annual report 2015–16annual report 2015–16 about this report this report describes the...

Annual Report 2015–16

About this reportThis report describes the operations and performance of the Department of Social Services during 2015–16. This report was prepared to meet legislated reporting requirements.

How to use this report

Part 1 introduces DSS with a description of our Department and its portfolio

Part 2 contains our annual performance statement for 2015–16

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

Part 4 contains our audited financial statements for 2015–16

Part 5 provides additional information and includes an index of requirements and where to find this information in the report

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Contents

Part One Overview 7Chapter 1.1 Our Department 8

Chapter 1.2 The portfolio 18

Letter of transmittal vi

Secretary’s review 1

Part Two Annual performance statement 21 Introduction 22

Chapter 2.1 Purpose 1 — Social Security 25

Chapter 2.2 Purpose 2 — Families and Communities 67

Chapter 2.3 Former Purpose 3 — Ageing and Aged Care 82

Chapter 2.4 Purpose 4 — Housing 83

Chapter 2.5 Purpose 5 — Disability and Carers 88

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Part Three Management and accountability 103Chapter 3.1 Our governance structure 104

Chapter 3.2 External scrutiny 117

Chapter 3.3 Managing our people 123

Chapter 3.4 Managing our finances 129

Part Four Financial statements 133DSS financial statements 136

Appendixes 205Appendix A Changes in our Department during 2015–16 206

Appendix B Resource statements 208

Appendix C Family Tax Benefit reconciliation data 222

Appendix D Changes to disability reporting 227

Appendix E Compliance with the Carer Recognition Act 228

Appendix F Fraud Control Certificate 230

Appendix G Staffing statistics 231

Appendix H Work Health and Safety 236

Appendix I Advertising and market research 237

Appendix J Ecologically sustainable development and environmental performance 240

Appendix K Glossary of abbreviations and acronyms 244

Indexes 247Compliance index 248

Index of figures and tables 253

Alphabetical index 258

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Figure 0.1: Department of Social Services outcome and program structure, as at 30 June 2015

Programs

» Families and Communities

» Paid Parental Leave

» Social and Community Services

» Program Support for Outcome 2

Social Security

Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system.

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

» Cross-program: Rent Assistance


Chapter 2.1

Page 25

Chapter 2.2

Page 67

Families & Communities

Stronger families and more resilient communities by developing civil society and by providing family and community services.

1 2

v

Programs

» Housing and Homelessness

» Affordable Housing


Chapter 2.4

Page 83

Chapter 2.3

Page 82

Chapter 2.5

Page 88

Housing

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

Disability & Carers

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


43 5

Programs


Ageing & Aged Care

Improved wellbeing for older Australians through targeted support, access to quality care and related information services.

vi

Finn Pratt AO PSM Secretary

The Hon Christian Porter MP Minister for Social Services Parliament House Canberra ACT 2600

Dear Minister

It is my pleasure to present to you the Annual Report of the Department of Social Services for the financial year 2015–16.

This report has been prepared in accordance with:

• section 63 of the Public Service Act 1999 • section 46 of the Public Governance, Performance and Accountability Act 2013 • the Public Governance, Performance and Accountability Rule 2014, as approved by the Joint Committee of Public Accounts and Audit on 2 May 2016.

The report meets my reporting requirements under the child support scheme, the social security law and the family assistance law.

Yours sincerely

Finn Pratt

20 September 2016

GPO Box 9820 Canberra, ACT 2601 Email [email protected] • Facsimile 02 6293 9692 • Telephone 02 6146 0010

National Relay Service: TTY – 133 677, Speak and listen – 1300 555 727, Internet relay – www.relayservice.com.au www.dss.gov.au

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I am pleased to present the Department of Social Services Annual Report 2015–16. It celebrates our achievements and showcases the broad range of activities we conduct every day to improve the lifetime wellbeing of people and families in Australia.

We provide assistance to those Australians who need it most – the elderly, the sick, those with disability, and people living in remote and regional areas. Our policies and programs make a meaningful difference and help millions of Australians through the course of their lives.

We have welcomed a new Minister, the Hon Christian Porter MP and new Assistant Ministers, the Hon Craig Laundy MP and the Hon Jane Prentice MP.

We have made significant progress in addressing violence against women under the National Plan to Reduce Violence against Women and their Children 2010–2020 and implemented critical measures as part of the Prime Minister’s Women’s Safety Package.

We have continued to support the rollout of the National Disability Insurance Scheme (NDIS) and made substantial progress to address the ongoing challenges for people with disability to access mainstream work.

In this year’s Annual Report we look at our performance and compare it against our stated purpose and objectives. This allows us to look at what we do and track how well we are doing it.

Secretary’s review

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Some of our other significant achievements include:

Implementing an investment approachIn the past year, we have continued to develop the Australian Priority Investment Approach to Welfare. This approach allows us to invest in people early and direct funding to where it will be of the most benefit.

The welfare system must be well-targeted to those who need help the most.

Rollout of the National Disability Insurance SchemeOn 1 July 2016, the National Disability Insurance Scheme began its transition to full scheme, building on lessons learned in trial sites and early transition areas. The Scheme is being introduced in stages over at least three years, and start dates differ depending on where you live and how old you are. We negotiated bilateral agreements in 2015–16 to confirm the NDIS start dates and details for every state and territory except Western Australia. We aim to agree the transition approach for WA during the coming financial year.

In this past year, we have laid the policy foundation for a National Quality and Safeguarding Framework, which will apply at full scheme. Existing state and Commonwealth protections will remain operational in the meantime, delivering the safe environment and quality services that NDIS participants deserve. We also reached agreement with state and territory governments on a Specialist Disability Accommodation Pricing Framework.

More than 35,000 people with disability are already being assisted by the NDIS, enjoying the choice, control and lifetime support that makes the NDIS so different from the ad hoc disability system it replaces. At full scheme, that number will climb to around 460,000 people across Australia.

Increasing immunisation ratesThe Government introduced the No Jab, No Pay measure to reinforce the importance of immunisation for children of all ages and protect public health. We are beginning to see the positive effects of this measure with national immunisation rates increasing for one, two and five year olds. Coverage rates are getting closer to an immunity level of 95 per cent, with one and five year olds now reaching 93 per cent for the first time.

National immunisation rates increased

reached 93 per cent immunity

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No Jab, No Pay is a significant example of how welfare conditionality is a useful tool for improving social and health outcomes.

Assisting humanitarian refugee settlementWe are responsible for providing settlement services to humanitarian refugees when they arrive in Australia. Our goal is to implement effective settlement services, with a particular focus on enhancing social integration and to better assist people in their transition to a self-reliant life in Australia.

In 2015–16, we helped 10,961 humanitarian refugees settle in Australia and we will continue to settle an additional 12,000 refugees fleeing the conflict in Syria and Iraq, as announced by the Government in September 2015.

were assisted under the Humanitarian Settlement Services program in 2015–16

people 10,961

Trialling new approaches to reduce social harmIn an effort to reduce the proportion of welfare payments spent on drinking, gambling and drugs, we introduced the Cashless Debit Card trial in two regions in late 2015–16.

We have worked closely with local community leaders to introduce the trial in the Ceduna region of South Australia and the East Kimberley regions of Kununurra and Wyndham in the East Kimberley region of Western Australia.

The trial will help determine if limiting the proportion of welfare payments available to be spent on drinking, gambling and drugs will reduce social harm in communities with high welfare dependence.

The Government has also invested in additional support to complement existing alcohol and drug rehabilitation services available in and around the two trial regions.

4

Improving access to information on disability support servicesAccessing mainstream employment opportunities remains a challenge for people with disability. A new JobAccess service, introduced in the 2015–16 Budget, aims to ensure relevant information about disability employment opportunities is available to jobseekers.

It brought together the National Disability Recruitment Coordinator, the JobAccess telephone and web service, the National Disability Abuse and Neglect Hotline, and the Complaints Resolution and Referral Service.

Financial managementWe are responsible for around one-quarter of the Australian Government Budget. This financial year, we managed a budget of $120.9 billion. This consisted of $120.3 billion in administered appropriations and $0.6 billion in departmental appropriations.

Our strong financial and resource management resulted in a small surplus attributable to our Department.

Looking forwardDuring 2015–16, we continued to develop and deliver policies and programs that improve the lifetime wellbeing of people and families in Australia.

Our focus for 2016–17 includes:

» Reducing long-term welfare dependency

We will further develop and implement the Australian Priority Investment Approach to Welfare.

We will develop and implement the Try, Test and Learn Fund. This will allow the Government to experiment with different policies – those that work will either continue or be scaled up, and those that do not work will cease and resources will be redirected to other areas.

» Supporting people with disability and carers

We will continue to work with state and territory governments to support the transition to the national roll-out of the National Disability Insurance Scheme from 1 July 2016.

We will develop proposed reforms to Disability Employment Services to be introduced from March 2018.

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We will continue to implement the National Disability Strategy 2010–2020, specifically delivery of the strategy’s second implementation plan, Driving Action 2015–18, in 2016.

We will progress development of the Australian Government’s Integrated Plan for Carer Support Services.

» Tackling domestic violence

We will continue to strive to reduce the rates of domestic and family violence and sexual assault against women and their children through the National Plan to Reduce Violence against Women and their Children 2010–2022 and implementation of the Women’s Safety Package.

» Improving housing and homelessness services

We will develop a report for the Council of Australian Governments (COAG) on reforms to housing and homelessness services in the context of existing work on housing affordability. COAG will receive this report by the end of 2016.

» Streamlining the grants process

We will transition our Department and other government agencies to the Community Grants Hub, with the aim of simplifying and streamlining the grant experience for service providers, the community and government.

I am honoured to be heading a team of dedicated and professional staff who are all contributing to making DSS the pre-eminent social policy department in Australia.

Finn PrattSecretary, Department of Social Services

September 2016

19-year-old Tasmanian, Luke Sutcliffe.

How the National Disability Insurance Scheme is helping LukeThe National Disability Insurance Scheme (NDIS) has changed Luke Sutcliffe’s life.

Before starting with the NDIS, the 19-year-old Tasmanian, who has an intellectual disability and autism, found life difficult to navigate.

Now, with NDIS supports, Luke is volunteering in his local community, making new friends and learning new skills, including cooking for the dinner parties he likes to host.

He also finds helping out at the local Food Bank particularly fulfilling.

“I help provide food to older people who can’t afford it. It’s one of my favourite things to do,” he said.

Luke lives in a supported unit run by Mosaic Support Services where a team helps him to live independently.

Support Services Manager Michelle Bowerman says she is amazed at the difference in Luke since he started with the NDIS.

“Luke lacked confidence and was often hesitant to try new things,” she said.

“The NDIS is all about choice and control and, with choice and control over his own supports, Luke is a very different young man.”

“He’s enjoying greater social inclusion and learning skills as part of an individualised community access program to help him reach his goals, one of which is to get a job.”

“We couldn’t be happier with his progress.”

Transition to full-scheme NDIS commenced on 1 July 2016.

The Commonwealth, state and territory governments and the National Disability Insurance Agency will continue working together on transition to full scheme.

See Chapter 2.5, Program 5.2 for more information.

Overview

Chapter 1.1 Our Department 8

Chapter 1.2 The portfolio 18

Department of Social Services Annual Report 2015–2016

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1Chapter 1.1

Our DepartmentThe Department of Social Services is a critical source of social policy advice for the Australian Government. We work in partnership with other government and non-government organisations to ensure the effective development, management and delivery of policies, programs, and services focused on improving the lifetime wellbeing of people and families in Australia.

The Department of Social Services’ policies and services respond to people’s needs throughout their lives.

We fund services and payments that assist families, children and older people, provide a safety net for people 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 vision: We aspire to be Australia’s pre-eminent social policy agency.

Our mission: To improve the lifetime wellbeing of people and families in Australia.

What we aim to do:

» support people and families to participate economically and socially in Australian society

» enhance the independence and wellbeing of people with high needs

» foster a cohesive community and promote civil society

» provide a safety net for people who cannot fully support themselves.

How we do it:

» being responsive to our Ministers and Assistant Ministers

» delivering creative policy options and solutions for government

» ensuring rapid closure on issues

» working effectively as a team

» communicating concisely

» effectively managing our budget.

We are supported by:

» a capable, informed and adaptive workforce

» efficiently managed resources to address priorities

» strong governance and risk management.

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Part 1—Overview | Chapter 1.1: Our Department

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1OutcomesThe five portfolio outcomes, and their corresponding purposes are covered in more detail in Part 2 of this report.

Outcome 1: Social Security

Outcome 2: Families and Communities1

Outcome 3: Ageing and Aged Care2

Outcome 4: Housing

Outcome 5: Disability and Carers

Our Department is part of the Social Services Portfolio with the Department of Human Services (DHS), which is administered separately.

1 Responsibility for Outcome 2 Programs 2.4–2.7 transferred to the Department of Education and Training as a result of the Administrative Arrangements Order (AAO) of 21 September 2015.

2 Responsibility for Outcome 3 Programs 3.1–3.6 transferred to the Department of Health as a result of the AAO of 30 September 2015.

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1 DSS executiveOur Department is led by the Secretary and four deputy secretaries each overseeing a stream of work.

Finn Pratt AO PSM, Secretary

Finn Pratt has a public service career spanning more than 30 years and during this time he has driven major government priorities including a review of Australia’s welfare system and reforms in disability services.

Finn has been the Secretary of the Department of Social Services (DSS) since it was formed in September 2013. He is responsible for setting the strategic and corporate directions of our Department and portfolio, and provides senior policy advice to the portfolio Minister and Assistant Ministers.

He is the Chair of the Australia and New Zealand School of Government Board of Directors and is a member of the Jawun Board. He represents the Department on a variety of government, industry and business forums. Finn also chairs our Indigenous Reform Committee.

Finn was awarded a Public Service Medal in 2008 and in June 2015 became an Officer of the Order of Australia for distinguished service to public administration, to social policy development and government service delivery reform, and to care and support for people with disability, their families and carers.

Finn has a Bachelor of Arts degree from the Australian National University.

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1

Serena Wilson PSM, Deputy Secretary

Serena heads our Social Security stream, overseeing policy and management of social security payments to individuals as well as welfare reform across the whole social security system. She is also responsible for housing policy.

Serena is responsible for establishing our policy framework and strategy, creating a long term planning and performance culture, and promoting strong evidence based systems. She is also Chair of the Policy and Regulatory Reform Committee.

Serena was awarded a Public Service Medal in 2014 for services to public administration in social policy, including her work to establish the NDIS.

Serena has a Bachelor of Arts (Political Science) degree with honours from the University of Melbourne and a Graduate Diploma in Administrative Studies from the Chisholm Institute of Technology.

Barbara Bennett, Deputy Secretary

Barbara Bennett leads our Families and Communities Stream, which oversees policy development and programs in the areas of families, children, family safety, multicultural affairs and settlement services. Barbara is responsible for the Program Office which designs, manages and administers grants and administered procurement funding for the Department, and also supports the Government’s civil society agenda. Barbara also leads housing programs and homelessness policy and programs.

Barbara joined our Department as a deputy secretary in September 2013 and, before that, was a deputy secretary of the Department of Human Services (DHS). She chairs the Program and Delivery Board and is Deputy Chair of the Policy and Regulatory Reform Committee. She is the co-chair of the Infrastructure, Communication and Technology Committee.

Barbara has a Bachelor of Arts degree from the Australian National University.

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1

Michael Lye, Deputy Secretary

Michael Lye is Chief Operating Officer and the Deputy Secretary responsible for the Corporate and Delivery Stream.

Michael leads our delivery strategy and operations, project management, regulatory reform and finance functions. He also heads our legal, corporate services and information management and technology operations.

Michael chairs the People and Communications Committee, the Budget Committee, and he is the co-chair of the Infrastructure, Communication and Technology Committee. He is the Department’s Indigenous Champion, overseeing our efforts to increase employment of Indigenous Australians.

Michael has a Bachelor of Arts degree and a Master of Social Welfare Administration and Planning, both of which are from the University of Queensland.

Felicity Hand, Deputy Secretary

Felicity Hand has been our Deputy Secretary responsible for the Disabilities and Carers Stream since March 2014.

Previously she was a deputy secretary and the Chief Operating Officer of the former Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) until February 2012.

Felicity’s responsibilities include disability and carers, disability employment services, problem gambling, mental health and the National Disability Insurance Scheme (NDIS) Policy Taskforce.

She chairs the Audit and Assurance Committee and is also our Disability Champion.

Felicity has a Bachelor of Arts (Languages) degree from the University of Tasmania.

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1Figure 1.1.1: Our executive and streams of work


Deputy Secretary Barbara Bennett

Corporate & Delivery

Deputy Secretary & Chief Operating Officer

Michael Lye

Social SecurityDeputy Secretary

Serena Wilson

Disability & Carers

Deputy Secretary Felicity Hand

Secretary

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1

Cath Halbert(Ty Emerson A/g 06/06 – 07/07)

Payments Policy

Serena WilsonDeputy Secretary Social Security

Barbara BennettDeputy Secretary


Emma Kate McGuirk

Work & Study Payments

Russell de Burgh

Age, Disability & Carer

Payments Policy

Ty Emerson(Ian Byron A/g

06/06 – 07/07)Family Payments & Child Support

Policy

Paul McBride

Social Security Policy

Andrew Whitecross

Rates & Means Testing Policy

Mary McLartyEligibility

& Participation Policy

Murray Kimber

Social Security Performance &

Analysis

TBC

Housing Policy

Allyson Essex

Investment Approach Taskforce

Amanda Robertson

Welfare Payment Infrastructure

Transformation

Christine Bruce

Program Relationships

& Design

Stacey Pondes

Program Strategy

Tracy Creech (A/g)

Selections & Establishment

Mathew Johnston (A/g)

Program Systems

& Support

Greg Keen

WoG Grants Coordination

Phil Brown

Policy Strategy

Kathryn Mandla

Policy Systems

David Dennis

Policy Evidence

Ros Baxter

Families

Lara Purdy

Family Safety

Flora Carapellucci

Children’s Policy

Janet Stodulka

Family Policy & Programs

Tristan Reed (A/g)

Financial & Specialist Support

Stewart Thomas

Housing & Homelessness

Catherine Nelson (A/g)

NRAS & Gambling

Sean Innis

Policy OfficeEvan Lewis

Multicultural, Settlement Services &

Communities

Anne-Louise Dawes (A/g)

Multicultural & Communities

Kris Cala

Settlement Policy

Leo Kennedy

Settlement Support

Finn Pratt

Tim Reddel

Program Office

Figure 1.1.2: Organisational structure, as at 30 June 2016

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1

Michael LyeDeputy Secretary

Chief Operating Officer and Corporate & Delivery

Felicity HandDeputy Secretary Disability & Carers

Margaret McKinnon

NDIS Market Reform

James Christian

Disability, Employment

& Carers

Helen McDevitt

NDIS, Transition Oversight

Peter Qui

Information Management & Technology

Bruce Smith

Market Regulation (Quality &

Safeguards)

Alison Smith

Market Oversight

John Riley

Program Transition

Tracey Bell (A/g until 18 July)

Corporate Support

Diana Lindenmayer

Ministerial, Parliamentary & Executive

Support

Sharon Bailey

People

Paul Moger (A/g until 18

July)

Communication & Media

Ailsa Borwick

Project, Risk & Regulatory

Reform

Peter Broadhead

Disability Employment

Services

Sharon Stuart

Disability & Carer Policy

Lisbeth Kelly

(James Kemp A/g)Supported

Employment Policy, Access & Engagement

Helen Board

DES Quality & Assurance

Russell Ayres

Special Adviser, Mental Health

Janean Richards

Legal Services

Matthew Roper

Fraud & Public Law

Alan Grinsell-Jones

Commercial & Corporate Law

Jan Lawless

Assurance

Deborah Winkler

Governance & Stakeholder Relationships

Jillian Moses

Financial Policy &

Performance

Scott Dilley

Finance & Services

Stephen Sheehan

Financial Accounting

Helen Martin (A/g)

Financial Management

& Procurement

Tracey Carroll

Budget Development

Lyn Murphy

Property, Security & Business Continuity

Sebastian Hood

Corporate & Data Services

Watson Blaikie

Digital Business Solutions

Robert Michie (A/g)

IT Operations

Michael Gately

Client Services

Sharon McCarter

Application Delivery

Secretary

State & Territory Delivery Network

Chantelle Stratford

Service Delivery Strategy

Warren Pearson

Service Delivery (Central-West)

Carolyn Paterson (A/g)

Service Delivery (East)

Iain Scott

Housing Homelessness &

Assurance

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1 Our peopleOur Department delivers a diverse range of social policies and programs. In terms of both people and places, our reach is wide, extending to the most remote parts of Australia and, in the course of their lives, to most Australians.

While DSS operates across Australia, more than three-quarters of DSS employees are based in Canberra, ACT, in Tuggeranong and Woden.

National Office staff are engaged in a wide range of activities including policy development and implementation, program design, social policy research, and modelling and evaluation.

Our delivery network comprises departmental staff located within state, territory and regional offices throughout Australia. Around a fifth of our staff are based in the delivery network and are responsible for:

» the effective management of grants and administered procurement for services to Australians, reviewing service provider performance and resolving complaints

» working with state and local government, non-government organisations and the community sector to improve services to Australians

» sharing of local knowledge to inform program and policy development and regulatory practice.

The delivery network works with our national office to help deliver policy and program outcomes.

Our valuesOur values reflect those of the broader Australian Public Service and are central to the way we work with our Ministers, colleagues, stakeholders and the public. This includes being:

» Impartial: we are apolitical and provide the Government with advice that is frank, honest, timely and based on the best available evidence.

» Committed to service: we are professional, objective, innovative and efficient and work collaboratively to achieve the best results for the Australian community and the Government.

» Accountable: we are open and accountable to the Australian community under the law and within the framework of Ministerial responsibility.

» Respectful: we respect all people, including their rights and heritage.

» Ethical: we demonstrate leadership, are trustworthy, and act with integrity, in all that we do.

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1Figure 1.1.3: Our national presence, as at 30 June 2016

Townsville

Port AugustaHunter RegionDubbo

Mt Isa

Cairns

Perth

Adelaide

Melbourne

Hobart

CanberraSydney

Brisbane

Darwin

WA

Regional office

State/territory office

National office

Staff numbers in the national office

Total DSS staff

1,990

2,396VIC

NSW

QLD

TAS

NT

Staff numbers in our delivery network

SA

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1Chapter 1.2

The portfolioImproving lifetime wellbeingSocial policies and programs essential to the lifetime wellbeing of people and families in Australia are delivered by Commonwealth agencies and office holders in the Department of Social Services’ portfolio.

We work with other government and non-government organisations to develop, manage and deliver social policies and programs that support and improve wellbeing by encouraging people’s independence and participation.

Figure 1.2.1: Department of Social Services’ portfolio, as at 30 June 2016

Minister for Social Services

The Hon Christian Porter MP

Assistant Minister for Multicultural Affairs

The Hon Craig Laundy MP

Assistant Minister for Disability Services

The Hon Jane Prentice MP

Department of Social Services

Secretary Mr Finn Pratt AO PSM

Australian Institute of Family Studies

Director Ms Anne Hollonds

National Disability Insurance Agency

Chief Executive Officer Mr David Bowen

Department of State (non-corporate Commonwealth entity)

Ministers responsible for our portfolio

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

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Part 1—Overview | Chapter 1.2: The portfolio

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1Our Department

Department of Social Services (DSS)

Our Mission: Improve the lifetime wellbeing of people and families in Australia.

Our Department is a critical source of social policy advice for the Australian Government. We work in partnership with other government and non-government organisations, particularly with the Department of Human Services (DHS), to ensure the effective development, management and delivery of diverse policies, programs and services focused on improving the lifetime wellbeing of people and families in Australia.

www.dss.gov.au

Portfolio bodies

Australian Institute of Family Studies (AIFS)

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 researches and communicates information about factors that affect Australian families. It provides an evidence base for developing policy and best practice for the wellbeing of families in Australia.

www.aifs.gov.au

National Disability Insurance Agency (NDIA)

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 Agency implements the National Disability Insurance Scheme Act 2013 (NDIS Act). 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. The Agency 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.

www.ndis.gov.au

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When the Kujah family landed at Perth airport on 16 November 2015 they were the first to settle in Australia as part of our additional intake of 12,000 refugees fleeing the conflict in Syria and Iraq.

Bashar Kujah said his family was sad to leave relatives and friends in Syria but he looked forward to the opportunities Australia would bring to his five children.

“We had to remind ourselves every day that leaving was the only way we could secure a safer life for our children,” he said.

Bashar said their Humanitarian Settlement Services provider, Metropolitan Migrant Resource Centre, looked after his family from the moment they arrived at the airport.

“And since then we have worked with our case coordinator and staff from a number of organisations,” he said.

“They have helped us in our settlement journey including finding a house, helping the children enrol in school and learning English.”

Bashar attends Adult Migrant English Program classes in Mirrabooka. Once his English has improved, he is looking forward to having the opportunity to work.

His two eldest children are attending primary school and intensive English lessons. Their teachers have been giving them glowing reports.

The Humanitarian Settlement Services program manages the successful settlement of refugees from all over the world, in keeping with Australia’s long tradition of resettling refugees and vulnerable people in need.

In the past year, there has been a strong focus on supporting the additional intake of refugees who have been displaced by conflicts in Syria and Iraq and who have the least prospect of ever returning safely to their homes.

Bashar Kujah and family visiting a wildlife park in Perth.

Building a new life in Australia


Introduction 22

Chapter 2.1 Purpose 1 Social Security 25

Chapter 2.2 Purpose 2 Families and Communities 67

Chapter 2.3 Former Purpose 3 Ageing and Aged Care 82

Chapter 2.4 Purpose 4 Housing 83

Chapter 2.5 Purpose 5 Disability and Carers 88

Annual performance statement


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2

Department of Social ServicesIntroductory Statement

I, Finn Pratt, as the accountable authority of the Department of Social Services, present the 2015–16 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 (PGPA Act). In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the entity, and comply with subsection 39(2) of the PGPA Act.

Finn Pratt AO PSMSecretary

September 2016

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2

Part 2—Annual performance statement

Our 2015–16 annual performance statement provides a comprehensive overview of how we have performed throughout the past year and replaces the ‘performance report’ in previous Annual Reports. This is the first year we have prepared an annual performance statement as part of the requirements for compliance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

Our purposesOur four purposes reflect the core areas in which we seek to assist people1.

1 The former Purpose 3 was included in the first edition of the DSS Corporate Plan 2015–16 published in August 2015. This purpose related to ageing and aged care policy and programs. These functions were transferred to the Department of Health as a result of the Administrative Arrangements Order (AAO) of 30 September 2015. Further information on the impact of AAOs during 2015–16 is provided at Appendix A.

Social Security

Housing Disability & Carers


Financial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system.

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

Stronger families and more resilient communities by developing civil society and by providing family and community services.

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


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Our performanceOver the past year, we continued to respond to social and economic challenges that impact on opportunities for people and families to improve their wellbeing. Our focus has been ensuring the sustainability and responsiveness of the social welfare system, and working with states and territories to develop and implement strategies that improve long term outcomes for the most vulnerable. Our results include:

» ongoing and effective targeting of the social welfare system to those most unable to fully support themselves

» the release in December 2015 of the Third Action Plan 2015–18 for protecting Australia’s children

» agreements under the National Disability Insurance Scheme (NDIS) either to transition to full scheme, or to expand and extend trial sites

» together with the Commonwealth Treasury, establishing a Commonwealth State Working Group to examine innovative financing mechanisms to improve the availability of affordable housing.

How to read the annual performance statementThe annual performance statement comprises performance chapters for each of our purposes. These are the same as the Outcome statements in the 2015–16 Portfolio Budget Statements (PBS).

Each chapter begins with a summary and analysis of performance. Following is a table listing the programs that report against each performance criteria.

The final portion of each chapter reports results for each program. Program key performance indicators (KPIs) and outputs/deliverables are reported under each performance criteria relevant to that program.

Part 2—Annual performance statement | Chapter 2.1: Purpose 1

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Chapter 2.1

Purpose 1 — Social SecurityFinancial support for individuals and families who are unable to fully support themselves by providing a sustainable payments and concessions system.Program 1.1 Family Tax Benefit

Program 1.2 Child Payments

Program 1.3 Income Support for Vulnerable People

Program 1.4 Income Support for People in Special Circumstances

Program 1.5 Supplementary Payments and Support for Income Support Recipients

Program 1.6 Income Support for Seniors

Program 1.7 Allowances and Concessions for Seniors

Program 1.8 Income Support for People with Disability

Program 1.9 Income Support for Carers

Program 1.10 Working Age Payments

Program 1.11 Student Payments

Cross-Program Rent Assistance

Program 1.12 Program Support for Outcome 1

We respond to need across people’s lives. We administer a payments and concessions system to support those most in need and to assist people to become and remain financially self-reliant over the course of their life. We provide a range of payments and access to concessions 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 Assistance and concession cards.

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Summary and analysis of performance The performance of the welfare system depends on structural elements such as 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. Performance is also influenced by factors outside the direct influence of our Department such as labour market conditions, financial system stability, availability of education and job opportunities, and the fact we are living longer – these all impact on people’s capacity to support themselves financially, both in the short and longer term.

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

» increasing proportions of age pensioners on the part rate (now 42 per cent) as compulsory superannuation has increased the level of income and assets for new retirees

» a continuing decline in numbers of people on the Disability Support Pension to less than 800,000 reflecting improved assessments, tightening of eligibility criteria and other program changes, such as targeted reviews

» around three-quarters of Austudy and Youth Allowance (student) recipients who exited student payments during 2014 were not on income support 12 months after their exit.

of activity tested Special Benefit recipients

exited income support within 12 months of receiving their first payment

Proportion of Rent Assistance recipients paying more than 30 per cent of their income in rent decreased to 41 per cent after receiving Rent Assistance

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Performance CriteriaPrograms that report key performance indicators (KPIs) against the performance criteria in the Results section are listed in the following table. Not all programs report KPIs against every performance criterion.

Table 2.1.1: Performance Criteria for Purpose 1 Social Security and programs that report KPIsa

Program that reports KPIs

Performance criteria 1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

1.10

1.11

Cro

ss-

Pro

gra

m

1.12

Outcomes — What did we achieve?

Extent payment/concession recipients have improved self-reliance or improved circumstances

Reduction in time period where individuals and families are unable to fully support themselves

Intermediate outcomes — How well did we do?

Percentage of payment recipients on part rate due to means test

Percentage of Australians who receive the payment/concession by priority groups

Percentage of payment/concession recipients aligned to specific policy objectives or payment conditions

Payment accuracy

Number of debts – by type and status

Outputs — How much did we do?

Outputs/deliverables

a Sources – DSS Portfolio Budget Statements 2015–16, pages 47-84; DSS Corporate Plan 2015–16, Appendix B.

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Results

Program 1.1: Family Tax Benefit

Objective: To make payments to assist low and medium income families with the direct and indirect costs of raising dependent children.

Child Support Scheme

Family Tax Benefit Part B

Schoolkids Bonus

Family Tax Benefit Part A

Family Tax Benefit results

Percentage of payment recipients on part rate due to means test2

The amount of Family Tax Benefit Part A people receive takes into account the amount of any child support payments (maintenance income) they receive. In the 2013–14 entitlement year (the most recent complete data available),3 the amount of child support received has reduced the amount of Family Tax Benefit Part A paid by $740 million, an increase on the $600 million reduction in the 2011–12 entitlement year.

Table 2.1.2: Family Tax Benefit — Part rate of payment

Entitlement year

Key performance indicator 2013–14 2012–13 2011–12

Family Tax Benefit Part A and Child Support Scheme

Reduction of Family Tax Benefit Part A as a result of maintenance income testa

$740m $700m $600m

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

2 In this context, means test is referring to the maintenance income test as it relates to child support payments. Further information about families in receipt of Family Tax Benefit Part A by means test categories can be found in Table 2.1.4 Family Tax Benefit – Specific policy objectives/payment condition.

3 The Family Tax Benefit reconciliation process can take up to two years to be finalised.

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There has been a downward trend in the Family Tax Benefit instalment population since its peak in 2004–05. The downward trend is primarily seen in the Family Tax Benefit Part A population, particularly due to measures introduced over a number of Federal Budgets from 2008–09, which have targeted Family Tax Benefit to low and middle income families. Measures include:

» the indexation pause of the Family Tax Benefit Part A higher income free area

» pausing indexation of the Family Tax Benefit supplements

» changing indexation of Family Tax Benefit Part A from Male Total Average Weekly Earnings to the Consumer Price Index.

The downward trend for the Family Tax Benefit Part B population is a result of the introduction of the primary income limit where the primary income earner in a family must have earned an adjusted taxable income of $150,000 or less from 1 July 2008.

Table 2.1.3: Family Tax Benefit — Receipt of payment by priority groups

Key performance indicator

Entitlement year

2013–14 2012–13

Family Tax Benefit Part Aa

Percentage and number of families with children under 16 years of age receiving Family Tax Benefit Part A

60.4%1.62 million

62.7%1.64 million


Percentage and number of families with children under 16 years of age receiving Family Tax Benefit Part B

51.1%1.37 million

52.5%1.37 million

a 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. Children aged 16 and 17 who have completed Year 12 are not eligible for Family Tax Benefit Part A. For this reason, comparison against the total population is limited to families with children under 16 years of age.


For the 2013–14 entitlement year (the most recent year in which complete data is available), people could only receive the Family Tax Benefit Part A end of year supplement if they reconciled their entitlement within twelve months of the entitlement year, were up to date with immunisations as specified in the child vaccination schedule, or they had a medical exemption4. 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.

4 In 2013–14 objection to vaccination was a valid exemption. 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 no longer a valid exemption.

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Overall, there is a high level of compliance with the immunisation conditions. There is a small downward trend in compliance with the health check requirements.

Table 2.1.4: Family Tax Benefit — Specific policy objectives/payment conditions


Entitlement year

2013–14 2012–13


Percentage and number of families in receipt of Family Tax Benefit Part A within income test categories:a

• Families on Income Support

– Maximum rate 28.8%436,754

28.6%439,149

– Maintenance reduced rate 13.3%201,677

13.4%206,628

– Base rate 2.5%37,373

2.3%35,051

– Regular care rate 0.3%4,598

0.3% 4,679

• Families not on Income Support

– Maximum rate 10.1%153,054

9.7%149,525

– Maintenance reduced rate 3.1%47,491

3.0%45,976

– Broken rate below high income free area 19.9%302,591

20.8%319,341

– Broken rate above high income free area 6.0%91,131

3.5%53,616

– Base rate 11.2%170,236

13.1%201,053

– Tapered base rate 4.4%66,459

4.9%74,782

– Regular care rate 0.5%6,892

0.5%6,932

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

• Children aged one in entitlement year 97.7%199,668

97.0%199,877

• Children aged two in entitlement year 97.6%197,580

97.0%197,735

• Children aged five in entitlement year 97.9%201,162

97.1%203,615

Percentage and number of children who meet the Family Tax Benefit health check requirement

90.3%85,872

91.2%87,700

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Entitlement year

2013–14 2012–13


Percentage and number of families in receipt of Family Tax Benefit Part B within income test categories:b

• Families on Income Support

– Maximum rate single families 37.1%463,727

34.2%458,051

– Maximum rate couple families 2.1%26,163

2.0%27,163

– Broken rate couple families 12.8%159,498

12.6%169,439

• Families not on Income Support

– Maximum rate single families 15.8%198,047

14.9%199,373

– Maximum rate couple families 16.9%211,708

19.6%262,426

– Broken rate couple families 15.2%190,421

16.7%224,510

a Of all Family Tax Benefit Part A instalment recipients.

b Of all Family Tax Benefit Part B instalment recipients.

Payment accuracy

Table 2.1.5: Family Tax Benefit — Payment accuracy

Payment 2015–16 2014–15 2013–14

Family Tax Benefit 96.97% 97.00% 97.41%

Number of debts – by type and status

We monitor the number and types of debts to assess the efficiency and responsiveness of the social security payment system design. The Department of Human Services (DHS) manages debt identification and recovery on behalf of DSS. From 2012–13, the lodgment period for Family Tax Benefit payment recipients was changed from two years to one year. The impact of this change has meant that where a recipient has lodged their income tax return or lump sum claim after the lodgment period, they are not entitled to their top-up payments or supplements. As these components of a recipient’s Family Tax Benefit entitlement are not available to offset debts, they have a debt they must repay.

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Table 2.1.6: Family Tax Benefit — Debts


Entitlement year

2013–14 2012–13


Percentage of all customers who had a qualification debt raiseda

6.6%113,549

(of 1,720,081)

4.1%62,257

(of 1,754,221)

Percentage of all customers whose qualification debt remains outstandinga

0.6%10,233

(of 1,720,081)

0.3%4,270

(of 1,754,221)

Percentage of all customers who had a debt raised following reconciliationb

12.8%241,691

(of 1,884,628)

13.5%260,166

(of 1,922,047)

Percentage of all customers whose reconciliation debt remains outstandingb

2.2%41,939

(of 1,884,628)

2.5%48,779

(of 1,922,047)

Percentage of all customers who had a non-lodger debt raisedb

1.2%23,253

(of 1,884,628)

1.3%25,626

(of 1,922,047)

Percentage of all customers whose non-lodger debt remains outstandingb

1.1%21,663

(of 1,884,628)

1.3%23,262

(of 1,922,047)


Percentage of all customers who had a qualification debt raisedc

7.4%113,549

(of 1,542,780)

4.6%62,257

(of 1,541,589)

Percentage of all customers whose qualification debt remains outstandingc

0.7%10,233

(of 1,542,780)

0.3%4,270

(of 1,541,589)

Percentage of all customers who had a debt raised following reconciliationd

14.1%241,691

(of 1,711,792)

15.2%260,166

(of 1,709,890)

Percentage of all customers whose reconciliation debt remains outstandingd

2.5%41,939

(of 1,711,792)

2.9%48,779

(of 1,709,890)

Percentage of all customers who had a non-lodger debt raisedd

1.4%23,253

(of 1,711,792)

1.5%25,626

(of 1,709,890)

Percentage of all customers whose non-lodger debt remains outstandingd

1.3%21,663

(of 1,711,792)

1.4%23,262

(of 1,709,890)

a Of all Family Tax Benefit Part A instalment recipients.

b Of the Family Tax Benefit Part A population, that is recipients who are reconciled as entitled or not entitled, or have not yet been reconciled.

c Of all Family Tax Benefit Part B instalment recipients.

d Of the Family Tax Benefit Part B population, that is recipients who are reconciled as entitled or not entitled, or have not yet been reconciled.

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Table 2.1.7: Family Tax Benefit — Outputs/deliverables

Output/deliverable 2015–16

Agreement is in place with the Department of Human Services (DHS) for delivery of the below payments

An agreement is in place with DHS

Payments are made through DHS to eligible claimants under the provisions of family assistance law

Payments were made as described

The Child Support Scheme is delivered by DHS under the provisions of the child support legislation

The scheme was delivered as described

Administered outlays:

• Family Tax Benefit Part A $15.52b

• Family Tax Benefit Part B $4.31b

Entitlement year



Total number of eligible customers 1,791,006

Proportion of all customers paid by instalment 93.7%1,678,711

Proportion of all customers paid by lump sum 6.3%112,295

Proportion of instalment and lump sum entitlement:

• Instalment entitlement 97.0%$14.49b

• Lump sum entitlement 3.0%$0.45b


Total number of eligible customers 1,589,454

Proportion of all customers paid by instalment 94.8%1,506,098

Proportion of all customers paid by lump sum 5.2%83,356

Proportion of instalment and lump sum entitlement:

• Instalment entitlement 96.2%$4.17b

• Lump sum entitlement 3.8%$0.17b

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Output/deliverable 2015–16 2014–15 2013–14

Child Support Schemea

Number of cases 783,078 789,500 795,000

Total value of annual assessments $3.34b $3.36b $3.38b

Total value of child support assessments raised using Child Support Collect in the past financial year and percentage collected:

• Total value of assessments raised for collection by DHS

$1.54b $1.54b $1.52b

• Total value of child support collected by DHSb

$1.48b $1.47b $1.45b

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

b This figure includes child support received by DHS in the financial year for liabilities raised in previous years. The percentage collected for assessments raised in the financial year is not able to be calculated based on current available data.


Schoolkids Bonus

Number of recipients 1.07m

Administered outlays $1.16b

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Program 1.2: Child Payments

Objective: To make payments to families in certain circumstances to assist with the costs of children.

