Budget Paper 2 - Measures introduced in the 1999-2000 Budget

	Document Index Budget Paper 2

Family and Community Services
Implement Youth Homelessness Early Intervention Programme

Expense ($m)

Explanation

The Government will implement a new youth homelessness early intervention programme in 1999-2000. This programme will fund services for early intervention and support to families where conflict involving adolescents threatens to result in the young person’s separation from family, school and their community.

The measure arises from recommendations in the final report of the Prime Ministerial Youth Homelessness Taskforce, Putting Families in the Picture, and will be implemented through a staged process. The initial focus will be on projects in areas with the highest need. When fully operational, the programme will consist of approximately 100 services providing assistance to some 12,000 cases per annum, involving around 7,000 young people and 5,000 families.

Establish rural call centres

Expense ($m)

Explanation

The Government will establish two new rural call centres, at Maryborough in Queensland and Port Augusta in South Australia, to provide a tailored service to some of Centrelink’s customers in rural and regional Australia. The call centres are expected to be operational in January 2000.

The measure forms part of the Government’s whole-of-government approach to meeting the needs of rural and regional Australia and also addresses a key recommendation of the Special Rural Task Force relating to farm family awareness of social security entitlements.

Each Call Centre will employ 50 people, recruited locally, providing a visible government presence in these regional communities. Staff will be trained to provide advice on all Centrelink programmes and services.

Expand respite support for carers of young people with disabilities

Expense ($m)

Explanation

The Government will expand carer respite support from 1999-2000 for the carers of young people with disabilities.

This measure will support some 900 carers who have been unable to access existing State respite care or assistance provided under Commonwealth initiatives.

This measure delivers on the Government’s election commitment in Our Families, Our Strength, Our Future.

National Homeless Strategy and the continuation of the Supported Accommodation Assistance Programme

Expense ($m)

Explanation

The Government will continue funding for the Supported Accommodation Assistance Programme (SAAP) beyond the current Agreement, which expires in December 1999. It will also provide increased resourcing, including parity funding, to redress potential inequities in Commonwealth funding between the States and Territories that have arisen from increased wage costs for SAAP services.

SAAP services are delivered through a network of approximately 1,200 community organisations. It is Australia’s primary service delivery response to homelessness and provides transitional support and accommodation to help homeless people and people at risk from domestic violence.

This initiative extends assistance to homeless people who are disadvantaged, in crisis and/or on low incomes. At the same time, it will assist in preventing ongoing dependence on welfare support and promoting engagement in work and other aspects of life.

The Government will also develop a national homelessness strategy that will include improved co-ordination and linkages with related programmes.

Revise gifting rules

Expense ($m)

Explanation

This measure reduces from $10,000 to $5,000 the amount that pension beneficiaries can gift each year without attracting the deprivation provisions. Currently the Social Security Act 1991 allows a person or a couple to give away up to $10,000 per year without that gift being considered to be a deprived asset. As a result of this measure, and with effect from 1 July 1999, amounts gifted in excess of the $5,000 limit will be treated as a deprived asset for five financial years from the date of gift. Existing cases of deprivation will continue to be treated under the old rules, as will those who have not yet claimed but have given away assets on the understanding that gifts less than $10,000 were exempt.

From 1 July 1999, the period in which pension beneficiaries or future beneficiaries can make gifts changes from a "pension year", which is based on the anniversary of their grant of payment, to the more commonly understood and widely used financial year.

Clarify, simplify and strengthen debt recovery

Expense ($m)

Explanation

The Government will take steps to ensure that, where a person has been over paid benefits under the Social Security Act 1991, the excess amount is treated as a debt and simple administrative debt recovery powers, involving recovery direct from the recipient’s account by way of notice on the bank or financial institution concerned, can be used to complement the provisions already available under the Act (eg. legal proceedings).

The use of administrative debt recovery processes will ensure social welfare beneficiaries effect repayments expeditiously, resulting in administrative savings to the Budget.

Use Tax File Numbers in Data Matching of Employment Declaration Forms, Prescribed Payment System and Reportable Payment System

Expense ($m)

Explanation

The Government will use Tax File Numbers as the primary match key when comparing Centrelink records with Employment Declaration Forms, and Prescribed Payment System and Reportable Payment System records. This will facilitate the early identification of potential overpayments and reduce the expenses associated with maintaining the social safety net.

Tax reform family assistance package

Expense ($m)

Explanation

As part of implementing A New Tax System, the structure and delivery of family assistance will be simplified by reducing from twelve to three the number of assistance types for families through the tax and social security systems. Benefits to families are increased and income and asset tests and taper rates are eased.

