Part C: Agency Additional Estimates Statements — Agency name
PortfolioAdditional
Estimates Statements 2015-16
Social ServicesPortfolio
(Department of Human Services)
Explanations of Additional Estimates 2015-16
______
Parliament House, CANBERRA ACT 2600
The Hon Stuart Robert MP
Minister for Veterans’ Affairs
Minister for Human Services
Minister Assisting the Prime Minister for the Centenary of ANZAC
© Commonwealth of Australia 2016
ISBN 978 1 76044 124 1
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______
Parliament House, CANBERRA ACT 2600
The Hon Stuart Robert MP
Minister for Veterans’ Affairs
Minister for Human Services
Minister Assisting the Prime Minister for the Centenary of ANZAC
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
2015-16Additional Estimates 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 funding being sought for the Department.
I present these statements by virtue of my ministerial responsibility for accountability to the Parliament and, through it, the public.
Yours sincerely
Signed
Stuart Robert
______
Parliament House, CANBERRA ACT 2600
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
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 contact:
Mr 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 Estimates Statements) can be located on the Australian Government Budget website at
1
User guide
to the
Portfolio Additional
Estimates Statements
1
User Guide
The purpose of the 2015-16 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 entities within the portfolio. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES include 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 nonfinancial planned performance of programmes supporting those outcomes.
The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4)2015-16. 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 MidYear Economic and Fiscal Outlook(MYEFO) 2015-16 is a midyear 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.
Structure of the Portfolio Additional Estimates Statements
The PAES are presented in three parts with subsections.
User guideProvides 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.
EntityAdditional 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 ofAppropriation Bills Nos. 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 entityprogrammes.
Section 3: Explanatory tables and budgeted financial statements / This section contains updated explanatory tables on special account flows and staffing levels and revisions to the budgeted financial statements.
Portfolio glossary / Explains key terms relevant to the Portfolio.
Contents
Portfolio overview...... 1
Entity additional estimates statements...... 7
Portfolio glossary...... 55
1
Portfolio overview
1
Portfolio Overview
Department of Human Services
Portfoliooverview
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 Stuart Robert MP, Minister for Human Services
•Senator the Hon ConcettaFierravanti-Wells, Assistant Minister for Multicultural Affairs
•The Hon Alan Tudge MP, Assistant Minister for Social Services.
The Department of Human Services (the department) is part of the Social Services portfolio. Details of the Social Services portfolio appear in Portfolio Additional Estimates Statements 2015–16 Social Services Portfolio.
Department of Human Services
The department is responsible for providing advice to government on design, development, delivery, co-ordination and monitoring of government services. It is subject to the Public Governance, Performance and Accountability Act 2013 (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 disabilities, Aboriginal and Torres Strait Islander people, 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.
•Medicare services and payments that support the health of Australians such as Medicare, the Pharmaceutical Benefits Scheme, eHealth, Private Health Insurance Rebate, the Australian Childhood Immunisation Register, the National Bowel Cancer Screening Register and the Australian Organ Donor Register.
•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.
Machinery of government changes in the Administrative Arrangements Order dated 30September 2015 resulted in the transfer of the Medicare Provider compliance function to the Department of Health. This also involved the transfer of $34.1 million in 2015–16 appropriations and $8.8 million in prior year appropriations,effective from 11November 2015.
Additional appropriation of$66.7million isbeing sought through Appropriation Bill (No. 3) 2015–16and $10.1 million isbeing sought through Appropriation Bill (No. 4) 2015–16 as a result of new measures and variations.
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 PB Statements or PAES. 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 Services portfolio structure and outcomesMinister for Social Services
The Hon Christian Porter MP
Minister for Human Services
The Hon Stuart Robert MP
Department of Human Services
Secretary: Ms Kathryn Campbell CSC
Outcome 1: Support individuals, families and communities to achieve greater selfsufficiency; 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.
Portfolio resources
Table 1 shows those entities reporting in the PAESand the additional resourcesto be provided to the portfolio in the 2015-16 budget year, by entity.