Stillborn Baby Payment

Assistance for Isolated Children

Single Income Family

Supplements

Double Orphan Pension

Child Payments results


Table 2.1.8: Child Payments — Outputs/deliverables


Agreement is in place with the Department of Human Services (DHS) for delivery of the below payments


Double Orphan Pension is paid through DHS to eligible families under the provisions of the social security law


Single Income Family Supplement is paid through DHS to eligible families under the provision of the family assistance law


Stillborn Baby Payment is paid through DHS to eligible claimants under the provisions of the family assistance law


Assistance for Isolated Children is paid through DHS to eligible families. The appropriation for payments is in the Student Assistance Act 1973



Double Orphan Pension

Number of recipients 1,122 1,227 1,317

Number of children 1,635 1,808 1,907

Administered outlays $3.30m $3.47m $3.55m

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Single Income Family Supplement

Number of recipients naa 236,521 254,393


Stillborn Baby Payment

Number of recipients 1,010 983

Administered outlays $2.14m $2.10m

Assistance for Isolated Children

Number of recipientsb 10,958 10,167 9,859

Administered outlays $70.72m $66.70m

a 2015–16 entitlement year data is not available as the reconciliation process for Family Tax Benefit has not been finalised. This is because all recipients of Family Tax Benefit are automatically assessed for Single Income Family Supplement after reconciliation occurs.

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

Program 1.3: Income Support for Vulnerable People

Objective: To make payments to financially assist eligible people in severe financial hardship who do not have any other means of support.

Special Benefit

Income Support for Vulnerable People results


In the past year, two-thirds of activity tested Special Benefit recipients exited income support within 12 months of receiving their first payment, mainly due to commencing employment.

Special Benefit recipients of working age with no disability or caring responsibilities are required to undertake activities, such as job search and/or an approved training program, as a condition of payment. Recipients may be temporarily exempt from this requirement due to being incapacitated or in circumstances, such as a major personal crisis, which make it unreasonable for them to undertake such activities.

Only one per cent of all Special Benefit recipients report employment income due to most recipients not being of working age.

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Table 2.1.9: Income Support for Vulnerable People — Improved self-reliance or circumstances

Key performance indicator 2015–16

Special Benefit

Percentage of activity tested recipients undertaking activities as a condition of receiving paymenta

81%

Percentage and number of recipients reporting employment incomea

1%61

Percentage of activity tested recipients who exit income support within 3/6/12 monthsa

Exit within3 months

Exit within6 months

Exit within12 months

18% 38% 66%

a New key performance indicator for 2015–16.


The average duration on Special Benefit has continued to decline due mainly to a change in the composition of the Special Benefit population. The percentage of recipients of working age is gradually increasing due to more Temporary Protection Visa holders and Safe Haven Visa holders being granted Special Benefit. As working age recipients tend to exit income support earlier than recipients of age pension age, the average duration on payment has been declining accordingly.

Table 2.1.10: Income Support for Vulnerable People — Duration on payment


Special Benefit

Average (mean) duration on payment 121 weeks 122 weeks 125 weeks

Average (mean) duration on income support

138 weeks 138 weeks 140 weeks


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. There is no allowable income free area.

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Table 2.1.11: Income Support for Vulnerable People — Part rate of payment


Special Benefit

Percentage and number of recipients on part rate due to the means test – by means test typea

81%4,313

81%4,260

79%4,239

a Only includes recipients on part rate due to the income test. This is because Special Benefit is not payable at a part rate under the assets test.

Payment accuracy

Table 2.1.12: Income Support for Vulnerable People — Payment accuracy

Payment 2015–16 2014–15 2013–14

Special Benefit 96.6% 97.9% 96.6%


Table 2.1.13: Income Support for Vulnerable People — Outputs/deliverables


Agreement is in place with the Department of Human Services (DHS) for delivery of the below payment


Special Benefit payments are made through DHS to eligible claimants under the provisions of social security law



Special Benefit



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Program 1.4: Income Support for People in

Special CircumstancesObjective: To make payments to financially assist eligible people in

severe financial hardship who do not have any other means of support.To make payments to Australians in circumstances beyond their

control to support them in overcoming those circumstances and maintaining their financial wellbeing.

Payments under Special Circumstances

Bereavement Allowance

Income Support for People in Special Circumstances results


Table 2.1.14: Income Support for People in Special Circumstances — Outputs/deliverables


Agreement is in place with the Department of Human Services (DHS) for the delivery of the below payments


Bereavement Allowance payments are made through DHS to eligible claimants under the provisions of social security law


Payments under Special Circumstances are made through DHS to eligible claimants under the provisions of social security law and the PGPA Act



Bereavement Allowance

Number of recipients 936 979 908


Payments under Special Circumstances



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Program 1.5: Supplementary Payments and Support

for Income Support RecipientsObjective: To make payments and subsidise services to certain income support recipients and low income households to assist

them financially and to help them continue to participate economically and socially.

Reimbursement to Great

Southern Rail for Concessional

Fares

Essential Medical

Equipment Payment

Utilities Allowance

Low Income Supplement

Supplementary Payments and Support for Income Support Recipients results


Table 2.1.15: Supplementary Payments — Outputs/deliverables


Low Income Supplement payments are made through the Department of Human Services (DHS) to eligible claimants under the provision of social security law


Utilities Allowance payments are made through the Department of Human Services (DHS) to eligible claimants under the provision of social security law


Agreement is in place with Great Southern Rail An agreement was in place with Great Southern Rail

Great Southern Rail is under agreement to provide concessional fares on its services for eligible passengers

Concessional fares were reimbursed as described

Essential Medical Equipment payments are made through DHS to eligible claimants under the provisions of social security law


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Low Income Supplement



Utilities Allowance



Reimbursement to Great Southern Rail for Concessional Fares


Number of journeys 52,178 53,204 58,086


Essential Medical Equipment Payment

Number of payments 39,601 36,513 naa


a In the 2013–14 Annual Report, the key performance indicator was reported as the number of recipients (26,134), rather than payments.

Program 1.6: Income Support for Seniors

Objective: To make payments to senior Australians to assist them financially in a manner that encourages them to productively manage resources and life transitions.

Wife Pension (Age)Widow B PensionAge Pension

Income Support for Seniors results


The proportion of people on part rate due to the means test increased from 41.7 per cent (1,036,452) in 2014–15 to 42.0 per cent (1,067,054) in 2015–16. This represents a 3 per cent increase in the number of age pensioners on part rate. The total number of Age Pension recipients grew at a slower rate of 2.1 per cent over the same period.

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The number of age pensioners on the part rate is increasing at a faster rate than the total number of Age Pension recipients because the current generation of new retirees have higher levels of income and assets. This higher level of income and assets largely reflects the fact that newer retirees are more likely to have accumulated superannuation savings as a result of the introduction of compulsory superannuation in 1992 with higher contribution rates progressively taking effect over the following years.

Table 2.1.16: Income Support for Seniors — Part rate of payment


Age Pension

Percentage and number of recipients on part rate due to the means test – by means test type:a

42.0%1,067,054

41.7%1,036,452

41.1%989,211

• Income test 24.1%613,371

• Assets test 17.8%453,683

Widow B Pension


41.0%159

41.6%177

41.7%192

• Income test 40.7%

• Assets test 0.3%

Wife Pension (Age)


20.0%1,167

20.0%1,328

20.7%1,561

• Income test 16.7%977

• Assets test 3.2%190

a Disaggregated results reported for the first time in 2015–16.

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The proportion of senior Australians receiving the Age Pension has remained relatively steady since 2013–14.

Table 2.1.17: Income Support for Seniors — Receipt of payment by priority groups


Age Pension

Percentage and number of senior Australians who receive payment

69.0%2.54 million

69.8%2.49 million

69.8%2.41 million


The number and proportion of Age Pension recipients reporting employment income has been steady at approximately 4.4 per cent over the last three reporting periods (June of each financial year). There was a small decline in the number and proportion of new entrants to Age Pension with employment income as at June 2016. The decline was less pronounced earlier in the 2015–16 financial year and there has been no decline in employment among 65–69 year olds according to Australian Bureau of Statistics data (Labour Force Australia Survey, June 2016, requested data). We will continue to monitor this indicator to establish whether a sustained change has occurred and to further explore employment patterns amongst age pensioners.

The ratio of age pensioners’ income derived from sources other than the pension has increased from $23.15 to $23.98 for every $100 of income. This is due to the current generation of new retirees having higher levels of income and assets.

Table 2.1.18: Income Support for Seniors — Specific policy objectives/payment conditions


Age Pension

Percentage and number of new entrants with employment income

10.7%17,075

12.0%22,165

12.4%18,235

Percentage and number of recipients with employment income

4.4%112,353

4.4%110,249

4.3%103,511

Ratio of assessed income of pensioners to their total income

$23.98:$100 $23.42:$100 $23.15:$100

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Payment accuracy

Table 2.1.19: Income Support for Seniors — Payment accuracy

Payment 2015–16 2014–15 2013–14

Age Pension 98.12% 98.01% 97.59%


Table 2.1.20: Income Support for Seniors — Outputs/deliverables




Payments are made through DHS to eligible claimants under social security law



Age Pension

Number of recipients 2.54 million 2.49 million 2.41 million

Administered outlays $43.23b $41.37b $39.39b

Widow B Pension



Wife Pension (Age)



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Program 1.7: Allowances and Concessions for Seniors

Objective: To make payments and provide services to senior Australians to assist with household expenses,

enabling them to maintain their standard of living.

Energy Supplement for holders of the Commonwealth Seniors Health Card

Allowances and Concessions for Seniors results


Table 2.1.21: Allowances and Concessions for Seniors — Outputs/deliverables


Payments are made through the Department of Human Services (DHS) to eligible claimants under the provision of social security law


Output/deliverable 2015–16a 2014–15 2013–14

Energy Supplement for holders of the Commonwealth Seniors Health Card



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

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Program 1.8: Income Support for People with Disability

Objective: To make payments to eligible people with disability who are unable to support themselves to achieve financial independence.

Mobility AllowanceDisability Support Pension

Income Support for People with Disability results


The proportion of Disability Support Pension recipients reporting employment income in the past year compared to 2014–15 is steady at 8.2 per cent. Australian Disability Enterprises are the source of income for a significant proportion of recipients. These enterprises are generally not for profit organisations providing supported employment opportunities to people with disability who are able to work at least eight hours per week. The Australian Government’s Disability Employment Services providers play a specialist role in helping people with disability, injury or a health condition to get ready to look for, find, and keep a job in the open market.

Table 2.1.22: Income Support for People with Disability — Improved self-reliance or circumstances


Disability Support Pension

Percentage and number of recipients reporting employment income

8.2%64,100

8.2%66,506

8.2%67,684


In the past year, the average duration for a person on Disability Support Pension was 753 weeks (more than 13 years). This is up from 715 weeks in 2014–15. The likely cause of the increase is improved targeting of the Disability Support Pension to people who are unable to support themselves to achieve financial independence.

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Table 2.1.23: Income Support for People with Disability — Duration on payment



Duration on paymenta 753 weeks 715 weeks 691 weeks

a This indicator measures average duration of income support for current Disability Support Pension recipients. It includes duration on other income support payments prior to claiming Disability Support Pension where there has been no break.


The proportion of Disability Support Pension recipients on part rate has decreased over the last three reporting periods. This downward trend is partially influenced by improved assessments, tightened eligibility and the targeted reviews of Disability Support Pension recipients.

Table 2.1.24: Income Support for People with Disability — Part rate of payment




15.4%120,313

17.5%142,654

17.9%148,362

• Income test 13.7%107,598

• Assets test 1.6%12,715

a Disaggregated results reported for the first time in 2015–16.


There has been a decrease in the percentage of people with disability who are receiving Disability Support Pension payments – down from 19.2 per cent (814,391) in 2014–15 to 18.5 per cent (782,891) in 2015–16. Similarly, the ratio of Disability Support Pension recipients to the total Australian working age population has also fallen slightly from 4.9 per cent in 2014–15 to 4.6 per cent in the past year. The continual decrease in Disability Support Pension recipients can mostly be attributed to improved assessments and tightened eligibility, while other program changes such as targeted reviews have also had an impact on the overall population.

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Table 2.1.25: Income Support for People with Disability — Receipt of payment by priority groups



Percentage and number of estimated population of people with disability who receive paymenta

18.5% 782,891/

4,234,200

19.2% 814,391/

4,234,200

19.6% 830,454/

4,234,200

Percentage and number of Disability Support Pension population as a proportion of the total Australian working age populationb

4.6% 736,242/

16,062,963

4.9% 773,218/

15,845,156

5.1% 794,257/

15,641,287

a These results are derived from the 2012 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.

b 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.

Payment accuracy

Table 2.1.26: Income Support for People with Disability — Payment accuracy

Payment 2015–16 2014–15 2013–14

Disability Support Pension 91.55%a 95.31% 96.05%

a The DSP results include recipients (around 6%) whose medical conditions no longer satisfied current medical eligibility criteria. DHS assesses medical eligibility on the basis of evidence available at the time of claim and, once assessed, a recipient can remain eligible until a review. The results in these cases do not necessarily represent an error on the part of DHS or the recipient. From July 2016 an additional 30,000 medical reviews per year over the next three years will be undertaken to re-assess eligibility.


Table 2.1.27: Income Support for People with Disability — Outputs/deliverables




Payments are made through DHS to eligible claimants under the provisions of social security law






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Mobility Allowance



Program 1.9: Income Support for Carers

Objective: To make payments and allowances to financially assist eligible carers of people with disability or a severe medical condition.

Carer Payment

Child Disability

Assistance Payment

Carer Allowance

(Adult)

Ex-gratia Payments to Unsuccessful

Applicants of Carer Payment (Child) (Carer Adjustment Payment)

Carer Allowance

(Child)

Wife Pension

(DSP)

Carer Supplement

Income Support for Carers results


The low percentage of Carer Payment recipients reporting employment income (around 10.0 per cent over the past three financial years) reflects the targeting of the payment to carers with limited capacity to engage in employment.

Table 2.1.28: Income Support for Carers — Improved self-reliance or circumstances


Carer Payment


9.6%25,110

9.8%24,938

10.0%24,345

Wife Pension (DSP)


22.8%1,299

23.0%1,522

23.5%1,802

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The percentage of Carer Payment recipients receiving a part rate of pension due to the means test has remained fairly steady at just over 24.0 per cent for the past three financial years. Carer Payment recipients by definition are unable to engage in substantial paid work and hence have a limited capacity to increase their employment income and reduce pension income. As a result, there is little change over time in the percentage of people receiving a part rate of pension.

Table 2.1.29: Income Support for Carers — Part rate of payment


Carer Payment

Percentage and number of recipients on part rate due to the means testa

24.4% 63,523

24.6% 62,766

24.7%60,287

• Income test 20.2% 52,598

• Assets test 4.2% 10,925

Wife Pension (DSP)

Percentage and number of recipients on part rate due to the means testb

29.5%1,682

30.0%1,981

30.4%2,332

• Income test 26.8%1,526

• Assets test 2.7%156

Ratio of current number of Wife Pension (DSP) recipients to the number of Wife Pension (DSP) recipients at 1 July 1995

5,697/ 121,839

4.7%

6,612/ 121,839

5.4%

7,683/ 121,839

6.3%

a Results disaggregated for the first time in 2015–16.

b The decrease in numbers is due to the payment being closed to new applications since July 1995. Results disaggregated for the first time in 2015–16.


The percentage of primary carers receiving Carer Payment and the proportion receiving Carer Allowance has increased over the last three reporting periods. These proportions are increasing because the total number of primary carers is sourced from the triennial 2012 ABS Survey of Disability, Ageing and Carers and this number has not been updated in non-survey years. Next year we will be able to report updated survey results to compare longer-term trends.

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Table 2.1.30: Income Support for Carers — Receipt of payment by priority groups


Carer Payment

Percentage and number of primary carers who are receiving paymenta

33.9%260,592/ 769,800

33.1%255,542/ 769,800

31.7%243,856/ 769,800

Carer Allowance (Adult and Child)

Percentage and number of primary carers who are receiving paymenta

78.7%605,773/ 769,800

78.1%601,364/ 769,800

76.7%590,181/ 769,800

a The result of this indicator relies on the definition of primary carer used by the ABS Survey of Disability, Ageing and Carers (cat. no. 4430.0), and is 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 ABS definition of primary carer.

The number of primary carers in 2013–14 and 2014–15 and 2015–16 is sourced from the 2012 ABS Survey of Disability, Ageing and Carers (cat. no. 4430.0). This survey is run by the ABS triennially.

Payment accuracy

Table 2.1.31: Income Support for Carers — Payment accuracy

Payment 2015–16 2014–15 2013–14

Carer Payment 95.9% 96.1% 96.4%

Carer Allowance (Adult and Child) 96.4% 97.4% 97.1%


Table 2.1.32: Income Support for Carers — Outputs/deliverables






Ex-gratia payments to unsuccessful applicants of Carer Payment (Child) (Carer Adjustment Payment) are paid under the provisions of the PGPA Act


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Carer Payment



Carer Allowance (Adult and Child)

Number of recipientsa 605,773 601,364 590,181


• Carer Allowance (Adult) $1.57b $1.51b $1.44b

• Carer Allowance (Child) $563.0m $538.7m $521.1m

Carer Supplement



Child Disability Assistance Payment



Wife Pension (DSP)

Number of recipientsb 5,697 6,612 7,683


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

b The decrease in numbers is due to the payment being closed to new applications since July 1995.

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Program 1.10: Working Age Payments

Objective: Working age payments assist people who are temporarily unable to support themselves through work or have a limited capacity to work due to disability or caring responsibilities for young children.

Eligibility for payments is highly targeted, with income tests and supplementary payments ensuring

that assistance is directed to those with the greatest need.

Newstart Allowance

Sickness Allowance

Widow Allowance

Youth Allowance

(Other)Compensation

and Debt Relief

Parenting Payment Single and Parenting

Payment Partnered

Partner Allowance

Benefit and Partner

Allowance Pension

Working Age Payments results


In the past year, the proportion of people exiting Newstart Allowance and Youth Allowance (other) within 12 months remains consistent with previous financial years. Recipients may exit income support for a variety of reasons, including employment, personal income from other sources, partner income, parental income, or assets.

Table 2.1.33: Working Age Payments — Improved self-reliance or circumstances — exiting income support

2015–16 2014–15 2013–14


Exit within (months)

3 6a 12 3 12 3 12

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

• Newstart Allowance 23% 42% 63% 24% 63% 24% 65%

• Youth Allowance (other) 23% 43% 61% 22% 62% 24% 66%

a Exiting income support within 6 months is a new key performance indicator for 2015–16.

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Recipients of Newstart Allowance and Youth Allowance (other) are required to meet mutual obligation requirements by entering into a Job Plan, actively seeking work and undertaking activities to help them into work. Recipients must meet these requirements in order to receive payment, unless they are exempt. Recipients may be temporarily exempt from mutual obligation requirements due to being incapacitated or circumstances such as a major personal crisis or unexpected caring responsibilities. Recipients with an exemption are not required to undertake activities.

Activities included in this key performance indicator aim to improve a person’s self-reliance. Activities include job search, voluntary/part-time work, training/education, and other activities without job search that aim to improve a person’s employment prospects.

Table 2.1.34: Working Age Payments — Improved self-reliance or circumstances — undertaking activities


Percentage of income support recipients who are undertaking activities as a condition of receiving a payment:a

• Newstart Allowance 80%

• Youth Allowance (other) 87%


The proportion of working age income support recipients reporting employment income has remained steady in the past three reporting periods. This indicator is influenced by a number of factors, including labour market conditions, as well as payment requirements and design. Recipients of Newstart Allowance, Youth Allowance (other) and Parenting Payment Single (with a youngest child aged six years or older) are subject to mutual obligation requirements. Recipients can satisfy their requirements by looking for work and undertaking other approved activities, such as part-time employment. 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 payment. Parenting Payment Partnered, Sickness Allowance, Partner Allowance (Benefit and Pension) and Widow Allowance recipients are less likely to have employment income. Consistent with the purposes of the payments, these recipients are not subject to mutual obligation requirements.

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Table 2.1.35: Working Age Payments — Improved self-reliance or circumstances — reporting employment income


Percentage and number of recipients reporting employment income by payment type:

• Newstart Allowance 21%155,792

21%154,017

21%149,131

• Parenting Payment Partnered 10%9,936

9%9,530

9%9,500

• Parenting Payment Single 26%66,202

25%65,419

25%64,849

• Partner Allowance (Benefit and Pension) 6%235

6%346

6%517

• Sickness Allowance 8%627

8%644

8%631

• Widow Allowance 7%1,315

8%1,724

8%2,101

• Youth Allowance (other) 19%18,701

18%20,718

19%21,136


Average duration on payment and income support reflects the design and intent of each payment. Newstart Allowance is paid to a range of recipients, some who are able to move off payment within a relatively short period of time, and others who may be less able to fully support themselves and may require longer-term support. This includes those who are the principal carers of a dependent child or children or those with a partial capacity to work due to a medical condition or disability. Principal carer parents and those with a partial capacity to work make up an increasing proportion of the Newstart Allowance population, largely due to eligibility changes to Parenting Payment and Disability Support Pension over the past few years. This has contributed to the increase in the average duration on payment and income support for Newstart Allowance recipients.

The average durations for Youth Allowance (other) and Sickness Allowance reflect the short term nature of these payments. Sickness Allowance is intended to provide support for people temporarily incapacitated for work or study, while Youth Allowance (other) is limited to young people aged under 22 years (recipients may transition to Newstart Allowance if they continue to require support beyond this age).

As both Parenting Payment Partnered and Parenting Payment Single are paid to the principal carers of young children, the average duration reflects the longer term nature of these payments. Single principal carers have a higher average duration as they can stay on Parenting Payment Single until their youngest child turns eight years old, compared to six years old for partnered principal carers.

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The average durations for Partner Allowance (Benefit and Pension) and Widow Allowance recipients reflect that people receiving these payments have no mutual obligation requirements and they must be born on, or before, 1 July 1955 and have no recent workforce experience.

Table 2.1.36: Working Age Payments — Duration on payment — by payment type


Average (mean) duration on payment by payment type (weeks):a

• Newstart Allowance 129 118 108

• Parenting Payment Partnered 129 128 127

• Parenting Payment Single 184 182 181

• Partner Allowance (Benefit and Pension) 845 794 742

• Sickness Allowance 45 43 37

• Widow Allowance 272 267 265

• Youth Allowance (other) 79 84 84

a Duration on current payment only. Does not reflect time spent on previous payments.

Table 2.1.37: Working Age Payments — Duration on payment — by current income support payment


Average (mean) duration on income support by current income support payment (weeks):a

• Newstart Allowance 253 239 230

• Parenting Payment Partnered 222 218 215

• Parenting Payment Single 297 292 287

• Partner Allowance (Benefit and Pension) 932 874 817

• Sickness Allowance 53 49 44

• Widow Allowance 480 475 475

• Youth Allowance (other) 87 93 94

a Duration on income support by current payment type includes time spent on previous payments where there has been no break.


The percentage of recipients receiving a part rate of payment due to the means test has remained steady over the reporting period. This is consistent with results reported for employment income.

Payment rates may be reduced under the income test for a number of reasons including personal income from employment or other sources, partner income or, for Youth Allowance (other) only, parental income.

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Newstart Allowance, Youth Allowance (other), Parenting Payment (Single and Partnered), Partner Allowance (Benefit and Pension), Sickness Allowance and Widow Allowance payments are not payable at a part rate under the assets test. These payments are not payable if a person’s assets exceed the relevant assets threshold.

Table 2.1.38: Working Age Payments — Part rate of payment


Percentage and number of recipients on part rate due to means tests – by payment type; by means test type:a

• Newstart Allowance 24%174,106

23%174,375

24%168,771

• Parenting Payment Partnered 28%28,147

28%28,802

28%28,646

• Parenting Payment Single 23%60,257

23%60,346

23%59,788

• Partner Allowance (Benefit and Pension) 15%582

16%910

17%1,361

• Sickness Allowance 16%1,214

16%1,273

16%1,244

• Widow Allowance 21%3,787

21%4,588

20%5,188

• Youth Allowance (other) 14%14,176

14%16,225

14%16,329

a 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.

Payment accuracy

Table 2.1.39: Working Age Payments — Payment accuracy

Payment 2015–16 2014–15 2013–14

Newstart Allowance 92.93% 93.84% 93.85%

Parenting Payment Partnered 83.47% 82.79% 82.52%

Parenting Payment Single 94.58% 96.21% 96.00%

Partner Allowance (Benefit and Pension) 98.69% 99.09% 97.54%

Sickness Allowance 67.75% 71.52% 77.42%

Widow Allowance 97.10% 98.06% 96.47%

Youth Allowance (other) 87.21% 90.01% 91.05%

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Table 2.1.40: Working Age Payments — Outputs/deliverables







Newstart Allowance



Parenting Payment Partnered



Parenting Payment Single



Partner Allowance (Benefit and Pension)



• Partner Allowance (Benefit) $3.98m $6.04m $8.72m

• Partner Allowance (Pension) $54.57m $76.95m $100.06m

Pensioner Education Supplement



Sickness Allowance



Widow Allowance



Youth Allowance (other)



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Program 1.11: Student Payments

Objective: To achieve growth in skills, qualifications and productivity through: providing income support to students through Youth Allowance (student) and Austudy to assist them to undertake further education and training; increasing access and participation by Indigenous Australian students in school education, vocational

education and training and higher education and accelerating their educational outcomes.

ABSTUDY – Secondary

Student Start-up

Loan

ABSTUDY – Tertiary Youth Allowance

(student)

Austudy

Student Payments results


This indicator presents a measure of whether former recipients of student payments are relying on income support three, six and 12 months after leaving student payments. The indicator examines the group of students who exited Austudy, Youth Allowance (student) or ABSTUDY Living Allowance for any reason at any time during 2014, and did not return to one of these payments during the 12 months after their exit.

Former Youth Allowance (student) recipients showed the best outcomes against this measure. Three months after exiting payment, more than two-thirds of the former Youth Allowance (student) recipients were not receiving any income support. Twelve months after exiting, more than three-quarters of the group were not receiving income support. A similar pattern and proportions are evident for the group of former Austudy recipients. Three months after exiting Austudy, 63.0 per cent of the group were not receiving any income support. At 12 months, 70.0 per cent were not receiving income support.

Former ABSTUDY Living Allowance recipients were more reliant on income support during the year after leaving ABSTUDY Living Allowance. Three, six and 12 months after exiting ABSTUDY Living Allowance, around half the group were receiving an income support payment. The lower ABSTUDY Living Allowance percentage is likely to be the result of a number of intertwined factors, such as:

» the total number of ABSTUDY Living Allowance recipients is much lower than for Austudy and Youth Allowance (student)

» school students make up a much higher proportion of ABSTUDY recipients compared with Youth Allowance (student) recipients

» a higher proportion of ABSTUDY recipients are from outer regional, remote or very remote areas.

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Table 2.1.41: Student Payments — Improved self-reliance or circumstances — not receiving income support after payment exit

2015–16

Key performance indicator3 months after exit

6 months after exit

12 months after exit

Percentage of recipients who were not receiving income support 3/6/12 months after exiting student payments:a

• Austudy 63% 66% 70%

• Youth Allowance (student)b 68% 73% 78%

• ABSTUDY (Secondary and Tertiary)c 51% 50% 50%

a New key performance indicator for 2015–16. Group comprises recipients who exited from student payments in calendar year 2014.

b Excludes Australian Apprentices.

c ABSTUDY Living Allowance only.

As at the end of June 2016, more than a third of Youth Allowance (student) recipients reported earnings from employment. Apprentices represent only 2.0 per cent of Youth Allowance (student) recipients, and the majority of them reported earnings. The rate of earnings from employment was much higher among the Youth Allowance (student) group than among ABSTUDY Living Allowance recipients (15.0 per cent reported earnings at the end of June 2016).

Table 2.1.42: Student Payments — Improved self-reliance or circumstances — reporting employment income


Percentage and number of recipients reporting employment income by payment type:a

• Austudy 31%15,202

• Youth Allowance (student)b 36%81,812

• ABSTUDY (Secondary and Tertiary)c 15%1,330


b Includes Australian Apprentices.



As at June 2016, less than a quarter of recipients of student payments were receiving a part rate of payment. Student payments have a relatively high income free area and income bank, which allows many students to work part time or on a casual basis and still receive the full rate of payment. This is evident from a comparison of Table 2.1.42 Percentage and number of recipients reporting employment income with Table 2.1.43.

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Table 2.1.43: Student Payments — Part rate of payment


Percentage and number of recipients on part rate due to means tests by payment type:a

• Austudy 14%

• Youth Allowance (student)b 23%

• ABSTUDY – Secondaryc 4%

• ABSTUDY – Tertiaryd 13%


b Excludes Australian Apprentices.


d This indicator takes into account higher education and vocational education and training students receiving ABSTUDY Living Allowance only.

Payment accuracy

Table 2.1.44: Student Payments — Payment accuracy

Payment 2015–16 2014–15 2013–14

Austudy 85.52% 88.58% 90.66%

Youth Allowance (student) 88.57% 91.90% 93.17%

ABSTUDY (Secondary and Tertiary) 81.55% 78.83% 82.86%


Table 2.1.45: Student Payments — Outputs/deliverables


Agreement is in place with the Department of Human Services (DHS) for the delivery of these payments


Provision of support through ABSTUDY, Austudy and Youth Allowance (student)



Austudy

Average number of higher education students in receipt of Austudy during the year

30,427 31,146 31,371

Average number of Australian Apprentices and students attending a TAFE or private training institution in receipt of Austudy during the year

14,917 14,240 13,484

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Average number of secondary students in receipt of Austudy during the year

312 307 497

Average total number of students in receipt of Austudy during the year

45,656 45,693 45,352


Youth Allowance (student)

Average number of higher education students in receipt of Youth Allowance (student) during the year

166,254 171,531 170,389

Average number of Australian Apprentices and students attending a TAFE or private training institution in receipt of Youth Allowance (student) during the year

33,467 37,364 38,476

Average number of secondary students in receipt of Youth Allowance (student) during the year

11,361 12,656 19,805

Average total number of students in receipt of Youth Allowance (student) during the year

211,082 221,551 228,669


ABSTUDY – Secondary

Average number of school students receiving ABSTUDY during the year

20,526 19,063 21,947


ABSTUDY – Tertiarya

Average number of higher education students receiving ABSTUDY during the year

5,422 4,927 4,815

Average number of Australian Apprentices and students attending a TAFE College or private training institution in receipt of ABSTUDY during the year

4,894 4,765 5,204

Average number of tertiary and VET students in receipt of ABSTUDY during the year

10,316 9,692 10,019


Student Start-up Loanb

Administered outlays $14.44m

Student Start-up Loan – ABSTUDYb

Administered outlays $0.34m

a Average of 2,026 ABSTUDY recipients listed as “not specified”. They are not included in these figures.b Introduced on 1 January 2016.

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Cross-Program: Rent AssistanceObjective: To make payments to low and moderate income Australians receiving income support or family payments to

assist with the costs of renting private and community housing.

Rent Assistance is an important component of the income support and family payment systems. It contributes to the improvement of rental affordability and complements broader income support objectives by assisting individuals and families with the additional costs associated with renting in the private rental market. Rent Assistance is not separately appropriated, but is paid as a supplement to a primary income support payment or Family Tax Benefit Part A. The amount of 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). The income and asset tests applicable to the primary payment may reduce the amount of Rent Assistance paid.

Cross-Program Rent Assistance results


As at June 2016, Rent Assistance reduced the proportion of Rent Assistance recipients paying more than 30.0 per cent of their income in rent from 68.2 per cent to 41.2 per cent5.

Table 2.1.46: Cross-Program — Rent Assistance — Improved self-reliance or circumstances


Proportion of Rent Assistance recipients in rental stress before and after receiving Rent Assistance:

• Before 68.2% 68.5% 67.4%

• After 41.2% 41.2% 40.3%

5 For Rent Assistance purposes, the terms ‘recipient’ and ‘individuals and families’ refer to an income unit comprising a single person (with or without dependent children) or a couple (with or without dependent children).

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Nationally, as at June 2016, 79.4 per cent of all Rent Assistance recipients were paying enough rent to be eligible to receive the maximum rate of Rent Assistance, an increase of 3.1 percentage points from 76.3 per cent in June 2014. A key driver of this increase was the average rent paid by recipients increasing faster than the Consumer Price Index against which Rent Assistance is indexed. Most of the 3.1 percentage point increase (2.5 percentage points) can be attributed to the single non-sharers (which made up about 40.0 per cent of all recipients).

Table 2.1.47: Cross-Program — Rent Assistance — Receipt of payment by priority groups

Payment 2015–16a 2014–15a 2013–14a

Rent Assistance

Proportion of Rent Assistance recipients paying enough rent to receive the maximum rate of assistance

79.4% 77.8% 76.3%

Proportion of clients assisted who identify as Aboriginal or Torres Strait Islander

5.0% 4.8% 4.4%

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


During the past year, Rent Assistance assisted 1,345,983 individuals and families6 at a cost of $4.38 billion (5.0 per cent self-identified as Indigenous); this support is expected to increase to $4.53 billion in 2016–17.

Fortnightly, the average rent paid by Rent Assistance recipients7 was $483 while the average Rent Assistance paid to recipients8 was $114.

6 For Rent Assistance purposes, the terms ‘recipient’ and ‘individuals and families’ refer to an income unit comprising a single person (with or without dependent children) or a couple (with or without dependent children).

7 Average rent paid is estimated based on the recorded rent for a fortnight in June during the financial year.8 Average Rent Assistance paid (per fortnight) is based on Rent Assistance daily entitlement as at the last Friday of

the financial year.

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Table 2.1.48: Cross-Program — Rent Assistance — Outputs/deliverables


Rent Assistance payments are made through DHS to eligible claimants under the provisions of the social security law and family assistance law


Average rent paid by Rent Assistance recipients by number of recipients, primary payment type and income unit type

Results are provided at Table 2.1.49 and 2.1.50

Average Rent Assistance paid to Rent Assistance recipients by number of recipients, primary payment type and income unit type

Results are provided at Table 2.1.49 and 2.1.50


Number of recipients 1,345,983 1,343,431 1,315,385


Table 2.1.49: Cross-Program — Rent Assistance — Fortnightly average rent and Rent Assistance by primary payment type

Primary payment type

Average rent paid ($ per fortnight)

Average Rent Assistance paid ($ per fortnight)

2015–16 2014–15 2013–14 2015–16 2014–15 2013–14

Age Pension 406 395 380 110 107 105


404 397 386 118 116 114

Carer Payment 510 496 481 125 123 120

Newstart Allowance 448 438 427 112 109 107

Youth Allowance (other) 317 308 301 89 87 85

Youth Allowance (student)

364 354 343 96 95 92

Austudy 440 427 415 105 102 100

Parenting Payment Single

564 551 533 131 128 125

Parenting Payment Partnered

673 658 643 146 143 142

Family Tax Benefit only 720 705 686 105 102 101

Other 499 485 464 119 117 113

All individuals and families

483 470 457 114 111 109

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Table 2.1.50: Cross-Program — Rent Assistance — Fortnightly average rent and Rent Assistance by income unit type

Income unit type

Average rent paid ($ per fortnight)

Average Rent Assistance paid ($ per fortnight)

2015–16 2014–15 2013–14 2015–16 2014–15 2013–14

Single, no children 386 373 363 116 113 111

Single sharer, no children

316 306 301 81 79 78

Couple, no children 520 506 493 110 108 105

Single parent, with children

585 568 552 128 125 122

Couple, with children 710 693 676 120 118 116

Couple, temporarily or illness separated

583 576 551 129 128 124

All individuals and families

483 470 457 114 111 109

Program 1.12: Program Support for Outcome 1

Objective: To provide departmental funding for the annual operating costs of DSS to achieve agency outcomes.

Program Support for Outcome 1 results

Table 2.1.51: Program Support for Outcome 1 — Departmental funding


Total departmental funding for Outcome 1 $136.59m

Table 2.1.52: Program Support for Outcome 1 — Deliverable

Deliverable 2015–16

Departmental funding is expended to achieve agency outcomes

Funds were expended as described

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Chapter 2.2

Purpose 2 — Families and CommunitiesStronger families and more resilient communities by developing civil society and by providing family and community services.

Program 2.1 Families and Communities

Program 2.2 Paid Parental Leave

Program 2.3 Social and Community Services


Note: Programs 2.4 – 2.7 were moved to the Department of Education and Training on 21 September 2015

We support families and children, as well as migrants and refugees settling in Australia, to help improve their lifetime wellbeing by responding to specific needs and encouraging independence and participation in the community. Assistance is provided through paid parental leave and a program of grants, procurements and subsidies. This assistance is provided to organisations to support families, improve children’s wellbeing, strengthen relationships, build parenting and financial management skills and help newly arrived migrants in their transition to life in Australia.

We work across the Commonwealth, state and territory governments to foster inclusive social norms that strengthen social cohesion – such as mutual respect, trust and belonging. We also work to address threats to family and community harmony, such as domestic and family violence, child abuse and neglect, sexual assault against women and children, and racism and discrimination.

Summary and analysis of performanceWe 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 across their life course. Our performance contributes to the larger effort made by state jurisdictions, local communities and other Commonwealth agencies.

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Key ResultsOur contributions to family and community outcomes during the past year include:

» the release in December 2015 of the Third Action Plan 2015–18 under the National Framework for Protecting Australia’s Children 2009–2020

» more than 70.0 per cent of Humanitarian Settlement Services clients having sufficient basic life skills to successfully settle in Australia after they have exited the program

» more than 88.0 per cent of participants of family and children programs, and financial wellbeing and capability programs report they have improved circumstances

» critical measures implemented under the $100 million Women’s Safety Package.

Settlement Services provided assistance to over

organisations assisted to strengthen communities

of people receiving Settlement Grant services reported improved outcomes

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Table 2.2.1: Performance Criteria for Purpose 2 Families and Communities and programs that report KPIsa


Performance Criteria 2.1

2.2

2.3

2.8


Extent to which individuals and families have improved circumstances (where programs have direct responsibility for outcomes)

Extent to which individuals and families make progress achieving their individual/family goals (where programs have direct responsibility for goal setting/attainment)


Extent to which services are targeted to individuals and families in priority groups

Extent of reach of services to Australians in priority groups

Extent individuals and families are satisfied with services

Extent to which community and service system capacity and capability is improved




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Results

Program 2.1: Families and Communities

Objective: The Program aims to strengthen relationships, support families, improve children’s wellbeing and increase the participation in community life to strengthen family and community functioning,

and reduce the costs of family breakdown. The Program will provide a range of services, focused on strengthening relationships, and

building parenting and financial management skills, providing support for better community connections, as well as services to help newly

arrived migrants in their transition to life in Australia.

These services are provided to families, children, young people, volunteers, multicultural communities, humanitarian entrants, migrants and other individuals with special circumstances.

Transition to Independent

Living Allowance

Financial Wellbeing

and Capability

Families and Communities

Service Improvement

Strengthening Communities

Families and

Children

Settlement Services

Civil Society

National Initiatives

Welfare Conditionality

Families and Communities results

Extent to which individuals and families have improved circumstances (where programs have direct responsibility for outcomes)

Activities that may have contributed to clients reporting improved circumstances include:

» continued delivery of Children and Parenting Services in 139 locations across Australia and implementing new services in Kununurra and Norfolk Island

» expansion of the Home Interaction Program for Parents and Youngsters (HIPPY) to operate in 100 sites across Australia. HIPPY provides support to engage parents as their child’s first teacher in the year prior and in the first year of school

» continued delivery of the Intensive Family Support Service in the Northern Territory and Anangu Pitjantjatjara Yankunytjatjara lands in South Australia. The service provides intensive support to families with children aged 0–12 years of age and where child neglect is identified

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» continued delivery of Family and Relationship Services, targeting critical family transition points including formation, extension and separation

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

An evaluation of the Humanitarian Settlement Services (HSS) and Complex Case Support (CCS) programs released in June 2015 found clients were provided with a foundation for achieving language, education and positive employment outcomes. The majority of HSS clients demonstrate sufficient knowledge on a range of basic life-skill competencies to assist successful settlement in Australia. For example: tenancy issues (85.0 per cent), transport (81.0 per cent), Australian law (72.0 per cent), and employment and education (69.0 per cent). The evaluation also found the CCS program is regarded by services providers and external stakeholders as effective in meeting both the immediate and long-term needs of refugee and humanitarian entrant clients.

Table 2.2.2: Families and Communities — Improved circumstances


Families and Childrena

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

77%c 80% 92%

Settlement Services

Percentage of clients with improved settlement outcomesd

93%

Financial Wellbeing and Capability

Percentage of clients with improved financial wellbeing, capability and resiliencee

78% 83%


Number of individuals with reduced exposure to goods and services associated with social harmf

27,254 26,396 25,677

a Data are not comparable across the three years – in each year, the data are reporting on different combinations of programs. Communities for Children Direct and Families and Relationship Services for Humanitarian Entrants ceased during 2014–15 and the new Children and Parenting Support component began on 1 March 2015.

b Measured as percentage of clients with improved family functioning, including child wellbeing, safety and development.

c Data is for the period 1 July 2015 to 31 December 2015. Data for the Home Interaction Program for Parents and Youngsters is not included in this total.

d New key performance indicator for 2015–16. Data for 2015–16 is limited to Settlement Grants (which report outcomes through the DSS Data Exchange) and represent clients assisted for the period 1 July 2015 to 31 December 2015.

e Measured as service provider self-report of clients whose immediate crisis needs were met through Financial Crisis and Material Aid, Commonwealth Financial Counselling and Financial Capability services. Data are not comparable across years due to the implementation of the DSS Data Exchange. 2014–15 data were collected from the DSS Data Exchange and other historical reporting systems decommissioned from 1 July 2015. 2015–16 data represent clients assisted for the period 1 July 2015 to 31 December 2015.

f Data are not comparable across the three years. From 2015–2016 the data include individuals on Income Management (25,309) and those participating in the Cashless Debit Card Trial (1,945).