The three new forms of assistance are:

Family Tax Benefit Part A (FTB(A)) which replaces Family Allowance, Family Tax Payment (Part A) and Family Tax Assistance (Part A);

Family Tax Benefit Part B (FTB(B)) which replaces Basic Parenting Payment, Guardian Allowance, Family Tax Payment (Part B), Family Tax Assistance Part B, the with children rate of the Dependent Spouse Rebate and the Sole Parent Rebate; and

Child Care Benefit (CCB) which replaces Childcare Rebate and Childcare Assistance.

New initiatives announced in this Budget now enhance the measures above by:

extending eligibility for FTB(A) to cover young people up to the age of 21 (both job-seekers and students) who are not receiving Youth Allowance. Further, where the rate of Youth Allowance is less than the rate of FTB(A), they will be able to choose to receive FTB(A);

easing of the income test tapering arrangements for Parenting Payment recipients who are members of a couple;

changing the definition of income and indexation arrangements for the three forms of assistance (FTB part A and B and the Child Care Benefit);

removing a number of minor ‘grandfathering’ provisions (mainly for family allowance) that currently exist;

extending FTB to 16 and 17 year olds who attend tertiary education; and

introducing a 10 per cent loading on maximum Child Care Benefit for children using less than 34 hours of care a week in long day care centres.

Pay Centrelink and Health Insurance Commission for delivery of current system of child care payments

Expense ($m)

Explanation

The Government will continue the existing arrangements for delivery of child care payments by Centrelink and the Health Insurance Commission, pending the implementation of the new Child Care Benefit in July 2000.

Tax Reform Package

Expense ($m)

Explanation

This measure provides for additional departmental resources for the Department of Family and Community Services to deliver improved assistance to families and increased assistance to social security recipients and to administer the Aged Persons Saving Bonuses, as set out under A New Tax System.

This measure covers the full expense to the portfolio of implementing the package, including increased departmental expenses of Centrelink and funds for the creation and operation of a new Family Assistance Office (FAO). The FAO is a joint venture between Centrelink, the Health Insurance Commission and the Australian Taxation Office and will use the existing infrastructure of these agencies.

Improve access to Centrelink through Electronic Service Delivery

Expense ($m)

Explanation

The Government will fund a trial which will allow people dealing with Centrelink to make simple enquiries about their payments and entitlements over the phone without the need to speak directly to an operator. The pilot will be limited to a specific geographic area in regional Australia and will complement other regional initiatives of the Government. It is expected to be in operation by December 1999.

This measure will:

allow Centrelink to develop and trial a pilot automated call handling facility; and

allow Family and Community Services, in consultation with the Office of Government Online, to report in the 2000-01 Budget context on broader proposals for increased provision of electronic service delivery as a means of conducting business with the Government.

This measure delivers on the Government’s election commitment in Securing our Information Future.

Extend Eligibility for Student Financial Supplement Scheme Loan

Expense ($m)

Explanation

The Government will increase the family asset threshold governing access to a Student Financial Supplement Scheme (SFSS) loan by increasing the discount for on-farm and business assets from 50 per cent to 75 per cent. The Government is concerned that the former asset threshold may have imposed a disincentive for students from families with farm and small business assets to continue with education. This measure increases the limit for on-farm and business assets from $820,000 to $1.6 million.

The SFSS provides the option of a voluntary loan for those dependent young people undertaking an approved tertiary course who are ineligible for Youth Allowance because of the Parental Income Test and Family Actual Means Test, where their parental income is less than $55,350 (plus sibling concessions). The maximum loan available is $2,000 per annum.

Further Information

This measure may impact on the Department of Education, Training and Youth Affairs ABSTUDY program. Its legislation will be aligned with the SFSS legislation applied to Youth Allowance, Austudy and Pensioner Education Supplement from 1 January 2000.

Establishment of an Australian Household Panel Survey

Expense ($m)

Explanation

This measure provides for the establishment of an Australian household panel survey to explore the dynamics of families and their incomes. In a changing environment, the study will enable the Department to provide more informed and accurate advice to Government on policy and evaluation issues and will serve to support policy development in other portfolios.

The Panel Survey would be undertaken in consultation with a number of other interested departments.

Data collected will be suitable for assessing the effects of policy and other changes on:

families and household formation;

labour market and education participation; and

retirement and retirement preparation.