Table 1: Portfolio Resources (2015-16 Additional Estimates)
AppropriationBillNo.3
$m / Appropriation
BillNo.4
$m / Special
appropriation
$m / Receipts
$m / Total
$m
DepartmentofSocialServices(a)(c)
Administeredappropriations / 95.7 / - / (14,568.6) / - / (14,472.9)
Departmentalappropriations / 6.7 / - / - / - / 6.7
Total: / 102.4 / - / (14,568.6) / - / (14,466.2)
DepartmentofHumanServices(a)
Administeredappropriations / - / - / (..) / (0.3) / (0.3)
Departmentalappropriations / 66.7 / 10.1 / - / 37.3 / 114.1
Total: / 66.7 / 10.1 / (..) / 37.0 / 113.8
NationalDisabilityInsuranceAgency(b)(c)
Administeredappropriations / 108.3 / - / - / - / 108.3
Departmentalappropriations / - / - / - / - / -
Total: / 108.3 / - / - / - / 108.3
Portfoliototal / 277.4 / 10.1 / (14,568.6) / 37.0 / (14,244.1)
Lessamountstransferredwithinportfolio / - / - / - / 4.7 / 4.7
Additionalresourcesfortheportfolio: / (14,248.8)
(a)Additional resourcing excludes the balance of unspent prior year appropriations or special account balances carried forward from 2014-15.
(b)Funding under Appropriation Act (No.1) 2015-16 and Appropriation Bill (No.3) 2015-16 is appropriated to the Department of Social Services (DSS) and then paid to the National Disability Insurance Agency (NDIA). All appropriations paid to the NDIA are considered to be departmental for all purposes. Budgetary reporting by the NDIA will in part be reported as departmental and administered to reflect the administered nature of the funds’ purpose.
(c)DHS is administered separately to DSS. Details of the allocation of additional estimates for these entities are reported in Portfolio Additional Estimates 2015-16 Social Services Portfolio.
1
Entityadditional estimates statements
Department of Human Services...... 9
1
Department of Human Services
Section 1: Entityoverview and resources...... 11
1.1 Strategicdirection statement...... 11
1.2 Entityresource statement...... 11
1.3 Entity Measures...... 17
1.4 Additional estimates and variations...... 20
1.5 Breakdown of additional estimates by appropriation bill...... 24
Section 2: Revisions to outcomes and planned performance...... 26
2.1 Outcomes and performance information...... 26
Section 3: Explanatory tables and budgeted financial statements...... 37
3.1 Explanatory tables...... 37
3.2 Budgeted financial statements...... 39
1
Entity Additional Estimates Statements — Department of Human Services
Department of Human Services
Section 1: Entityoverview and resources
1.1Strategic direction statement
There have been no changes to the strategic direction statement since the publication of the 2015–16 PB Statements.
For full details refer to pages 13-14 of the Portfolio Budget Statements 2015–16, Budget Related Paper No. 1.15B, Social Services Portfolio (Department of Human Services).
1.2Entityresource statement
The Entity Resource Statement details the resourcing for the Department of Human Services at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 201516 Budget year, including variations through Appropriation Bill Nos.3 andNo.4,special appropriations and special accounts.