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Extent to which individuals and families make progress achieving their individual/family goals (where programs have direct responsibility for goal setting/attainment)

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

» continued delivery of Children and Parenting 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

» continued delivery of Family and Relationship Services which provided education and skills sessions to improve relationship skills and assist couples and families, including those with children, to develop skills to foster positive, stable relationships with their partner or family.

Table 2.2.3: Families and Communities — Progress achieving goals



Percentage of clients with improved knowledge, skills, behaviours and engagement with services

80%b 84% 91%


Percentage and number of individuals reporting improved skills and confidence:c

• Improved skills 93%466

92%270

88%64

• Improved confidence 87%434

94%275

92%67

Percentage and number of individuals participating in education or training activitiesd

41%90,327

14%31,766

70%2,474


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

86.9% 97%

a Data are not comparable across the three years – in each year the data is reporting on different combinations of programs. Communities for Children Direct and Families and Relationship Services for Humanitarian Entrants ceased during 2014–15 and the new Children and Parenting Support component began on 1 March 2015.

b Data is for the period 1 July 2015 to 31 December 2015. Data for the Home Interaction Program for Parents and Youngsters is not included in this total.

c Data relate to Broadband for Seniors for this criterion and is collected through voluntary participant surveys. It is not comparable to previous years due to a change in service provider from 1 May 2015 and changes in data collection methods. The 2013–14 and 2014–15 data are based on a low but increasing response rate.

d Data relate to Broadband for Seniors and Volunteer Management for this criterion. Comparable data is not available due to Machinery of Government changes, a change in Broadband for Seniors service provider from 1 May 2015 and changes in data collection methods.

e 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. Data are not comparable across years due to the implementation of the DSS Data Exchange 2014–15 data were collected from the DSS Data Exchange and other historical reporting systems decommissioned from 1 July 2015. 2015–16 data represent clients assisted for the period 1 July 2015 to 31 December 2015.

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During the past year, the expansion of the Home Interaction Program for Parents and Youngsters (HIPPY) included an additional 25 Indigenous-focused sites across Australia. HIPPY is now operating in 100 sites across Australia of which 50 are located in communities of high Indigenous populations, and may have contributed to the priority target group result.

Table 2.2.4: Families and Communities — Priority groups



Percentage of clients from priority target groups:b

11% 18% 20%

• Indigenous 7%

• Culturally and linguistically diversec 4%

Percentage of clients from disadvantaged or targeted communitiesd

na na


Percentage and number of individuals assisted from Indigenous and culturally and linguistically diverse backgrounds:e

18%50,138

12%31,985

30%21,006

• Indigenous percentage 3% 3% 22%

• Indigenous number 9519 10,259 15,077

• Culturally and linguistically diverse percentage

14% 10% 9%

• Culturally and linguistically diverse number 40,619 28,296 5,929


Percentage of clients from priority target groups:f 22% 22%

• Indigenous 17% 13%

• Culturally and linguistically diverse 5% 9%

Percentage of clients from disadvantaged or targeted communitiesg

na na

Settlement Services

Percentage of clients assistedh 100%

a Data are not comparable across the three years as each year reports on different combinations of programs. Communities for Children Direct and Families and Relationship Services for Humanitarian Entrants ceased during 2014–15 and the new Children and Parenting Support component began on 1 March 2015.

b Measured as Indigenous and culturally and linguistically diverse clients. Children have been included for 2013–14 only. Disaggregated results are able to be reported for the first time in 2015–16.

c The culturally and linguistically diverse count for Families and Children was previously self-identified. The count is now standardised across DSS and based on country of birth and main language spoken at home.

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d This was a new key performance indicator in 2014–15. Transitioning to a new data collection system in 2014–15 and 2015–16 meant reliable quantitative data were not available to report the proportion of clients from disadvantaged or targeted communities.

e Data relate to Community Capacity Building, Broadband for Seniors, Volunteer Management and Diversity and Social Cohesion. Comparable data are not available across the three years due to Machinery of Government changes in 2013 and subsequent streamlining of the Department’s grant programs and improvements to data reporting by service providers.

f Data are not comparable across years due to the implementation of the DSS Data Exchange 2014–15 data were collected from the DSS Data Exchange and other historical reporting systems decommissioned from 1 July 2015. 2015–16 data represent clients assisted for the period 1 July 2015 to 31 December 2015.

g Transitioning to a new data collection system in 2014–15 and 2015–16 meant reliable quantitative data were not available to report the proportion of clients from disadvantaged or targeted communities.

h New key performance indicator for 2015–16. Relates to eligible clients who accessed settlement support, noting that not all migrants who are eligible will require or seek support.

Extent individuals and families are satisfied with services

Table 2.2.5: Families and Communities — Client satisfaction



Percentage and number of individuals satisfied with service provisiona

93%50,241

93%31,120

90%62,568


Families and Communities Service Improvement

Extent of stakeholders’ satisfaction with leadership and representation

The majority of stakeholders reported high levels of satisfaction (90.0%). Includes a combined membership of over 4,000 service providers and organisations across six peak bodies.

a Data relate to Community Capacity Building, Broadband for Seniors and Volunteer Management sub-activities. For 2013–14 and 2014–15 data also include Community Capacity Building. Comparable data are not available due to Machinery of Government changes and subsequent streamlining of our grant programs.

Extent to which community and service system capacity and capability is improved

The recently established Families and Children Expert Panel, comprising experts in research, practice and evaluation, will support Families and Children service providers to deliver robust, evidence based practice, focusing on early intervention and prevention.

An Outcomes Measurement project and a Children and Parenting Support project are currently underway assisting around 70 service providers at an approximate cost of $0.9 million. These projects are expected to be finalised in late 2016 and learnings from the projects will assist services to improve outcomes for children and families.

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Table 2.2.6: Families and Communities — Service and system


Settlement Services

National Accreditation Authority for Translators and Interpreters (NAATI) provide a high quality credentialing service supported by members

Met Met Met

Civil Society

Extent of expansion of giving, volunteering and corporate social responsibility

naa nab



Extent of national leadership and representation All deliverables have been met

a Giving Australia 2016 will collect comprehensive information from individuals, charitable organisations, philanthropists and businesses in Australia. Research reports are expected in late 2016 and will provide critical information about giving and volunteering behaviours, attitudes and trends.

b Civil Society appropriation announced in the 2014–15 Budget. The Prime Minister’s Community Business Partnership was established in October 2014 to advise government on practical strategies to foster a culture of giving, volunteering and investments in Australia. The Partnership has engaged with a broad cross section of stakeholders and experts to discuss ideas and have observed a significant re-energising of interest in philanthropy, volunteering and social impact investment in Australia.


Table 2.2.7: Families and Communities — Outputs/deliverables


Families and Children

Number of clients assisted 311,984a 838,401 731,892

Transition to Independent Living Allowance

Number of Transition to Independent Living Allowance claims grantedb

1,528 908 1,434

Number of young people supported by the Transition to Independent Living Allowancec

1,389 863 1,433

Settlement Services

Number of clients assisted:

• Humanitarian Settlement Servicesd 10,961 11,130 14,205

• Complex Case Supporte 1,290 741 425

• Settlement Grantsf 22,844 42,063 42,530

Free Translating and Interpreting services provided

244,167 247,684 253,505

Administer the payment for the provision of fee-free language services for eligible clients

Met Met Met

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Number of clients assistedf 301,427 907,098 -


Number of people engaged with Income Management:

25,309 26,396 25,677

• Vulnerable Welfare Payment 2,303 3,053 2,943

• Parenting/Participation measure 17,111 16,837 15,909

• Voluntary Income Management 5,167 5,828 6,047

• Child Protection measure 342 337 435

• Cape York Welfare Reform – Income Management

159 128 201

• Supporting People at Risk measureg 227 213 142

• Number of people on the Cashless Debit Card Trial

1,945h - -

Number of individuals engaged with income management and the Cashless Debit Card Triali

27,254 26,396 25,677


Number of individuals assistedj 410,929 348,676

Number of organisations assistedk 35,683 48,509

National Initiatives

Number of contacts for 1800RESPECT – the National Sexual Assault, Domestic Family Violence Counselling Service (telephone and online)

59,578l 44,914m 43,677n

Percentage and number of contacts for 1800RESPECT – the National Sexual Assault, Domestic Family Violence Counselling Service (telephone and online) who are womeno

85%50,641

85%38,180

86%37,560

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Civil Society

The Prime Minister’s Community Business Partnership provides an annual report to government with evidence-based, robust advice on practical strategies to foster a culture of philanthropic giving, volunteering and investment in Australia

Annual Report provided


Provide national leadership and representation for services to build capacity within the families and community sector that works to strengthen family and community functioning

The organisations funded under this activity have built the capacity of the sector and informed government policy and programs by conducting surveys and evaluations, developing submissions for Senate Inquiries and facilitating webinars, conferences and other training activities with service providers.

Milestones and timelines specified in funding agreements for grants are met

Met

a Data is for the period 1 July 2015 to 31 December 2015. Data for the Home Interaction Program for Parents and Youngsters is not included in this total. Figures include both individual and group clients.

b In 2014–15 and 2015–16 the number of claims granted is higher than the number of young people who received Transition to Independent Living Allowance. From 1 January 2014, young people can receive the allowance in instalments, so one young person can have multiple claims granted.

c There was a narrowing of eligibility and administrative changes from 1 January 2014 which accounts for the decrease in young people who were able to apply for and receive the allowance, especially from January to June 2014. Streamlined administration and improved communication has seen an increase in the number of young people receiving the allowance in 2015–16.

d Variation is due to a reduction in Australia’s humanitarian intake.

e Complex Case Support is a fee for service demand driven program.

f Data are not comparable across years due to the implementation of the DSS Data Exchange. 2014–15 data were collected from the DSS Data Exchange and other historical reporting systems decommissioned from 1 July 2015. 2015–16 data represent clients assisted for the period 1 July 2015 to 31 December 2015. Not all grant programs are reporting through the DSS Data Exchange in 2015–16.

g Participation in the Supporting People at Risk measure is dependent on referrals from the Northern Territory Alcohol Mandatory Management Tribunal.

h Includes 739 participants in Ceduna.

i Data are not comparable across the three years. From 2015–2016, the data include individuals on Income Management (25,309) and those participating in the Cashless Debit Card Trial (1,945).

j Data relates to Community Capacity Building, Broadband for Seniors, Volunteer Grants, Volunteer Management and Diversity and Social Cohesion.

k For 2014–15, data relates to Volunteer Management, Broadband for Seniors and some Community Capacity Building activities, and are only relevant for projects providing support to organisations. For 2015–16, data relates to Broadband for Seniors, Volunteer Grants and Volunteer Management.

l This figure is the annual figure from 1 July 2015 to 30 June 2016.

m Figures are for the year to March. Annual figure from 1 July to 30 June 2015 was 56,224.

n Figures are for the year to March. Annual figure from 1 July to 30 June 2014 was 48,660.

o Data on gender is not captured from all callers and therefore these figures are extrapolated from the available data.

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Program 2.2: Paid Parental Leave

Objective: To make payments to families to assist with the costs of a newborn or recently adopted child, extend the period that parents can be away from work to spend time with their child,

and to support employers to attract and retain a skilled workforce.

Dad and Partner PayParental Leave Pay

Paid Parental Leave results

Extent of reach of services to Australians in priority groups

Parental Leave Pay, one of the payments under the Paid Parental Leave scheme, provides eligible working parents up to 18 weeks’ pay at the rate of the national minimum wage, which was approximately $656 a week during the past year.

The proportion of mothers receiving Parental Leave Payment has been increasing over the past three years, from 46.7 per cent of all mothers with newborns in 2013–14, to 53.3 per cent in 2015–16. In 2015–16, a total of 170,501 parents started receiving Parental Leave Payment and a total of 79,126 fathers or partners received the Dad and Partner payment.

Table 2.2.8: Paid Parental Leave — Extent of reach


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

53.3%169,745

50.4%158,145

46.7%144,255

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 2013, 2014 and 2015.

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Table 2.2.9: Outputs/deliverables


Agreement is in place for Parental Leave Pay with the Department of Human Services (DHS)

Agreement is in place with DHS

Agreement is in place for Dad and Partner Pay with DHS

Agreement is in place with DHS

Strategies are in place to ensure that Parental Leave Pay requirements are fulfilled under agreements with DHS

The bilateral management arrangement with DHS requires quarterly reports and information exchanges to ensure all risks are being managed. Strategic business discussions are also held on a quarterly basis with DHS

DHS either funds employers to provide Parental Leave Pay to eligible employees, or provides Parental Leave Pay directly to eligible parents and other persons, according to the provisions of the Paid Parental Leave Act 2010.


Strategies are in place to ensure that Dad and Partner Pay requirements are fulfilled under agreements with DHS

The bilateral management arrangement with DHS requires quarterly reports and information exchanges to ensure that all risks are being managed. Strategic business discussions are also held on a quarterly basis with DHS

Dad and Partner Pay is paid by DHS directly to eligible fathers or partners in accordance with the Paid Parental Leave Act 2010



Parental Leave Pay

Percentage and number of parents paid government-funded Parental Leave Pay by employers

70.4%150,288

69.8%141,241

72.8%133,274

Percentage and number of families who have taken the full 18 weeks of Parental Leave Pay

96.8%163,946

97.0%154,766

97.4%135,846


Dad and Partner Pay

Percentage and number of dads and other partners who have taken the full two weeks of Dad and Partner Pay

96.1%60,538

96.2%68,063

96.4%72,975

Administered outlays $0.10b $89.43m $92.51m

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Program 2.3: Social and Community Services

Objective: To set aside funding for the implementation period of Fair Work Australia’s Social, Community and Disability Services

Industry Equal Remuneration Order. These funds will be used by the Australian Government to meet its share of the pay increases provided

by the pay equity orders, including those funded through the states and territories.

Social and Community Services results


Table 2.2.10: Social and Community Services — Outputs/deliverables


Social and Community Services

Funds are issued to eligible DSS service providers to meet the Australian Government’s share of pay increases


Funds are issued to other government agencies to meet the Australian Government’s share of the pay increases for their eligible service providers


The funds appropriated to the Department are issued to meet the Australian Government’s share of the pay increases

$261.6m

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Chapter 2.3

Former Purpose 3 — Ageing and Aged CareThe former Purpose 3 was included in the first edition of the DSS Corporate Plan 2015–16 published in August 2015. This purpose related to ageing and aged care policy and programs. These functions were transferred to the Department of Health as a result of the Administrative Arrangements Order (AAO) of 30 September 2015. Further information on the impact of AAOs during 2015–16 is provided at Appendix A.

This purpose is not included in the revised DSS Corporate Plan 2015–16.

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Chapter 2.4

Purpose 4 — HousingIncreased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.Program 4.1 Housing and Homelessness

Program 4.2 Affordable Housing


We administer Commonwealth Rent Assistance, provide incentives to non-government housing providers to deliver affordable housing to low and moderate income households, and work with other Commonwealth agencies, states and territories to develop policy options to improve the supply of social and affordable housing, and reduce the level of homelessness and housing instability.

Summary and analysis of performanceThe main policy levers to improve housing outcomes are under the control of other Commonwealth agencies and tiers of government. These include policy relating to housing markets, financial, regulatory and tax settings, planning and zoning policy, and the availability of stable employment for low and medium income households.

Key ResultsOur contribution to improving housing affordability for low to moderate income households includes:

» establishing, together with Commonwealth Treasury, a Council on Federation Financial Relations Affordable Housing Working Group to examine innovative financing mechanisms to improve the availability of affordable housing

» delivering the majority of dwellings under the National Rental Affordability Scheme by the target date of June 2016.

people and families were provided Rent Assistance

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Table 2.4.1: Performance Criteria for Purpose 4 Housing and programs that report KPIsa



4.2

4.3


Contribution of the Commonwealth’s policy role to improving housing opportunities for all Australians


Extent of implementation of key policy initiatives to support improved housing opportunities for all Australians

Extent of implementation of key policy initiatives to improve service capacity, quality and evidence-based practice




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Results

Program 4.1: Housing and Homelessness

Objective: To provide support for housing and homelessness research which will build the evidence base for effective policy that addresses

homelessness and housing affordability over the long term.

Housing and Homelessness results

Contribution of the Commonwealth’s policy role to improving housing opportunities for all Australians

We work closely with other Commonwealth agencies and states 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 are the National Affordable Housing Agreement and the National Partnership Agreement on Homelessness. Reporting on performance against these agreements is managed by the Department of Prime Minister and Cabinet.

On 7 January 2016, the Australian Government announced the establishment of an Affordable Housing Working Group. The Working Group is focused primarily on investigating ways to boost the supply of affordable rental housing through innovative financing models. We lead the Working Group in conjunction with the Commonwealth Treasury and working with members from the New South Wales, Victorian and Western Australian treasuries.

We also administer policy in relation to Commonwealth Rent Assistance.

Extent of implementation of key policy initiatives to support improved housing opportunities for all Australians

We have continued to support research activities through the Australian Housing and Urban Research Institute (AHURI) to aid the development of cross-jurisdictional housing policy.

The Research Agenda for 2016 focused on providing an evidence base in the following areas:

» housing aspirations and trade-offs

» social impact investing and housing policy

» taxation impacts on the housing market

» the future of the private rental market

» housing and residential land supply.

The AHURI contribution to building the evidence base will be reported in the AHURI Annual Report.

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Table 2.4.2: Housing and Homelessness — Implementation of initiatives


Development of an evidence base on housing and homelessness

Achieved


Table 2.4.3: Housing and Homelessness — Outputs/deliverables


Research and evidence-based policy advice to the Government on housing and homelessness issues

Advice provided

Program 4.2: Affordable Housing

Objective: To improve the supply of affordable rental housing to low and moderate income households.

National Rental Affordability Scheme

Affordable Housing results


As at June 2016, 31,368 dwellings had been delivered into the National Rental Affordability Scheme (NRAS), an increase from 28,817 in 2014–15. The Scheme commenced in 2008 and the target for the delivery of dwellings is up to 38,0009. NRAS had been slow in delivering dwellings and in 2014 regulatory amendments were introduced to spur delivery. This included the introduction of the ‘use it or lose it’ provisions, under which all dwellings need to be delivered into NRAS by June 2016 in order for the dwelling to attract the full 10-year NRAS incentive.

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. However, it is not possible to provide an assessment of the extent to which affordable housing supply in the broader housing market is improved through NRAS because NRAS dwellings comprise a relatively small proportion of Australian housing stock.

9 The 2014–15 Budget announced Round 5 of the National Rental Affordability Scheme would not proceed, capping the Scheme to 38,000 incentives.

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Table 2.4.4: Affordable Housing — Implementation of initiatives


Timely provision of incentives for eligible NRAS dwellings

28,675 NRAS incentives issuedin the 2015–16 financial year


Table 2.4.5: Affordable Housing — Outputs/deliverables


Provide NRAS incentives in accordance with statutory criteria so NRAS dwellings are made available at reduced rents for eligible low and moderate income households

NRAS incentives provided as described

Number of services delivered 31,368 NRAS dwellings delivered






Table 2.4.7: Program Support for Outcome 4 — Deliverables




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Chapter 2.5

Purpose 5 — Disability and CarersImproved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.Program 5.1 Disability, Mental Health and Carers

Program 5.2 National Disability Insurance Scheme


We deliver a number of targeted programs – and also work across the Commonwealth, with the National Disability Insurance Agency (NDIA), and with state and territory governments and sector stakeholders – to support people with disability, carers and people with or at risk of mental illness.

Summary and analysis of performanceWe 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 lifetime outcomes. In addition, many mainstream policies and programs are run by state jurisdictions and, within the Commonwealth, by agencies other than our Department. As such, our performance is 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.

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Key ResultsOur contribution to improving outcomes for people with disability during the past year include:

» agreements in place with all Australian states and territories under the National Disability Insurance Scheme (NDIS) either to transition to the full scheme, or to expand and extend trial sites

» completing the Disability Employment Services (DES) Youth Mental Health Trial, which tested innovative participant-centred approaches to service delivery with 189 participants of a target of 200 participants

» implementing the Disability Employment – A Better Way to Work measure, a $25 million package to improve access to employment for people with disability

» launching a national Carer Gateway to help carers access information and support to maintain their caring role.

We expanded the coverage of the Data Exchange to additional client-based programs in Program 5.1 Disability, Mental Health and Carers. The Data Exchange is a new outcomes-focused approach to program performance reporting. This means performance data for these programs is still developing and is not comparable to previous years. As the Data Exchange matures, it will provide more meaningful information about service delivery outcomes.

parents and carers accessed information under HCWA and Better Start and support services

people across Australia have successfully transitioned into the NDIS during the third year of the NDIS trials

children with a disability received early intervention services under HCWA and Better Start

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Table 2.5.1: Performance Criteria for Purpose 5 Disability and Carers and programs that report KPIsa



5.2

5.3


Extent to which clients have improved circumstances (in key outcome domains relevant to their lifetime wellbeing)

Extent to which clients have made progress/achieving their individual/family goals (in goal domains relevant to improving their circumstances)



Extent to which clients are satisfied with services





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Program 5.1: Disability, Mental Health and Carers

Objective: To provide support and community-based initiatives for people with disability, mental illness and carers, so they can develop their capabilities and actively participate in community and economic life.

Community Mental Health

Disability and Carer Support

Disability and Carer Service Improvement and Sector Support


Employment Assistance and Other Services

Disability, Mental Health and Carers results

Extent to which clients have improved circumstances (in key outcome domains relevant to their lifetime wellbeing)

In the year ending 30 June 2016, 30.7 per cent of Disability Employment Services (DES) participants were in employment three months after their participation in the program. This is a modest increase from the 30 March 2016 figure of 30.0 per cent and the first increase following a three-year declining trend since March 2013, when the figure was 38.0 per cent. This is largely consistent with the overall softness in the Australian labour market over the past 24 months. It is not yet known if this will continue to improve, however more recent, modest improvements in the Australian labour market are encouraging.

Table 2.5.2: Disability, Mental Health and Carers — Improved circumstances



Proportion of job seekers in employment three months following participation in Employment Services:a

30.7% 31.1% 33.5%

• Disability Management Service 33.1% 31.1% 34.9%

• Employment Support Services 28.9% 31.1% 31.8%

a The Labour Market Assistance Outcomes: 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 Labour Market Information Portal. Aggregated quarterly figures for 2015–16 are: September 2015 – 30.7%, December 2015 – 30.0%, March 2016 – 30.0%, June 2016 – 30.7%.

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Activities that may have contributed to clients achieving employment goals include:

» the launch of the new JobAccess Gateway as the central point for DES

» availability of six months of DES support for young people with disability who are finalising participation in a state or territory funded post-school employment or Transition to Work program

» concurrent servicing arrangements between DES and Australian Disability Enterprises (ADE) to assist people with disability in supported employment to transition to open employment

» a new 23-hour employment benchmark for DES to provide incentives for DES providers to place participants in jobs at their assessed work capacity

» the transition of approximately 7,200 DES participants to higher performing DES providers as a result of the DES-Employment Support Service business reallocation process conducted in 2015.

Table 2.5.3: Disability, Mental Health and Carers — Progress achieving goals



Number of commencements 86,729 96,918 93,395

Total job placements achieved 49,757 48,048 46,574

Disability Management Service



Employment Support Services




Percentage of participants maintaining progress against relevant goals

92%a 95% 97%

a This indicator was previously measured by a survey that providers sent to selected participants. It is now collected from the DSS Data Exchange. Results for 2015–16 are not comparable with previous years.

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Table 2.5.4: Disability, Mental Health and Carers — Priority groups



Percentage of participants from Indigenous backgrounds

10% 11% 12%

Percentage of participants from culturally and linguistically diverse backgrounds

4%a 14% 14%

a The culturally and linguistically diverse count for Community Mental Health was previously self-identified. The count is now standardised across DSS and based on country of birth and main language spoken at home.


Table 2.5.5: Disability, Mental Health and Carers — Client satisfaction



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

81.5%a 98% 99%

a This indicator was previously measured by a survey that providers sent to selected participants. It is now collected from the DSS Data Exchange. Results for 2015–16 are not comparable with previous years.


Table 2.5.6: Disability, Mental Health and Carers — Outputs/deliverables



Number of commencements Reported in Table 2.5.3

Total job placements achieved Reported in Table 2.5.3

Disability Management Service



Employment Support Services



Employment assistance and other services 21,781 22,131 19,119

National Disability Recruitment Coordinator – Number of job vacancies generated

300 304 300

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Disability and Carer Support

Number of people with disability provided with direct advocacy support

12,928 11,252 11,700


Number of people whose lives are affected by mental illness accessing support services

117,465 284,464a 166,457

Number of participants in youth employment support trialsb

189

a Figure for 2014–15 includes attendances at the Social and Community support component of the Prime Minister’s Drought Package community events (113,788 participants).

b There were two components of the Youth Employment Trials planned to commence in 2015–16. This number refers to the Disability Employment Services trial between August 2015 and June 2016. The Individual Placements and Support trial is expected to commence in the 2016–17 reporting period.

Program 5.2: National Disability Insurance Scheme

Objective: To improve the wellbeing and social and economic participation of people with disability, and their families and carers, by building a National Disability Insurance Scheme (NDIS) that delivers

individualised support through an insurance approach. This program also includes existing Commonwealth funded supports that are transitioning in to the Scheme in a phased approach and the

Sector Development Fund.

National Disability Insurance Scheme results

Extent to which clients have improved circumstances (in key outcome domains relevant to their lifetime wellbeing).

Around 13,000 people across Australia have successfully transitioned into the NDIS during the third year of the NDIS trials, bringing the total number of people with individualised packages of supports in place to over 30,000.

There has been a modest increase in the proportion of Australian Disability Enterprise clients likely to have reduced reliance on income support payments. In the past year, more than half (52.3%) had sufficient income from employment to reduce reliance on income support payments, representing an improvement in financial wellbeing.

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Table 2.5.7: National Disability Insurance Scheme — Improved circumstances


National Disability Insurance Scheme Transition

Percentage and number of supported employees/clients likely to have reduced reliance on income support payments (sufficient income to affect the Disability Support Pension)

52.3%10,251a

50.6%10,442

48.9%10,258

a Note that the reduction in absolute numbers reflects that 1,096 clients of Australian Disability Enterprises transitioned to the National Disability Insurance Scheme by 30 June 2016.


Table 2.5.8: National Disability Insurance Scheme — Progress achieving goals



Percentage and number of individuals, parents and carers who report that they were assisted to access choices and options that enabled them to manage their needs

naa 80%24,295

na

a Data were not collected in 2015–16 due to the transition of the programs to the NDIS.


The NDIS enables individual participants to procure the supports and services they need through an individualised plan. Lessons learned from the NDIS trials have been used to design arrangements for transition to full Scheme. Clients of a range of Commonwealth and state programs will transition to the NDIS by 2019–20. Results from the NDIS trial in the Northern Territory indicate extensive community engagement is providing the best means to tailor services to local needs.

Substantial numbers of eligible people in priority groups access services under the Early Intervention programs, i.e. the Helping Children with Autism (HCWA) and Better Start for Children with Disability (Better Start) programs. Under HCWA and Better Start, 30,697 children with disability receive early intervention services and 4,489 parents/carers accessed information and support services. There has also been a substantial increase in the number of eligible children from Indigenous or culturally and linguistically diverse backgrounds who receive early intervention services. This result can be largely attributed to the introduction (in 2012 for HCWA and 2015 for Better Start) of the Early Intervention Indigenous Liaison Officers (EIILOs), whose role is to increase awareness of disability and early intervention services in Indigenous communities. In general, there is an increasing awareness of the HCWA and Better Start programs, so it is expected that numbers are still increasing overall. However, the slowing of growth in participant numbers reflects the transition of funding and potential participants to the NDIS.

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Table 2.5.9: National Disability Insurance Scheme — Priority groups



Number of eligible children with disability receiving early intervention services

30,697 30,369 30,107

Number of parents/carers who access information and support services

4,489 4,229 4,729

Number and percentage of eligible children with disability from Indigenous and culturally and linguistically diverse backgrounds receiving early intervention services:

5,66418.5%

5,22717.1%

3,83512.7%

• Indigenous 1,6445.3%

1,4674.8%

9953.3%

• Culturally and linguistically diverse 4,02013%

3,76012.3%

2,8409.4%

Number and percentage of participants from Indigenous backgrounds:

• Australian Disability Enterprises 4962.5%

5002.4%

4962.3%

• Respite Support for Carers of Young People with Severe or Profound Disability

2756.1%

3316.2%

3125.7%

• Outside School Hours Care for Teenagers with Disability

764.4%

1447.7%

1597.9%

• Young Carers Respite and Information Services – respite services

3869.9%

49810.7%

4229.3%

Number and percentage of participants from culturally and linguistically diverse backgrounds:

• Australian Disability Enterprises 1,6618.4%

1,6597.9%

1,6587.8%


87019.2%

89316.7%

84015.3%


19211.3%

29515.8%

27113.5%


41910.7%

452 9.8%

52511.6%

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Table 2.5.10: National Disability Insurance Scheme — Client satisfaction



Percentage and number of clients reporting that the services received were appropriate to their needs as parent/carers:


97%1,097

92%1,324

96%1,196


94%1,083

94%1,392

97%1,327

Percentage of clients satisfied that the services they received were appropriate to their needs as carers:


99%1,135

96%1,105

99%


Sector Development Fund

Increase the capacity of people with disability and their families to exercise choice and control, both in engaging with the NDIS, and in purchasing supports in an open market in order to realise their aspirations

In 2015–16, projects have:• delivered best practice in early

childhood intervention• established new local support

groups and communities of practice, consumer and carer networks and champions

• increased the number of Indigenous organisations working in disability support

• provided cultural competence services for mainstream service organisations.


The NDIS is delivered by the National Disability Insurance Agency (NDIA). The NDIA also provides information and links to existing mainstream and community services. Performance results for the NDIA will be in its Annual Report.

Disability Employment Services providers and Australian Disability Enterprises are audited each year for their adherence to the National Standards for Disability Services (National Standards). The National Standards help to promote and drive a nationally consistent approach to improving the quality of services. They focus on rights and outcomes for people with disability.

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Table 2.5.11: National Disability Scheme — Implementation of initiatives


National Disability Insurance Scheme

Extent of timely and effective policy advice provided on full-scheme roll-out of the NDIS, including on the implications for the workforce

Broad-ranging policy work has been undertaken to:• progress a national quality and

safeguards framework• develop the Specialist Disability

Accommodation Pricing Framework• implement a Market, Sector and

Workforce strategy• develop a Rural and Remote Strategy • develop an Information, Linkages and

Capacity Building Framework• complete reviews of the National

Disability Insurance Scheme Act 2013 and the NDIS Intergovernmental Agreement.

Extent agreements with states and territories for full-scheme roll-out are in place

Bilateral Agreements for Transition to full NDIS were signed with:• New South Wales on 16 September

2015• Victoria on 16 September 2015• South Australia on 11 December 2015• Queensland on 16 March 2016• Northern Territory on 5 May 2016.Agreement with the Western Australian (WA) Government was reached on 27 April 2016 for the extension and expansion of the WA comparative trials.In the Australian Capital Territory, the agreed eligible population of approximately 5,000 participants will be fully covered by September 2016. Early transition sites commenced in New South Wales, Queensland and South Australia.


Develop a market capable of providing the necessary supports required for full scheme

Projects have delivered:• financial management and assessment

packages for providers• prescription training for rural and

remote service providers• Board and management capability and

skills development• development of the National Quality

Verification and Certification Scheme to reduce the risk of quality and safety failures for new providers.

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Increased mix of support options and innovative approaches to provision of support

Projects have delivered: • development of national guidelines

on best practice in early childhood intervention and national assistive technologies framework

• determination of the effectiveness of trained assistive technology mentors to enable self-prescribing of low risk assistive technology equipment.

Increase the disability services workforce, making it more diverse and better equipped to meet the needs of people with disability

Projects have delivered:• improvement of cultural competence

for organisations working with Indigenous Australians with disability, including increasing the number of Indigenous workers in the disability sector

• capability development for the mental health workforce

• maintenance of a CareCareers website that communicates work options for NDIS registered service providers and jobseekers.

Develop an evidence base to inform an insurance approach to disability support

Project has delivered the first phase of the evaluation of the NDIS being undertaken by the National Institute of Labour Studies, with data collection for phase two underway.

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Table 2.5.12: National Disability Scheme — Outputs/deliverables


National Disability Insurance Scheme

Agreements with states and territories for National Disability Insurance Scheme trials, and for transition to full scheme with all states and territories

Ongoing

Policy developed to respond to evaluation results from the trials sites and for transition to full-scheme roll-out of the National Disability Insurance Scheme

Ongoing

Amendments to design are made as necessary during the National Disability Insurance Scheme trials

Ongoing

Evaluation of the National Disability Insurance Scheme trials has commenced to inform full-scheme roll-out

Ongoing

Support for the Disability Reform Council and related Commonwealth-State forums

Support provided for• 3 Ministerial Council Meetings• 15 multilateral meetings• 76 bilateral meetings

Monitoring and refinements to the National Disability Insurance Scheme design during trial

Ongoing



Eligible children with disability have access to early intervention services

30,697 30,369 30,107

Parents, carers and families of eligible children have access to information and support

4,307 4,229 4,729

Number of carers of people with severe or profound disability assisted with short-term or immediate respite

4,517 5,347 5,494

Number of clients receiving Outside School Hours Care for Teenagers with Disability services

1,693 1,864 2,010

Number of young carers at risk of not completing secondary education assisted with respite services

3,914 4,633 4,520

Number of supported employees assisted by Australian Disability Enterprises

19,858 20,912 21,262

Number of people whose lives are affected by mental illness accessing support services

Result included in Table 2.5.6

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People with disability, the disability services sector and its workforce are assisted with the transition to the NDIS, including through:

• Building community capacity and engagement 13 projects

• Increasing individual support capacity and development of new forms of support to meet the needs of people with disability

11 projects

• Building disability sector capacity and service provider readiness to manage the transition

19 projects

• Assistance with the required expansion and diversification of the workforce 8 projects

• Building the evidence base 5 projects











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Eleven-year-old ‘Selena’ and her family are among 1,300 Indigenous Australians who give time each year to assist Footprints in Time: The Longitudinal Study of Indigenous Children (LSIC).

Studying a child’s early years gives insight into how early experiences affect development into adulthood.

‘Selena’ and her family have been contributing to Footprints in Time since she was four.

Now a busy primary school captain and keen netball player ‘Selena’ is preparing for high school.

“I look forward to catching up with researchers each year and telling them all about the new stuff I have been doing,” she said.

“I am proud of my Aboriginal, Papuan, Malaysian and Pilipino heritage and love attending NAIDOC and other cultural celebrations with my family.”

“And I have great role models including my parents, friends, family and teachers.”

‘Selena’ has taken a year away from sport to deal with a recurring knee injury. She does well academically, including in maths and science, and

is hoping to leave primary school with “fantastic memories”.

As ‘Selena’ grows up, the information collected on her health, education, family relationships, culture and community will help determine the factors which assist Aboriginal and Torres Strait Islander people to grow up strong and healthy.

This data base is used to improve our understanding of issues faced by Aboriginal and Torres Strait Islander children, their families and communities, and help Close the Gap between Indigenous and non-Indigenous Australians.

Already, LSIC has provided robust evidence of the importance of early childhood education and care programs in boosting cognitive and developmental outcomes among Indigenous children.

LSIC is in its ninth year of continuous operation and is one of four studies undertaken by the National Centre for Longitudinal Data in Canberra. Together the studies inform policies and practices to improve the wellbeing of people and families in Australia.

Footprints in Time

Eleven-year-old ‘Selena’.

Chapter 3.1 Our governance structure 104

Chapter 3.2 External scrutiny 117

Chapter 3.3 Managing our people 123

Chapter 3.4 Managing our finances 129

Management & accountability


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Chapter 3.1

Our governance structureOur Department’s governance structure is designed to ensure accountability, transparency and fairness. It includes internal boards and committees, business planning and risk management, operations, quality assurance, fraud control and compliance activities.

Internal committees supporting our business

Committees reporting to the Secretary

Several committees provide advice and support to the Secretary on the administration and overall operation of our Department. Internal committees generally comprise departmental employees; and some have external members.

Executive Management Group

Chair: Finn Pratt, Secretary

Membership: deputy secretaries

The Executive Management Group (EMG) is our most senior committee. It advises the Secretary on overall strategic direction, priorities and performance and oversees our financial wellbeing by allocating resources, monitoring performance and risk, and ensuring we can meet our regulatory requirements. It is also a forum to manage cross-group issues and it guides, coordinates and champions key organisational reform.

Senior Management Group


Membership: deputy secretaries, group managers, state and territory managers

The Senior Management Group is the primary forum for senior executive consultation with our group and state managers.

It undertakes strategic discussions on policy themes and policy issues, and other high level matters. It is also a forum to manage cross-group issues and it guides, coordinates and champions key organisational reform.

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Audit and Assurance Committee

Chair: Felicity Hand, Deputy Secretary

Deputy Chair: Paul McBride, Group Manager, Social Security Policy (December 2015 to current), Donna Moody, Group Manager, Ageing and Aged Care Services (July to September 2015)

Membership: two senior DSS executives and three external independent members

The external members are experts in their respective fields. In the past year, the three external members were: Ms Jenny Morison, a leading consultant in public sector financial management reform; Mr Andrew Cox, a corporate governance professional with extensive experience in governance, audit and risk management; and Mr Ian Carnell, a former public servant with extensive experience in senior executive positions in several Commonwealth agencies. Following Mr Carnell’s resignation in December 2015, Mr Ian McPhee AO PSM, former Auditor-General of Australia, was appointed to the committee.

The Audit and Assurance Committee provides independent assurance and advice to the Secretary and EMG on the design, operation and performance of our internal governance and risk and control framework. It also assesses our compliance with internal and external accountabilities and responsibilities.

The Committee meets five times each calendar year, with a sixth meeting held to review our annual financial statements process.

The Chief Internal Auditor reports to the Committee’s chair and the Secretary, as required.

Indigenous Reform Committee


Membership: deputy secretaries and Group Manager, Policy Office

The Indigenous Reform Committee ensures we retain a strong focus on and accountability for our portfolio commitments in reducing Indigenous disadvantage.

The Committee ensures our roles and responsibilities in terms of policy, programs, payments and service delivery issues are clearly understood and that connections are recognised and synergies harnessed where appropriate.

The Committee is committed to driving change and measuring the impact of Indigenous participation on lifetime wellbeing.

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Committees reporting to the Executive Management Group

Policy and Regulatory Reform Committee

Chair: Serena Wilson, Deputy Secretary

Deputy Chair: Barbara Bennett, Deputy Secretary

Membership: deputy secretaries and seven group managers

The Policy and Regulatory Reform Committee has overarching responsibility for the quality and performance of our policy and deregulation activities. It is responsible for the development, implementation and ongoing effectiveness of our:

» policy framework and cross-cutting policy positions

» policy planning, priority setting and performance systems

» evidence (data, research and evaluation) systems

» policy engagement strategy

» policy capability strategy

» deregulation strategy and priorities.

People and Communications Committee

Chair: Michael Lye, Deputy Secretary

Deputy Chair: Tracey Bell, A/g Group Manager

Membership: one deputy secretary, four group managers, two branch managers and one state manager

The People and Communications Committee guides, endorses and makes decisions on policies and strategies regarding:

» development, management, evaluation and provision of strategic advice on internal and external communications

» promotion of best practice stakeholder engagement

» establishment of workforce processes and tools to improve our workforce capability

» development and motivation of employees, including retention, learning and development, and the performance framework

» attraction and recruitment of a high quality workforce, including diversity and inclusion, redeployment, and job evaluation.

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Budget Committee

Chair: Michael Lye, Deputy Secretary

Membership: Secretary, deputy secretaries, Chief Finance Officer and Branch Manager, Budget Development

The Budget Committee has oversight of our external and internal budget strategies, budget communications, security and advice to Ministers.

The Budget Committee works to ensure we:

» support Ministers and government throughout the budget cycle with strategic advice and briefing

» take a whole-of-department view in developing Budget submissions, materials and preparation for the estimates processes

» implements the Government’s budget intent while delivering on government priorities without negatively impacting business continuity

» have in place —

– strong financial and resource management strategies

– effective budget communication strategies

– sound budget security controls.

Program and Delivery Board

Chair: Barbara Bennett, Deputy Secretary

Deputy Chair: Tim Reddel, Group Manager, Program Office

Membership: two deputy secretaries, six group managers and two state or territory managers

The Program and Delivery Board makes decisions and provides advice to program owners and EMG on the strategic direction and implementation of our programs as defined in the Portfolio Budget Statements (PBS).