Simplify International Payments

Expense ($m)

Explanation

The Government will:

standardise the portability rules for payment of social security benefits outside Australia;

extend the requirement for Australian pensioners to claim unclaimed social security entitlements from overseas (comparable foreign payments); and

simplify the qualifying residence rules for Australian entitlement.

Standardisation of the portability rules would be prospective. Those already overseas would not be affected.

Provision of Outposted Centrelink/ATO Project Officers

Expense ($m)

Explanation

The Government will place 23 full time Centrelink staff in the Australian Taxation Office (ATO) Branches nationwide to enhance the business relationship between the two agencies, particularly with respect to cash economy compliance.

The enhancement of current Centrelink/ATO data exchange activities such as the Hint Case Work initiative and Joint Audits will enable an increased identification of Centrelink customers who fail to declare or who under-declare earnings to Centrelink or the ATO or both.

Similarly, data collected from the ATO’s compliance activities, where appropriate, will be passed on to the Centrelink/ATO Special Project Officers for matching to ensure that welfare beneficiaries are receiving entitlements consistent with their other income across all Government programmes.

Assessment of undisclosed assets across Income Support Payments

Expense ($m)

Explanation

The Government will help ensure that income support payments only go to those who are entitled to them by initiating a pilot project to identify people who either do not disclose or who under-declare the value of their assets. In this pilot data matching between Centrelink and the Australian Taxation Office will be conducted to obtain data on negative gearing, imputation credits, capital gains and other key elements, which will indicate potentially undeclared assets.

The data will also be matched against other databases such as the Australian Securities and Investment Commission, Lands Title Offices and the Australian Valuation Office to refine and improve the quality of the cases selected for review. Reviews will be conducted across all income support programmes.

Survey of the Level and Reasons for Incorrect Payments for Major Income Support Payments

Expense ($m)

Explanation

The Government will review a random sample of 15,000 benefit recipients to measure the level of and reasons for incorrect payment by Centrelink. The payments to be surveyed are Parenting Payment (Partnered), Newstart Allowance and Disability Support Pension.

Data gathered in this survey will provide better information on how incorrect payment occurs (particularly the circumstances in which customers do not fulfill their obligations to advise of changes in their personal and financial circumstances) and will allow for better targeting of compliance activity and resources.

Additional funding for Marriage and Relationship Education

Expense ($m)

Explanation

The Government will provide additional funding for three years to support community-based marriage and relationship services and to promote greater community awareness and use of the full range of preventative relationship breakdown support services. Greater use of preventative services may assist in reducing levels of demand on other family support and crisis services such as counselling, therapy, youth, legal and Child Support Agency services.

This additional funding meets an election commitment made in Our Families, Our Strength, Our Future.

Continuation of the Housing Reform Fund

Expense ($m)

Explanation

The Government will extend the Housing Reform Fund for a further three years at the current level of funding. The current funding of $1.7 million a year expires in 1999-2000. Ongoing funding for 2000-01, 2001-02 and 2002-03 will be met from existing departmental expenses.

End Double Rent Assistance for Blended Families

Expense ($m)

Explanation

The Government will remove a legislative anomaly which permits blended families, where both members of a couple are receiving Family Allowance, to claim double rent assistance for the total rent paid on a single dwelling. Entitlement to rent assistance for blended families will now be based on the total number of Family Allowance children and the actual rent liability for the family.

Increase Funding for the Continence Aids Assistance Scheme

Expense ($m)

Explanation

The Government will provide additional funding for the Continence Aids Assistance Scheme (CAAS) to meet the greater than expected increase in demand. This funding will provide continued service to existing levels of recipients.

Currently under CAAS, recipients are able to purchase continence aids and appliances up to the value of $450 each financial year. Eligibility is limited to those with a permanent disability-related continence condition, who are of working age and in receipt of income support payments.

Continue Child Care National Information Strategy for Parents to 2000

Expense ($m)

Explanation

The Government will continue the Child Care National Information Strategy to the end of June 2000. A key element of the strategy is the Child Care Access Hotline, which provides information to assist families across Australia to make decisions about which child care services would best suit their needs. Other elements include the provision of detailed information to service providers who are planning to establish child care services, as well as a range of materials to assist families and the child care industry to remain well informed.

Funding for this initiative will be met from within existing departmental resources.

Increase Men's access to Family Relationship Support Services

Expense ($m)

Explanation

The Government will provide funding until the end of 2001-02 for projects to increase men’s access to relationship support services. In addition to the $9 million allocated through this measure, $1.5 million of funding was provided in 1998-99.