Table 1.1: Department of Human Services resource statement — Additional Estimates for 2015-16 as at Additional Estimates February2016
Totalavailableappropriation
2014-15
$'000 / Estimate as
at Budget
2015-16
$'000 / Proposed
Additional
Estimates
2015-16
$'000 / Total
estimate
at Additional
Estimates
2015-16
$'000
Ordinary annual services (a)
Departmental appropriation
Prior year departmental appropriation (b) / 852,297 / 962,574 / - / 962,574
Departmental appropriation (c) / 4,279,270 / 4,416,647 / 66,671 / 4,483,318
Less s75 transfer (d) / (8,814) / (34,104) / - / (34,104)
s74 retained revenue receipts (e) / 258,077 / 141,419 / 37,292 / 178,711
Total / 5,380,830 / 5,486,536 / 103,963 / 5,590,499
Administered expenses
Prior year administered appropriation (b) / 508 / 2,930 / - / 2,930
s74 retained receipts (f) / 1,396 / 2,252 / - / 2,252
Outcome 1 (g) / 8,386 / 2,252 / - / 2,252
Total / 10,290 / 7,434 / - / 7,434
Total ordinary annual services [A] / 5,391,120 / 5,493,970 / 103,963 / 5,597,933
Other services (h)
Departmental non-operating
Prior year departmental appropriation (b) / - / 321 / - / 321
Equity injections / 20,442 / 37,548 / 10,090 / 47,638
Total / 20,442 / 37,869 / 10,090 / 47,959
Total other services [B] / 20,442 / 37,869 / 10,090 / 47,959
Total available annual appropriations / 5,411,562 / 5,531,839 / 114,053 / 5,645,892
Special appropriations
Special appropriations limited by
criteria/entitlement
Child Support (Registration and
Collection) Act 1988: (i)
s77 - unremitted deductions / 58,583 / 59,627 / (2) / 59,625
s78 - unexplained remittances / - / 50 / - / 50
Total special appropriations [C] / 58,583 / 59,677 / (2) / 59,675
Total appropriations excluding Special
Accounts / 5,470,145 / 5,591,516 / 114,051 / 5,705,567
Special Accounts
Opening balance (j) / 57,552 / 54,685 / - / 54,685
Appropriation receipts (k) / 60,013 / 61,929 / (2) / 61,927
Non-appropriation receipts to
Special accounts (l) / 1,345,338 / 1,421,532 / (300) / 1,421,232
Total Special Account [D] / 1,462,903 / 1,538,146 / (302) / 1,537,844
Total resourcing [A+B+C+D] / 6,933,048 / 7,129,662 / 113,749 / 7,243,411
Less appropriations drawn from
annual or special appropriations above
and credited to special accounts (k) / (60,013) / (61,929) / 2 / (61,927)
Total net resourcing for the
Department of Human Services / 6,873,035 / 7,067,733 / 113,751 / 7,181,484
Table 1.1: Department of Human Services Resource Statement — Additional Estimates for 2015-16 as at Additional Estimates February2016(continued)
(a)Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16.
(b)The ’Estimate as at Budget’ has been updated to reflect the actual balance carried forward from the previous year for annual appropriations.
(c)Departmental appropriation in 2015-16 includes an amount of$196.1million for the Departmental Capital Budget. The actual for 2014-15 includes an amount of $196.9million for the Departmental Capital Budget. (Refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
(d)Since the 2015-16 Budget, the department has transferred an amount of $34.1 million from 2015-16 appropriation to the Department of Health under a section 75 determination due to machinery of government changes, with effect from 11November 2015. This comprised $33.8 million for operating revenue and $0.3 million in Departmental Capital Budget funding. (Refer Public Governance, Performance and Accountability (Section75 Transfers) Amendment Determination 2015-2016 (No. 2).A further $8.8 million was transferred from 2014-15 operating revenue appropriation. (Refer Public Governance, Performance and Accountability (Section 75 Transfers) Amendment Determination 2014-2015 (No. 4).
(e)Estimated retained revenue receipts under section 74 of the PGPA Act 2013.
(f)Administered repayments received by the department. This amount was not previously disclosed in the 2015-16 PB Statement.
(g)The Department of Human Services does not have an Administered Capital Budget for 2015-16.
(h)Appropriation Act (No. 2) 2015-16 and Appropriation Bill (No. 4) 2015-16.
(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)The ’Estimate as at Budget’ has been updated to reflect the actual special account balance carried forward from the previous year.
(k)Includes appropriation receipts from the Department of Human Services annual administeredappropriation relating to Child Support payments and special appropriation for 2015-16 included above.
(l)Non-appropriation receipts mainly comprise receipts from non-custodial parents through the Child Support Account.
Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.