The Board maximises the contribution our program activities have on our mission of improving the lifetime wellbeing of people and families in Australia. It provides guidance to ensure we have a productive, professional working and strategic relationship with current and potential service providers.

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Infrastructure, Communications and Technology Committee

Co-Chair: Michael Lye, Deputy Secretary

Co-Chair: Barbara Bennett, Deputy Secretary

Membership: two deputy secretaries, four group managers and two branch managers

The Infrastructure, Communications and Technology Committee is our key governance body for Property (Infrastructure), Information Communication and Technology (ICT) strategic planning and ICT projects. It provides advice to EMG relating to Infrastructure and ICT to ensure strategies and operations are aligned with our priorities and the Strategic Framework.

Figure 3.1.1: Our governance structure, as at 30 June 2016

Policy and Regulatory Reform

CommitteeChair: Serena Wilson

Data GovernanceChair: Sean Innis

National Workplace Consultative Forum

Chair: Tracey Bell

Selections Governancy Board

Chair: Tim Reddel

Reconciliation Action Plan Working

GroupChair: Diana Lindenmayer

DeregulationChair: Tracey Bell

National Health and Safety Committee

Chair: Sharon Bailey

Multicultural Access and Equity

Chair: Evan Lewis

Budget Committee Chair: Michael Lye

People and Communications

Committee Chair: Michael Lye

Program and Delivery Board

Chair: Barbara Bennett

Infrastructure, Communications

& Technology Committee

Chair: Michael Lye

Executive Management Group

Chair: Finn Pratt

Senior Management Group

Chair: Finn Pratt

Audit and Assurance Committee

Chair: Felicity Hand

Indigenous ReformChair: Finn Pratt

RemunerationChair: Michael Lye

Financial StatementsChair: Jenny Morison

Secretary

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Business planning and risk management

Strategic and business planning

Our vision of improving the lifetime wellbeing of people and families in Australia is at the core of our planning processes. From our highest level corporate documents to each staff member’s individual performance plans we ensure our purpose links back to our mission statement and that our key tasks are clear.

Our 2015–16 Corporate Plan outlines policy, program and corporate objectives and guides the way in which we can achieve results.

Our cascading planning process engages staff at all levels to understand how they contribute to our goals.

Our planning assists us to manage risks and to focus on the capabilities and culture we need now and for the future.

Figure 3.1.2: DSS planning

DSS Vision

Statement

Individual Performance & Development

Plans

Group and Branch

Plans

DSS Corporate

Plan

Risk management

We recognise the importance of risk management as an essential component of sound management and good corporate governance. Our approach to risk management is based on the Australian/New Zealand International Standard on Risk Management (AS/NZS ISO 3100:2009) and is aligned with the nine elements of the Commonwealth Risk Management Policy. This supports us to meet our obligations under the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

We understand risk management is about properly managing risks from the start of any activity in order to achieve our business objectives.

During the past year, we continued to work towards a positive risk culture based on risk acceptance rather than compliance or avoidance. At the centre of this approach is the implementation of controls and treatments proportionate to the risks being managed. This applies to both how we prioritise internal resources and effort, and how we work with other agencies and service providers.

In 2015, we achieved excellent results in the Comcover Benchmarking Survey, which aligns agency performance with the Commonwealth Risk Management Policy. The results show we have an overall ‘advanced’ risk management maturity level and demonstrate our continued commitment to embed effective risk management.

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Business continuity management

We have a well-developed, structured, and robust business continuity program.

We are strongly committed to managing business interruptions that have the potential to affect critical services and assets, as well as the wider Australian community. Our business continuity management framework ensures we can deliver our critical work in the event of a disruption to business as usual.

The framework also includes our Disaster Coordination Plan which aims to provide support to individuals and communities affected by disasters.

Internal audit assurance activities

In the past year, we conducted 21 audits, including three multi-stage audits, as part of our rolling 2015–16 Audit Work Program. The rolling Audit Work Program provides assurance over areas of risk identified as a priority by our Executive. In the past year, multi-stage audits provided assurance relating to the security of information and communications technology, and the Commonwealth Home Support Transition Project. The other multi-stage audit is ongoing and continues to provide assurance for streamlining our grant programs.

Changes to the rolling 2015–16 Audit Work Program were made in response to emerging and new risks, including those transferred to us through Machinery of Government (MoG) changes. The Audit and Assurance Committee endorsed the changes to the program.

Results of all internal audits were reported to the Audit and Assurance Committee.

Progress towards implementing audit recommendations is tracked and reported biannually to the Audit and Assurance Committee.

Compliance

Our compliance framework sets out the systems, structures and behaviours that build a compliance environment.

The framework builds a compliance culture shaped by rigorous governance, strong leadership and robust compliance activities. It was developed to support us in maintaining the integrity of the business and services we provide, and it focuses on:

» assessing and planning to manage risk

» decision-making informed by risk

» documenting why decisions are made

» reviewing the quality of processes and how we are performing

» learning and seizing opportunities for improvement.

The compliance framework is reviewed annually or when there is a change in better practice, relevant legislation and standards, or when the Government changes our responsibilities.

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Compliance with finance law

In the past year, no significant issues of non-compliance with finance law were identified or reported.

Under paragraph 19(1)(e) of the Public Governance, Performance and Accountability Act 2013, we are required to notify the Minister for Social Services and the Minister for Finance of significant issues of non-compliance with the finance law as soon as practicable after identification.

Fraud and corruption control

Our Fraud and Corruption Control Plan outlines the strategies in place to prevent, detect, investigate and report fraud. It includes a:

» statement of our zero-tolerance approach to fraud and how we manage fraud risks

» description of our employees’ fraud control responsibilities

» description of our fraud prevention, detection and investigation arrangements

» description of our fraud reporting obligations.

We review the Fraud and Corruption Control Plan annually, or more frequently if required, to ensure it continues to reflect our business activities.

Ongoing fraud risk assessments underpin the plan. The assessment process involves risk owners, business and program managers and subject matter experts who evaluate existing and emerging fraud risks biannually to ensure appropriate controls are in place to manage those risks.

Fraud and corruption awareness

Our fraud and corruption awareness strategy includes awareness training through online learning or face-to-face delivery, and regular fraud-related messages to staff. This ensures staff can access appropriate training and messages out of the national office or across the delivery network.

Fraud investigation

In the past year, our Fraud and Public Law Branch investigated allegations of fraud and criminal behaviour involving staff and recipients of our funding. If appropriate, briefs-of-evidence recommending prosecution were submitted to the Commonwealth Director of Public Prosecutions for consideration. If our investigations identified any risks these were reported to the Department’s relevant governance committees. If our investigations identified any opportunities for business improvement these were also communicated to relevant stakeholders with advice on how these could best be realised.

Our investigations were conducted in line with Australian Government Investigation Standards and all departmental investigators have at least the minimum qualifications stipulated in the standards.

We work closely with other Australian Government entities responsible for fraud prevention and investigation by sharing information and developing knowledge of fraud risks, fraud intelligence and trends that may impact our programs.

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Payments and programs provided under a bilateral management arrangementOur Department and the Department of Human Services (DHS) have in place a Bilateral Management Arrangement (BMA) to support an effective working relationship between the two agencies.

The BMA details the payments, programs and services that DHS delivers on our behalf, underpinning the interdependence in our portfolio between policy and service delivery. This encompasses the relationship, governance and reporting requirements and the exchange of an annual statement of assurance.

It provides support for our Department to review, manage and develop policy and work with DHS to achieve the outcomes expected by the Australian Government.

Assurance for payments and services

Measuring the accuracy of program outlays

Assurance of the accuracy of social security income support payments is provided by the Random Sample Survey Program. Reviews are conducted by DHS using a random sample of the population for each payment type.

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

In 2015–16, the program conducted 20,674 reviews.

The survey is the primary way we measure social security service delivery performance. Payments are to be made with 95 per cent or greater accuracy as measured by the program. In the past year, the overall result was 95.49 per cent; however, results for some individual social security payments were below the agreed target (see Table 3.1.1).

This year our Department and DHS continued to work collaboratively to consider ways to improve overall accuracy.

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Table 3.1.1: Payment accuracy — by payment type, as at 30 June 2016a

Payment type

Number of customers

surveyedAccuracy

(%)

Confidence interval

(%)

ABSTUDY 500 81.55 +/-3.61

Austudy 700 85.52 +/-2.65

Newstart Allowance 4,986 92.93 +/-0.74

Parenting Payment Partnered 1,101 83.47 +/-2.99

Parenting Payment Single 2,097 94.58 +/-1.11

Partner Allowance (Benefit and Pension) 120 98.69 +/-2.33

Sickness Allowance 400 67.75 +/-4.78

Widow Allowance 200 97.10 +/-2.16

Youth Allowance (other) 822 87.21 +/-2.83

Youth Allowance (student) 1,300 88.57 +/-1.82

Age Pension 3,471 98.12 +/-0.26

Disability Support Pension 1,902 91.55 +/-1.28

Carer Payment 1,050 95.86 +/-1.13

Carer Allowance 175 96.42 +/-2.77

Family Tax Benefit 1,500 96.97 +/-1.01

Special Benefit 350 96.62 +/-1.75

Overall rate of accuracy 20,674 95.49 +/- 0.31

a Payment accuracy figures vary slightly to those included in the DHS Annual Assurance Statement. These figures can be subject to minor variations at different points in time as reviews, data validation checks and appeal outcomes are finalised.

Social security debt raising and recovery

Social security payments can be overpaid if the recipient’s circumstances change but are not updated either through intentional fraud or unintentional error (staff or recipient). DHS manages debt identification and recovery for our Department and we monitor and oversee this process.

This year, DHS raised 1,553,278 DSS debts valued at $1.55 billion and recovered $0.92 billion; a further $76.0 million was waived.

These figures include compensation debts but exclude Family Tax Benefit reconciliation and tax return non-lodger debts.

Debts were recovered through a variety of methods. In 2015–16, the primary methods were:

» withholding of a portion of the current entitlement for current recipients

» garnishee of tax refunds for ex-recipients with no other repayment arrangement in place.

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The Department can waive its right to recover a debt under certain conditions. These include cases where:

» the debtor is subject to extreme and unusual circumstances that interfere with their capacity to repay

» the debt was solely due to administrative error

» the debt is likely to be less than $50 in value and therefore not cost effective to pursue.

Indicators that are agreed with DHS measure the overall effectiveness of debt management relating to social security program payments.

Grant managementThe 2015–16 Budget provided funding of $99.4 million over four years to establish a simpler and more efficient whole-of-government grants administration process.

The Streamlining Grants Administration (SGA) initiative is aimed at delivering a better user experience for grant applicants and recipients enabling government to deliver grants more efficiently and effectively. This initiative will produce a standardised and scalable common grants management process across government, thereby replacing multiple existing systems and processes. As part of this initiative, two administrative hubs will be established: one for individuals and community organisation grants, and one for business.

During the past year, we established the Community Grants Hub. It is responsible for providing expert advice in the design of grants programs and delivering streamlined, consistent grants administration functions, such as selection and grant agreement development, in line with the PGPA Act and the Commonwealth Grants Rules and Guidelines (July 2014).

The Community Grants Hub is committed to improving grants processes, implementing and enhancing our Data Exchange and facilitating strategic engagement between the Department and the social services sector. This will allow us to leverage opportunities, evidence and engagement to target more effective programs and maximise outcomes.

Information on grants awarded during the period 1 July 2015 to 30 June 2016 is available at dss.gov.au/grants.

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Ethical standardsWe promote ethical standards and behaviours relating to our workplace and employment.

Material on this is published on our intranet and includes:

» the Australian Public Service (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.

Our intranet also provides links to external websites that deal with related material, including the Australian Public Service Commission (APSC) website at apsc.gov.au.

The APS Code of Conduct and the APS Values are outlined in each employee’s individual performance agreement.

We have implemented procedures under the Public Interest Disclosure Act 2013 (PID Act) and held information sessions for senior managers. We also publish information about the legislation on our intranet.

In the past year, we ran orientation sessions that included information about ethical behaviour, the APS Code of Conduct, the APS Values, and the PID Act.

Service charterOur 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, go to dss.gov.au.

Complaints managementWe encourage people to provide feedback on their experiences with our Department or DSS-funded service providers to ensure we continue to improve quality service to all Australians.

In the past year, 229 formal complaints were recorded on the DSS Feedback Management System.

In the past year, the highest number of complaints involved organisations that provide services relating to Disability and Carers (23 per cent). The second highest number of complaints related to Housing and Homelessness (17 per cent).

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Freedom of information

Information Publications Scheme

Agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to make information publically available as part of the Information Publication Scheme (IPS).

Each agency must display on its website a plan showing what information it publishes in accordance with the IPS requirements. To see our plan, go to dss.gov.au.

Office of the Australian Information Commissioner

We work closely with the Australian Information Commissioner (or Privacy Commissioner) to develop privacy policy relating to our handling of personal information in respect of our functions and activities. Our privacy policy is available at dss.gov.au.

The Privacy Commissioner may look into a privacy issue, including breach notifications and complaints, and issue a report or determination.

This year, the Privacy Commissioner has looked into one privacy matter involving our Department. The matter was closed with no adverse finding following a conciliation process in which the complaint was resolved to the satisfaction of both parties.

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Chapter 3.2

External scrutinyOur 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 OfficeAudits conducted by the ANAO have examined our administration of housing, community assistance, and child care programs subsequently administered by the Department of Education and Training.

As part of its Annual Audit Work Program 2015, the ANAO tabled five performance audit reports involving our Department, and completed an interim report from its external audit of our 2015–16 financial statements. Two of these ANAO performance audits were specific to our Department:

» Early Intervention Services for Children with Disability

» National Rental Affordability Scheme: Administration of Allocations and Incentives.

The other three performance audits involved agencies in addition to DSS:

» Delivery and Evaluation of Grant Programmes

» Qualifying for the Disability Support Pension

» Confidentiality in Government Contracts: Senate Order for Departmental and Agency Contracts (Calendar Year 2014 Compliance).

One ANAO performance audit directly involving our Department is in progress:

» National Rental Affordability Scheme – Administrations of allocations and incentives.

The following three performance audits are in progress and involve agencies in addition to DSS:

» Machinery of Government Changes

» National Disability Insurance Agency – Management of the Transition of the Disability Services Market

» Fraud Prevention and Compliance Initiatives in Human Services.

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Improvements

We have made a number of improvements to our practices and procedures in response to recommendations from the ANAO’s performance audits. These include updating our training and guidance relating to contract management, and strengthening our stakeholder engagement. Our Program Delivery Model has improved the way we manage our programs by providing staff with a single source of guidance and resources, and we have strengthened our approach to enterprise risk management with updated guidance and tools.

Reports by the Commonwealth OmbudsmanThe Commonwealth Ombudsman released two reports relevant to our Department in the past year:

» Administration of Income Management for ‘Vulnerable Youth’

» Income Maintenance Periods and Special Benefit.

In the first report, the Commonwealth Ombudsman made one specific recommendation in relation to our Department about amending existing exclusion processes and policies. While this recommendation was not agreed by the Department, we agreed to implement new processes that would help address the Ombudsman’s concerns.

In the second report, the Commonwealth Ombudsman made three specific recommendations in relation to our Department, which covered Income Maintenance Period reduction, Special Benefit, and Awareness of the Impact of Termination Payments. We are working to implement these recommendations.

Judicial decisionsDuring the past year, no judicial decisions had a significant impact on our operations.

Administrative tribunal decisionsDuring the past year, no decisions of an administrative tribunal had a significant impact on our operations.

Reports by parliamentary committeesIn the past year, we appeared before the Senate Community Affairs Legislation Committee estimates inquiry on six occasions. We also gave evidence or made submissions to several parliamentary committee inquiries, as set out in Table 3.2.1.

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Table 3.2.1: Relevant parliamentary committee inquiries in 2015–16

Parliamentary committee Actions Date report tableda

Senate – Community Affairs Legislation CommitteeSocial Services Legislation Amendment (Youth Employment and Other Measures) Bill 2015

On 28 May 2015, the Senate referred this matter to the Committee for inquiry and report.DSS attended a hearing on 5 August 2015.Answers to Questions taken on Notice were provided on 10 August 2015.

11 August 2015

Senate – Community Affairs Legislation CommitteeReport on the Fairer Paid Parental Leave Amendment Bill 2015

On 25 June 2015, the Senate referred this matter to the Committee for inquiry and report.DSS provided a submission on 5 August 2015 and attended a hearing on 1 September 2015.Answers to Questions taken on Notice were provided on 14 September 2015.

15 September 2015

Senate Select Committee on HealthFourth Interim Report on Mental Health: a Consensus for Action

On 25 June 2014, the Senate resolved to establish the Select Committee into Health to inquire into and report on health policy.This interim report is the fourth in a series in which the Senate Select Committee on Health proposes to report its findings and conclusions to date.DSS attended a hearing on 26 August 2015.Answers to Questions taken on Notice were provided on 22 September 2015.

8 October 2015

Senate – Community Affairs Legislation CommitteeSocial Services Legislation Amendment (No Jab, No Pay) Bill 2015

On 17 September 2015, the Senate referred this matter to the Committee for inquiry and report.DSS provided a submission on 16 October 2015 and attended a hearing on 2 November 2015.Answers to Questions taken on Notice were provided on 6 November 2015.

11 November 2015

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Joint Standing Committee on the National Disability Insurance Scheme

The Joint Standing Committee on the National Disability Insurance Scheme (NDIS) was established on 2 December 2013.DSS provided the Government Response on the Second Progress Report in January 2016.

12 November 2015

Senate – Education and Employment References CommitteeCurrent levels of access and attainment for students with disability in the school system, and the impact on students and families associated with inadequate levels of support

On 17 June 2015, the Senate referred this matter to the committee for inquiry and report.DSS provided a submission on 20 August 2015.

15 November 2015

Senate – Community Affairs References CommitteeViolence, abuse and neglect against people with disability in institutional and residential settings, including the gender and age related dimensions, and the particular situation of Aboriginal and Torres Strait Islander people with disability, and culturally and linguistically diverse people with disability

On 11 February 2015, the Senate referred the following matter to the Senate Community Affairs References Committee for inquiry and report.DSS attended a hearing on 21 August 2015 and answers to Questions taken on Notice were provided on 3 September 2015.

25 November 2015

Senate – Community Affairs LegislationSocial Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Bill 2015

On 12 November 2015, the Senate referred this matter to the Committee for inquiry and report.DSS attended a hearing on 19 November 2015.Answers to Questions taken on Notice were provided on 26 November 2015.

30 November 2015

Joint Standing Committee – on TreatiesProposed Social Security Agreement between Australia and Estonia – Signed 14 September 2015

This Treaty will examine the Agreement between Australia and the Republic of Estonia on Social Security (Tallinn, 14 September 2015).DSS attended a hearing on 30 November 2015.

22 February 2016(Report 158)

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Senate – Community Affairs LegislationSocial Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Bill (No.2) 2015

On 3 December 2015, the Senate referred this matter to the Committee for inquiry and report.DSS attended a hearing on 18 February 2016.Answers to Questions taken on Notice were provided on 23 February 2016.

1 March 2016

House of Representatives Standing Committee on Social Policy and Legal AffairsInquiry into Surrogacy Arrangements

On 4 December 2015, the Attorney General, Senator the Hon George Brandis QC, asked the Committee to inquire into and report on the regulatory and legislative aspects of international and domestic surrogacy arrangements.DSS attended a hearing on 3 March 2016.

4 May 2016

House of Representatives – Standing Committee on Indigenous AffairsInquiry into Educational Opportunities for Aboriginal and Torres Strait Islander Students

On 16 September 2015, the Minister for Indigenous Affairs, Senator the Hon Nigel Scullion, asked the Committee to inquire into and report on this matter.DSS provided input into a joint submission with the Department of Prime Minister and Cabinet, Department of Education and Training, Department of Human Services and Department of Communications and the Arts in November 2015 and attended a hearing on 19 April 2016.

Interim Report:4 May 2016

Senate Select Committee on HealthSixth Interim Report on Big health data: Australia’s big potential

On 25 June 2014, the Senate resolved to establish the Select Committee into Health to inquire into and report on health policy.This interim report is the sixth in a series in which the Senate Select Committee on Health proposes to report its findings and conclusions to date.DSS attended a hearing on 3 February 2016.

5 May 2016

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House of Representatives Standing Committee on EconomicsHome Ownership

On 13 May 2015, the Chair of the Committee, John Alexander, announced the Inquiry into Home Ownership.A hearing was held on 26 June 2015 and DSS provided answers to Questions taken on Notice from this hearing on 24 July 2015.

Inquiry lapsed

Senate – Finance and Public AdministrationDomestic Violence and Gender Inequality

On 25 November 2015, the Senate referred this matter to the Committee for inquiry and report.DSS provided a submission on 17 March 2016.

Inquiry lapsed

Senate – Community Affairs References CommitteeIndefinite detention of people with cognitive and Psychiatric impairment in Australia

On 2 December 2015, the Senate referred this matter to the Committee for inquiry and report.DSS provided a submission on 8 April 2016.

Inquiry lapsed

a At the dissolution of the House of Representatives and the Senate on 9 May 2016 for a general election on 2 July 2016, the parliamentary committees of the 44th Parliament ceased to exist. Therefore inquiries that were not completed lapsed and submissions cannot be received. Information about the inquiries is still available at aph.gov.au.

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Chapter 3.3

Managing our people

OverviewWe continue to build a strong, capable and resilient workforce to achieve our vision to be Australia’s leading social policy agency.

We support and develop our staff through workforce planning, improved performance management, leadership and capability development programs, employee benefits and workplace arrangements.

For our 2015–16 staffing statistics, see Appendix G at page 231.

Looking forward

We will continue to:

» build our workforce planning practices to ensure we have a highly capable and engaged workforce to deliver our priorities

» support staff through learning programs, wellbeing initiatives, and performance management practices

» celebrate our diverse workforce and recognise our achievements through rewards and recognition

» review the workforce profile of the Department and assist business areas to make strategic recruitment decisions.

Effectiveness in managing and developing staff

Workforce planning

In the past year, we completed operational workforce plans to better understand and meet current and future workforce requirements and government priorities.

We continue to offer interesting and meaningful work, development opportunities, flexible working arrangements and competitive employment conditions so we can retain high-performing staff. This is emphasised in the workforce plan of each departmental group.

A quarterly workforce report (the Report) was prepared for the Executive Management Group and included key workforce metrics and associated benchmarks.

If the Report identified organisational priorities, HR Business Partners worked closely with senior managers to advise, manage and implement the appropriate HR strategies.

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Workplace diversityWe continue to support a diverse and inclusive workplace. Our Aboriginal and Torres Strait Islander Workforce Strategy and Disability Workforce Action Plan make us an employer of choice for Aboriginal and Torres Strait Islander staff and staff with disability.

All staff are encouraged to undertake our Foundations in Aboriginal and Torres Strait Islander Cultures and Societies e-learning program and the new Disability Awareness and Disability Confidence training.

In the past year, our staff participated in International Day of People with Disability, Hearing Awareness Week, NAIDOC Week, National Reconciliation Week, Carers Week, Harmony Day, Wear it Purple Day and Mental Health Week.

Employment of Aboriginal and Torres Strait Islander people

We are committed to employing Aboriginal and Torres Strait Islander peoples.

We recognise the important role our Aboriginal and Torres Strait Islander staff play in sharing their skills and knowledge to support our work on behalf of all Australians.

More than 4.6 per cent of our staff identified as being of Aboriginal or Torres Strait Islander heritage in June 2016, compared with an Australian Public Service (APS) rate of 2.6 per cent in June 2015.

Our Reconciliation Action Plan 2015–17 and Aboriginal and Torres Strait Islander Workforce Strategy 2015–18 guide our approach to Aboriginal and Torres Strait Islander recruitment, retention and development.

We continue to provide employment pathways for Aboriginal and Torres Strait Islander peoples, including through our Indigenous Internship Program, the Australian Public Service Commission’s Indigenous Pathways Program, the Department of Education and Training’s Indigenous Australian Government Development Program, and the Department of Human Services’ Indigenous Apprenticeship Program.

In the past year, we recruited 34 Indigenous entry-level participants through these programs.

Our Indigenous Champion, Deputy Secretary Michael Lye, worked with the National Aboriginal and Torres Strait Islander Staff National Committee to drive workforce initiatives for Indigenous employees.

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Figure 3.3.1: Diversity in our people

APS at 31 December 2015

APS 41.8%

Female SES

DSS 55.0%


Employees aged 55 or over

DSS 14.4%

APS 17.4%


Disability Employment Levels

DSS 6.79%

APS 3.5%


APS target of 3%

Indigenous Employment Levels

DSS 4.63%

APS 2.9%

Employment of people with disability

We support the employment of people with disability.

A total of 6.8 per cent of our staff identified as having a disability, compared with an APS rate of 3.5 per cent in June 2016.

Our Disability Workforce Action Plan guides our approach to the recruitment, retention and development of people with disability.

We continue to provide entry level employment pathways for people with a disability, including through the Australian Network on Disability’s Stepping Into Internship Program, and the Australian Paralympic Committee’s Paralympic Workplace Diversity Program. We also implemented the APS RecruitAbility principles into all of our recruitment processes.

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We provide support and guidance to employees with disability and their managers through maintaining the role of a Disability Access Coordinator, centralised funding for providing reasonable adjustment for employees with disability, and through working closely with Disability Employment Support providers and rehabilitation managers.

Our Disability Champion, Deputy Secretary Felicity Hand, worked with the Staff with Disability National Committee to drive workforce initiatives for employees with a disability.

Leadership and capability development

We know that if staff are to get the most out of their personal investment in learning and development, different learning opportunities need to exist within the workplace. We offer a range of targeted learning and development opportunities to promote staff skills and to build our organisational capability.

In the past year, we launched LearnHub, our new Learning Management System. This gives staff access to 21 eLearning programs. We also offered staff 43 centrally funded face-to-face training courses.

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 accessed more than 21,000 videos and undertook 1,499 hours of eLearning.

We also continued to develop the skills of our senior managers. Specialist external leadership opportunities were offered or provided to high performing EL2s and SES. More than 96 staff took part in these leadership and management programs.

We have continued to facilitate and support the Learning and Development Partnership Forum as the principal forum to identify and address learning and development needs for our staff. This forum builds partnerships and collaborates with business areas across the Department to enable a considered and coordinated approach to learning and development.

Graduate programWe are an employer of choice with a graduate program that is helping to shape Australia’s future. DSS was listed as one of the top 75 graduate employers in a survey conducted by the Australian Association of Graduate Employers and was selected as a finalist in the Best Graduate Development Program category in the 2015 Australian HR Awards.

In the past year, we recruited 73 graduates, including 43 generalists, 11 information technology, 2 legal, 3 finance and 14 data and analysis specialists.

Our graduates undertake a 10-month program that offers comprehensive internal and external training, networking opportunities, and broad opportunities for career development.

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Workplace arrangements

Enterprise agreement

Our new Enterprise Agreement came into effect on 21 October 2015.

Revisions to the Australian Government Workplace Bargaining Policy, effective 20 October 2015, allowed agencies to offer wage increases averaging up to two per cent per annum.

On 10 November 2015, the Secretary signed a subsection 24(1) determination under the Public Service Act 1999 (Cth) to give effect to additional salary increases for 2016 and 2017.

Flexibility agreements for non–SES employees

Individual flexibility arrangements (IFAs) were available to employees in accordance with the Fair Work Act 2009 and the relevant enterprise agreement (subject to approval by the Remuneration Committee). Employees have the opportunity to negotiate arrangements with their manager, such as supplementation remuneration, which recognise highly valued skills critical to the organisation and outstanding contributions.

Performance pay

During the 2015–16 financial year no performance payments were made to non-SES employees on an IFA.

Senior Executive Service remuneration

SES remuneration and conditions are reviewed each July by the Executive Management Group. The annual APS Remuneration Survey Report provided by the Australian Government Remuneration Tribunal is used as a reference guide.

Subsection 24(1) determinations — SES employees

SES employees were offered a remuneration and employment conditions package through a determination under the Public Service Act 1999 (subsection 24(1)). The remuneration and employment conditions package complies with the requirements of the Executive Remuneration Management Policy issued by the Australian Public Service Commission (APSC).

As at 30 June 2016, 63 subsection 24(1) determinations were in place for SES employees.

Common law contracts

We do not use common law contracts for the employment of staff.

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Non-salary benefits to employees

We offered a range of non-salary benefits to our people under the new Enterprise Agreement and individual industrial instruments. These benefits incorporate a range of leave; including annual, personal, cultural and long service leave, as well as flexible working arrangements, access to salary packaging and remote locality assistance.

Support for the National Disability Insurance Agency

We provided payroll services to the National Disability Insurance Agency (the Agency). This included:

» fortnightly employee salary payments

» commencing and terminating new employees on the payroll system

» administering leave and allowances for NDIA employees

» quarterly workforce reports.

In addition, we worked with the Agency and DHS to prepare for the transition of these services to the DHS Shared Service Centre in 2016–17.

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. In addition, we are dedicated to taking all reasonably practicable additional measures to protect the health, safety and welfare of our people while at work, in line with our policy of continuous improvement.

Improved employee work health and safety efforts included:

» an 89 per cent conformance result from the Comcare rehabilitation management system audit in October 2015

» the design of an integrated approach to Health Safety and Rehabilitation

» the delivery of more than 700 sessions provided to staff by the Employee Assistance Program.

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Part 3—Management and accountability | Chapter 3.4: Managing our finances

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Chapter 3.4

Managing our financesFor 2015–16, we managed a budget of $120.9 billion. This consisted of $120.3 billion in administered appropriations and $0.6 billion in departmental appropriations.

Key resultsThe 2015–16 financial statements in this report reflect our effective financial management including implementing changes to functions following the Administrative Arrangements Orders of 21 and 30 September 2015. We were responsible for around one-quarter of the Commonwealth Budget, including $113.4 billion in payments to individuals and $6.9 billion for programs, subsidies, and grants to support the community.

Within our operating expenditure of $0.6 billion, a small surplus attributable to DSS of $0.8 million was reported.

How we are fundedThe Australian Parliament, via the Appropriation Acts, provides our 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 page 135).

Changes in departmental and administered finances reported in Table 3.4.1 and Table 3.4.2 are predominantly due to the part year effects of the 2014–15 and 2015–16 Machinery of Government (MoG) changes.

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Table 3.4.1: Trends in departmental finances

2015–16$ million

2014–15$ million

Change$ million

Revenue from the Australian Government 475.3 598.5 (123.2)

Other revenue 92.1 65.0 27.1

Total income 567.4 663.5 (96.1)

Employee benefits 325.9 391.4 (65.5)

Suppliers 237.4 252.9 (15.5)

Other expenses 59.4 81.6 (22.2)

Total expenses 622.7 725.9 (103.2)

Deficit attributed to the Australian Government

(55.3) (62.4) 7.1

Add back non-appropriated depreciation and amortisation expense

56.1 63.2 (7.1)

Surplus attributed to the Department 0.8 0.8 –

Financial assets A 128.1 173.0 (44.9)

Non-financial assets B 208.9 188.0 20.9

Liabilities C 137.4 197.5 (60.1)

Net assets (A+B-C) 199.6 163.5 36.1

Table 3.4.2: Trends in administered finances

2015–16 $ million

2014–15 $ million

Change $ million

Recoveries 54.7 237.8 (183.1)

Interest 3.0 7.8 (4.8)

New Zealand Reciprocal Agreement 35.8 12.3 23.5

Other revenue 42.6 39.9 2.7

Total revenue 136.1 297.8 (161.7)

Suppliers 906.4 965.7 (59.3)

Subsidies 3,028.3 11,049.6 (8,021.3)

Personal benefits 113,387.4 112,441.2 946.2

Grants 1,961.8 2,991.9 (1,030.1)

Payments to corporate Commonwealth entities 581.1 308.4 272.7

Other expenses 630.7 461.9 168.8

Total expenses 120,495.7 128,218.7 (7,723.0)

Financial assets 3,955.8 4,559.5 (603.7)

Non-financial assets – 0.04 (0.04)

Liabilities 7,518.2 9,895.4 (2,377.2)

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Assets managementOur assets are managed under the authority of section 20A of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), relevant accounting standards and Department of Finance requirements.

An independent valuer undertook a complete revaluation of our property, plant and equipment assets during the 2015–16 financial year. The results of this revaluation are reflected in the 2015–16 financial statements (at page 136).

ConsultantsIn the past year, 86 new consultancy contracts were let for a total of $10 million and a further 38 ongoing consultancy contracts totalling $4.4 million were active.

We contracted providers of professional services 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.

This Annual Report presents information about our actual expenditure on contracts for consultancies. For information on the value of contracts and consultancies, go to the AusTender website at tenders.gov.au.

Summary information on consultancy services for our Department is set out in Table 3.4.3 and Table 3.4.4.

Table 3.4.3: Consultancies in 2015–16

Number

Expenditure($ million, GST incl.)

New consultancies let 86 10

Ongoing consultancies active 38 4.4

Total 124 14.4

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Table 3.4.4: Total expenditure on new and ongoing consultancy contracts — 2013–14 to 2015–16

Expenditure ($ million, GST incl.)

2015–16 2014–15 2013–14

14.4 13.2 17.5

Australian National Audit Office access clausesNo contracts were let in the past year that required the Auditor-General to have access to the contractor’s premises.

Exempt contractsIn the past year, one contract was exempted from reporting on AusTender on the basis that publishing contract details would disclose exempt matters under the Privacy Act 1988.

PurchasingOur purchasing activities are consistent with the Secretary’s Instructions and internal procurement guidelines, which are in accordance with the Commonwealth Procurement Rules (July 2014).

Purchasing is made in an accountable and transparent manner, complying with Australian Government policies and meeting relevant international obligations.

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Procurement initiatives to support small businessOur Department supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SMEs) and Small Enterprise participation statistics can be found on the Department of Finance’s website, at finance.gov.au.

The Department 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 Treasury’s website, at treasury.gov.au.

The Department supports 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.

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On average, one woman is killed every week in Australia at the hands of a current or former partner. From the age of 15, one in three women has been a victim of physical or sexual violence from someone known to them. One in four young people are prepared to excuse domestic violence, depending on the scenario.

While most Australians agree that violence against women is wrong, we often don’t understand where the problem begins.

‘Stop it at the start’ is a $30 million, three-year Council of Australian Governments’ initiative led by our Department that focuses on stopping violence where it begins.

The campaign aims to bring together families and communities to positively influence young people’s attitudes towards respectful relationships and gender equality.

It encourages adults to think about the impact of what they say and do, and start conversations about respect with boys and girls.

The campaign is based on in-depth research which found that often as adults, we: •playdowndisrespectfulbehaviour •acceptaggressionasjustpartofbeingaboy •blamegirlsforbeingtreatedwithdisrespect.

‘Stop it at the start’ targets disrespectful attitudes and behaviours adults might dismiss or ignore in young people – often without realising it. We make excuses like “it’s just boys being boys” or “he is only doing it because he likes you.”

All Australian governments are working together as part of the National Plan to Reduce Violence against Women and their Children 2010—2022, to reduce domestic and family violence and sexual assault.

We can all help stop it at the start.

National campaign to reduce violence against women and their children

Financial statementsChapter 4.1 Financial statements 136

Statement of comprehensive income 138

Statement of financial position 139

Statement of changes in equity 140

Cash flow statement 141

Administered schedule of comprehensive income 142

Administered schedule of assets and liabilities 143

Administered reconciliation schedule 144

Administered cash flow statement 145

Notes to and forming part of the

financial statements 146


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Part 4—Financial statements | Chapter 4: Financial statements

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Sitting left to right, Scott Dilley (CFO), Finn Pratt (Secretary) and Grant Hehir (Auditor-General).

Standing left to right: Saminda Maddumahewa, Jane Meier, Stephen Sheehan, Kris Cala, Helen Martin, Sasha Dordevic, Jillian Sellars, Sue Shaw, Russell Deburgh, Anne McRoberts, John Riley, Deanne Jones, Ryan Delaney, Jo Penny, Julia Carden, Rod Griffiths, Rebecca Reilly, Stuart McBeth, Jenny Morison, Christopher Chiang, Denny Flack, Zi Ling Matthews, Hinson Leung, Elizabeth Blak, Nelly Kurniati, Bahareh Zadeh, Danielle Blundell, Natasha Lakhan and Lesa Craswell.

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 2016 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 Serices (DSS) will be able to pay its debts as and when they fall due.

Finn Pratt AO PSM

Secretary

29 August 2016

Scott Dilley

Chief Finance Officer

29 August 2016


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Department of Social Services Statement of comprehensive income for the period ended 30 June 2016

2016 2015

Original Budget

2016 Notes $'000 $'000 $'000

NET COST OF SERVICES Expenses Employee benefits 1.1A 325,863 391,431 457,240 Suppliers 1.1B 237,415 252,894 205,575 Grants 481 2,126 - Depreciation and amortisation 3.2A 56,115 63,194 67,598 Finance costs 57 100 - Write-down and impairment of assets 3.1A, 3.2A 1,959 14,747 - Losses from asset sales 1.1C 35 64 - Payments for service delivery 1.1D 767 763 - Other expenses 1.1E 5 608 15,451 Total expenses 622,697 725,927 745,864

Own-Source Income Own-source revenue Rendering of services 1.2A 84,060 55,341 37,337 Rental income 1.2B 5,633 6,606 - Other revenue 1.2C 2,233 2,408 6,565Total own-source revenue 91,926 64,355 43,902

GainsGains from sale of assets 1.2D 78 215 - Other gains 1.2E 80 443 1,200Total gains 158 658 1,200 Total own-source income 92,084 65,013 45,102

Net cost of services (530,613) (660,914) (700,762)

Revenue from Government 475,322 598,490 633,164 Deficit attributable to the Australian Government (55,291) (62,424) (67,598)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation reserve 1,604 (1,389) - Total other comprehensive gains / (loss) 1,604 (1,389) -

Total comprehensive loss attributable to the Australian Government (53,687) (63,813) (67,598)

The above statement should be read in conjunction with the accompanying notes.

For budgetary reporting information refer to Note 8.4. The budget statement information has been reclassified and presented on a consistent basis with the corresponding financial statement.


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Department of Social Services Statement of financial position as at 30 June 2016

2016 2015

Original Budget

2016 Notes $'000 $'000 $'000

ASSETS Financial Assets Cash and cash equivalents 5.4A 5,075 8,589 3,086Trade and other receivables 3.1A 123,052 164,371 206,272 Total financial assets 128,127 172,960 209,358

Non-Financial Assets Leasehold improvements 3.2A 14,247 31,047 31,701 Property, plant and equipment 3.2A 37,169 24,675 22,156 Intangibles 3.2A 133,478 113,619 117,133 Other non-financial assets 3.2B 23,369 18,610 14,790 Total non-financial assets 208,263 187,951 185,780

Assets held for sale 557 59 - Total assets 336,947 360,970 395,138

LIABILITIES Payables Suppliers 3.3A 34,918 34,185 26,366 Other payables 3.3B 17,270 37,936 45,157 Total payables 52,188 72,121 71,523

Provisions Employee provisions 6.1A 82,005 118,876 146,089 Other provisions 3.4A 3,189 6,504 3,963Total provisions 85,194 125,380 150,052 Total liabilities 137,382 197,501 221,575 Net assets 199,565 163,469 173,563

EQUITY Contributed equity 384,794 295,011 369,521 Reserves 67,699 66,095 58,553 Accumulated deficit (252,928) (197,637) (254,511) Total equity 199,565 163,469 173,563




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Department of Social Services Statement of changes in equity as at 30 June 2016

2016 2015

Original Budget

2016CONTRIBUTED EQUITY/CAPITAL Notes $'000 $'000 $'000Opening balance Balance carried forward from previous period 295,011 252,877 288,423 Transactions with owners Equity injection - Appropriations 66,357 16,373 66,357 Departmental capital budget 40,772 18,734 19,394 Restructuring 8.1A (17,346) 7,027 (10,029)Total transactions with owners 89,783 42,134 75,722Closing balance as at 30 June 384,794 295,011 364,145

ASSET REVALUATION RESERVE Opening balance Balance carried forward from previous period 66,095 67,484 67,484 Comprehensive income Other comprehensive income 1,604 (1,389) -Total comprehensive income 1,604 (1,389) -Closing balance as at 30 June 67,699 66,095 67,484

RETAINED EARNINGS Opening balance Balance carried forward from previous period (197,637) (135,213) (190,468)Comprehensive income Deficit for the period (55,291) (62,424) (67,598)Total comprehensive income (55,291) (62,424) (67,598)Closing balance as at 30 June (252,928) (197,637) (258,066)

TOTAL EQUITY Contributed equity 384,794 295,011 364,145Reserves 67,699 66,095 67,484Accumulated deficit (252,928) (197,637) (258,066)Closing balance as at 30 June 199,565 163,469 173,563



Accounting Policy

Equity Injections

Amounts appropriated which are designated as 'equity injections' for a financial year (less any formal reductions) and Departmental Capital Budgets (DCBs) 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 restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.


