,453

Table 1.1: Department of Human Services resource statement — Budget estimates for 2017-18 as at Budget May 2017 (continued)

Third party payments from and on behalf of other entities (continued)

2016-17
Estimated
actual
$'000 / 2017-18
Budget
Estimate
$'000
Department of Immigration and Border Protection
Annual appropriation - Asylum Seeker Support / 245,831 / 191,138
Total / 245,831 / 191,138
Department of Infrastructure and Regional Development
Annual appropriation - Tasmanian Freight Equalisation Scheme / 170,595 / 171,609
Annual appropriation - Bass Strait Passenger Vehicle Equalisation
Scheme / 47,773 / 46,681
Total / 218,368 / 218,290
Department of Social Services
Special appropriation - Social Security (Administration) Act 1999 / 90,230,497 / 91,887,360
Special appropriation - A New Tax System (Family Assistance)
(Administration) Act 1999 / 20,379,176 / 19,499,677
Special appropriation - Paid Parental Leave Act 2010 / 2,172,680 / 2,239,894
Special appropriation - Student Assistance Act 1973 / 351,054 / 350,336
Annual Administered Appropriations / 7,660 / 7,476
Total / 113,141,067 / 113,984,743
Department of Veterans' Affairs
Special appropriation - Veterans’ Entitlements Act 1986
and related acts / 3,492,278 / 3,422,952
Special appropriation - Military Rehabilitation and Compensation
Act 2004 / 51,331 / 60,529
Special appropriation - Safety, Rehabilitation and Compensation
Act 1988 / 12,668 / 12,375
Special appropriation - Australian Participants in British Nuclear
Tests (Treatment) Act 2006 / 358 / 377
Total / 3,556,635 / 3,496,233
Total Payments made on behalf of other entities / 172,611,363 / 175,632,077

Table 1.1: Department of Human Services resource statement — Budget estimates for 2017-18 as at Budget May 2017 (continued)