Table 1.1: Department of Human Servicesresource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016(continued)
Third party paymentson behalf of and receipts from other entities
Estimate atBudget
2015-16
$'000 / Estimate at
Additional
Estimates
2015-16
$'000
Payments made on behalf of other entities
(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 / 1,485 / 1,485
- Disaster Recovery Allowance / 340 / 1,045
- Disaster Recovery Payment / 11,600 / 15,641
Annual Appropriation - Ex gratia assistance - New Zealand citizens / - / 46
Total / 13,425 / 18,217
Department of Agriculture and Water Resources
Special Appropriation - Farm Household Support Act 2014 s.105
- payments for Farm Household Allowance / 117,430 / 79,211
Total / 117,430 / 79,211
Department of Defence
Annual Appropriation - Closure of Hunter River and Port Stephens
Fisheries - Assistance to individuals and Businesses / - / 2,568
Total / - / 2,568
Department of Education and Training
Special Appropriation - A New Tax System (Family Assistance)
(Administration) Act 1999 (a) / - / 1,562,906
Total / - / 1,562,906
Department of Employment
Annual Appropriation - Job Commitment Bonus / 32,870 / 34,219
Total / 32,870 / 34,219
Department of Health
Special Appropriation - Health Insurance Act 1973 - Medical Benefits / 21,126,958 / 21,220,333
Special Appropriation - National Health Act 1953
- Pharmaceutical Benefits / 9,770,425 / 9,457,149
Special Appropriation - Private Health Insurance Act 2007 / 6,122,000 / 5,953,427
Special Appropriation - Dental Benefits Act 2008 / 605,451 / 605,765
Special Appropriation - National Health Act 1953
- Aids and Appliances / 346,427 / 346,427
Special Appropriation - Medical Indemnity Agreement Act 2002 / 82,495 / 82,495
Special Account - Australian Childhood Immunisation
Register / 9,563 / 9,563
Special Appropriation - Midwife Professional Indemnity
(Commonwealth Contribution) Scheme Act 2010 / 1,508 / 1,508
Special Appropriation - Aged Care Act 1997 (b) / - / 8,798,434
Special Appropriation - National Health Act 1953– Continence
Aids Assistance Scheme (b) / - / 35,884
Total / 38,064,827 / 46,510,985
Table 1.1: Department of Human Services resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued)
Third party payments on behalf of and receipts from other entities (continued)
Estimate atBudget
2015-16
$'000 / Estimate at
Additional
Estimates
2015-16
$'000
Payments made on behalf of other entities (continued)
Department of Immigration and Border Protection
Annual appropriation - Asylum Seeker Support / - / 300,000
Total / - / 300,000
Department of Infrastructure and Regional Development
Annual Appropriation - Tasmanian Freight Equalisation Scheme / 141,950 / 141,950
Annual Appropriation - Bass Strait Passenger Vehicle Equalisation
Scheme / 42,000 / 42,000
Total / 183,950 / 183,950
Department of Social Services
Special Appropriation - Social Security (Administration) Act 1999 / 90,936,706 / 90,183,527
Special Appropriation - A New Tax System (Family Assistance)
(Administration) Act 1999 (a) / 22,949,829 / 21,793,988
Special Appropriation - Aged Care Act 1997 (b) / 11,547,461 / 2,945,528
Special Appropriation - Paid Parental Leave Act 2010 / 2,063,118 / 2,059,356
Special Appropriation - Student Assistance Act 1973 / 347,679 / 350,718
Special Appropriation - National Health Act 1953 - Continence
Aids Assistance Scheme (b) / 99,513 / 63,623
Annual Appropriation - Ex Gratia and Act of Grace Payments / 3,769 / 3,769
Annual Appropriation - Compensation and Debt Relief / 198 / 198
Total / 127,948,273 / 117,400,707
Department of Veterans' Affairs
Special Appropriation - Veterans’ Entitlements Act 1986
and related acts / 3,870,534 / 3,833,294
Special Appropriation - Military Rehabilitation and Compensation
Act 2004 / 41,064 / 43,807
Special Appropriation - Safety, Rehabilitation and Compensation
Act 1988 / 18,701 / 14,891
Special Appropriation - Australian Participants in British Nuclear
Tests (Treatment) Act 2006 / 420 / 360
Total / 3,930,719 / 3,892,352
National Disability Insurance Agency
Annual Appropriation - National Disability Insurance Scheme payments to providers for reasonable and necessary care and support for participants / - / 125
Total / - / 125
Total third party payments / 170,291,494 / 169,985,240
(a)Responsibility for child care benefit, child care rebate, child care services and registered carers transferred from the Department of Social Services to the Department of Education and Training as a result of the Administrative Arrangements order dated 21 September 2015.