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Department of Social Services Cash flow statement for the period ended 30 June 2016

2016 2015

Original Budget

2016 Notes $'000 $'000 $'000

OPERATING ACTIVITIES Cash received Appropriations 576,505 674,899 637,716 Sale of goods and rendering of services 88,170 70,495 37,337 Net GST received 27,656 26,594 - Other - 7 6,618Total cash received 692,331 771,995 681,671

Cash used Employees 319,140 412,202 456,132 Suppliers 285,112 277,868 207,411 Grant payments 481 2,126 - Payments for service delivery 767 763 - Section 74 receipts transferred to Official Public Account 87,946 70,463 - Other - - 18,264 Total cash used 693,446 763,422 681,807 Net cash from / (used by) operating activities 5.4A (1,115) 8,573 (136)

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 103 255 - Total cash received 103 255 -

Cash used Purchase of property, plant and equipment 23,513 13,667 85,751 Purchase of intangibles 61,932 46,455 - Total cash used 85,445 60,122 85,751 Net cash used by investing activities (85,342) (59,867) (85,751)

FINANCING ACTIVITIES Cash received Appropriations - Equity injections 41,636 33,826 66,357 Appropriations - Departmental capital budget 41,307 22,834 19,394 Total cash received 82,943 56,660 85,751 Net cash from financing activities 82,943 56,660 85,751

Net increase / (decrease) in cash held (3,514) 5,366 (136) Cash and cash equivalents at the beginning of the reporting period 8,589 3,223 3,222Cash and cash equivalents at the end of the reporting period 5.4A 5,075 8,589 3,086




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Department of Social Services Administered schedule of comprehensive income for the period ended 30 June 2016

2016 2015

Original Budget

2016 Notes $'000 $'000 $'000

NET COST OF SERVICES Expenses Suppliers 2.1A 906,354 965,652 1,241,323 Subsidies 2.1B 3,028,321 11,049,588 11,631,046 Grants 2.1C 1,961,770 2,991,888 4,152,693 Personal benefits 2.1D 113,387,391 112,441,175 120,022,395 Depreciation - 6 - Write-down and impairment of assets 2.1E 265,518 92,130 223,241 Disposal of assets - 367 - Payments to corporate Commonwealth entities 2.1F 581,070 308,433 - Other expenses 2.1G 365,260 369,456 224,532 Total expenses 120,495,684 128,218,695 137,495,230

IncomeRevenue Non-taxation revenue Recoveries 2.2A 54,697 237,815 - Interest 2,982 7,753 41,136 NZ Reciprocal Agreement 35,846 12,278 - Special accounts revenue 19,357 2,886 - Other revenue 23,221 37,041 313,286 Total non-taxation revenue 136,103 297,773 354,422 Total revenue 136,103 297,773 354,422

Net cost of services (120,359,581) (127,920,922) (137,140,808)

Deficit (120,359,581) (127,920,922) (137,140,808)

OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services Changes in asset revaluation reserve 16,758 (42,481) - Total other comprehensive income / (loss) 16,758 (42,481) -

Total comprehensive loss (120,342,823) (127,963,403) (137,140,808)

The above schedule should be read in conjunction with the accompanying notes.



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Department of Social Services Administered schedule of assets and liabilities for the period ended 30 June 2016

2016 2015

Original Budget

2016 Notes $'000 $'000 $'000

ASSETS Financial Assets Cash and cash equivalents 5.4B 6,291 11,511 28,897 Receivables 4.1A 3,822,925 4,495,893 2,282,775 Investments in Commonwealth entities and other interests 4.1B 126,563 52,049 104,762 Total financial assets 3,955,779 4,559,453 2,416,434

Non-Financial Assets Other non-financial assets 4.2A - 44 343,845 Total non-financial assets - 44 343,845

Total assets administered on behalf of Government 3,955,779 4,559,497 2,760,279

LIABILITIES Payables Suppliers 57,630 61,928 43,808 Subsidies 81,052 218,800 373,119 Personal benefits 4.3A 2,203,636 3,211,052 3,234,316 Grants 4.3B 42,121 67,277 24,041 Other payables - - 887Total payables 2,384,439 3,559,057 3,676,171

Provisions Personal benefits and other provisions 4.4A 5,133,781 6,336,314 5,906,619 Total provisions 5,133,781 6,336,314 5,906,619

Total liabilities administered on behalf of Government 7,518,220 9,895,371 9,582,790

Net liabilities (3,562,441) (5,335,874) (6,822,511)




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Department of Social Services Administered reconciliation schedule for the period ended 30 June 2016

2016 2015 $'000 $'000

Opening assets less liabilities as at 1 July (5,335,874) (5,388,147)

Net cost of services Income 136,103 297,773 Expenses

Payments to entities other than corporate Commonwealth entities (119,914,614) (127,910,262) Payments to corporate Commonwealth entities (581,070) (308,433)

Other comprehensive income: Revaluations transferred to reserves 16,758 (42,481)

Transfers (to) / from the Australian Government: Appropriation transfers from Official Public Account:

Annual appropriations Payments to entities other than corporate Commonwealth entities 3,600,712 4,772,464 Payments and investments to corporate Commonwealth entities 638,826 332,669 Special appropriations Payments to individuals and entities other than corporate Commonwealth entities 119,004,039 125,088,350

Appropriation transfers to Official Public Account: Transfers to Official Public Account (763,222) (933,464) Administered receipts collected by other agencies (629,169) (615,760)

Restructuring (net) 367,624 (567,054) Net withholdings of personal benefit overpayments through equity (86,950) (81,338) Other non-reportable items recognised by DSS (15,604) 19,809 Closing assets less liabilities as at 30 June (3,562,441) (5,335,874)


Accounting Policy

Administered Cash Transfers to and from the Official Public Account

Revenue collected by DSS for use by the Government rather than DSS is administered revenue. Collections are transferred to the Official Public Account (OPA) which is maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the Government. These transfers to and from the OPA are adjustments to the administered cash held by DSS on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.


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Department of Social Services Administered cash flow statement for the period ended 30 June 2016

2016 2015 Notes $'000 $'000

OPERATING ACTIVITIES Cash received Interest 1,425 6,221NZ Reciprocal Agreement 29,954 12,905 Special accounts 281,401 392,463 Net GST received 329,907 333,838 Other 48,105 99,784 Total cash received 690,792 845,211

Cash used Grants 2,180,397 3,263,303 Subsidies 3,286,580 11,294,413 Personal benefits 115,799,782 113,905,788 Suppliers 999,953 1,032,807 Payments to corporate Commonwealth entities 581,070 309,320 Special accounts 254,478 240,400 Other 39,335 90,865 Total cash used 123,141,595 130,136,896 Net cash used by operating activities 5.4B (122,450,803) (129,291,685)

INVESTING ACTIVITIES Cash received Repayments of advances and loans 72,430 88,254 Total cash received 72,430 88,254

Cash used Corporate Commonwealth entity investments 57,756 23,349 Advances and loans made 46,275 73,554 Transfers to other entities 3,171 - Total cash used 107,202 96,903 Net cash used by investing activities (34,772) (8,649)

Net decrease in cash held (122,485,575) (129,300,334)

Cash from Official Public Account: Appropriations 122,985,928 129,953,083 Special accounts 257,649 240,400

Total cash from official public account 123,243,577 130,193,483

Cash to the Official Public Account: Appropriations (481,821) (541,001) Special accounts (281,401) (392,463)

Total cash to official public account (763,222) (933,464)

Cash and cash equivalents at the beginning of the reporting period 11,511 51,826

Cash and cash equivalents at the end of the reporting period 5.4B 6,291 11,511



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Department of Social Services Notes to and forming part of the financial statements

Overview ........................................................................................................................................................ 147 1. Financial Performance ............................................................................................................................. 149

1.1 Expenses .............................................................................................................................................. 149 1.2 Own-Source Revenue and Gains ......................................................................................................... 151

2. Income and Expenses Administered on Behalf of Government ......................................................... 153 2.1 Administered – Expenses ..................................................................................................................... 153 2.2 Administered – Income ......................................................................................................................... 155

3. Departmental Financial Position ............................................................................................................. 156 3.1 Financial Assets .................................................................................................................................... 156 3.2 Non-Financial Assets ............................................................................................................................ 158 3.3 Payables ............................................................................................................................................... 162 3.4 Other Provisions ................................................................................................................................... 163

4. Assets and Liabilities Administered on Behalf of Government .......................................................... 164 4.1 Administered – Financial Assets .......................................................................................................... 164 4.2 Administered – Non-Financial Assets................................................................................................... 166 4.3 Administered – Payables ...................................................................................................................... 167 4.4 Administered – Other Provisions .......................................................................................................... 168

5. Funding ...................................................................................................................................................... 169 5.1 Appropriations ....................................................................................................................................... 169 5.2 Special Accounts .................................................................................................................................. 175 5.3 Net Cash Appropriation Arrangements................................................................................................. 177 5.4 Cash Flow Reconciliations ................................................................................................................... 178

6. People ........................................................................................................................................................ 180 6.1 Employee Provisions ............................................................................................................................ 180 6.2 Senior Management Personnel Remuneration .................................................................................... 181

7. Managing Uncertainties ........................................................................................................................... 182 7.1 Contingent Assets and Liabilities .......................................................................................................... 182 7.2 Financial Instruments ........................................................................................................................... 183 7.3 Administered – Financial Instruments .................................................................................................. 185 7.4 Fair Value Measurement ...................................................................................................................... 188 7.5 Administered – Fair Value Measurement ............................................................................................. 190

8. Other Information ..................................................................................................................................... 192 8.1 Restructuring ........................................................................................................................................ 192 8.2 Reporting of Outcomes ......................................................................................................................... 196 8.3 Breach of Section 83 of the Constitution .............................................................................................. 199 8.4 Explanations of Major Variances to Budget ......................................................................................... 201

08316 DSS AR_text_08.indd 146 30/09/16 4:49 PM


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Department of Social Services Notes to and forming part of the financial statements OverviewObjectives of the Department of Social Services

The Department of Social Services (DSS) is a Government controlled, not for profit entity formed in 2013. DSS is a critical source of social policy advice for the Australian Government. It works in partnership with other government and non-government organisations, particularly with the Department of Human Services (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.

In the 2016 financial year, DSS was responsible for four active outcomes, with an additional outcome for which functions have transferred to the Department of Health. These outcomes are:

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.

As a result of the Administrative Arrangement Order (AAO) issued on 21 September 2015, the responsibilities for child care policy and programs and coordination of early childhood development policy transferred to the Department of Education and Training.

Outcome 3: Ageing and Aged Care - Improved wellbeing for older Australians through targeted support, access to quality care and related information services.

As a result of the AAO issued on 30 September 2015, the responsibilities for aged care policy and programs transferred to the Department of Health.

Outcome 4: Housing - Increased housing supply, improved community housing and assisting individuals experiencing homelessness through targeted support and services.

Outcome 5: Disability and Carers - Improved independence of, and participation by, people with disability, including improved support for carers, by providing targeted support and services.

The Basis of Preparation

The financial statements are general purpose financial statements and are required by section 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

The financial statements have been prepared in accordance with:

Financial Reporting Rule (FRR) 2016 for reporting periods ending on or after 1 July 2015; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board

(AASB) 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 GST and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FRRs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to DSS or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executable contracts are not recognised unless required by an accounting standard. Assets and liabilities that are not recognised are disclosed as a commitment or reported in the contingencies note.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

Comparative Figures for 2015 Financial Year

The comparative 2015 financial year includes part-year transactions and balances for the delivery of child care policy and programs (a component of outcome 2) and full-year transactions and balances for the delivery of aged care policy and programs (outcome 3).

As a result of the AAOs issued on 21 September 2015 and 30 September 2015, the impacts of the Machinery of Government (MoG) changes have been reflected in Restructuring, refer to Note 8.1.

Certain comparative amounts have been reclassified or adjusted to conform with the 2016 financial year’s reporting presentation.


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Department of Social Services Notes to and forming part of the financial statements New Australian Accounting Standards

Adoption of New and Future Australian Accounting Standard Requirements

There have been no further new standards, revised standards, amended standards or interpretations that were issued by the AASB prior to the sign off date, which are applicable to the current and future reporting periods which have a material financial impact on DSS.

Taxation

DSS is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses, assets and liabilities are recognised net of GST except:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO); and

b) for receivables and payables.

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

There are no known events requiring adjustment to the financial statements that have occurred after the reporting period.


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Department of Social Services Notes to and forming part of the financial statements 1. Financial Performance

Expenses 1.12016 2015 $'000 $'000

Note 1.1A: Employee Benefits Wages and salaries 237,022 297,044 Superannuation:

Defined contribution plans 17,306 22,133 Defined benefit plans 27,871 38,960

Leave and other entitlements 30,147 21,978 Separation and redundancies 13,517 11,316 Total employee benefits 325,863 391,431

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 114,974 106,640 IT and communication 35,330 34,398 Travel and accommodation 6,886 7,553 Member sitting fees 157 8,790 Motor vehicle expenses 967 1,240 Building expenses (excluding operating lease rentals) 12,198 14,949 Training 4,625 5,107 Recruitment 1,373 761 Other 13,735 13,723 Total goods and services supplied or rendered 190,245 193,161

Goods supplied 7,895 7,094Services rendered 182,350 186,067 Total goods and services supplied or rendered 190,245 193,161

Other suppliers Operating lease rentals in connection with:

Sublease - 1,412Minimum lease payments 41,042 48,815 Contingent rentals 371 439

Workers compensation expenses 5,757 9,067 Total other suppliers 47,170 59,733 Total suppliers 237,415 252,894


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Department of Social Services Notes to and forming part of the financial statements 1.1 Expenses (continued)

Note 1.1B: Suppliers (continued)

Leasing commitments DSS has 13 leases (2015: 23 leases) relating to office accommodation including one lease under a memorandum of understanding and two data centre leases. The Tuggeranong Office Park is the only office location with a significant accommodation lease commitment.

DSS lease payments are subject to review by a variety of mechanisms; and these include predetermined fixed escalations, a link to Labour Price Index (LPI) and Consumer Price Index (CPI) movements, or in accordance with a market review of comparable leases. Contingent rental payments are determined by market review, LPI and CPI movements.

2016 2015 $'000 $'000

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Within 1 year 31,492 55,188 Between 1 to 5 years 106,457 150,761 More than 5 years 253,773 312,573

Total operating lease commitments 391,722 518,522

Accounting Policy

Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

DSS does not have any finance leases.

Note 1.1C: Losses from Asset Sales Property, plant and equipment:

Proceeds from sale 22 29 Carrying value of assets sold (57) (93)

Total losses from asset sales 35 64

Note 1.1D: Payments for Service Delivery Payments to Australian Tax Office for service delivery 606 602 Payments to Department of Veterans' Affairs for service delivery 161 161 Total payments for service delivery 767 763

Note 1.1E: Other Expenses Change in estimate of makegood provision 5 608 Total other expenses 5 608


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Own-Source Revenue and Gains 1.22016 2015 $'000 $'000

Own-Source Revenue

Note 1.2A: Rendering of Services Rendering of services 84,060 55,341 Total rendering of services 84,060 55,341

Accounting Policy

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 can be reliably measured;

b) the probable economic benefits associated with the transaction will flow to DSS; 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 account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 - Financial Instruments: Recognition and Measurement.

Note 1.2B: Rental Income Operating lease:

Contingent rentals 5,633 6,606 Total rental income 5,633 6,606

Subleasing rental income commitments Commitments for sublease rental income receivables are as follows:

Within 1 year 95 379Between 1 to 5 years 384 260More than 5 years 316 -

Total sublease rental income commitments 795 639

Accounting Policy

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 DSS gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case, revenue is recognised only when it has been earned. The Appropriation receivable is recognised at its nominal amounts, refer to Note 3.1.


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Department of Social Services Notes to and forming part of the financial statements 1.2 Own-Source Revenue and Gains (continued)

2016 2015 $'000 $'000

Note 1.2C: Other Revenue Resources received free of charge:

Remuneration of auditors 1,200 1,200 Other 1,033 1,208 Total other revenue 2,233 2,408

Accounting Policy

Resources Received Free of Charge

Resources received free of charge are recognised as gains 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 81 226 Carrying value of assets sold (3) (11)

Net gain from sale of assets 78 215

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 22 -Assets recognised 58 443 Total other gains 80 443

Accounting Policy

Resources Received Free of Charge

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.


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Department of Social Services Notes to and forming part of the financial statements 2. Income and Expenses Administered on Behalf of Government

Administered – Expenses 2.12016 2015 $'000 $'000

Note 2.1A: Suppliers Goods and services supplied or rendered Consultants and contractors 46,074 90,441 Advertising, legal and marketing costs 8,912 3,089 Settlement services 56,854 58,749 Disability employment services 774,527 790,688 Other 19,987 22,677 Total goods and services supplied or rendered 906,354 965,644

Goods Supplied 14,008 14,344 Services rendered 892,346 951,300 Total services rendered 906,354 965,644

Other suppliers Operating lease rentals in connection with:

Minimum lease payments - 8Total other suppliers - 8Total suppliers 906,354 965,652

DSS has no future administered lease commitments.

Note 2.1B: Subsidies Subsidies in connection with:

Aged Care 2,946,750 10,964,326 Other 81,571 85,262

Total subsidies 3,028,321 11,049,588

Note 2.1C: Grants Public sector:

Australian Government entities (related parties) 7,088 7,514 Local Governments 51,846 115,266

Private sector: External parties 119,883 228,676 Non-profit organisations 1,782,953 2,640,432

Total grants 1,961,770 2,991,888

Accounting Policy

Grants and Subsidies

DSS administers a number of grant and subsidy schemes on behalf of the Government. These schemes include grants to State, Territory and Local Governments and a range of grants to non-government, not-for-profit organisations and other recipients for activities associated with community development and supporting individuals. Subsidies mainly relate to aged care programs which transferred to the Department of Health as part of the AAO issued 30 September 2015.


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Department of Social Services Notes to and forming part of the financial statements 2.1 Administered Expenses (continued)

2016 2015 $'000 $'000

Note 2.1D: Personal Benefits Direct:

Income Support for Seniors 43,321,795 41,484,178 Family Tax Benefit 20,753,089 20,869,757 Working Age Payments 17,126,109 16,857,754 Income Support for People with Disability 16,662,210 16,688,592 Income Support for Carers 7,791,276 7,429,695 Student Payments 3,371,103 3,479,580 Paid Parental Leave 692,830 635,636 Child Care Rebate 412,701 592,451 Allowances and Concessions for Seniors 81,488 284,145 Child Care Benefit 66,789 103,541 Income Support for Vulnerable People 64,187 64,604 Ageing and Service Improvement 63,623 75,207 Child Payments 55,892 58,252 Other 55,815 55,006

Indirect: Child Care Payments - Indirect 1,495,117 2,467,063 Paid Parental Leave - Indirect 1,373,367 1,295,714

Total personal benefits 113,387,391 112,441,175

Accounting Policy

Personal Benefits

DSS administers a number of 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 DHS under delegation from DSS.

DSS receives and reports appropriations for payments made by DHS on behalf of DSS.

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 DHS information about financial and personal circumstances that affect entitlement to payment. This is a necessary part of DHS's 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. However, 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, DHS 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 the Student Assistance Act 1973.

Payments to recipients under the Parental Leave Pay are determined in accordance with the Paid Parental Leave Act 2010. Payments can be made directly to the recipients or indirectly through the employers.


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Department of Social Services Notes to and forming part of the financial statements 2.1 Administered Expenses (continued)

2016 2015 $'000 $'000

Note 2.1E: Write-Down and Impairment of Assets Impairment of receivables (impairment allowance) 153 1,921 Impairment of personal benefits receivable 265,310 71,382 Other 55 18,827 Total write-down and impairment of assets 265,518 92,130

Note 2.1F: Payments to Corporate Commonwealth Entities Payments to National Disability Insurance Agency 581,070 308,433 Total payments to corporate Commonwealth entities 581,070 308,433

Accounting Policy

Payments to Corporate Commonwealth Entities

Payments to corporate Commonwealth entities from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio agency. The appropriation to DSS is disclosed in Table A of the appropriations note, refer to Note 5.1.

Note 2.1G: Other Expenses Other special accounts expense 245,577 225,113 Other 119,683 144,343 Total other expenses 365,260 369,456

Administered – Income 2.2Revenue

Non-Taxation Revenue

Note 2.2A: Recoveries Personal benefits recoveries 23,460 119,708 Other recoveries 31,237 118,107 Total recoveries 54,697 237,815

Accounting Policy

Revenue

All administered revenues are revenues relating to ordinary activities performed by DSS 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 relate to 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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Department of Social Services Notes to and forming part of the financial statements 3. Departmental Financial Position

Financial Assets 3.12016 2015 $'000 $'000

Note 3.1A: Trade and Other Receivables Goods and services receivables 13,430 4,625 Total goods and services receivables 13,430 4,625

Appropriations receivables: For existing programs 52,910 104,991 For departmental capital budget - 1,114 For equity injection 50,421 41,204

Total appropriations receivables 103,331 147,309

Other receivables: GST receivable from the Australian Taxation Office 4,889 3,435 Other 1,523 9,002

Total other receivables 6,412 12,437 Total trade and other receivables (gross) 123,173 164,371

Less impairment allowance (121) -Total trade and other receivables (net) 123,052 164,371

Trade and other receivables (net) expected to be recovered: No more than 12 months 123,052 164,371

Total trade and other receivables (net) 123,052 164,371

Trade and other receivables (gross) aged as follows: Not overdue 121,652 163,915 Overdue by: 0 to 30 days 830 417 31 to 60 days 452 8 61 to 90 days 53 - More than 90 days 186 31

Total trade and other receivables (gross) 123,173 164,371

Impairment allowance aged as follows: Not overdue (8) -Overdue by: 0 to 30 days (4) - More than 90 days (109) -

Total impairment allowance (121) -

Reconciliation of the Impairment Allowance

Movements in relation to 2016 Goods and services Total

$'000 $'000 Opening balance as at 1 July 2015 - -

Increase recognised in net cost of services 149 149 Amounts written off (28) (28)

Closing balance as at 30 June 2016 121 121


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Department of Social Services Notes to and forming part of the financial statements 3.1 Financial Assets (continued)

Note 3.1A: Trade and Other Receivables (continued)

Accounting Policy

Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand;

b) cash held by salary packaging services; and

c) cash held on behalf of DSS.

Financial Assets

DSS 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. Interest is calculated using the effective interest method and foreign exchange gains and losses on monetary assets are recognised directly in the statement of comprehensive income. 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 surplus and deficit for the period.

Where a reliable fair value cannot be established for unlisted investments in equity instruments, these instruments are valued at cost.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are 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.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the statement of comprehensive income.

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 amount of 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 cost - if there is objective evidence that an impairment loss has been incurred, 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.


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Non-Financial Assets 3.2

Note 3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles 2016

Leasehold improvements

Other property,

plant & equipment

Computersoftware

internally developed

Computersoftware

purchased

Total

$’000 $’000 $’000 $’000 $’000 As at 1 July 2015 Gross book value 67,772 47,025 179,491 44,189 338,477 Accumulated depreciation, amortisation and impairment (36,725) (22,291) (95,436) (14,625) (169,077) Net book value as at 1 July 2015 31,047 24,734 84,055 29,564 169,400 Additions:

By purchase or internally developed 2,619 20,822 38,570 23,363 85,374 By recognition - 58 - - 58 Restructuring activities (10,042) (583) (2,906) - (13,531)

Revaluations and impairments recognised in other comprehensive income 848 756 - - 1,604 Impairments recognised in net cost of services (593) (479) (519) (18) (1,609) Depreciation and amortisation (10,163) (7,321) (28,796) (9,835) (56,115) Other movements 531 (201) - - 330 Disposals:

Disposals with proceeds - (60) - - (60) Net book value as at 30 June 2016 14,247 37,726 90,404 43,074 185,451

Net book value as at 30 June 2016 represented by: Gross book value 17,627 38,688 202,601 67,256 326,172 Accumulated depreciation, amortisation and impairment (3,380) (962) (112,197) (24,182) (140,721) Net book value as at 30 June 2016 14,247 37,726 90,404 43,074 185,451

In the 2016 financial year:

leasehold improvements with a carrying amount of $0.593 million (2015: $0.141 million) were identified as impaired and written-down.

property, plant and equipment with a carrying amount of $0.479 million (2015: $0.409 million) were identified as impaired and written-down.

intangibles with a carrying amount of $0.537 million (2015: $14.192 million) were identified as impaired and written-down.

property plant and equipment with a carrying amount of $0.060 million (2015: $0.104 million) were sold via independent contract auction houses Pickles and Allbids.

A net book value of $0.557 million (2015: $0.059 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.

No intangibles are expected to be sold or disposed of within the next 12 months.


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Department of Social Services Notes to and forming part of the financial statements 3.2 Non-Financial Assets (continued)

Note 3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles 2015


Otherproperty,

plant &equipment

Computer software internally

developed

Computer software

purchased

Total

$’000 $’000 $’000 $’000 $’000 As at 1 July 2014 Gross book value 61,559 42,245 169,320 32,820 305,944 Accumulated depreciation, amortisation and impairment (20,557) (14,669) (80,615) (9,871) (125,712) Net book value as at 1 July 2014 41,002 27,576 88,705 22,949 180,232 Additions:

By purchase or internally developed 2,172 7,859 31,404 13,683 55,118 By recognition 437 442 - - 879 Restructuring activities 2,583 25 8,557 - 11,165

Revaluations recognised in net cost of services (1,389) - - - (1,389) Impairments recognised in net cost of services (141) (409) (14,148) (44) (14,742) Depreciation and amortisation (15,222) (10,499) (30,463) (7,010) (63,194) Other movements 1,605 (156) - (14) 1,435 Disposals: -

Disposals with proceeds - (104) - - (104) Net book value as at 30 June 2015 31,047 24,734 84,055 29,564 169,400 Net book value as at 30 June 2015 represented by: -Gross book value 67,772 47,025 179,491 44,189 338,477 Accumulated depreciation, amortisation and impairment (36,725) (22,291) (95,436) (14,625) (169,077) Net book value as at 30 June 2015 31,047 24,734 84,055 29,564 169,400


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Contractual commitments for the acquisition of property, plant, equipment and intangible assets

2016 2015 $'000 $'000

Commitments are payable as follows: Within 1 year - 352

Total commitments - 352

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 amounts at which they 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 DSS where there exists an obligation to restore the property to its original condition. These costs are included in the value of DSS leasehold improvements with a corresponding provision for the makegood recognised.

DSS 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 that 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 Australian Valuation Solutions (AVS) to confirm the value of property, plant and equipment assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.


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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:2016 2015

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 property, plant and equipment assets were assessed by DSS for impairment as at 30 June 2016. 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 DSS were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

All software assets were assessed for an indication of impairment as at 30 June 2016.

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.

2016 2015 $'000 $'000

Note 3.2B: Other Non-Financial Assets No more than 12 months 15,454 14,114 More than 12 months 7,915 4,496

Total other non-financial assets 23,369 18,610

No indicators of impairment were found for other non-financial assets.


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Payables 3.32016 2015 $'000 $'000

Note 3.3A: Suppliers Trade creditors and accruals 33,763 34,021 Operating lease rentals 1,155 164 Total suppliers 34,918 34,185

All supplier payables are expected to be settled within 12 months. During the 2016 financial year, settlement was usually made within 30 days.

Note 3.3B: Other Payables Salaries and wages 678 10,341 Superannuation 148 2,375 Separations and redundancies 2,770 1,687 Lease incentive 332 7,173 Operating leases straight-lining 2,507 7,426 Unearned income 6,133 729 Other 4,702 8,205 Total other payables 17,270 37,936

Other payables expected to be settled: No more than 12 months 14,625 27,051 More than 12 months 2,645 10,885

Total other payables 17,270 37,936

Accounting Policy

Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through the statement of comprehensive income’ or ‘other financial liabilities’. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value Through the Statement of Comprehensive Income

Financial liabilities are initially measured at fair value through the statement of comprehensive income. Subsequent fair value adjustments including any net gain or loss are recognised in the statement of comprehensive income and incorporates any interest paid on the financial liability.

Other Financial Liabilities

Other 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.

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 exactly 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).


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Other Provisions 3.4

Note 3.4A: Other Provisions

Provision for restoration Total

$’000 $’000 Carrying amount as at 1 July 2015 6,504 6,504

Reduction in provisions held (4,042) (4,042) Change in estimate 670 670 Unwinding of discount or change in discount rate 57 57

Closing balance as at 30 June 2016 3,189 3,189

2016 2015 $'000 $'000

Provision for restoration obligations expected to be settled: No more than 12 months 2,558 744More than 12 months 631 5,760

Total other provisions 3,189 6,504

DSS currently has eight agreements for the leasing of premises which have provisions requiring restoration of the premises to their original condition at the conclusion of the lease. DSS 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. DSS property management advisors have determined that not all properties have a makegood obligation.


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Department of Social Services Notes to and forming part of the financial statements 4. Assets and Liabilities Administered on Behalf of Government

Administered – Financial Assets 4.12016 2015

Note 4.1A: Receivables $'000 $'000 Personal benefits and subsidies:

Recovery of personal benefit payments1 4,031,832 4,019,449 Aged Care subsidies - 58,003

Total personal benefits and subsidies 4,031,832 4,077,452

Advances and loans: Advance payments for personal benefits 315,225 312,818 Aged Care facilities - 262,149 Student Financial Supplement Scheme2 411,400 531,200 Student Start-Up Loan 30,098 -Pension Loan Scheme 31,052 31,578 Other loans - 410

Total advances and loans 787,775 1,138,155

Other receivables: GST receivable from the Australian Taxation Office 14,626 19,043 Other receivables 13,551 30,222

Total other receivables 28,177 49,265

Total receivables (gross) 4,847,784 5,264,872 Less impairment allowance:

Personal benefits (1,014,345) (764,813) Other (10,514) (4,166)

Total impairment allowance (1,024,859) (768,979) Total receivables (net) 3,822,925 4,495,893

Receivables (gross) aged as follows: Not overdue 4,042,669 4,473,773 Overdue by: 0 to 30 days 27,024 30,379 31 to 60 days 25,063 20,733 61 to 90 days 21,786 24,708 More than 90 days 731,242 715,279

Total receivables (gross) 4,847,784 5,264,872 Impairment allowance aged as follows:

Not overdue (993,203) (745,157) Overdue by: 0 to 30 days (1,054) (730) 31 to 60 days (975) (517) 61 to 90 days (849) (527) More than 90 days (28,778) (22,048)

Total impairment allowance (1,024,859) (768,979)

1. Personal benefits mainly relate to Family Tax Benefit of $1,476.100 million (2015: $1,419.200 million), Parenting Payments of $782.787 million (2015: $697.840 million), Newstart Allowance of $647.005 million (2015: $485.257 million) and Disability Support Pension of $288.847 million (2015: $254.467 million).

2. Student Financial Supplement Scheme loan receivable is recognised at net value.


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Department of Social Services Notes to and forming part of the financial statements 4.1 Administered – Financial Assets (continued)

2016 2015 Note 4.1A: Receivables (continued) $'000 $'000 Receivables (net) expected to be recovered:

No more than 12 months 1,178,040 1,213,423 More than 12 months 2,644,885 3,282,470

Total receivables (net) 3,822,925 4,495,893

Reconciliation of the Impairment Allowance:

Movement in total impairment allowance Receivables

2016 2015 $'000 $'000

Opening balance as at 1 July 768,979 676,069 Increase recognised in net loss 255,880 92,910

Closing balance as at 30 June 1,024,859 768,979

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, they 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.

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 (AGA) has provided advice on the likely level of debt recovery.

The AGA also calculates the impairment allowance associated with the Family Tax Benefit (FTB) 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 DHS 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 (SFSS) was a voluntary loan scheme for tertiary students to help cover their expenses while they studied. The SFSS closed on 31 December 2003 and no new loans have been issued since this date. Existing SFSS debts are collected through the tax system and voluntary repayments can also be made.

For the 2016 financial year, DSS engaged the AGA to provide the fair value estimate of the SFSS receivable as at 30 June 2016.

The model used by the AGA 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 ATO 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 made 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 2016.


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Department of Social Services Notes to and forming part of the financial statements 4.1 Administered – Financial Assets (continued)

2016 2015 Note 4.1B: Investments in Commonwealth Entities and Other Interests $'000 $'000 Investments in Commonwealth entities:

National Disability Insurance Agency 125,586 51,035 Total investments in Commonwealth entities 125,586 51,035

Other interests: Yarra Community Housing 977 1,014

Total other interests 977 1,014 Total investments in Commonwealth entities and other interests 126,563 52,049

All investments in Commonwealth entities and other interests are expected to be recovered more than 12 months after the reporting period.

Accounting Policy

The above investments are reported at fair value, based on the latest management accounts or unaudited financial statements provided by each entity.

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 2016. Fair value has been taken to be the Australian Government's proportional interest in the net assets of the entities as at the end of the reporting period recorded in the latest management accounts or unaudited financial statements provided.

Investment in Commonwealth Entities

The Commonwealth has 100% of the equity interest in the National Disability Insurance Agency (NDIA). The NDIA provides individual control and choice in the delivery of reasonable and necessary care and support to improve the independence, and the social and economic participation of eligible people with disability, their families and carers, and associated referral services.

Investments in Other Interests

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. The equity in this property is secured by a deed of agreement between the Commonwealth and the Yarra Community Housing Ltd, with the Commonwealth holding a controlling interest over the use of the property.

Administered – Non-Financial Assets 4.22016 2015 $'000 $'000

Note 4.2A: Other Non-Financial Assets Total prepayments expected to be recovered:

No more than 12 months - 44Total other non-financial assets - 44

No indicators of impairment were found for other non-financial assets.

Contractual commitments for the acquisition of property, plant, equipment and intangible assets

Commitments are payable as follows: Within 1 year - 5,517Between 1 to 5 years - 4,308

Total commitments - 9,825


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Administered – Payables4.32016 2015 $'000 $'000

Note 4.3A: Personal Benefits Direct 2,178,325 3,086,743 Indirect 25,311 124,309 Total personal benefits 2,203,636 3,211,052

Note 4.3B: Grants Public sector:

Australian Government entities (related parties) 520 10 Local Governments 30 2,568

Private sector: Non-profit organisations 31,996 31,912 Other grants 9,575 32,787

Total grants 42,121 67,277

All payables are expected to be settled within 12 months. During the 2016 financial year, suppliers payables settlement was usually made within 30 days while settlement of grants payables was made according to the terms and conditions of each grant and usually within 30 days of performance or eligibility. For personal benefit payment types, refer to Note 2.1D.

Accounting Policy

Grants and Subsidies

Grant and subsidy liabilities are recognised to the extent that the services required to be performed by the grantee have been performed or the eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants and subsidy payments, but services have not yet been performed or criteria satisfied.


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ts


Administered – Other Provisions 4.4

Note 4.4A: Personal Benefits and Other Provisions

Family Tax Benefit

Pension Bonus

Scheme

Single Income Family

Supplement Schoolkids

Bonus

Child Care Fee

Assistance Other Total $'000 $'000 $'000 $'000 $'000 $'000 $'000

Carrying amount as at 1 July 2015 4,803,800 527,000 56,931 84,400 864,183 - 6,336,314

Restructuring - - - - (746,777) - (746,777) Additional provisions made

100 - 56,931 129,200 - 250 186,481

Amounts used (278,500) (105,000) (56,931) (84,400) (117,406) - (642,237) Closing balance as at 30 June 2016 4,525,400 422,000 56,931 129,200 - 250 5,133,781

2016 2015 $'000 $'000

Personal benefits and other provisions expected to be settled: No more than 12 months 4,648,315 5,744,029 More than 12 months 485,466 592,285

Total personal benefits and other provisions 5,133,781 6,336,314

Significant Accounting Judgements and Estimates

DSS engaged the AGA to estimate the following provisions:

Family Tax Benefit

At any point in time there are eligible recipients, entitled to receive the FTB, who have not yet received their full entitlement from DHS. 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.

Pension Bonus Scheme

The Pension Bonus Scheme (PBS) provides a tax free lump sum payment to those who continue in employment and defer receiving the Age Pension. The future PBS 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 AGA are based on historical experience and other factors which are considered to be reasonable, including actual average payments, claim rates and the period over which claims are expected to be made. These factors have been reviewed for 2016 based on the behaviour of recipients up to 31 December 2015 and projected over the estimated remaining life of the scheme (2016: 18 years, 2015: 18 years). The AGA has adopted the zero coupon bond rate as at 30 June 2016 (2016:1.55 per cent, 2015: 2.09 per cent) as the discount rate to determine the present value of this long term provision.

Schoolkids Bonus

The estimate of the Schoolkids Bonus (SKB) provision relates to recipients who have not established their eligibility criteria for either the January or July 2016 payments as at 30 June 2016. The SKB recipients within the provision are:

- Instalment recipients who were eligible on 1 January 2016 but have not established eligibility as at 30 June 2016; - Instalment recipients who were eligible on 30 June 2016 but have not established eligibility as at 30 June 2016; and, - Lump sum recipients who have not submitted their application for payment as at 30 June 2016.

The AGA has assumed that the first recipient group only relates to FTB A instalment recipients since all other recipients have a maximum of 13 weeks to establish eligibility. The liability for the second group of recipients is assumed to be equal to the liability for the first group since it will be essentially the same group of people receiving each payment. The final group comprises of FTB A lump sum recipients who have not established eligibility as at 30 June 2016. This group of recipients has 12 months to establish eligibility from the end of the entitlement year.


169

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ainl

y du

e to

the

rem

aini

ng c

urre

nt y

ear a

ppro

pria

tions

as

wel

l as

mov

emen

ts in

cas

h an

d G

ST

rece

ivab

le a

nd p

rior y

ear a

ppro

pria

tion

appl

ied

in 2

015.

The

ann

ual a

ppro

pria

tion

and

appr

opria

tion

appl

ied

in 2

015

also

incl

udes

an

amou

nt fo

r Dep

artm

enta

l Cap

ital B

udge

t.Th

e va

rianc

e at

tribu

tabl

e to

adm

inis

tere

d or

dina

ry a

nnua

l ser

vice

s co

nsis

ts o

f the

follo

win

g: $

21.7

64 m

illio

n re

late

s to

qua

rant

ined

fund

s, $

86.5

02 m

illio

n re

late

s to

pay

men

t of 2

014

accr

uals

du

ring

2015

, $66

1.11

8 m

illio

n re

pres

ents

uns

pent

ava

ilabl

e ap

prop

riatio

ns (w

hich

incl

udes

fund

ing

requ

ired

for 2

015

accr

uals

). Th

e va

rianc

e at

tribu

tabl

e to

adm

inis

tere

d pa

ymen

ts to

cor

pora

te C

omm

onw

ealth

ent

ities

is d

ue to

the

trans

fer o

f sec

tor d

evel

opm

ent f

und

of $

21.3

29 m

illio

n an

d a

paym

ent o

f 201

4 ac

crua

ls o

f $0

.887

mill

ion

durin

g th

e 20

15 fi

nanc

ial y

ear.

4.

Dep

artm

ent o

f Em

ploy

men

t spe

nt m

oney

from

the

Con

solid

ated

Rev

enue

Fun

d (C

RF)

on

beha

lf of

DS

S (A

dmin

iste

red)

. The

mon

ey s

pent

has

bee

n in

clud

ed in

the

tabl

e ab

ove.

5.

Dep

artm

enta

l Cap

ital B

udge

ts a

re a

ppro

pria

ted

thro

ugh

App

ropr

iatio

n A

ct (N

o. 1

, 3 &

5).

They

form

par

t of o

rdin

ary

annu

al s

ervi

ces,

and

are

not

sep

arat

ely

iden

tifie

d in

the

App

ropr

iatio

n A

cts.


171

4C

hapt

er 4

.1

Fina

ncia

l sta

tem

ents

Department of Social Services Notes to and forming part of the financial statements 5.1 Appropriations (continued)

Note 5.1B: Unspent Annual Appropriations ('Recoverable GST exclusive') 2016 2015 $'000 $'000

Departmental Appropriation Act (No. 2) 2012-13 - Non Operating - Equity Injection1 8,955 8,955Appropriation Act (No.1) 2013-142 1,458 1,458Appropriation Act (No.1) 2013-14 - Capital Budget (DCB) - Non Operating - 326Appropriation Act (No. 2) 2013-14 - Non Operating - Equity Injection1 31,614 32,069 Appropriation Act (No.1) 2014-152 12,288 115,700 Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) - Non Operating - 788Appropriation Act (No. 2) 2014-15 - Non Operating - Equity Injection - 180Appropriation Act (No.1) 2015-16 51,332 - Appropriation Act (No. 2) 2015-16 - Non Operating - Equity Injection 9,852 - Cash and cash equivalents 5,075 8,589

Total departmental 120,574 168,065 Administered

Appropriation Act (No.1) 2012-133 4,281 4,281Appropriation Act (No.1) 2013-143 6,225 6,225Appropriation Act (No.3) 2013-143 547 547Appropriation Act (No.2) 2013-14 - SPP3 500 500Appropriation Act (No.1) 2014-154 167,022 563,470 Appropriation Act (No.3) 2014-155 59,723 72,620 Appropriation Act (No.5) 2014-156 103 46,792 Appropriation Act (No.1) 2014-15 - National Disability Insurance Scheme Launch Transition Agency7 21,329 21,329

Appropriation Act (No.1) 2015-16 457,031 - Appropriation Act (No.3) 2015-16 87,539 - Appropriation Act (No.1) 2015-16 - National Disability Insurance Scheme Launch Transition Agency

1,036 -

Total administered 805,336 715,764

1. These balances of $40.569 million have been quarantined but are still available at law.

2. These balances include a net $12.167 million adjustment for departmental ordinary annual services that met the recognition criteria of a formal reduction in revenue (in accordance with FRR Part 6 Div 3), the appropriations had not been amended beforethe end of the reporting period and $1.579 million that has been quarantined but is still available at law.