This initiative is part of the Government’s commitment to strengthen and support families, especially through preventative action.

This measure delivers on the Government’s election commitment in Our Families, Our Strength, Our Future.

Improve Rent Assistance Compliance

Expense ($m)

Explanation

The Government will improve Rent Assistance verification procedures by introducing a six monthly review process, involving enhanced certification by landlords, for people in informal renting situations (such as lodging with relatives or paying rent to other members of a share house).

This initiative will identify incidences of incorrect payments and increase the level of voluntary compliance.

New income support arrangements for separated parents sharing care of a child

Expense ($m)

Explanation

The Government has decided that separated parents sharing care of their children between 40 per cent to 60 per cent of the time will each be eligible for Job Entry Training and Newstart or Youth Allowance with a modified activity test. Parenting Payment will then only be payable to new claimants with at least 60 per cent care of a child.

To ensure that existing Parenting Payment recipients sharing care are not disadvantaged, the Government will protect their entitlements until the youngest qualifying shared care child at January 2001 turns 16 or otherwise ceases to be a qualifying child.

Expenses in 2000-01 largely reflect administrative systems and other set-up costs.

Simplification of the Isolated and Secondary Student Boarder Concession

Expense ($m)

Explanation

The Government will simplify the current complex concession arrangements under the Youth Allowance Family Actual Means Test (FAMT). Under the measure, if a claimant’s sibling is an isolated boarder or secondary student boarder, they will automatically qualify for the maximum concession under FAMT. This new arrangement will be less complex to administer and provide greater transparency about beneficiary entitlements.

The departmental expenses for implementing this measure will be met from within existing resources.

Extend the definition of "Independent Employment" used under the Family Actual Means Test to include young people employed by their family

Expense ($m)

Explanation

The Government has decided that the Youth Allowance Family Actual Means Test (FAMT) should no longer distinguish between ‘independent employment’ and employment in the family business or farm. This will provide increased financial support for young people whose siblings are employed in the family business or farm.

Under the previous FAMT up to $6,000 of a sibling’s income could be excluded from the actual means test. However earnings from employment in the family business or farm were not excluded, as these were not considered to have been earned from independent employment.

The expenses for this measure will be met from within existing resources. The measure will be implemented from 1 January 2000.

Data Matching with the Registrars-General Birth Records

Expense ($m)

Explanation

The Government will undertake a feasibility study using birth records from the Registrars-General Offices (RGO) to detect cases where Family Allowance has been paid for children with fraudulent identities. The feasibility study will determine the cost-effectiveness of improving the integrity of Centrelink Family Allowance payments by data-matching with RGO birth records.

This proposal adds to the range of data-matching projects undertaken by Centrelink to give effect to the Government's commitment to provide assistance only to those persons who are legally entitled to that assistance, with a consequential reduction in the Family Allowance expenses of Government.

Data Matching with the Australian Stock Exchange Clearing House Electronic Sub-register System records

Expense ($m)

Explanation

The Government will undertake a feasibility study using the Australian Stock Exchange Clearing House Electronic Sub-register System (CHESS) records to identify beneficiary claimants who have not advised Centrelink of shareholdings.

The feasibility study will determine the cost-effectiveness of data-matching with CHESS records to improve the integrity of Centrelink payments.

The departmental expenses for this measure will be met from within existing resources.

Data matching with State and Territory Superannuation Administration Authorities

Expense ($m)

Explanation

The Government will undertake a feasibility study using State and Territory Superannuation Administration Authorities (SAA) data to identify beneficiary claimants who have not advised that they are in receipt of a superannuation pension. The feasibility study will determine the cost-effectiveness of improving payment integrity by data-matching with SAA records.

Data Matching of Prescribed Payment System data between Centrelink and the ATO

Expense ($m)

Explanation

The Government will undertake increased data matching of Centrelink records and payee declaration form records held on the Australian Taxation Office Prescribed Payment System. This will identify anomalies between data held by the two agencies and enhance compliance with the income provisions of the Social Security Act 1991. Reviews will be conducted across all income security programmes.

Data transfers between the two agencies will be undertaken on a regular basis to ensure timely processing and minimise debts.

Simplify Technical Rules

Expense ($m)

Explanation

The Government will simplify the existing machinery provisions of the Social Security Act 1991 by consolidating the provisions relating to payments and other administrative provisions in a new Social Security (Administration) Bill 1999.

The expenses for this measure will be met from efficiencies within departmental expenses.



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