3. These balances will be repealed under the Omnibus Repeal Day (Spring 2015) Bill 2015 at the later of 1 July 2016 or the date of Royal Assent.

4. The movement reflects drawdowns of prior year appropriation of $163.951 million and section 75 transfer of $58.156 million to the Department of Education and Training and $174.342 million to the Department of Health. The balance includes a movement of funds related quarantined amount of $10.485 million, and a section 51 permanent quarantine of $148.283 million.

5. The movement reflects drawdowns of prior year appropriation of $12.897 million. The balance includes a movement of funds related quarantined amount of $59.723 million.

6. The movement reflects section 75 transfer of $46.689 million to the Department of Health. The balance represents section 51 permanent quarantine of $0.103 million.

7. This balance has been permanently quarantined under section 51 due to the transfer of the Sector Development Fund.


172

4

Cha

pter

4.1

Fi

nanc

ial s

tate

men

ts

Dep

artm

ent o

f Soc

ial S

ervi

ces

Not

es to

and

form

ing

part

of t

he fi

nanc

ial s

tate

men

ts

5.1

App

ropr

iatio

ns (c

ontin

ued)

Not

e 5.

1C: S

peci

al A

ppro

pria

tions

('R

ecov

erab

le G

ST e

xclu

sive

')

Aut

horit

y Ty

pe

Purp

ose

App

ropr

iatio

n ap

plie

d

2016

20

15

$'00

0$'

000

Soc

ial S

ecur

ity (A

dmin

istra

tion)

Act

199

9, A

dmin

iste

red1

Unl

imite

dA

mou

ntTo

ena

ble

the

paym

ent o

f inc

ome

supp

ort p

aym

ents

. Mos

t of t

he a

mou

nt re

late

s to

pa

ymen

ts fo

r Age

Pen

sion

and

Dis

abili

ty S

uppo

rt P

ensi

on.

89,8

55,4

4986

,841

,783

A N

ew T

ax S

yste

m (F

amily

Ass

ista

nce)

(Adm

inis

tratio

n) A

ct

1999

, Adm

inis

tere

d1

Unl

imite

dA

mou

ntTo

ena

ble

the

paym

ent o

f fam

ily in

com

e su

ppor

t pay

men

ts.

Mos

t of t

he a

mou

nt

rela

tes

to p

aym

ents

for F

amily

Tax

Ben

efit

and

Bab

y B

onus

. 23

,462

,615

24,5

63,0

77

Age

d C

are

Act

199

7, A

dmin

iste

red3

Unl

imite

dA

mou

ntTo

pro

vide

for t

he C

omm

onw

ealth

to g

ive

finan

cial

sup

port

for t

he p

rovi

sion

of A

ged

Car

e.

2,94

6,85

110

,971

,775

Pai

d P

aren

tal L

eave

Act

201

0, A

dmin

iste

red

Unl

imite

dA

mou

ntTo

ena

ble

paym

ents

to w

orki

ng p

aren

ts to

enh

ance

mat

erna

l and

chi

ld h

ealth

. 2,

073,

896

1,94

4,53

4

Stu

dent

Ass

ista

nce

Act

197

3 - S

ectio

n 55

A (A

dmin

iste

red)

U

nlim

ited

Am

ount

An

Act

to p

rovi

de c

erta

in b

enef

its to

cer

tain

stu

dent

s an

d fo

r oth

er p

urpo

ses.

33

9,09

331

3,91

4

Soc

ial a

nd C

omm

unity

Ser

vice

s P

ay E

quity

Spe

cial

Acc

ount

A

ct 2

012

Lim

ited

Am

ount

An

Act

to e

stab

lish

the

Soc

ial a

nd C

omm

unity

Ser

vice

s P

ay E

quity

Spe

cial

Acc

ount

, an

d fo

r rel

ated

pur

pose

s in

clud

ing

wag

e su

pple

men

tatio

n pa

ymen

ts to

elig

ible

soc

ial

and

com

mun

ity s

ervi

ces

wor

kers

. 26

1,60

020

4,44

0

Nat

iona

l Hea

lth A

ct 1

953,

Adm

inis

tere

d3U

nlim

ited

Am

ount

An

Act

rela

ting

to th

e pr

ovis

ion

of p

harm

aceu

tical

, sic

knes

s an

d ho

spita

l ben

efits

and

of

med

ical

and

den

tal s

ervi

ces.

63

,494

75,0

17

Age

d C

are

(Bon

d S

ecur

ity) A

ct 2

006,

Adm

inis

tere

d3U

nlim

ited

Am

ount

To p

rovi

de fo

r the

Com

mon

wea

lth to

giv

e fin

anci

al s

uppo

rt fo

r the

pro

visi

on o

f Age

d C

are.

-

8,57

4


173

4C

hapt

er 4

.1

Fina

ncia

l sta

tem

ents

Dep

artm

ent o

f Soc

ial S

ervi

ces

Not

es to

and

form

ing

part

of t

he fi

nanc

ial s

tate

men

ts

5.1.

App

ropr

iatio

ns (c

ontin

ued)

Not

e 5.

1C: S

peci

al A

ppro

pria

tions

('R

ecov

erab

le G

ST e

xclu

sive

') (c

ontin

ued)

Aut

horit

y Ty

pe

Purp

ose

App

ropr

iatio

n ap

plie

d

2016

20

15

$'00

0$'

000

Ear

ly Y

ears

Qua

lity

Fund

Spe

cial

Acc

ount

Act

201

32Li

mite

dA

mou

ntA

n A

ct to

pro

vide

fund

ing

to a

ppro

ved

cent

reba

sed

long

day

car

e se

rvic

es, t

o be

use

d ex

clus

ivel

y fo

r pay

ing

rem

uner

atio

n, a

nd o

ther

em

ploy

men

t-rel

ated

cos

ts a

nd

expe

nses

, in

rela

tion

to e

mpl

oyee

s in

the

early

chi

ldho

od e

duca

tion

and

care

sec

tor.

- 16

5,00

0

Pub

lic G

over

nanc

e, P

erfo

rman

ce a

nd A

ccou

ntab

ility

Act

20

13 -

Sec

tion

77, A

dmin

iste

red

Ref

und

To p

rovi

de a

n ap

prop

riatio

n w

here

an

Act

or o

ther

law

requ

ires

or p

erm

its th

e re

paym

ent o

f an

amou

nt re

ceiv

ed b

y th

e C

omm

onw

ealth

and

apa

rt fro

m th

is s

ectio

n th

ere

is n

o sp

ecifi

c ap

prop

riatio

n fo

r the

repa

ymen

t. 18

123

6

Bus

ines

s S

ervi

ces

Wag

e A

sses

smen

t Too

l Pay

men

t Sch

eme

Act

201

5 --

Sec

tion

99,A

dmin

iste

red4

Lim

ited

Am

ount

An

Act

to e

stab

lish

the

BS

WA

T pa

ymen

t sch

eme

for m

akin

g pa

ymen

ts in

rela

tion

to

the

use

of th

e B

usin

ess

Ser

vice

s W

age

Ass

essm

ent T

ool.

860

-

Tota

l spe

cial

app

ropr

iatio

ns a

pplie

d

11

9,00

4,03

9 12

5,08

8,35

0

1.D

VA

spe

nt m

oney

from

the

CR

F on

beh

alf o

f DS

S a

gain

st th

e fo

llow

ing

spec

ial a

ppro

pria

tions

:

- S

ocia

l Sec

urity

(Adm

inis

tratio

n) A

ct 1

999,

Adm

inis

tere

d; a

nd

- A

New

Tax

Sys

tem

(Fam

ily A

ssis

tanc

e) (A

dmin

istra

tion)

Act

199

9, A

dmin

iste

red.

2.R

espo

nsib

ility

for t

he a

dmin

istra

tion

of a

n el

emen

t of t

his

Act

tran

sfer

red

to th

e D

epar

tmen

t of E

duca

tion

and

Trai

ning

on

21 S

epte

mbe

r 201

5.

3.R

espo

nsib

ility

for t

he a

dmin

istra

tion

of th

is A

ct tr

ansf

erre

d to

the

Dep

artm

ent o

f Hea

lth o

n 30

Sep

tem

ber 2

015.

4.

The

2016

app

ropr

iatio

n ap

plie

d re

late

s to

am

ount

s pr

edom

inan

tly u

sed

for e

stab

lishm

ent a

nd a

dmin

istra

tion

cost

s of

the

BS

WA

T pa

ymen

t sch

eme.


174

4

Cha

pter

4.1

Fi

nanc

ial s

tate

men

ts

Department of Social Services Notes to and forming part of the financial statements 5.1 Appropriations (continued)

Note 5.1D: Disclosure by Agent in Relation to Annual and Special Appropriations ('Recoverable GST exclusive')

Attorney-General's Department1

2016 $'000 Total receipts 155,403Total payments (155,403)

Attorney-General's Department1

2015 $'000

Total receipts 155,437 Total payments (155,437)

1. DSS has drawing rights for Attorney-General's Department annual appropriation for the Family Relationship Services program.


175

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tem

ents


Special Accounts 5.2

Social and Community Services Pay Equity Special

Account1

Services for Other Entities and Trust Moneys2

2016 2015 2016 2015 $'000 $'000 $'000 $'000

Balance brought forward from previous period 175,432 118,598 21,914 6,788Increases: Total increase 262,887 205,009 18,313 22,306 Available for payments 438,319 323,607 40,227 29,094 Decreases: Administered

Payments made (236,124) (148,175) (13,427) (7,180) Balance transferred to the Department of Health - - (3,171) -

Total administered (236,124) (148,175) (16,598) (7,180) Total decreases (236,124) (148,175) (16,598) (7,180) Total balance carried to the next period 202,195 175,432 23,629 21,914

Early Years Quality Fund Special Account3

National Disability Special Account4

2016 2015 2016 2015 $'000 $'000 $'000 $'000

Balance brought forward from previous period 105,395 - 7,046 7,629Increases: Total increase 201 189,857 - -Available for payments 105,596 189,857 7,046 7,629 Decreases: Administered

Payments made (3,548) (84,462) (1,379) (583) Balance transferred to the Department of Education and Training (102,048) - - -

Total administered (105,596) (84,462) (1,379) (583) Total decreases (105,596) (84,462) (1,379) (583) Total balance carried to the next period - 105,395 5,667 7,046


176

4

Cha

pter

4.1

Fi

nanc

ial s

tate

men

ts

Department of Social Services Notes to and forming part of the financial statements 5.2 Special Accounts (continued)

Social and Community Services Pay Equity Special Account1. 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.

Services for Other Entities and Trust Moneys 2. 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 Special Account consists of the following sub-accounts:

National Framework.

National Campaign - Violence Against Women.

National Centre of Excellence.

Home and Community Care Planning and Development.

The Way Forward Cross Jurisdictional Work.

Community Care Access Support System.

Survey of Disability, Ageing and Carers.

The sub-accounts Home and Community Care Planning and Development, The Way Forward Jurisdictional Work, Community Care Access Support System and Survey of Disability, Ageing and Carers have transferred to the Department of Health as a result of the AAO issued on the 30 September 2015.

Early Years Quality Fund Special Account3. Appropriation: Public Governance, Performance and Accountability Act 2013; section 80.

Establishing Instrument: Early Years Quality Fund Special Account Act 2013.

Purpose: To improve quality outcomes for children in early childhood education and care services by enhancing professionalism in the early childhood education and care sector, including through improved attraction and retention of a skilled and professional workforce.

This account transferred to the Department of Education and Training as a result of the AAO issued on 21 September 2015.


National Disability Special Account4. 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.



177

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ncia

l sta

tem

ents


Net Cash Appropriation Arrangements 5.3

2016 2015 $'000 $'000

Total comprehensive loss attributable to the Australian Government (53,687) (63,813)

Plus: depreciation/amortisation expenses previously funded through revenue appropriation 56,115 63,194 Total comprehensive loss plus depreciation/amortisation expenses previously funded through revenue appropriations 2,428 (619)

Changes in asset revaluation reserve (1,604) 1,389

Surplus attributable to DSS 824 770


178

4

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pter

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Fi

nanc

ial s

tate

men

ts


Cash Flow Reconciliations 5.4

Note 5.4A: Cash Flow Reconciliation 2016 2015 $'000 $'000

Reconciliation of cash and cash equivalents as per Statement of Financial Position to Cash Flow Statement

Cash and cash equivalents as per: Cash flow statement 5,075 8,589 Statement of financial position 5,075 8,589

Discrepancy - -

Reconciliation of net cost of services to net cash from operating activities: Net cost of services (530,613) (660,914) Revenue from Government 475,322 598,490

Adjustments for non-cash items Depreciation / amortisation 56,115 63,194 Net write down of non-financial assets 1,931 14,742 Gain on disposal of assets (78) (215) Loss on disposal of assets 35 64Assets recognised (80) (443) Change in estimate for makegood provision 5 608Restructuring (operating) 15,849 (4,578) Receivables recognised in investing 3,958 (18,588)

Movements in assets and liabilities Assets

Decrease in net receivables 41,319 45,760 (Increase) in prepayments (4,759) (3,647)

Liabilities Increase / (decrease) in employee provisions (36,871) 330Increase / (decrease) in supplier payables 733 (3,714) (Decrease) in other payables (20,666) (25,057) Increase / (decrease) in other provisions (3,315) 2,541

Net cash from operating activities (1,115) 8,573


179

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er 4

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ncia

l sta

tem

ents

Department of Social Services Notes to and forming part of the financial statements 5.4 Cash Flow Reconciliations (continued)

Note 5.4B: Administered Cash Flow Reconciliation 2016 2015 $'000 $'000

Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement

Cash and cash equivalents as per: Schedule of administered cash flows 6,291 11,511 Schedule of administered assets and liabilities 6,291 11,511

Discrepancy - -

Reconciliation of net cost of services to net cash from operating activities: Net cost of services (120,359,581) (127,920,922)

Adjustments for non-cash items Depreciation - 6Adjust for operating component attributable to investing activities (2,982) (7,753) Loss on disposal of assets - 367Administered receipts collected by other agencies (629,169) (615,760) Restructuring 367,624 (567,054) Net withholdings of personal benefit overpayments through equity (86,950) (81,338) Concessional loans adjustment (26,155) (23,457) Other non-cash items (9,451) 36,319

Movements in assets and liabilities Assets

(Increase) / decrease in net receivables 672,968 (812,333) (Increase) / decrease in other non-financial assets 44 (37)

Liabilities Increase / (decrease) in supplier payables (4,298) 27,740 Increase / (decrease) in personal benefits payables (1,007,416) 67,674 Increase / (decrease) in grant payables (25,156) 53,513 (Decrease) in subsidies payables (137,748) (82,346) Increase / (decrease) in personal benefits provision (1,202,533) 634,583 (Decrease) in other payables - (887)

Net cash used by operating activities (122,450,803) (129,291,685)


180

4

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pter

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Fi

nanc

ial s

tate

men

ts

Department of Social Services Notes to and forming part of the financial statements 6. People

Employee Provisions 6.12016 2015 $'000 $'000

Note 6.1A: Employee Provisions Leave 77,613 118,507 Separations and redundancies 4,392 369 Total employee provisions 82,005 118,876

Employee provisions expected to be settled: No more than 12 months 34,335 48,956 More than 12 months 47,670 69,920

Total employee provisions 82,005 118,876

Accounting Policy

Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB - 119 Employee Benefits) and termination benefits due within twelve 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. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of DSS is estimated to be less than the annual entitlement for sick 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 DSS employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

As at 30 June 2016, the liability for long service leave has been determined by reference to the work of the AGA. During the 2016 financial year, the AGA was engaged to calculate DSS’ long service leave provision due to changes in the staffing profile, resulting primarily from Machinery of Government (MoG) changes. The estimate of the present value of the liability takes into account attrition rates, inflation, increases in pay through promotion and estimated pay increases through the DSS Enterprise Agreement 2015-18.

Separations and Redundancy

Provisions are made for employee separation and redundancy benefit payments. DSS 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 terminations.

Superannuation

Staff of DSS are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other superannuation funds.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and disclosure notes.

DSS makes employer contributions to each employee’s superannuation scheme at rates determined by an actuary and are deemed to be sufficient to meet the current cost to the Government. DSS accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June 2016 represents outstanding contributions for the financial year.


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Senior Management Personnel Remuneration 6.2

2016 2015 $ $

Short-term employee benefits: Salary 16,633,016 21,281,578 Fringe benefits and allowances 2,353,229 2,721,623

Total short-term employee benefits 18,986,245 24,003,201

Post-employment benefits: Superannuation 3,111,957 3,954,832

Total post-employment benefits 3,111,957 3,954,832

Other long-term employee benefits: Annual leave 231,214 190,497 Long-service leave 415,959 475,808

Total other long-term employee benefits 647,173 666,305

Total termination benefits 377,526 738,154 Total senior management personnel remuneration expenses 23,122,901 29,362,492

There were 113 senior management personnel reported for 2016 (2015: 136). The decrease is primarily due to the 2015 calendar year MoG changes.


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Department of Social Services Notes to and forming part of the financial statements 7. Managing Uncertainties

Contingent Assets and Liabilities 7.1

Departmental Contingencies

Guarantees Total 2016 2015 2016 2015 $'000 $'000 $'000 $'000

Contingent assets Balance from previous period - - - -New contingent assets recognised 2,095 - 2,095 -

Total contingent assets 2,095 - 2,095 -

As at 30 June 2016, DSS had quantifiable contingent assets of $2.095 million (2015: Nil) in relation to two bank guarantees concerning office accommodation fitout works.

There are no quantifiable liabilities, unquantifiable or significant remote contingent assets or liabilities (2015: Nil).

Quantifiable Administered Contingencies

There are no Act of Grace payment requests currently being considered by the Finance Minister (2015: Nil).

The AAO of 30 September 2015 resulted in the transfer of the Aged Care accommodation bond scheme to the Department of Health.

Unquantifiable Administered Contingencies

During the 2016 financial year, DSS was involved in a number of cases before the Administrative Appeals Tribunal (AAT). 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 Australian Government has made a commitment to provide temporary, untied financial assistance relating to some jurisdictions during the transition to the National Disability Insurance Scheme (NDIS). Any impact on the Commonwealth is not expected to occur before 2016-17.

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. They 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 settlement is greater than remote.


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Financial Instruments 7.2

Note 7.2A: Credit Risk

DSS is exposed to minimal credit risk as loans and receivables are cash, trade receivables and other receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade and other receivables that is $14.953 million in 2016 (2015: $13.627 million).

DSS has assessed the risk of the default on payment and $0.121 million has been allocated in 2016 (2015: Nil) to an impairment allowance account for trade receivables. DSS manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. In addition, DSS has policies and procedures that guide employees' application of debt recovery techniques.

DSS holds no collateral to mitigate against credit risk.

Maximum exposure to credit risk (excluding any collateral or credit enhancements) 2016 2015 $'000 $'000

Financial assets carried at amount not best representing maximum exposure to credit risk

Cash and cash equivalents 5,075 8,589Trade and other receivables 14,953 13,627

Total financial assets carried at amount not best representing maximum exposure to credit risk 20,028 22,216

Credit quality of financial instruments not past due or individually determined as impaired Not past due nor

impairedNot past due nor impaired

Past due or impaired


2016 2015 2016 2015 $'000 $'000 $'000 $'000

Receivables for goods and services 12,097 4,424 1,333 201Other 1,327 8,747 196 255

Total 13,424 13,171 1,529 456

Ageing of financial assets that were past due but not impaired for 2016 0 to 30 31 to 60 61 to 90 90+

days days days days Total $'000 $'000 $'000 $'000 $'000

Receivables for goods and services 816 440 33 35 1,324 Other 10 12 20 42 84

Total 826 452 53 77 1,408



Receivables for goods and services 201 - - - 201Other 216 8 - 31 255

Total 417 8 - 31 456


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Department of Social Services Notes to and forming part of the financial statements 7.2 Financial Instruments (continued)

Note 7.2B: Liquidity Risk

DSS' financial liabilities are payables. The exposure to liquidity risk was based on the notion that DSS will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely as DSS is appropriated funding from the Australian Government and DSS manages its appropriations to ensure it has adequate funds to meet payments as they fall due. In addition, DSS has policies in place to ensure timely payments are made when due and has no past experience of default.

The maturities for financial liabilities for DSS are within one year in both the current and prior financial year.

DSS has no derivative financial liabilities in both the current and prior financial year.

Note 7.2C: Market Risk

DSS holds both basic financial instruments, available for sale and held-to-maturity investments that do not expose DSS to certain market risks. DSS is not exposed to 'Currency risk', 'Other price risk' or 'Interest rate risk'.


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Administered – Financial Instruments 7.32016 2015 $'000 $'000

Note 7.3A: Categories of Financial Instruments Financial Assets Loans and receivables:

Cash and cash equivalents 6,291 11,511 Other receivables and subsidies 13,551 88,225

Less: impairment allowance (283) (4,166) Advances and loans 472,550 825,337

Less: impairment allowance (10,231) - Total loans and receivables 481,878 920,907

Available-for-sale financial assets: Investments in Commonwealth entities and other interests 126,563 52,049

Total available-for-sale financial assets 126,563 52,049

Total financial assets 608,441 972,956

Financial Liabilities Financial liabilities measured at amortised cost:

Suppliers 57,630 61,928 Grants and subsidies 123,173 286,077

Total financial liabilities measured at amortised cost 180,803 348,005

Total financial liabilities 180,803 348,005


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Department of Social Services Notes to and forming part of the financial statements 7.3 Administered Financial Instruments (continued)

Note 7.3B: Credit Risk

DSS is exposed to credit risk through cash and receivables (recognised as loans and receivables) and investments (recognised as held-to-maturity). The maximum exposure to credit risk is the risk that arises from potential default of a debtor or financial institution. This amount is equal to the total amount of cash, receivables, loans and investments. DSS has assessed the risk of the default on payment and has allocated $10.514 million (2015: $4.166 million) to an impairment allowance account for other receivables.

Maximum exposure to credit risk (excluding any collateral or credit enhancements) 2016 2015 $'000 $'000

Financial assets carried at amount not best representing maximum exposure to credit risk

Cash and cash equivalents 6,291 11,511 Other receivables and subsidies 13,551 88,225 Concessional loans 472,550 825,337

Total financial assets carried at amount not best representing maximum exposure to credit risk 492,392 925,073

Financial liabilities carried at amount not best representing maximum exposure to credit risk

Trade creditors (57,630) (61,928) Grants and subsidies (123,173) (286,077)

Total financial liabilities carried at amount not best representing maximum exposure to credit risk (180,803) (348,005)

Credit quality of financial assets not past due or individually determined as impaired Not past due nor impaired

Not past due nor impaired



2016 2015 2016 2015 $'000 $'000 $'000 $'000

Other receivables and subsidies 12,950 77,679 601 10,546 Concessional loans 461,872 821,884 10,678 3,453

Total 474,822 899,563 11,279 13,999



Other receivables and subsidies 11 1 - 306 318 Concessional loans - 65 14 368 447

Total 11 66 14 674 765



Other receivables and subsidies 992 67 3,307 2,014 6,380 Concessional loans 230 145 204 2,874 3,453

Total 1,222 212 3,511 4,888 9,833


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Department of Social Services Notes to and forming part of the financial statements 7.3 Administered Financial Instruments (continued)

Note 7.3C: Liquidity Risk

DSS administered financial liabilities relate to creditors, grants and subsidies payable. The exposure to liquidity risk is based on the notion that DSS will encounter difficulty in meeting its obligations associated with administered financial liabilities. This is highly unlikely due to appropriation funding, mechanisms available to DSS and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations when they fall due.

The maturities for financial liabilities for DSS are within one year for both 2016 and 2015.

Note 7.3D: Concessional Loans 2016 2015 $'000 $'000

Aged Care Zero Real Interest Loan Nominal value - 294,941 Less: unexpired discount - (32,792) Carrying value - 262,149

Total Aged Care Zero Real Interest Loan - 262,149

Child Care Loan Nominal value - 609Less: principal repayment - (199) Carrying value - 410

Total Child Care Loan - 410

Pension Loan Scheme Nominal value 31,562 31,645 Less: unexpired discount (510) (67) Carrying value 31,052 31,578

Total Pension Loan Scheme 31,052 31,578

Student Financial Supplement Scheme Nominal value 2,137,945 2,159,183 Less: unexpired discount (67,800) (58,600) Less: impairment (1,658,745) (1,569,383) Carrying value 411,400 531,200

Total Student Financial Supplement Scheme Loan 411,400 531,200

Student Start-Up Loan Nominal value 31,649 - Less: unexpired discount (1,551) - Less: impairment (10,231) - Carrying value 19,867 -

Total Student Start-Up Loan 19,867 -

Total concessional loans 462,319 825,337


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Fair Value Measurement 7.4The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of fair value are defined below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that DSS can access at measurement date;

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

Level 3: Unobservable inputs for the asset or liability.

Note 7.4A: Fair Value Measurements, Valuations Techniques and Inputs Used1

Fair value measurements at the end of the reporting period

For Levels 2 and 3 fair value measurements

2016 2015 Category (Level 1, 2 or 3)4

Valuation technique(s)2 Inputs used $'000 $'000

Non-financial assets3

Leasehold improvements 11,769 30,476 3 DepreciatedReplacement

Cost

Replacement Cost New

(price per square metre)

Consumedeconomic benefit /

Obsolescence of asset

Property, plant and equipment 14,855 11,047 2 Market Approach Adjusted market transactions

1,598 767 3 Market Approach Adjusted market transactions

21,273 12,920 3 DepreciatedReplacement

Cost


Consumedeconomic benefit /

Obsolescence of asset

Assets under construction - leasehold improvements

2,478 571 2 ReplacementCost


Total non-financial assets 51,973 55,781Total fair value measurements of assets 51,973 55,781

1. DSS did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2016.

2. There have been changes to the valuation techniques for assets in the property, plant and equipment class. In instances where sufficient observable inputs, such as market transactions of similar assets, were (not) identified in this financial year, the valuation technique was changed from a Depreciated Replacement Cost (DRC) (Market) approach to a Market (DRC) approach.

3. Fair value measurements - highest and best use differs from current use for non-financial assets (NFAs). DSS' assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all NFAs is considered their highest and best use.

4. Recurring and non-recurring Level 3 fair value measurements - valuation processes DSS engaged the service of AVS to conduct a detailed external valuation of all non-financial assets at 30 June 2016 and has relied upon those outcomes to establish carrying amounts. An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. Comprehensive valuations are carried out at least once every three years. AVS has provided written assurance to DSS that the models developed are in compliance with AASB 13 – Fair Value Measurement.


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Department of Social Services Notes to and forming part of the financial statements 7.4 Fair Value Measurement (continued)

Note 7.4A: Fair Value Measurements, Valuations Techniques and Inputs Used (continued)

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 DRC approach. Under the DRC approach the estimated cost to replace the asset is calculated and then adjusted to take into physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on 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 based on the term of the associated lease.

DSS policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Note 7.4B: Reconciliation for Recurring Level 3 Fair Value Measurements

Recurring Level 3 fair value measurements - reconciliation for assets Non-financial assets


Property, plant and equipment Total

2016 2015 2016 2015 2016 2015 $'000 $'000 $'000 $'000 $'000 $'000

As at 1 July 30,476 40,281 13,687 13,507 44,163 53,788 Total losses recognised in net cost of services1 (10,756) (16,853) (2,156) (5,195) (12,912) (22,048) Total losses recognised in other comprehensive income2 1,453 (1,389) 909 - 2,362 (1,389) Purchases - 1,885 11,576 5,070 11,576 6,955Restructure (9,496) 2,583 - - (9,496) 2,583Other movements (74) 3,969 - - (74) 3,969Transfers into Level 33 166 - 296 305 462 305Transfers out of Level 34 - - (1,441) - (1,441) -

Total as at 30 June 11,769 30,476 22,871 13,687 34,640 44,163 Changes in unrealised gains/(losses) recognised in net cost of services for assets held at the end of the reporting period5

- - - - - -

1. These losses are presented in the statement of comprehensive income under depreciation and amortisation and write down and impairment of assets.

2. These losses are presented in the statement of comprehensive income under other changes in asset revaluation reserves.

3. There have been transfers of property, plant and equipment asset fair value measurements into level 3 during the year due to changes in the valuation technique from a market approach to DRC.

4. There have been transfers of plant and equipment assets out of level 3 during the year. This is due to a change in their valuation technique from a DRC approach to a market approach.


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Administered – Fair Value Measurement 7.5

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

Note 7.5A: Fair Value Measurements, Valuation Techniques and Inputs Used

Fair value measurements at the end of the reporting period

For Levels 2 and 3 fair value measurements

2016 2015 Category (Level 1, 2 or 3)

Valuationtechnique(s)1 Inputs used $'000 $'000

Financial assets Concessional loans - Student Financial Supplement Scheme (SFSS)

411,400 531,200 2 Future repayments

discounted using yield curve basis

ATO repayment certificates

Concessional loans - Aged Care Zero Real Interest Loan (ZRIL)

- 262,149 2 Market value Weighted average interest rates

Concessional loans - Pension Loan Scheme (PLS)

31,052 31,578 2 Market value Weighted average interest rates

Concessional loans - Student Start-Up Loan

19,867 - 2 Present value technique

Consumer Price Index (CPI)

indexation rate

Administered investments 126,563 52,049 3 Net asset of portfolio entities

Latestmanagement

accounts or unaudited financial

statements Total financial assets 588,882 876,976

Total fair value measurements of assets 588,882 876,976

1. The methods and valuation techniques used for the purpose of measuring fair value of assets and liabilities in the 2016 financial year are unchanged from the previous reporting period.

There are administered assets and liabilities not measured at fair value in the administered schedule of assets and liabilities. The carrying amounts of these assets and liabilities are considered to be a reasonable approximation of their fair value.

Changing inputs to the level 3 hierarchy valuations to reasonably possible alternate assumptions would not significantly change amounts recognised in net cost of service or other comprehensive income.


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Department of Social Services Notes to and forming part of the financial statements 7.5 Administered Fair Value Measurement (continued)

Note 7.5B: Reconciliation for Recurring Level 3 Fair Value Measurements

Recurring Level 3 fair value measurements - reconciliation for assets Financial assets

Administered investments

Administered investments Total Total

2016 2015 2016 2015 $'000 $'000 $'000 $'000

As at 1 July 52,049 71,181 52,049 71,181 Transfer out1 - (15,226) - (15,226) Corporate Commonwealth entity investments 74,514 (3,906) 74,514 (3,906) Total as at 30 June 126,563 52,049 126,563 52,049

1. For details of investments in Commonwealth entities and other interests, refer to Note 4.1B.


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Department of Social Services Notes to and forming part of the financial statements 8. Other Information

Restructuring 8.1

Note 8.1A: Departmental Restructuring

2016 2015

Social Security Appeals Tribunal

Early Childhood and

Education Care

Aged Care and Population

Ageing

Administrative Appeals Tribunal1

Department of Education and

Training2Department of

Health3 Total4

$'000 $'000 $'000 $'000 FUNCTIONS ASSUMED Assets recognised

Receivables - - - 13,085Leasehold improvements - - 619 2,583Property, plant and equipment - - - 25Intangibles - - - 8,557Prepayments - - - 260

Total assets recognised - - 619 24,510 Liabilities recognised

Suppliers - - - (4,073)Employee provisions - - - (13,416)

Total liabilities recognised - - - (17,489) Net assets assumed5,7 - - 619 7,021 Income

Recognised by the receiving entity - - - 114Recognised by the losing entity - - - 464

Total income assumed - - - 578Expenses

Recognised by the receiving entity - - - (13,941) Recognised by the losing entity - - - (32,313)

Total expenses assumed - - - (46,254) FUNCTIONS RELINQUISHED Assets relinquished

Cash and cash equivalents (208) - - - Receivables (8,721) (16,060) (38,868) (855)Leasehold improvements (3,775) (646) (5,411) - Makegood - - (829) - Property, plant and equipment (529) (40) (14) - Intangibles (1,957) (949) - - Prepayments (141) - (6) -

Total assets relinquished (15,331) (17,695) (45,128) (855)Liabilities relinquished

Suppliers 1,610 - 175 - Other payables - 192 - - Employee provisions 4,455 13,855 27,282 861Makegood 1,171 - 2,715 - Lease incentives 1,690 - 4,004 - Deferred incentives - - 3,040 -

Total liabilities relinquished 8,926 14,047 37,216 861Net (assets) / liabilities relinquished6 (6,405) (3,648) (7,912) 6


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Department of Social Services Notes to and forming part of the financial statements 8.1 Restructuring (continued)

Note 8.1A: Departmental Restructuring (continued)

1. The Social Security Appeals Tribunal (SSAT) operated within the Social Services portfolio up until 30 June 2015. The Tribunals Amalgamation Bill 2015 was passed by the Parliament on 13 May 2015. The Bill amalgamated the functions of the former SSAT with the Administrative Appeals Tribunal and the Migration Review Tribunal-Refugee Review Tribunal to create a new, amalgamated Administrative Appeals Tribunal (AAT) from 1 July 2015.

2. The Early Childhood and Education Care function was relinquished by DSS to the Department of Education and Training as a result of the AAO issued on 21 September 2015.

3. The Aged Care and Population Ageing function was relinquished by DSS to the Department of Health as a result of the AAO issued on 30 September 2015.

4. The 2015 comparative is a combination of:

The Early Childhood Education and Care function was assumed from the former Department of Education during the 2015 financial year as a result of the AAO issued on 23 December 2014.

The Aged Care Quality Review function was relinquished by DSS to the Australian Aged Care Quality Agency (the Quality Agency) during the 2015 financial year, as a result of the Agency becoming responsible for quality review of Aged Care services in the community from 1 July 2014.

5. The net assets assumed from all entities were $0.619 million (2015: $7.021 million).

6. The net assets relinquished to all entities were $17.965 million (2015: net liabilities relinquished of $0.006 million).

7. In respect of functions assumed, the net book values of assets and liabilities (with the exception of leave liability provision amounts) were transferred to DSS for no consideration.


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Note 8.1B: Administered Restructuring

2016 2015 Early

Childhood and Education Care

Aged Care and Population

Ageing Department of Education and

Training1Department of

Health2 Total3

$'000 $'000 $'000 FUNCTIONS ASSUMED Assets recognised

Cash and cash equivalents - - 400Receivables - - 354,553Advances and loans - - 609

Total assets recognised - - 355,562 Liabilities recognised

Suppliers payables - - (3,797) Personal benefits payable - - (193,101) Grants payable - - (22,429) Provisions for personal benefits - - (703,289)

Total liabilities recognised - - (922,616) Net (liabilities) assumed4,6 - - (567,054) Income

Recognised by the receiving entity - - 3,964Recognised by the losing entity - - 3,727

Total income assumed - - 7,691Expenses

Recognised by the receiving entity - - (3,358,408) Recognised by the losing entity - - (3,798,578)

Total expenses assumed - - (7,156,986) FUNCTIONS RELINQUISHED Assets relinquished

Receivables (406,541) (63,801) - Advances and Loans (339) (268,008) - Other non-financial assets (4,169) (1,324) -

Total assets relinquished (411,049) (333,133) -Liabilities relinquished

Suppliers payables 95 3,405 - Personal benefits payable 197,991 - - Subsidies payables - 149,514 - Grants payable 2,583 11,441 - Provisions for personal benefits 746,777 - -

Total liabilities relinquished 947,446 164,360 -Net (assets) / liabilities relinquished5 536,397 (168,773) -


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Note 8.1B: Administered Restructuring (continued)

1. The Early Childhood and Education Care function was relinquished by DSS to the Department of Education and Training as a result of the AAO issued on 21 September 2015. Other special account balances of $102.048 million that did not form part of the DSS administered schedule of assets and liabilities, and excluded from this note, were also transferred to Department of Education and Training.

2. The Aged Care and Population Ageing function was relinquished by DSS to the Department of Health as a result of the AAO issued on 30 September 2015.

3. The Early Childhood Education and Care function was assumed from the former Department of Education as a result of the AAO issued on 23 December 2014.

4. In 2015, the net liabilities assumed from all entities were $567.054 million.

5. The net liabilities relinquished to all entities were $367.624 million.

6. In respect of functions assumed, the net book values of assets and liabilities were transferred to DSS for no consideration.


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199

4C

hapt

er 4

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Fina

ncia

l sta

tem

ents


Breach of Section 83 of the Constitution 8.3

Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Table A – Summary 2016

Appropriations identified

as subject to conditions

Payments in 2016

Review complete?

Breaches identified

for payments made

during 2016

Potential Breaches

2016

Remedial

action taken or

proposed1

Amount

$’000 Yes/No Yes/No Amount

$’000 Yes/No Indicative

extant

SPECIAL APPROPRIATIONS

A New Tax System (Family

Assistance) (Administration)

Act 1999

23,464,274 Yes No - Yes See footnote 2

and 6 -

Aged Care Act 1997 3,007,553 No No - Yes See footnote 6 -

Business Services Wage

Assessment Tool Payment

Scheme Act 2015

860 Yes No - No - -

National Health Act 1953 63,494 No No - Yes See footnote 6 -

Paid Parental Leave Act

2010 2,082,098 Yes No - Yes See footnote 3 -

Social Security

(Administration) Act 1999 89,855,470 Yes No - Yes See footnote 4 -

Student Assistance Act 1973 339,093 Yes No - Yes See footnote 5 -

Early Years Quality Fund

Special Account 449 No No - No See footnote 6 -

National Disability Special

Account1,379 Yes No - No - -

Services for Other Entities

and Trust Monies 16,620 Yes No - No - -

Social & Community

Services Pay Equity Special

Account

236,115 Yes No - No - -

Annual Appropriation Act

No.1 2015-16 (National

Rental Affordability Scheme)

56,513 Yes No - No - -

Annual Appropriation Act

No.1 2015-16 4,347,149 Yes Yes 4 Yes See footnote 7 -


200

4

Cha

pter

4.1

Fi

nanc

ial s

tate

men

ts

Department of Social Services Notes to and forming part of the financial statements 8.3 Breach of Section 83 of the Constitution (continued)

Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund (continued) 1. L= legislative change; S= systems change; P=planned; M=made (e.g. SM, or LP) 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 $1,247.024 million representing 840,608 new debts raised. A total of $528.441 million was recovered during the 2016 financial year; a further $28.600 million was waived or written off.

3. The value of potential contraventions in respect of payments under Paid Parental Leave Act 2010 was $11.887 million representing 5,085 new debts raised. A total of $9.756 million was recovered during the 2016 financial year; a further $0.139 million was waived or written off.

4. The value of potential contraventions in respect of payments under Social Security (Administration) Act 1999 was $1,367.614 million representing 1,452,201 new debts raised. A total of $789.172 million was recovered during the 2016 financial year; a further $100.268 million was waived or written off.

5. The value of potential contraventions in respect of payments under Student Assistance Act 1973 was $12.537 million representing 17,121 new debts raised. A total of $9.586 million was recovered during the 2016 financial year; a further $1.089 million was waived or written off.

6. The Early Childhood and Education Care function was relinquished by DSS to the Department of Education as a result of the AAO issued on 21 September 2015; subsequently the Aged Care and Population Ageing function was relinquished by DSS to the Department of Health as a result of the AAO issued on 30 September 2015.

7. Through regular internal reconciliation processes, five instances totalling $3,770.27 of potential breaches have been identified as at 30 June 2016. These instances relate to adjustments from Administered to Departmental Appropriation within Appropriation Bill (No. 1) 2015-16.


201

4C

hapt

er 4

.1

Fina

ncia

l sta

tem

ents


Explanations of Major Variances to Budget 8.4The following provides explanations of major variances between the original budget as presented in the 2015-16 Social Services Portfolio Budget Statements (PBS) and the 2015-16 final outcome as presented in accordance with Australian Accounting Standards for DSS. The 2015-16 PBS contains the original financial statements’ budget estimates presented to Parliament in respect of the 2016 financial year. The budget is not audited.

Variances are considered to be ‘major’ based on the following criteria: the variance between budget and actual is greater than +/- 10% of the original budget for a line item; or the variance between budget and actual is greater than 2% of the relevant sub-total (i.e. total expenses, total

income, total assets or total liabilities); or an item below this threshold but is considered important for the reader’s understanding or is relevant to an

assessment of the discharge of accountability and to an analysis of performance of DSS.

Note 8.4A: Departmental Major Budget Variances for 2016

Explanations of major variances Affected schedules The variance to the 2015-16 original Budget estimate mainly relates to a decrease in funding through the 2015-16 Portfolio Additional Estimates Statements (PAES), as a result of the 21 September and 30 September 2015 AAOs which transferred the Child Care function from DSS to the Department of Education and Training and the Aged Care function from DSS to the Department of Health.

In particular: - Total own-source income is $46.982 million higher than the 2015-16 Budget estimate

mainly as a result of delivering a higher than expected volume of MoG related MoU corporate services to other departments.

- Total provisions are $64.858 million lower than the 2015-16 Budget estimate due to the MOG transfer of DSS employees to the Aged Care and Child Care functions that were not known at the time of publication.

- Total equity is $26.002 million higher than the 2015-16 Budget estimate mainly due to a $21.378 million capital appropriation for MoG related corporate support services.

Total expenses Revenue from Government Total financial assets Total non-financial assets Total payables

Total own-source income

Total provisions

Statement of changes in equity

In addition, cash received other includes $27.656 million net GST received that was not included in the 2015-16 Budget estimate. The Cash used includes $87.946 million Section 74 receipts to the Official Public Account (OPA) which were reported on a net basis in the 2015-16 Budget estimate.

Cash flow statement operating activities


202

4

Cha

pter

4.1

Fi

nanc

ial s

tate

men

ts


8.4 Explanations of Major Variances to Budget (continued)

Note 8.4B: Administered Major Budget Variances for 2016

Explanations of major variances Affected schedules The variance to the 2015-16 Budget estimate mainly relates to a decrease in appropriation through the 2015-16 Portfolio Additional Estimates Statements (PAES), as a result of the 21 September and 30 September 2015 AAOs which transferred the responsibility for the Child Care function from DSS to the Department of Education and Training and the Aged Care function from DSS to the Department of Health.

In particular: - Administered expenses in 2015-16 were $16,999.546 million lower than Budget which

was predominantly driven by variances in aged care and child care subsidies expenses of $8,602.725 million, personal benefits expenses of $6,635.004 million, and grants expenses of $2,190.923 million.

- Administered income in 2015-16 was $218.319 million lower than Budget which was predominantly driven by a variance in other aged care revenue of $290.065 million offset by a variance in recoveries revenue of $54.697 million.

- Administered assets in 2015-16 were $1,195.500 million higher than Budget which was predominantly driven by a variance in aged care and child care receivables of $1,540.150 million offset by a variance in other non-financial assets of $343.845 million.

- Administered liabilities in 2015-16 were $2,064.570 million lower than Budget which was predominantly driven by variances in personal benefits payables of $1,030.680 million, subsidies payables of $292.067 million, as well as personal benefits and other provisions of $772.838 million.

Total expenses Total income Total assets Total liabilities

Subsidies expenses Grants expenses Personal Benefits expenses

Other revenue Recoveries revenue

Receivables Other non-financial assets

Personal Benefits payables Subsidies payables Personal benefits and other provisions

Personal benefits expense is $6,635.004 million lower than Budget and relates to changes to recipient numbers and average rates, machinery of government changes as disclosed above, and delays to the passage of legislation including Paid Parental Leave Act 2010,A New Tax System (Family Assistance) (Administration) Act 1999 and Social Security (Administration) Act 1999 included in the 2015-16 Social Services Portfolio Budget Statements.

Personal Benefits expenses

The variance in receivables relates to differences in disclosure between DSS 2015-16 financial statements and the 2015-16 Social Services Portfolio Budget Statements. The 2015-16 Social Services Portfolio Budget Statements discloses a $2,175.306 million appropriation receivable amount in receivables, while the financial statements discloses this amount in equity. The variance in other non-financial assets relates to no prepayments reported by DSS as at 30 June 2016.

Receivables Other non-financial assets


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Local community leader, Roger Marshall.

An opportunity for every child The south Brisbane city of Logan has embarked on a whole-of-community initiative to give its children the best possible chances in life – ‘Logan Together’.

Logan is home to people from more than 215 different cultural backgrounds, and is a community long considered to be disadvantaged.

“Every child has potential. ‘Logan Together’ is about making sure every child in our city has the support, love and care they need, to realise their full potential, from birth through every stage to adulthood,” explained Roger Marshall, a local community leader.

A retired school teacher who migrated from the UK 30 years ago, Roger is one of several local community leaders involved in the grass roots movement which is supported by our Department.

‘Logan Together’has the potential to radically change outcomes for our community and it’s the way we are going about it which is as important as what we are aiming to do,” he said.

Community and religious leaders and senior executives from all levels of government sit with mums, dads and school principals to help coordinate efforts in Logan across the social services, health and education systems.

They pool local resources and expertise to ensure practical on-the-ground support at crucial developmental stages of children’s lives – helping families with newborn babies, devising programs to assist with behaviour problems in school and stepping in to improve literacy.

“In many ways it’s a simple idea to pool resources and point them all in the same direction,” Roger said. “But it’s the way ‘Logan Together’ is bringing stakeholders together to make a collective impact that is the most powerful thing.”

“We have a special thing going here – it’s great to be part of it.”

Staff from the Queensland State Office are working closely with the community to support ‘Logan Together’.


Appendix A Changes in our Department during 2015–16 206

Appendix B Resource statements 208

Appendix C Family Tax Benefit reconciliation data 222

Appendix D Changes to disability reporting 227

Appendix E Compliance with the Carer Recognition Act 228

Appendix F Fraud Control Certificate 230

Appendix G Staffing statistics 231

Appendix H Work Health and Safety 236

Appendix I Advertising and market research 237

Appendix J Ecologically sustainable development and environmental performance 240

Appendix K Glossary of abbreviations and acronyms 244

Appendixes

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Appendix A

Changes in our Department during 2015–16Figure A–1: Changes in ministerial responsibilities for our Department during 2015–16

From 1 July 2015 to 21 September 2015

From 21 September 2015 to 18 February 2016

From 18 February 2016 to 30 June 2016

Minister for Social Services The Hon Scott Morrison MP

Assistant Minister for Social Services Senator the Hon Mitch Fifield

Parliamentary Secretary to the Minister for Social ServicesSenator the Hon Concetta Fierravanti-Wells

Minister for Social Services The Hon Christian Porter MP

Assistant Minister for Social Services The Hon Alan Tudge MP

Assistant Minister for Multicultural AffairsSenator the Hon Concetta Fierravanti-Wells

Minister for Social Services The Hon Christian Porter MP

Assistant Minister for Disability ServicesThe Hon Jane Prentice MP

Assistant Minister for Multicultural AffairsThe Hon Craig Laundy MP

Part 5—Appendixes | Appendix A

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Figure A–2: Changes in the Department’s programs during 2015–16

From the Department of Social Services

To the Department of Education and Training

The AAO of 21 September 2015 resulted in the transfer of the following programs

Program 2.4 Support for the Child Care System

Program 2.5 Child Care Benefit

Program 2.6 Child Care Rebate

Program 2.7 Child Care Subsidy

Program 1.7 Support for the Child Care System

Program 1.8 Child Care Benefit

Program 1.9 Child Care Rebate

Program 1.10 Child Care Subsidy

From the Department of Social Services

To the Department of Health

The AAO of 30 September 2015 resulted in the transfer of the following programs

Program 3.1 Access and Information

Program 3.2 Home Support

Program 3.3 Home Care

Program 3.4 Residential and Flexible Care

Program 3.5 Workforce and Quality

Program 3.6 Ageing and Service Improvement


Program 11.1 Access and Information

Program 11.2 Home Support

Program 11.3 Home Care

Program 11.4 Residential and Flexible Care

Program 11.5 Workforce and Quality

Program 11.6 Ageing and Service Improvement

(Departmental resourcing estimates are across programs)

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Appendix B

Resource statementsTable B–1: Agency resource statement 2015–16

Actual available

appropriation for 2015–16

$’000

Payments made

2015–16$’000

Balance remaining

2015–16$’000

(a) (b) (a)-(b)

Ordinary Annual Services1

Departmental appropriation2 774,215 619,872 154,343

Total 774,215 619,872 154,343

Administered expenses

Outcome 1 13,564 10,633

Outcome 2 781,564 681,736

Outcome 3 674,361 674,355

Outcome 4 73,571 1,299

Outcome 5 1,768,466 1,471,549

Payments to corporate Commonwealth entities3

565,896 581,070

Total 3,877,422 3,420,642

Total ordinary annual services A 4,651,637 4,040,514

Other services4

Departmental non-operating

Equity injections 50,853 41,636 9,217

Total 50,853 41,636 9,217

Part 5—Appendixes | Appendix B

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Actual available


$’000

Payments made

2015–16$’000

Balance remaining

2015–16$’000

(a) (b) (a)-(b)

Administered non-operating

Administered Assets and Liabilities

Payments to corporate Commonwealth entities – non-operating

57,756 57,756

Total 57,756 57,756

Total other services B 108,609 99,392

Total available annual appropriations and payments

4,760,246 4,139,906

Special appropriations

Paid Parental Leave Act 2010 2,073,896

Social Security (Administration) Act 1999

89,855,449

A New Tax System (Family Assistance) (Administration) Act 1999

23,462,615

Aged Care Act 1997, Administered 2,946,851

Student Assistance Act 1973 – Section 55A (Administered)

339,093

Social and Community Services Pay Equity Special Account Act 2012

261,600

National Health Act 1953, Administered

63,494

Aged Care (Bond Security) Act 2006, Administered

–

Early Years Quality Fund Special Account Act 2013

–

Public Governance, Performance and Accountability Act 2013 – Section 77, Administered

181

Business Services Wage Assessment Tool Payment Scheme Act 2015 – Section 99, Administered

860

Total special appropriations C 119,004,039

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Actual available


$’000

Payments made

2015–16$’000

Balance remaining

2015–16$’000

(a) (b) (a)-(b)

Special Accounts

Opening balance 309,787

Appropriation receipts5 266,928

Non-appropriation receipts to Special Accounts

9,079

Payments made6 241,051

Balance transferred to the Department of Education and Training

102,048

Total special accounts D 585,794 343,099 242,695

Total resourcing and payments A+B+C+D

5,346,040 123,487,044

Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or corporate Commonwealth entities through annual appropriations

890,580 900,426

Total net resourcing and payments for DSS

4,455,460 122,586,618

1 Appropriation Act (No.1) 2015–16 and Appropriation Act (No.3) 2015–16. This may also include prior year departmental appropriation, section 74 retained revenue receipts and section 75 transfers.

2 This item includes an amount of $40.133 million in 2015–16 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) 2015–16 and Appropriation Act (No.4) 2015–16.

5 Appropriation receipts from DSS’s annual and special appropriations for 2015–16 included above.

6 This item does not include ‘special public money’ held in accounts like ‘services for other entities and trust monies’ special accounts.


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Table B–2: Expenses and resources for Outcome 1: Social Security

Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 1.1: Family Tax Benefit


Ordinary Annual Services (Appropriation Act No. 1)

– – –

Special Appropriations 20,890,607 20,989,405 (98,798)

Total for Program 1.1 20,890,607 20,989,405 (98,798)

Program 1.2: Child Payments



– – –

Special Appropriations 126,178 126,626 (448)

Total for Program 1.2 126,178 126,626 (448)

Program 1.3: Income Support for Vulnerable People



– – –

Special Appropriations 65,838 64,745 1,093

Total for Program 1.3 65,838 64,745 1,093

Program 1.4: Income Support for People in Special Circumstances



1,369 595 774

Special Appropriations 4,798 4,389 409


Program 1.5: Supplementary Payments and Support for Income Support Recipients



8,997 8,997 –



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Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 1.6: Income Support for Seniors



– – –



Program 1.7: Allowances and Concessions for Seniors



– – –



Program 1.8: Income Support for People with Disability



– – –

Special Appropriations 16,606,273 16,576,232 30,041

Total for Program 1.8 16,606,273 16,576,232 30,041

Program 1.9: Income Support for Carers



2,800 1,883 917



Program 1.10: Working Age Payments



398 35 363




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Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 1.11: Student Payments



– – –



Cross-Program: Rent Assistance



– – –

Special Appropriations – – –

Total for Cross-Program: Rent Assistance

– – –


Departmental expenses

Departmental appropriation 126,999 124,035 2,964

Expenses not requiring appropriation in the Budget year

13,467 12,552 915


Outcome 1 Totals by appropriation type



13,564 11,510 2,054





13,467 12,552 915

Total expenses for Outcome 1 109,497,155 109,657,795 (160,640)

2015–16 2014–15

Staffing resources (number) 507 600

a Represents estimated actual expenses for the 2015–16 financial year recognised in the 2016–17 Portfolio Budget Statements.

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Table B–3: Expenses and resources for Outcome 2: Families and Communities

Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 2.1: Families and Communities


Ordinary Annual Services (Appropriation Act No. 1 and 3)

588,217 571,795 16,422

Special Appropriations 8 74 (66)

Special Accounts 10,080 16,639 (6,559)


Program 2.2: Paid Parental Leave


Ordinary Annual Services(Appropriation Act No. 1 and 3)

– – –



Program 2.3: Social and Community Services



– – –


Special Account 261,563 236,124 25,439


Program 2.4: Support for the Child Care System



132,751 132,750 1


Special Account 3,342 3,381 (39)

Total for Program 2.4 136,093 136,131 (38)

Program 2.5: Child Care Benefit



– – –

Special Appropriations 1,051,279 1,051,279 –

Total for Program 2.5 1,051,279 1,051,279 –


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Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 2.6: Child Care Rebate



– – –

Special Appropriations 910,862 910,862 –

Total for Program 2.6 910,862 910,862 –

Program 2.7: Child Care Subsidy

Administered expenses – – –

Total for Program 2.7 – – –





26,176 18,026 8,150





720,968 704,545 16,423


Special Accounts 274,985 256,144 18,841




26,176 18,026 8,150

Total expenses for Outcome 2 5,274,420 5,188,169 86,251

2015–16 2014–15

Staffing resources (number) 1030 1,011


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Table B–4: Expenses and resources for Outcome 3: Ageing and Aged Care

Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 3.1: Access and Information



42,474 42,474

Special Appropriations – – –Total for Program 3.1 42,474 42,474 –

Program 3.2: Home Support



538,009 534,506 3,503


Program 3.3: Home Care



147 147 –

Special Appropriations 349,497 352,030 (2,533)

Total for Program 3.3 349,644 352,177 (2,533)

Program 3.4: Residential and Flexible Care



31,655 17,033 14,622



Program 3.5: Workforce and Quality



39,830 42,378 (2,548)




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Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 3.6: Ageing and Service Improvement



27,263 27,263 –

Special Appropriations 63,623 63,623 –

Special Accounts – – –




Departmental appropriation 42,468 84,542 (42,074)


4,504 8,521 (4,017)





679,378 663,801 15,577

Special Appropriations 3,009,151 3,009,152 (1)

Special Accounts – – –




4,504 8,521 (4,017)

Total expenses for Outcome 3 3,735,501 3,766,016 (30,515)

2015–16 2014–15

Staffing resources (number) 192 1,036


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Table B–5: Expenses and resources for Outcome 4: Housing

Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 4.1: Housing and Homelessness



1,339 1,334 5


Total for Program 4.1 1,339 1,334 5

Program 4.2: Affordable Housing



71,965 71,965 –







3,143 5,307 (2,164)





73,304 73,299 5





3,143 5,307 (2,164)

Total expenses for Outcome 4 106,087 131,950 (25,863)

2015–16 2014–15




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Table B–6: Expenses and resources for Outcome 5: Disability and Carers

Estimated actuala

2015–16 $’000

Actual Expenses

2015–16 $’000

Variation 2015–16

$’000

(a) (b) (a)–(b)

Program 5.1: Disability, Mental Health and Carers Program



999,806 959,406 40,400

Special Account 1,815 1,379 436

Total for Program 5.1 1,001,621 960,785 40,836

Program 5.2: National Disability Insurance Scheme



591,185 588,899 2,286







12,023 11,709 314





1,590,991 1,548,305 42,686

Special Accounts 1,815 1,379 436




12,023 11,709 314

Total expenses for Outcome 5 1,718,201 1,684,666 33,535

2015–16 2014–15



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Appendix C

Family Tax Benefit reconciliation dataThe purpose of Family Tax Benefit (FTB) reconciliation is to determine whether a family was eligible to receive payment and, if so, whether they received their correct entitlement. Following each entitlement year, actual family income is reconciled with the amount of FTB paid in instalments throughout the previous year. Reconciliation also determines if a family is eligible for the end of year FTB supplements. This may result in a family receiving a top-up payment, a debt being raised or no change.

Table C–1 shows reconciliation outcomes for FTB customers for the 2013–14 and 2014–15 entitlement years.

» The 2014–15 entitlement year outcomes are not final.

» The majority of nil change instalment customers were ineligible for the end of year supplement because they were late meeting the reconciliation conditions, or chose to defer receipt of instalment payments (zero rate customers) and were found to be ineligible on reconciliation, or were eligible for Rent Assistance only.

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Table C–1: Reconciliation outcomes, as at 30 June 2016

Entitlement year

2014–15 2013–14

Top-ups

Number of customers 1,530,530 1,576,964

Per cent of total customer number 78.40% 79.80%

Total amount $3,900m $4,003m

Average amount $2,548 $2,538

Overpayments

Number of customers 169,761 189,868


Total amount $292m $327m

Average amount $1,719 $1,724

Nil changes (instalment)



Nil changes (lump sum customer)



Grant



Non-lodgersa

Number of customers na 27,898

Per cent of total customer number na 1.40%

Pending

Number of customers 113,496 99

Per cent of total customer number 5.80% < 0.1%

Late Lodger

Number of customers na 5

Per cent of total customer number na <0.1%

Total

Number of customers 1,949,886 1,975,558

a Non-lodgers are customers who have not reconciled their entitlement to FTB by 30 June 2016.

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Table C–2 shows outstanding reconciliation debt by state for FTB families for the 2010–11 to 2014–15 entitlement years.

Table C–2: Outstanding reconciliation debt, as at 30 June 2016

Entitlement year

State/territorya 2014–15 2013–14 2012–13 2011–12 2010–11

Australian Capital Territory

Number of customers 873 450 319 132 60

Total outstanding debt $1,653,033 $957,082 $670,066 $279,829 $139,392

New South Wales

Number of customers 23,129 12,645 7,706 3,127 1,658

Total outstanding debt $45,685,312 $29,499,682 $18,747,002 $8,362,425 $4,300,503

Northern Territory


Total outstanding debt $1,707,692 $1,287,936 $680,400 $252,781 $155,595

Queensland



South Australia

Number of customers 4,938 2,510 1,499 604 295

Total outstanding debt $8,656,507 $5,273,544 $3,367,310 $1,532,351 $795,232

Tasmania

Number of customers 1,419 733 475 177 82

Total outstanding debt $2,371,056 $1,623,332 $1,057,652 $368,843 $218,698

Victoria



Western Australia

Number of customers 8,626 4,931 3,146 1,342 708


Not recordedb


Total outstanding debt $514,954 $528,170 $598,823 $512,005 $542,414

Total


Outstanding debt $147,731,720 $97,479,956 $62,963,453 $28,331,793 $14,870,719

a The state or territory is from the customer’s address as at 30 June 2016, which may differ from their address when the debt was incurred.

b ‘Not recorded’ includes customers with overseas addresses, addresses that are post office boxes (rather than street addresses), and invalid addresses (e.g. for people who are no longer customers).


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Table C–3 shows FTB families by state who had part or all of their tax refund withheld to offset a reconciliation debt for the 2010–11 to 2014–15 entitlement years. Offsets applied to non-lodger, qualification and prior year reconciliation debt are not included.

Table C–3: Customers with tax refund reconciliation offset, as at 30 June 2016

Entitlement year


Australian Capital Territory 1,047 1,156 1,019 1,043 1,180

New South Wales 19,072 19,901 18,998 21,993 23,469

Northern Territory 571 656 677 771 797

Queensland 13,200 15,487 14,572 15,063 15,698

South Australia 4,302 4,804 4,591 5,125 5,305

Tasmania 1,204 1,307 1,302 1,381 1,425

Victoria 15,694 16,353 15,837 18,576 20,181

Western Australia 7,034 8,213 7,684 7,782 7,986

Not recordedb 472 369 265 255 183

Total 62,596 68,246 64,945 71,989 76,224



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Table C–4 shows the average adjusted taxable income by state for FTB families who incurred a reconciliation debt, for the 2010–11 to 2014–15 entitlement years, including customers who were found to be ineligible on reconciliation.

Table C–4: Average adjusted taxable income for reconciliation debtors, as at 30 June 2016

Entitlement year


Australian Capital Territory $114,662 $107,158 $104,415 $105,675 $108,102

New South Wales $104,375 $100,502 $96,683 $98,730 $100,651

Northern Territory $107,665 $104,203 $98,329 $97,555 $96,136

Queensland $103,349 $100,957 $97,364 $98,913 $97,598

South Australia $98,690 $96,851 $93,785 $95,542 $98,528

Tasmania $94,228 $92,730 $88,381 $89,983 $94,451

Victoria $101,998 $98,563 $96,101 $98,531 $101,077

Western Australia $113,084 $109,617 $107,754 $108,910 $109,163

Not recordedb $105,518 $98,607 $96,847 $97,129 $99,727

Total $104,137 $100,911 $97,848 $99,719 $100,929

Note: Only customers whose debt was incurred for payments made during the entitlement year were previously included in this table. All customers who incurred a reconciliation debt are now included to better align with Tables C–2 and C–3.



Table C–5 shows the average adjusted taxable income by claim type for FTB families for the 2013–14 and 2014–15 entitlement years. Families who were found to be ineligible upon reconciliation are not included.

Table C–5: Average adjusted taxable income by claim type, as at 30 June 2016

Entitlement year

Claim type 2014–15 2013–14

Lump sum $80,775 $83,418

Instalment $57,093 $56,933


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Table C–6 shows the income distribution of adjusted taxable income for FTB families for the 2013–14 and 2014–15 entitlement years. Families who were found to be ineligible upon reconciliation are not included.

Table C–6: Adjusted taxable income across ranges, as at 30 June 2016

Entitlement year

2014–15 2013–14

Adjusted taxable income ($)FTB Part A customers

FTB Part B customers

FTB Part A customers

FTB Part B customers

0 to less than 20,000 305,945 303,144 327,361 323,684

20,000 to less than 40,000 418,670 414,114 443,883 438,886

40,000 to less than 60,000 321,917 303,922 337,019 314,117

60,000 to less than 80,000 264,104 203,290 281,144 210,835

80,000 to less than 100,000 243,394 142,078 257,380 147,120

100,000 to less than 150,000 136,494 135,137 137,962 145,572

150,000 to less than 200,000 5,474 7,595 5,142 8,246

200,000 to less than 250,000 643 499 693 620

250,000 to less than 300,000 172 133 196 181

300,000 or more 266 226 226 193

Total 1,697,079 1,510,138 1,791,006 1,589,454

Some families with higher incomes are eligible to receive FTB. They include:

» customers with large families

» customers who were entitled to an income support payment for part of the year

» customers whose personal circumstances change during the year (e.g. customers with new partners who were eligible for FTB as a single person but are ineligible when partnered due to increased income)

» certain groups of customers who are free of the FTB Part A or FTB Part B income tests

» Child Disability Allowance (CDA) recipients eligible for FTB Part A due to CDA savings provisions originally introduced in 1993 (CDA was not asset or income-tested, and CDA qualification entitled families to a minimum amount of Family Allowance free of any means test prior to January 1993).

Customers who are entitled to an income support payment are not subject to the FTB Part A income test or the FTB Part B primary earner income test. Certain payments, such as superannuation lump sums, are included in adjusted taxable income but these do not necessarily preclude customers from receiving income support.

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Table C–7 shows the percentage of customers who incurred an FTB debt by debt and payment type for the 2012–13 and 2013–14 entitlement years, including customers who were found to be ineligible on reconciliation.

Table C–7: Percentage of customers incurring an FTB debt, as at 30 June 2016

Entitlement year

2013–14a 2012–13b

Debt typeFTB Part A

customers (%)FTB Part B

customers (%)FTB Part A

customers (%)FTB Part B

customers (%)

Qualification debt 6.6 7.4 4.1 4.6

Reconciliation debt 12.8 14.1 13.5 15.2

Non-lodger debt 1.2 1.4 1.3 1.5

a Measured at 30 June 2015.

b Measured at 30 June 2016.

Part 5—Appendixes | Appendix D

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Appendix D

Changes to disability reportingSince 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007–08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010–11, departments and agencies have no longer been required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by the National Disability Strategy 2010–2020 (the Strategy), which sets out a 10-year national policy framework to improve the lives of people with disability, promote participation and create a more inclusive society. A high-level two-yearly report will track progress against each of the six outcome areas of the Strategy and present a picture of how people with disability are faring. The first of these reports is available at dss.gov.au/nds.

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Appendix E

Compliance with the Carer Recognition ActThrough the Carer Recognition Act 2010 (CR Act), the Australian Government recognises the exceptional contribution made by unpaid carers.

The CR Act stipulates that carers should have the same rights, choices and opportunities as other Australians. To help achieve this, the CR Act sets out reporting and consultation obligations for Australian Public Service agencies with responsibilities towards carers.

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 CR Act and the Statement for Australia’s Carers (the Statement) through our intranet and other departmental resources. Posters promoting understanding of the role of carers and the Statement are displayed in all our workplaces.

We inform the general public about the Statement on our website at dss.gov.au. We also fund Carers Australia to coordinate and manage National Carers Week activities each October. These activities raise the general public’s 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 agreements include special carers leave entitlements and ensure staff can access health and diversity rooms when they are required to deal with unforeseen caring responsibilities.

Staff can access free counselling arranged through the Employee Assistance Program (EAP).

Our intranet also provides employees and managers with information about carers’ entitlements and internal and external resources, including links to fact sheets and articles.

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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.

Subsection 8(2) — Each public service care agency is to consult carers, or bodies that represent carers, when developing or evaluating care supports.

In the past year, individual carers and representatives of carer organisations participated in consultations about a review of the assessment process that determines qualification for Carer Payment and Carer Allowance.

We continue to fund advocacy agencies and peak bodies to represent carers’ issues to the Government and the Department.

The Carer Gateway Advisory Group (CGAG) was established in mid-2015 to provide advice to our Department through a co-design process on the development of an Integrated Plan for Carer Support Services (the Plan). CGAG consists of key leaders and representatives from peak bodies with specific expertise and interest in carers, as well as consumer advocates.

A sub-group of CGAG was also established in August 2015 as a Subject Matter Expert Working Group to inform the design of the Plan. Membership consists of representatives that have operational level expertise and knowledge of working with carers and carers themselves.

These groups meet regularly and are central to the development of a future carer support model.

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Appendix F

Fraud control certificate

CERTIFICATION OF DEPARTMENTAL FRAUD CONTROL ARRANGEMENTS

I certify that the Department of Social Services, in accordance with section 10 of the Public Governance, Performance and Accountability Rule 2014 and the Commonwealth Fraud Control Policy, has taken all reasonable measures to prevent, detect and deal with fraud relating to the department, including by:

a) Conducting fraud risk assessments regularly;

b) Developing and implementing a fraud control plan;

c) Having an appropriate mechanism for preventing fraud, including that:

i. officials are made aware of what constitutes fraud; and

ii. the risk of fraud is taken into account in planning and conducting activities;

d) Having an appropriate mechanism for detecting incidents of fraud or suspected fraud, including a process to report confidentially;

e) Having an appropriate mechanism for investigating or otherwise dealing with fraud or suspected fraud; and

f) Having an appropriate mechanism for recording and reporting incidents of fraud or suspected fraud.

Finn Pratt AO PSM

Secretary

June 2016

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Appendix G

Staffing statisticsTables G–1 and G–2 provide statistics on ongoing and non-ongoing staff, as at 30 June 2016 by location, actual classification (including backfilling for leave) and gender; figures for the previous year are shown in parentheses. Table G–3 gives details on salary ranges, as at 30 June 2016.

Table G–1: Ongoing staff employed, by actual classification, gender and location, as at 30 June 2016

Location and classification

Female Male

Part-time Full-time Part-time Full-time Total

Australian Capital Territory 285 (396) 889 (1,278) 45 (52) 613 (820) 1,832 (2,546)

APS Level 1 2 (3) 0 (0) 3 (3) 0 (0) 5 (6)

APS Level 2 2 (1) 5 (7) 3 (5) 3 (12) 13 (25)

APS Level 3 5 (2) 46 (41) 1 (2) 36 (26) 88 (71)

APS Level 4 8 (19) 68 (70) 2 (0) 26 (29) 104 (118)

APS Level 5 33 (46) 98 (166) 3 (6) 51 (75) 185 (293)

APS Level 6 89 (136) 235 (354) 12 (12) 147 (191) 483 (693)

Legal Officer 1 (1) 6 (8) 0 (0) 2 (4) 9 (13)

Senior Legal Officer 2 (5) 5 (5) 1 (0) 1 (2) 9 (12)

Principal Legal Officer 3 (5) 3 (3) 1 (0) 2 (5) 9 (13)

Legal Special Counsel 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Public Affairs Officer Grade 1 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)



Senior Public Affairs Officer 3 (0) 4 (3) 0 (0) 0 (2) 7 (5)

EL 1 106 (145) 246 (368) 16 (18) 197 (274) 565 (805)

EL 2 21 (27) 120 (171) 3 (4) 110 (148) 254 (350)

SES Band 1 2 (2) 33 (51) 0 (1) 25 (33) 60 (87)

SES Band 2 0 (0) 6 (10) 0 (0) 9 (13) 15 (23)a

SES Band 3 0 (0) 3 (5) 0 (0) 1 (2) 4 (7)

Secretary 0 (0) 0 (0) 0 (0) 1 (1) 1 (1)

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Female Male


New South Wales 28 (59) 50 (141) 2 (7) 30 (85) 110 (292)

APS Level 2 0 (1) 0 (0) 0 (0) 0 (1) 0 (2)

APS Level 3 0 (0) 2 (5) 0 (0) 0 (1) 2 (6)

APS Level 4 1 (2) 3 (8) 0 (0) 2 (7) 6 (17)

APS Level 5 4 (16) 18 (39) 1 (1) 5 (18) 28 (74)

APS Level 6 17 (29) 16 (58) 0 (4) 16 (41) 49 (132)

EL 1 5 (8) 7 (23) 1 (2) 6 (13) 19 (46)

EL 2 1 (2) 4 (5) 0 (0) 1 (4) 6 (11)

Senior Legal Officer 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

SES Band 1 0 (1) 0 (1) 0 (0) 0 (0) 0 (2)

Public Office Holder 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Northern Territory 2 (7) 15 (29) 0 (0) 5 (3) 22 (39)

APS Level 4 0 (1) 0 (1) 0 (0) 0 (0) 0 (2)

APS Level 5 1 (2) 3 (4) 0 (0) 0 (2) 4 (8)

APS Level 6 0 (2) 8 (15) 0 (0) 4 (1) 12 (18)

EL 1 1 (2) 3 (6) 0 (0) 1 (0) 5 (8)

EL 2 0 (0) 1 (3) 0 (0) 0 (0) 1 (3)

Queensland 14 (37) 42 (104) 1 (3) 24 (36) 81 (180)

APS Level 2 0 (0) 0 (2) 0 (0) 0 (0) 0 (2)

APS Level 3 0 (1) 2 (5) 0 (0) 0 (0) 2 (6)

APS Level 4 0 (7) 8 (11) 0 (0) 2 (5) 10 (23)

APS Level 5 3 (9) 6 (23) 0 (0) 2 (4) 11 (36)

APS Level 6 9 (15) 11 (41) 1 (3) 11 (15) 32 (74)

EL 1 2 (5) 10 (16) 0 (0) 5 (6) 17 (27)

EL 2 0 (0) 5 (6) 0 (0) 4 (6) 9 (12)

South Australia 11 (21) 26 (62) 1 (4) 10 (20) 48 (107)

APS Level 2 0 (0) 1 (1) 0 (0) 0 (0) 1 (1)

APS Level 3 0 (0) 2 (0) 0 (1) 1 (0) 3 (1)

APS Level 4 0 (2) 2 (5) 0 (0) 1 (0) 3 (7)

APS Level 5 5 (7) 7 (19) 0 (1) 2 (3) 14 (30)

APS Level 6 6 (11) 9 (27) 1 (1) 3 (9) 19 (48)

EL 1 0 (1) 4 (6) 0 (1) 3 (3) 7 (11)

EL 2 0 (0) 1 (4) 0 (0) 0 (5) 1 (9)


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Tasmania 11 (16) 13 (29) 3 (3) 5 (9) 32 (57)

APS Level 3 0 (0) 2 (2) 0 (0) 0 (0) 2 (2)

APS Level 4 1 (1) 3 (2) 0 (0) 0 (0) 4 (3)

APS Level 5 5 (10) 2 (11) 1 (1) 1 (2) 9 (24)

APS Level 6 4 (3) 5 (12) 1 (1) 2 (4) 12 (20)

EL 1 1 (2) 0 (2) 1 (1) 2 (3) 4 (8)

EL 2 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

Victoria 24 (60) 37 (102) 1 (4) 30 (65) 92 (231)

APS Level 1 1 (1) 0 (0) 0 (0) 0 (0) 1 (1)

APS Level 2 0 (0) 0 (0) 0 (0) 0 (1) 0 (1)

APS Level 3 0 (0) 1 (1) 0 (0) 0 (0) 1 (1)

APS Level 4 1 (4) 3 (11) 0 (1) 0 (4) 4 (20)

APS Level 5 1 (10) 8 (27) 0 (1) 4 (13) 13 (51)

APS Level 6 21 (40) 16 (38) 1 (2) 18 (31) 56 (111)

EL 1 0 (4) 5 (16) 0 (0) 7 (13) 12 (33)

EL 2 0 (1) 4 (7) 0 (0) 1 (3) 5 (11)

SES Band 1 0 (0) 0 (2) 0 (0) 0 (0) 0 (2)

Western Australia 13 (22) 22 (56) 0 (1) 11 (23) 46 (102)

APS Level 4 1 (2) 3 (6) 0 (0) 0 (1) 4 (9)

APS Level 5 5 (7) 6 (16) 0 (1) 3 (8) 14 (32)

APS Level 6 5 (11) 5 (20) 0 (0) 4 (10) 14 (41)

EL 1 2 (2) 5 (10) 0 (0) 1 (3) 8 (15)

EL 2 0 (0) 3 (3) 0 (0) 2 (1) 5 (4)

SES Band 1 0 (0) 0 (1) 0 (0) 1 (0) 1 (1)

Total

DSS total 388 (618) 1,094 (1,801) 53 (74) 728 (1,061) 2,263 (3,554)

Notes: Numbers in parentheses are for the preceding year.

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 = EL 2 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

a Numbers include 2 Canberra based staff backfilling at the SES Band 2 level.

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Table G–2: Non ongoing staff employed, by actual classification, gender and location, as at 30 June 2016


Female Male


Australian Capital Territory 18 (14) 51 (56) 7 (4) 34 (18) 110 (92)

APS Level 2 3 (3) 0 (1) 3 (1) 2 (0) 8 (5)

APS Level 3 0 (0) 4 (0) 2 (1) 4 (1) 10 (2)

APS Level 4 3 (1) 14 (30) 1 (0) 8 (7) 26 (38)

APS Level 5 2 (1) 9 (7) 0 (0) 5 (3) 16 (11)

APS Level 6 5 (1) 11 (5) 0 (0) 7 (3) 23 (9)

Legal Officer 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)




Senior Public Affairs Officer 0 (1) 0 (0) 0 (0) 0 (1) 0 (2)

EL 1 1 (2) 7 (7) 1 (1) 6 (1) 15 (11)

EL 2 3 (4) 4 (0) 0 (1) 1 (0) 8 (5)

New South Wales 4 (2) 1 (1) 1 (0) 2 (0) 8 (3)

APS Level 2 4 (2) 0 (0) 1 (0) 0 (0) 5 (2)

APS Level 3 0 (0) 0 (0) 0 (0) 1 (0) 1 (0)

APS Level 4 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

APS Level 5 0 (0) 1 (0) 0 (0) 1 (0) 2 (0)

Northern Territory 2 (2) 0 (0) 0 (0) 0 (1) 2 (3)

APS Level 2 2 (1) 0 (0) 0 (0) 0 (0) 2 (1)

APS Level 5 0 (1) 0 (0) 0 (0) 0 (0) 0 (1)

APS Level 6 0 (0) 0 (0) 0 (0) 0 (1) 0 (1)

Queensland 2 (2) 0 (1) 2 (1) 0 (1) 4 (5)

APS Level 2 2 (2) 0 (0) 2 (1) 0 (0) 4 (3)

APS Level 4 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

APS Level 6 0 (0) 0 (0) 0 (0) 0 (1) 0 (1)

South Australia 0 (0) 0 (0) 0 (0) 0 (0) 0 (0)

Tasmania 0 (0) 0 (0) 0 (0) 0 (0) 0 (0)

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Female Male


Victoria 1 (0) 1 (2) 0 (0) 0 (0) 2 (2)

APS Level 3 1 (0) 0 (0) 0 (0) 0 (0) 1 (0)

APS Level 4 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

APS Level 5 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Public Office Holder 0 (0) 0 (1) 0 (0) 0 (0) 0 (1)

Western Australia 2 (0) 2 (0) 1 (0) 2 (0) 7 (0)

APS Level 3 0 (0) 1 (0) 0 (0) 0 (0) 1 (0)

APS Level 4 0 (0) 0 (0) 0 (0) 1 (0) 1 (0)

APS Level 5 2 (0) 1 (0) 1 (0) 1 (0) 5 (0)

DSS total 29 (20) 55 (60) 11 (5) 38 (20) 133 (105)

Table G–3: Salary ranges by APS classification level, as at 30 June 2016

Classification Range of Salaries

APS Level 1 $42,855–$47,956

APS Level 2 $50,086–$55,734

APS Level 3 $57,882–$62,804

APS Level 4 $65,578–$70,488

APS Level 5 $72,021–$76,913

APS Level 6 $78,885–$89,866

EL 1 $98,288–$119,656

EL 2 $115,847–$142,437

SES Band 1 $165,120–$202,272

SES Band 2/ Band 3 $226,525–$306,300

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Appendix H

Work Health and Safety

Initiatives and health and safety outcomes

Initiatives taken during the past year to ensure the health, safety and welfare of workers included:

» partnering with Comcare to ensure actions and activities were coordinated across the rehabilitation and liability spectrums and trust was fostered amongst injury management employees in both DSS and Comcare

» actively participating with other APS agencies on working groups to identify and share common practice, fostering a culture that helped achieve:

– alignment with the whole-of-government agenda to have consistent and common practices across the APS

– provision of a seamless service to injured or ill employees transferring across agencies

» working closely with the Australian Public Service Commission (APSC) on evaluating the success of the Early Intervention strategies that have been implemented in our Department.

Notifiable incidents

In 2015–16 there were three notifiable incidents. These were in relation to serious personal injuries.

No investigations were carried out under Part 10 of the Work Health and Safety Act 2011.

Other matters

There were no other matters that met the reporting thresholds contained in the guidelines approved by the Joint Committee of Public Accounts and Audit for the Australian Parliament (JCPAA).

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Appendix I

Advertising and market researchDuring 2015–16, the Department of Social Services conducted the following advertising campaigns:

» Stop it at the start

» No jab, no pay

» Aged care reform

» Jobs for families

» National Disability Insurance Scheme

Further information on those advertising campaigns is available at 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’s website, finance.gov.au.

The organisations listed below provided advertising and market research activities that supported advertising campaigns and social policy design.

Table I–1: Payments to creative advertising agencies in 2015–16

Provider Service providedAmount paid

$ (incl GST)

The Trustee for the BMF Unit Trust t/a BMF Advertising

Creative design and editorial services 238,516

Couch Creative Pty Ltd Creative design and editorial services 12,925

26 Letters Communications and Public Relations


26 Letters Communications and Public Relations


Total 286,355

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Table I-2: Payments to market research and polling organisations in 2015–16


$ (GST)

Colmar Brunton Pty Limited Social policy research 277,066

Colmar Brunton Pty Limited Social policy research 27,740

Colmar Brunton Pty Limited Contractors 43,269

Colmar Brunton Pty Limited Market research 347,270

Colmar Brunton Pty Limited Longitudinal Study of Indigenous Children computer assisted personal interview and data production services

206,040

Hall & Partners I Open Mind Pty Ltd Market research 100,759

Orima Research Pty Ltd Corporate objectives services 292,025

Orima Research Pty Ltd Market research 21,175

Orima Research Pty Ltd Social policy research 56,753

Orima Research Pty Ltd Market research 223,517

Orima Research Pty Ltd Compliance services 15,989

Taylor Nelson Sofres Australia Pty Limited Market research 1,118,700

Taylor Nelson Sofres Australia Pty Limited Market research 28,600

Taylor Nelson Sofres Australia Pty Limited Market research 170,500

Whereto Research Based Consulting Pty Ltd Market research 254,888

Total 3,184,291

Table I–3: Payments to direct mail organisations in 2015–16


$ (GST))

National Mailing & Marketing Pty Ltd Distribution of publications and products

38,701

Total 38,701

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Table I–4: Payments to media advertising organisations in 2015–16


$ (GST)

Dentsu Mitchell Media Australia Pty Ltd Recruitment advertising 44,337

Dentsu Mitchell Media Australia Pty Ltd Advertising 7,765,249

Dentsu Mitchell Media Australia Pty Ltd Advertising 254,648





Total 8,253,199

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Appendix J

Ecologically sustainable development and environmental performanceSection 516A of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) requires Commonwealth agencies to report against two core criteria:

» how the agency accords with and contributes to the principles of ecologically sustainable development (ESD)

» 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.

The following sections specifically address the requirements of section 516A of the EPBC Act.

How DSS accords with and contributes to environmentally sustainable development

We address the ESD principles of inter-generational equity and improved valuation, pricing and incentive mechanisms through our procurement policy and the Green Lease Schedule to property leases. ESD principles relating to scientific certainty and biological diversity are generally of limited application to our activities. We do not administer any legislation that has a direct impact on ecologically sustainable development.

Environmental performance

Our sustainability framework includes an environmental policy, an environmental management system, a register of aspects and impacts on the environment and a plan to address those impacts.

Environmental Management System

Our Environmental Management System is a structured management tool for identifying and minimising the impacts of our activities on the environment. At the core of the system is a corporate environmental policy that accords with the principles of ecologically sustainable development. The environmental policy states:

We at the Department commit to integrating sustainable workplace practices into our activities in order to improve our environmental performance.

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The system contains procedures and registers for identifying legal and other obligations; identifying potential and actual risks to the environment from our activities, products or services, and addressing those risks; communicating to staff and stakeholders; and assessing compliance with our plans.

Environmentally Conscious Office Staff

We have established an Environmentally Conscious Office Staff network at our sites across Australia. The network’s role is to encourage environmentally sustainable practices in the workplace.

Measures taken to minimise the effect of activities on the environment

The following tables provide quantitative information on the measures taken to minimise the effect of activities on the environment (J–1) and environmental performance data in respect of energy and waste production (J–2).

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Table J–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 (GLS) in place: • Centennial Plaza (levels 8 and 9), Sydney• Holwell Street, Greenway• Jacana House (levels 2 and 3), DarwinNABERS (National Australian Built Environment Reporting System) assessments have been undertaken at each of these sites and formal ratings are expected to be received from the NSW Office of Environment and Heritage by end of September 2016

Conduct annual NABERS assessments to ensure energy consumption is minimised.

Building Management Committee meetings are conducted as required under Green Lease Schedules

Continue to conduct Building Management Committee meetings.

DSS participated in Earth Hour 2016 Continue to participate in Earth Hour each year

Waste

DSS has been a signatory to the ACT Government ACTSmart Office Program since 2010. Participation in the program leads to accreditation as an ACTSmart Office, which recognises offices that actively recycle. Reducing the amount of waste sent to landfill will reduce our impact on the environment

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 two Tuggeranong sites in Canberra is separated and sent to a worm farmBatteries, printer cartridges and fluorescent tubes are recycled

Water

Fifty one rainwater tanks with a total capacity of 203,020 litres are installed across the grounds of the Tuggeranong Office Park. The water is used to offset the use of potable water for landscape irrigation

Continue to examine new ways of reducing water consumption.

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Table J–2: Environmental performance indicators

Performance Measure Indicator 2015–16 2014–15

Energy efficiency

Total consumption of energy in buildings

Electricity consumption(kWh)a 5,473,633 7,405,269

Total consumption of energy in vehiclesb

Diesel (L) 12,611 16,097

E10 (Biofuel) (L) 7,949 12,817

Unleaded petrol (L) 31,619 43,532

Total vehicle distance travelled Motor vehicle distance travelled (km)

803,056 969,910

Total air travel distance Air travel distance (km)c 12,459,777 11,403,078

Waste

Office paper waste production (national)

Waste paper to recycling facilities (tonnes)

170.1 169.35

Commingled Recycling (including cardboard but excluding office paper) (Canberra Sites)

Commingled waste to recycling facilities (tonnes)

33 41

Organic waste (Canberra sites)

Organic waste to worm farms (L)

15,000 16,320

Landfill Landfill waste to ACT landfill (tonnes)

84 89

a Figures for 2015–2016 are not readily comparable given the effects of Machinery of Government (MoG) changes on the DSS property portfolio.

b Fuel consumption in vehicles data is based on the 2015–16 FBT year. The deviation in data for vehicles is due to changed fleet profile following MoG changes.

c Air travel data is not readily comparable due to MoG changes.

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Appendix K

Glossary of abbreviations and acronymsAAGE Australian Association of Graduate Employers

AASB Australian Accounting Standards Board

AAO Administrative Arrangements Order

AAT Administrative Appeals Tribunal

ABS Australian Bureau of Statistics

ADE Australian Disability Enterprises

AHURI Australian Housing and Urban Research Institute

AIFS Australian Institute of Families Studies

ANAO Australian National Audit Office

ANROWS Australian National Research Organisation for Women’s Safety

AO Officer of the Order of Australia

APS Australian Public Service

APSC Australian Public Service Commission

AWAs Australian Workplace Agreements

BBF Budget Based Funded

Better Start Better Start for Children with Disability

BMA Bilateral Management Arrangement

BSWAT Business Services Wage Assessment Tool

CAC Act Commonwealth Authorities and Companies Act 1997

CALD Culturally and linguistically diverse

CCS Complex Case Support

CDC Consumer directed care

CFC Commonwealth Financial Counselling

CFC FP Communities for Children Facilitating Partner

CGAG Carer Gateway Advisory Group

CHSP Commonwealth Home Support Program

COAG Council of Australian Governments

CR Act Carer Recognition Act 2010

CDA Child Disability Allowance

CRMP Commonwealth Risk Management PolicyCha

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DAPP Dad and Partner Pay

DES Disability Employment Services

DES–DMS Disability Employment Services – Disability Management Service

DES–ESS Disability Employment Services – Employment Support Service

DHS Department of Human Services

DSP Disability Support Pension

DSS Department of Social Services

DVO Domestic Violence Order

EA Enterprise Agreement

EAP Employee Assistance Program

EIILO Early Intervention Indigenous Liaison Officer

EL Executive Level

EMG Executive Management Group

EPBC Act Environment Protection and Biodiversity Conversation Act 1999

ER Emergency Relief

ESD Ecologically sustainable development

FBT Fringe Benefits Tax

FC Financial Capability

FECCA Federation of Ethnic Communities Councils of Australia Inc.

FOI Act Freedom of Information Act 1982

FRR Financial Reporting Rule

FTB Family Tax Benefit

GLS Green Lease Schedules

HCWA Helping Children with Autism

HILDA Household Income and Labour Dynamics in Australia

HIPPY Home Interaction Program for Parents and Youngsters

HR Human Resource

HSS Humanitarian Settlement Services

ICL Indigenous Community Links

ICT Information Communication and Technology

IFA Individual flexibility arrangements

IPS Information Publication Scheme

IT Information technology

JCPAA Joint Committee of Public Accounts and Audit

KPI Key performance indicator

LGBTI Lesbian, gay, bisexual, transgender and intersex people Cha

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LSIC Longitudinal Study of Indigenous Children

MoG Machinery of Government

MP Member of Parliament

NAATI National Accreditation Authority for Translators and Interpreters

NABERS National Australian Built Environment Reporting System

NAIDOC National Aboriginal and Islander Day Observance Committee

National Standards National Standards for Disability Services

NDAP National Disability Advocacy Program

NDIA National Disability Insurance Agency

NDIS National Disability Insurance Scheme

NDIS Act National Disability Insurance Scheme Act 2013

NRAS National Rental Affordability Scheme

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PGPA Act Public Governance, Performance and Accountability Act 2013

PID Act Public Interest Disclosure Act 2013

PLP Parental Leave Pay

PSM Public Service Medal

SDF Sector Development Fund

SES Senior Executive Service

SME Small and Medium Enterprise

SGA Streamlining Grants Administration

SGM Streamlining Grants Management

SME Small and Medium Enterprises

SSAT Social Security Appeals Tribunal

TAFE Technical and Further Education

TILA Transition to Independent Living Allowance

VET Vocational Education and Training

WHS Work Health and Safety

Abbreviations and conventions

— Nil

na Not available

$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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IndexesCompliance index 248

Index of figures and tables 253

Alphabetical index 258

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Compliance index

List of requirements

Index of information provided in compliance with 2016 Requirements for Annual Reports for Departments, Executive Agencies and other Non-corporate Commonwealth entities.

Description Location/Page Requirement

Letter of transmittal iv Mandatory

Aids to access

Table of contents ii Mandatory

Alphabetical index 258–266 Mandatory

Glossary of abbreviations and acronyms 244–6 Mandatory

List of requirements 248–52 Mandatory

Details of contact officer inside back cover Mandatory

Internet home page address inside back cover Mandatory

Internet address for report inside back cover Mandatory

Review by Departmental Secretary

Review by the Departmental Secretary 1–5 Mandatory

Overview of the Department

Role and functions 8 Mandatory

Organisational structure 10–15 Mandatory

Outcomes and program structure 9 Mandatory

Purpose 23 Mandatory

Portfolio structure 18 Portfolio departments – Mandatory

Details of variation and reasons for change to outcomes and program structures from PBS/PAES or other portfolio statements

– If applicable – Mandatory

Report on the Performance of the Department

Annual performance statements

Annual performance statement in accordance with paragraph 39(1)(b) of the PGPA Act and section 16F of the PGPA Rule

21–101 Mandatory

Part 5—Appendixes | Compliance index

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Report on Financial Performance

Discussion and analysis of the Department’s financial performance

129–130 Mandatory

Agency resource statement and total payments of the Department

208–19 Mandatory

Significant changes in financial results from previous or current reporting period, discussion and details


Management and Accountability

Corporate Governance

Information on compliance with section 10 of the PGPA Rule (fraud systems)

111 Mandatory

Certification by the Secretary that:• fraud risk assessments and fraud control plans

have been prepared• 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

• all reasonable measures have been taken to deal appropriately with fraud relating to the entity

230 Mandatory

Outline of structures and processes in place for the Department to implement principles and objectives of corporate governance

104–108 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


External Scrutiny

Significant developments in external scrutiny and the Department’s response to the scrutiny

117–22 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

117–22 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

118 Mandatory

Any agency capability review 117 Mandatory

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Management of Human Resources

Assessment of effectiveness in managing and developing human resources to achieve departmental objectives

123 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.

231–1 Mandatory

Enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations under subsection 24(1) of the Public Service Act 1999

127 Mandatory

Number of SES and non-SES employees covered by arrangements above

127 Mandatory

Salary ranges for APS employees by classification level

235 Mandatory

Non-salary benefits provided to employees 128 Mandatory

Number of employees at each classification level who received performance payments


Aggregate amounts of performance pay at each classification level


Average amount of performance payment, and range of such payments, at each classification level


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

131 If applicable – Mandatory

Purchasing

Assessment of the Department’s performance against the Commonwealth Procurement Rules

132 Mandatory

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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)

131 Mandatory

Summary statement regarding the engagement of consultants in the format specified at paragraph 17AG (7)(b) of the PGPA Rule

131 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

131 Mandatory

Statement that regarding information about actual expenditure on contracts for consultancies in the format specified at paragraph 17A6 (7) (d) of the PGPA Rule

131 Mandatory

Australian National Audit Office Access Clauses

Absence of provisions in contracts allowing access by the Auditor-General


Exempt contracts

Contracts exempted from publication in AusTender 132 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

133 Mandatory

Procurement practices to support small and medium enterprises

133 Mandatory

If the entity is considered by the Minister of Finance as ‘material in nature’ — a statement must be included using the text as specified at paragraph 17AG (7)(c) of the PGPA Rule


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Financial statements

Financial statements 135–202 Mandatory

Other mandatory information

Statement in relation to advertising campaigns conducted as specified at paragraph 17AH (1)(a)(i) of the PGPA Rule

237–9 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


Statement providing information on grants awarded for the reporting period, as specified at paragraph 17AH (1)(b) of the PGPA Rule


Disability reporting, referencing the Department’s website for further information

227 Mandatory

Webpage address where the Department’s Information Publication Scheme statement pursuant to Part II of FOI Act can be located

116 Mandatory

Correction of material errors in previous annual report – If applicable – Mandatory

Information required by other legislation (various) iv, 228–9, 236, 240–3

Mandatory

Part 5—Appendixes | Index of figures and tables

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Index of figures and tablesFigures

Figure 0.1: Department of Social Services Outcome and Program Structure, as at 30 June 2016

Figure 1.1.1: Our executive and streams of work

Figure 1.1.2: Our national presence, as at 30 June 2016

Figure 1.1.3: Organisational structure, as at 30 June 2016

Figure 1.2.1: Department of Social Services’ portfolio

Figure 3.1.1: Our governance structure, as at 30 June 2016

Figure 3.1.2: DSS planning

Figure 3.3.1: Diversity in our people

Figure A–1: Changes in ministerial responsibilities for our Department during 2015–16

Figure A–2: Changes in our Department’s programs during 2015–16

Tables

Table 2.1.1: Performance Criteria for Purpose 1 Social Security and programs that report KPIs

Table 2.1.2: Family Tax Benefit — Part rate of payment

Table 2.1.3: Family Tax Benefit — Receipt of payment by priority groups

Table 2.1.4: Family Tax Benefit — Specific policy objectives/payment conditions

Table 2.1.5: Family Tax Benefit — Payment accuracy

Table 2.1.6: Family Tax Benefit — Debts

Table 2.1.7: Family Tax Benefit — Outputs/deliverables

Table 2.1.8: Child Payments — Outputs/deliverables

Table 2.1.9: Income Support for Vulnerable People — Improved self-reliance or circumstances

Table 2.1.10: Income Support for Vulnerable People — Duration on payment

Table 2.1.11: Income Support for Vulnerable People — Part rate of payment

Table 2.1.12: Income Support for Vulnerable People — Payment accuracy

Table 2.1.13: Income Support for Vulnerable People — Outputs/deliverables

Table 2.1.14: Income Support for People in Special Circumstances — Outputs/deliverables

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Table 2.1.15: Supplementary Payments — Outputs/deliverables

Table 2.1.16: Income Support for Seniors — Part rate of payment

Table 2.1.17: Income Support for Seniors — Receipt of payment by priority groups

Table 2.1.18: Income Support for Seniors — Specific policy objectives/payment conditions

Table 2.1.19: Income Support for Seniors — Payment accuracy

Table 2.1.20: Income Support for Seniors — Outputs/deliverables

Table 2.1.21: Allowances and Concessions for Seniors — Outputs/deliverables

Table 2.1.22: Income Support for People with Disability — Improved self-reliance or circumstances

Table 2.1.23: Income Support for People with Disability — Duration on payment

Table 2.1.24: Income Support for People with Disability — Part rate of payment

Table 2.1.25: Income Support for People with Disability — Receipt of payment by priority groups

Table 2.1.26: Income Support for People with Disability — Payment accuracy

Table 2.1.27: Income Support for People with Disability — Outputs/deliverables

Table 2.1.28: Income Support for Carers — Improved self-reliance or circumstances

Table 2.1.29: Income Support for Carers — Part rate of payment

Table 2.1.30: Income Support for Carers — Receipt of payment by priority groups

Table 2.1.31: Income Support for Carers — Payment accuracy

Table 2.1.32: Income Support for Carers — Outputs/deliverables

Table 2.1.33: Working Age Payments — Improved self-reliance or circumstances — exiting income support

Table 2.1.34: Working Age Payments — Improved self-reliance or circumstances — undertaking activities

Table 2.1.35: Working Age Payments — Improved self-reliance or circumstances — reporting employment income

Table 2.1.36: Working Age Payments — Duration on payment — by payment type

Table 2.1.37: Working Age Payments — Duration on payment — by current income support payment

Table 2.1.38: Working Age Payments — Part rate of payment

Table 2.1.39: Working Age Payments — Payment accuracy

Table 2.1.40: Working Age Payments — Outputs/deliverables


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Table 2.1.41: Student Payments — Improved self-reliance or circumstances — not receiving income support after payment exit

Table 2.1.42: Student Payments — Improved self-reliance or circumstances — reporting employment income

Table 2.1.43: Student Payments — Part rate of payment

Table 2.1.44: Student Payments — Payment accuracy

Table 2.1.45: Student Payments — Outputs/deliverables

Table 2.1.46: Cross-Program — Rent Assistance — Improved self-reliance or circumstances

Table 2.1.47: Cross-Program — Rent Assistance — Receipt of payment by priority groups

Table 2.1.48: Cross-Program — Rent Assistance — Outputs/deliverables

Table 2.1.49: Cross-Program — Rent Assistance — Fortnightly average rent and Rent Assistance by primary payment type

Table 2.1.50: Cross-Program — Rent Assistance — Fortnightly average rent and Rent Assistance by income unit type


Table 2.1.52: Program Support for Outcome 1 — Deliverable

Table 2.2.1 Performance Criteria for Purpose 2 Families and Communities and programs that report KPIs

Table 2.2.2: Families and Communities — Improved circumstances

Table 2.2.3: Families and Communities — Progress achieving goals

Table 2.2.4: Families and Communities — Priority groups

Table 2.2.5: Families and Communities — Client satisfaction

Table 2.2.6: Families and Communities — Service and system

Table 2.2.7: Families and Communities — Outputs/deliverables

Table 2.2.8: Paid Parental Leave — Extent of reach

Table 2.2.9: Paid Parental Leave — Outputs/deliverables

Table 2.2.10: Social and Community Services — Outputs/deliverables


Table 2.4.1: Performance Criteria for Purpose 4 Housing and programs that report KPIs

Table 2.4.2: Housing and Homelessness — Implementation of initiatives

Table 2.4.3: Housing and Homelessness — Outputs/deliverables

Table 2.4.4: Affordable Housing — Implementation of initiatives

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Table 2.4.5: Affordable Housing — Outputs/deliverables



Table 2.5.1: Performance Criteria for Purpose 5 Disability and Carers and programs that report KPIs

Table 2.5.2: Disability, Mental Health and Carers — Improved circumstances

Table 2.5.3: Disability, Mental Health and Carers — Progress achieving goals

Table 2.5.4: Disability, Mental Health and Carers — Priority groups

Table 2.5.5: Disability, Mental Health and Carers — Client satisfaction

Table 2.5.6: Disability, Mental Health and Carers — Outputs/deliverables

Table 2.5.7: National Disability Insurance Scheme — Improved circumstances

Table 2.5.8: National Disability Insurance Scheme — Progress achieving goals

Table 2.5.9: National Disability Insurance Scheme — Priority groups

Table 2.5.10: National Disability Insurance Scheme — Client satisfaction

Table 2.5.11: National Disability Scheme — Implementation of initiatives

Table 2.5.12: National Disability Scheme — Outputs/deliverables



Table 3.1.1: Payment accuracy – by payment type, as at 30 June 2016

Table 3.2.1: Relevant parliamentary committee inquiries in 2015–16

Table 3.4.1: Trends in departmental finances

Table 3.4.2: Trends in administered finances

Table 3.4.3: Consultancies in 2015–16

Table 3.4.4: Total expenditure on new and ongoing consultancy contracts – 2013–14 to 2015–16

Table B–1: Agency resource statement 2015–16

Table B–2: Expenses and resources for Outcome 1: Social Security

Table B–3: Expenses and resources for Outcome 2: Families and Communities

Table B–4: Expenses and resources for Outcome 3: Ageing and Aged Care

Table B–5: Expenses and resources for Outcome 4: Housing

Table B–6: Expenses and resources for Outcome 5: Disability and Carers

Table C–1: Reconciliation outcomes, as at 30 June 2016

Table C–2: Outstanding reconciliation debt, as at 30 June 2016


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Table C–3: Customers with tax refund reconciliation offset, as at 30 June 2016

Table C–4: Average adjusted taxable income for reconciliation debtors, as at 30 June 2016

Table C–5: Average adjusted taxable income by claim type, as at 30 June 2016

Table C–6: Adjusted taxable income across ranges, as at 30 June 2016

Table C–7: Percentage of customers incurring an FTB debt, as at 30 June 2016

Table G–1: Ongoing staff employed, by actual classification, gender and location, as at 30 June 2016

Table G–2: Non ongoing staff employed, by actual classification, gender and location, as at 30 June 2016

Table G–3: Salary ranges by APS classification level, as at 30 June 2016

Table I–1: Payments to creative advertising agencies in 2015–16

Table I-2: Payments to market research and polling organisations in 2015–16

Table I–3: Payments to direct mail organisations in 2015–16

Table I–4: Payments to media advertising organisations in 2015–16

Table J–1: Energy, waste and water efficiency measures and monitoring mechanisms

Table J–2: Environmental performance indicators

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Alphabetical indexAA Better Way to Work measure, 89

Aboriginal and Torres Strait Islander peoples

employment (DSS), 124

Longitudinal Study of Indigenous Children, 102

Aboriginal and Torres Strait Islander Workforce Strategy (DSS), 124

ABS Survey of Disability, Ageing and Carers, 2012, 50

ABSTUDY

Living Allowance, 59, 60

Secondary and Tertiary, 60, 61, 62, 113

achievements, 2–4

Administration of Income Management for ‘Vulnerable Youth,’ 118

Administrative Arrangements Order, 82, 129

administrative tribunals, 118

Adult Migrant English Program, 20

advertising, 237

Affordable Housing (Program 4.2)

National Rental Affordability Scheme (NRAS), 83, 86, 87, 117

objective, 86

results, 86– 87

Affordable Housing Working Group, 83, 85

Age Pension, 41, 42, 43, 44, 65, 113

Ageing and Aged Care (Purpose 3)

transfer to Department of Health, 82

Allowances and Concessions for Seniors (Program 1.7), 45

Annual Audit Work Program 2015, 117

Annual Performance Statement 2015–16, 22–4

APS Code of Conduct, 115

APS RecruitAbility, 125

APS Remuneration Survey Report, 127

APS Statistical Bulletin, 227

APS Values, 16, 115

asset revaluation, 131

assets management, 131

Assistance for isolated children, 36

Assistant Minister for Disability Services, 18

Assistant Minister for Multicultural Affairs, 18

assurance

payments and services, 112

risk areas, 110

Audit and Assurance Committee, 12, 105, 110

Audit Work Program 2015–16, 110, 117

audits, 110

AusTender, 131, 132

Australian Association of Graduate Employers, 126

Australian Disability Enterprise, 46, 92, 94, 95, 96, 97, 100

Australian Government Investigation Standards, 111

Australian Government Remuneration Tribunal, 127

Australian Government Workplace Bargaining Policy, 127

Australian Housing and Urban Research Institute (AHURI), 85

Australian Industry Participation Plans, 133

Australian Information Commissioner, 116

Australian Institute of Family Studies (AIFS), 19

Australian National Audit Office (ANAO), 117, 118, 132

Australian Network on Disability

Stepping Into Internship Program, 125

Australian Paralympic Committee, 125

Australian Priority Investment Approach to Welfare, 2

Australian Public Service Commission

Executive Remuneration Management Policy, 127

State of the Service Report, 227

Austudy, 26, 59, 60, 61, 62, 65, 113

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BBereavement Allowance, 39

Better Start for Children with Disability programs, 89, 95

bilateral management arrangement, 79, 112

Budget 2015–16, 4, 114, 129

Budget Committee, 107

business planning, 109

business continuity, 110

Ccapability development, 126

Carer Adjustment Payment, 49, 51

Carer Allowance, 50, 51, 52, 113, 229

Carer Gateway, 89

Carer Gateway Advisory Group, 229

Carer Payment, 49, 50, 51, 52, 65, 113, 229

Carer Recognition Act 2010, 228–9

Carer Supplement, 52

carers. see also Statement for Australia’s Carers

advocacy funding, 229

income support, 49–52

information access, 89

Carers Australia, 228

Carers Week, 228

Cashless Debit Card trial, 3, 76, 77

Champions

of Aboriginal and Torres Strait Islander staff, 12, 124

of staff with disability, 12, 126

Child Disability Allowance, 225

Child Disability Assistance Payment, 52

Child Payments (Program 1.2)

objective, 35

results, 35–6

Child Support Scheme, 28, 33, 34

children

early intervention services, 89

HIPPY program, 70, 73

immunisation, 2

‘Logan Together’ initiative, 204

Children and Parenting Services, 70, 72

Children and Parenting Support project, 74

civil society, 67, 75, 77

COAG. see Council of Australian Governments (COAG)

code of conduct, 115

Comcare, 128, 236

Comcover Benchmarking Survey, 109

committees, 104–8

common law contracts, 127

Commonwealth Director of Public Prosecutions, 111

Commonwealth Disability Strategy. see National Disability Strategy 2010–2020

Commonwealth Grants Rules and Guidelines, 114

Commonwealth Home Support Transition Project, 110

Commonwealth Ombudsman, 118

Commonwealth Procurement Rules, 132

Commonwealth Risk Management Policy, 109

Commonwealth Treasury, 24, 83, 85

Community Grants Hub, 5, 114

Community Mental Health, 92, 93, 94

Community Safety and Wellbeing Research Study, 2011

compensation debts, 113

complaints, 115

complaints management, 115

Complaints Resolution and Referral Service, 4

Complex Case Support, 71, 75

compliance

Carer Recognition Act 2010, 228–9

finance law, 111

framework, 110

consultants, 131–2

Corporate Plan 2015–16, 82, 109

corruption, 111

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Council of Australian Governments (COAG), 5. see also National Partnership Agreement on Homelessness

anti-violence initiative, 134

Council on Federation Financial Relations Affordable Housing Working Group, 83

Cross-Program: Rent Assistance. see Rent Assistance

DDad and Partner Pay, 78, 79

Data Exchange, 89, 114

debt

raising and recovery, 113–14

waiver on, 114

Department of Education and Training, 117, 124

Indigenous Australian Government Development Program, 124

Department of Health, 82

Department of Human Services, 9, 19

Bilateral Management Arrangement, 79, 112

debt identification and recovery, 31

Indigenous Apprenticeship Program, 124

payments by, 33, 38, 39, 40, 44, 45, 48, 51, 58, 61, 79

Shared Service Centre, 128

Department of the Prime Minister and Cabinet, 85

Deputy Secretaries, 11–12

Disability, Mental Health and Carers (Program 5.1)

objective, 91

results, 91–3

Disability Awareness training, 124

Disability Champion, 12, 126

Disability Confidence training, 124

disability employment, 4, 91, 93

disability employment level (DSS), 125

Disability Employment Services, 4, 91, 97

A Better Way to Work measure, 89

Disability Management Service, 91, 92, 93

Employment Support Services, 91, 92, 93, 126

providers, 46

Youth Mental Health Trial, 4, 89, 94

Disability Management Service, 91, 92, 93

disability reporting, 227

Disability Support Pension,

46–9, 65, 113

recipients, 26

Disability Workforce Action Plan (DSS), 124

Disaster Coordination Plan, 110

Double Orphan Pension, 35

EEarly Intervention Indigenous Liaison

Officers, 95

ecologically sustainable development, 240–3

eLearning, 126

Employee Assistance Program (DSS), 128

Employment Support Services, 91, 92, 93, 126

Empowering Women to Lead, 2011

energy measures, 242

Energy Supplement (Commonwealth Seniors Health Card), 45

Enterprise Agreement 2015–18, 127, 128, 228

Environment Protection and Biodiversity Conservation Act 1999, 240

Environmental Management System, 240–1

environmental performance, 243

Environmentally Conscious Office Staff network, 241

Essential Medical Equipment Payment, 40, 41

ethical standards, 115

executive, 10–12

work streams, 13

Executive Management Group, 104, 105, 107, 108, 123, 127

committees, 106–8

exempt contracts, 132

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expenditure, 129

external scrutiny, 117–22

FFair Work Act 2009, 127

Fair Work Australia

Social, Community and Disability Services Industry Equal Remuneration Order, 80

Families and Children Expert Panel, 74, 75, 77

families and children functioning, 67, 71, 72, 73, 75

Families and Communities (Program 2.1)

activities, 70–1

national initiatives, 76

objective, 70

results, 70–7

service improvement, 74, 75, 77

Family and Relationship Services, 71, 72

Family Tax Benefit payments, 65, 113

debts, 32

Part A, 28, 29, 30, 32, 33

Part B, 29, 31, 32, 33

reconciliation data, 220–6

Family Tax Benefit (Program 1.1)

objective, 28

results, 28–34

financial management, 4, 129–33

financial statements (DSS), 135–202

financial wellbeing and capability, 3, 68, 71, 72, 73, 76

focus 2016–17, 4–5

Footprints in Time (Longitudinal Study of Indigenous Children), 102

Foundations in Aboriginal and Torres Strait Islander Cultures and Societies e-learning program, 124

fraud, 111

Fraud and Corruption Control Plan, 111

Fraud and Public Law Branch, 111

fraud control certificate, 230

freedom of information, 116

Freedom of Information Act 1982, 116

function, 19

funding (DSS), 129

Ggambling, 3

governance structure, 108

graduate program, 126

grants management, 114

Great Southern Rail concessions, 40, 41

Hhealth and safety. see work health and

safety

Health Safety and Rehabilitation, 128

Helping Children with Autism, 95

Home Interaction Program for Parents and Youngsters (HIPPY), 70, 73

homelessness. see also Housing and Homelessness program

National Partnership Agreement, 85

House of Representatives Standing Committee on Economics

Home Ownership, 121

House of Representatives Standing Committee on Indigenous Affairs

Inquiry into Educational Opportunities for Aboriginal and Torres Strait Islander Students, 121

House of Representatives Standing Committee on Social Policy and Legal Affairs

Inquiry into Surrogacy Arrangements, 121

housing. see Purpose 4: Housing

housing affordability. see Affordable Housing (Program 4.2)

Housing and Homelessness (Program 4.1)

objective, 85

Research Agenda, 85

results, 85–86

Humanitarian Settlement Services program, 3, 20, 68, 71, 75 C

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Iimmunisation rates, national, 2

Income Maintenance Periods and Special Benefit, 118

income management (welfare recipients), 3, 76, 77

Income Support for Carers (Program 1.9)

objective, 49

results, 49–52

Income Support for People in Special Circumstances (Program 1.4)

objective, 39

results, 39

Income Support for People with Disability (Program 1.8)

objective, 46

results 46–9

Income Support for Seniors (Program 1.6)

objective, 41

results, 41–44

Income Support for Vulnerable People (Program 1.3)

objective, 36

results, 36–38

Indigenous Apprenticeship Program, 124

Indigenous Australian Government Development Program, 124

Indigenous Pathways Program (APSC), 124

Indigenous Reform Committee, 105

individual flexibility arrangements (DSS), 127

Information, Linkages and Capacity Building Framework (NDIS), 98

information and communications technology (ICT), 108, 110

Information Publication Scheme, 116

Infrastructure, Communications and Technology Committee, 108

Integrated Plan for Carer Support Services, 5, 229

Intensive Family Support Service (NT), 70

internal audits, 110

International Day of People with Disability, 124

investment approach to welfare, 2

JJobAccess service, 4, 92

Joint Committee of Public Accounts and Audit, 236

Joint Standing Committee on the National Disability Insurance Scheme, 120

Joint Standing Committee on Treaties

Proposed Social Security Agreement between Australia and Estonia, 120

judicial decisions, 118

Lleadership, 126

LearnHub, 126

Learning and Development Partnership Forum, 126

letter of transmittal, vi

locations (offices), 17

‘Logan Together’ initiative, 204

Longitudinal Study of Indigenous Children, 102

Low Income Supplement, 40, 41

MMarket, Sector and Workforce strategy

(NDIS), 98

market research, 238–9

mental illness. see Disability, Mental Health and Carers (Program 5.1)

Metropolitan Migrant Resource Centre, 20

Minister for Social Services, 18

ministerial responsibilities, 206

ministers, 18

mission, 8, 19

Mobility Allowance, 46, 49

Mosaic Support Services, 6

NNational Aboriginal and Torres Strait

Islander Staff National Committee, 124

National Accreditation Authority for Translators and Interpreters (NAATI), 75

National Affordable Housing Agreement, 85

National Disability Abuse and Neglect Hotline, 4C

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National Disability Insurance Agency (NDIA), 19, 88, 97

Management of the Transition of the Disability Services Market, 117

support from DSS, 128

National Disability Insurance Scheme (NDIS)

bilateral agreements for transition, 2, 94

market development, 98

numbers transitioned, 94

personal profile, 6

roll-out, 2, 98

Sector Development Fund, 94, 97, 98, 101

National Disability Insurance Scheme (NDIS) (Program 5.2)

objective, 94

results, 94–101

National Disability Insurance Scheme Act 2013, 19, 98

National Disability Recruitment Coordinator, 4

National Disability Strategy 2010–2020, 5, 227

Driving Action 2015–18, 5

National Framework for Protecting Australia’s Children 2009–2020, 68

National Institute of Labour Studies, 99

National Partnership Agreement on Homelessness, 85

National Plan to Reduce Violence against Women and their Children 2010–2022, 1, 5, 134

National Quality and Safeguarding Framework, 2, 98

National Quality Verification and Certification Scheme, 98

National Rental Affordability Scheme (NRAS), 83, 86, 87, 117

National Sexual Assault, Domestic

Family Violence Counselling Service, 76

National Standards for Disability Services, 97

Newstart Allowance, 53, 54, 55, 56, 57, 58, 65, 113

No Jab, No Pay measure, 2–3, 119

non–SES employees, agreements, 127

notifiable incidents, 236

Oobjectives, 26

occupational health and safety. see work health and safety

1800RESPECT (telephone and online counselling service), 76

organisational structure, 14–15

Outcome 1: Social Security

expenses and resources, 211–13

Program Support, 66

Outcome 2: Families and Communities


Program Support, 81

Outcome 3: Ageing and Aged Care


Outcome 4: Housing

expenses and resources, 218

Program Support, 87

Outcome 5: Disability and Carers

expenses and resources, 219

Program Support, 101

Outcomes Measurement project (Families and Communities), 74

Outside School Hours Care for Teenagers with Disability program, 96, 97, 100

PPaid Parental Leave Act 2010, 79

Paid Parental Leave (Program 2.2)objective, 78

results, 78–79

Paralympic Workplace Diversity Program, 125

Parental Leave Pay, 78, 79

Parenting Payment Partnered, 54, 55, 56, 57, 58, 65, 113

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Parenting Payment Single, 54, 55, 56, 57, 58, 65, 113

parliamentary committees’ reports, 118–22

Partner Allowance (Benefit and Pension), 54, 55, 56, 57, 58, 113

payment accuracy, 113

payments

assurance, 112

overpaid, 113

Pension Education Supplement, 58

People and Communications Committee, 106

people with disability

children and young people, 95

employment services, 4, 91, 92, 93, 126

improving outcomes, 89

income support, 46–9

performance management, 123

performance pay, 127

Personal Safety Survey, 2012

Policy and Regulatory Reform Committee, 106

portfolio

ministers, 18

responsibilities, 18, 206

structure, 18–19

Portfolio Budget Statements (PBS) 2015–16, 24, 107

Privacy Act 1988, 132

Privacy Commissioner, 116

private rental market, 63, 85

procurement, 133

Program and Delivery Board, 107

Program Delivery Model, 118

programs

structure, iv-v

Disability and Carers (Outcome 5), 88

Families and Communities (Outcome 2), 67

Housing (Outcome 4), 83

Social Security (Outcome 1), 25

transferred to other departments, 82, 207

Public Governance, Performance and Accountability Act 2013, 22, 23, 39, 51, 109, 114, 131, 137

Public Interest Disclosure Act 2013, 115

Public Service Act 1999, 127

purchasing, 132

Purpose 1: Social Security

performance criteria, 27

programs, 25

results, 26, 28–66

Purpose 2: Families and Communities


programs, 67

results, 68, 70–81

Purpose 3: Ageing and Aged Care

transfer to Department of Health, 82

Purpose 4: Housing


programs, 83

results, 83, 85–7

Purpose 5: Disability and Carers


programs, 88

results, 88, 91–101

purposes, summary, 23

RRandom Sample Survey Program, 112

Reconciliation Action Plan 2015–17 (DSS), 124

refugee settlement, 3, 67, 71. see also Humanitarian Settlement Services (HSS) program

personal profile, 20

regional offices, 17

rehabilitation (DSS), 128

Reimbursement to Great Southern Rail for Concessional Fares, 40, 41

Rent Assistance

administration, 82, 83, 85

cross-program results, 63

income unit type, 66

objective, 63

payment type, 65

priority groups, 64

recipients, 26, 83

results, 63–65

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research activities, 19, 85

resource statements 2015–16, 208–19

1800RESPECT – National Sexual Assault, Domestic

Family Violence Counselling Service, 76

Respite Support for Carers of Young People with Severe or Profound Disability, 96, 97

risk management, 109, 118

Rural and Remote Strategy (NDIS), 98

SSafety, Rehabilitation and

Compensation Act 1988, 128

Schoolkids Bonus, 34

Secretary, 10

committees reporting to, 104–5

review, 1–5

Sector Development Fund, 94, 97, 98, 101

Senate Community Affairs Legislation

Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Bill 2015, 120

Social Services Legislation Amendment (Family Payments Structural Reform and Participation Measures) Bill (No. 2) 2015, 120

Senate Community Affairs Legislation Committee, 118

Report on the Fairer Paid Parental Leave Amendment Bill 2015, 119

Social Services Legislation Amendment (No Jab, No Pay) Bill 2015, 119

Social Services Legislation Amendment (Youth Employment and Other Measures) Bill 2015, 119

Senate Community Affairs References Committee, 120

Indefinite detention of people with cognitive and psychiatric impairment in Australia, 122

Senate Finance and Public Administration Committee

Domestic Violence and Gender Inequality, 122

Senate Select Committee on Health

Fourth Interim Report on Mental Health: a Consensus for Action, 119

Sixth Interim Report on Big health data: Australia’s big potential, 121

Senior Executive Service (SES)

determinations, 127

remuneration, 127

Senior Management Group, 104

Service Charter, 115

Settlement Grants, 68, 75

settlement services, 3, 73, 75. see also Complex Case Support; Humanitarian Settlement Services program; refugee settlement

client numbers, 68

providers, 68

Sickness Allowance, 54, 55, 56, 57, 58, 113

Single Income Family Supplement, 36

small and medium enterprises (SMEs), 133

Social and Community Services (Program 2.3)

objective, 80

results, 80

social harm reduction, 3, 71

Special Benefit, 36–8, 113

Ombudsman’s report, 118

recipients, 26, 36

Specialist Disability Accommodation Pricing Framework, 2, 98

staff

55 and over, 125

Aboriginal and Torres Strait Islander, 124, 125

capability development, 126

delivery network, 16

with disability, 125–6

non-salary benefits, 128 Cha

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numbers, 17

performance management, 123

salary ranges, 235

statistics, 231–5

training and development, 124, 126

women, 125

workplace arrangements, 127–8

standard funding agreement (CR Act), 229

State of the Service Report (APSC), 227

Statement for Australia’s Carers, 228, 229

Stillborn Baby Payment, 35

‘Stop it at the start’ campaign, 134

Streamlining Grants Administration, 114

strengthening communities, 72, 73, 74, 76

Student Assistance Act 1973, 35

Student Payments (Program 1.11)

objective, 59

results, 59–62Subject Matter Expert Working Group, 229

Supplementary Payments and Support for Income Support Recipients (Program 1.5)

objective, 40

results, 40–1

Syrian refugees, 20

TTAFE, 61, 62

Third Action Plan 2015–18, 24, 68

training institution, private, 61, 62

Transition to Independent Living Allowance, 75

Try, Test and Learn Fund, 4

UUtilities Allowance, 40, 41

Vvalues, 16, 115

violence (domestic family)

campaign, 134

counselling service, 76

national plan, 1, 5, 134

vision, 8

Wwater and waste measures, 242

welfare conditionality, 3, 71, 76

Widow Allowance, 54, 55, 56, 57, 58, 113

Widow B Pension, 41, 42, 44

Wife Pension

Age, 41, 42, 44

DSP, 49, 50, 52

women, violence issues, 1, 5, 134

Women’s Safety Package, 1, 5, 68

work health and safety, 128, 236

Work Health and Safety Act 2011, 128, 236

Work Health and Safety Regulations 2011, 128

workforce planning, 123

Working Age Payments (Program 1.10)

objective, 53

results, 53–8

workplace diversity, 124–5

YYoung Carers Respite and Information

Services, 96, 97

Youth Allowance (other), 53, 54, 55, 56, 57, 65

Youth Allowance (student), 26, 59, 60, 61, 62, 65

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annual report 2015–16annual report 2015–16 about this report this report describes the...

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