Contents
- Part 1 Executive Summary
- Part 2 Performance reporting
- Part 3 Corporate governance and accountability
- Part 4 Appendices
- Part 5 Financial Management
Annual Report 2007–2008
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Annual Report 2007–2008
Annual Report 2007–2008 » Chapter 12: Our relationships
FaHCSIA is committed to supporting open communication and active engagement with its many stakeholders, including the Ministers, individuals, and community organisations.
FaHCSIA’s stakeholder engagement approach recognises the significant skills, expertise and experience that communities can contribute to the design and delivery of programs and services that seek to improve the lives of Australians.
The FaHCSIA Service Charter sets out the standard of service that people who deal with the Department can expect and the ways they can help the Department improve service to customers, such as providing feedback. The charter also helps FaHCSIA staff to develop a better understanding of their roles and responsibilities. Further information on FaHCSIA’s Service Charter can be found on the FaHCSIA website.
Work has commenced on redeveloping FaHCSIA’s Complaints Management Scheme to ensure that all the concerns and issues being raised by external stakeholders are effectively handled and captured in the complaints recording database.
The Department is in the process of improving the current Complaints Management Scheme to make it a more effective and relevant part of the Department’s operations. It will examine alternative models used by other government agencies for receiving and responding to complaints.
During 2007–08, 26 complaints were registered on the Complaints Management Scheme. As at 30 June 2008, 20 of those complaints had been resolved and six complaints were still being actioned.
In 2007–08, around 780 FaHCSIA staff, who comprised the FaHCSIA Regional Network (the Network), were located in seven state offices, four regional offices and 30 Indigenous Coordination Centres (ICCs). Additional staff were placed in the Northern Territory as part of the Northern Territory Emergency Response (NTER). The staff were located in the Northern Territory Office, in the Operations Centre, and as Government Business Managers in remote communities. FaHCSIA had 54 Government Business Managers serving in 72 NTER communities as at 30 June 2008.
The Network’s core business is the identification of needs and the management of contracts for service delivery to meet those needs. This includes building effective relationships with stakeholders and monitoring and reporting on outcomes. It has a key role in gathering evidence for policy development, program design and implementation.
The Network also:
In Indigenous communities, the ICCs remain a one‑stop shop for the delivery of many of the Government’s programs assisting Indigenous peoples. This was accentuated during the NTER, when staff in the ICCs worked closely with the state offices of relevant departments, Operations Centre staff and Government Business Managers to support communities in the stabilisation phase of that work.
In addition, during 2007–08 the FaHCSIA Regional Network:
FaHCSIA manages funding relationships with a large number of organisations. Building on the changes implemented in 2006–07, the Department has continued to improve the way it manages its grants programs to ensure consistent, efficient and effective administrative procedures within and across programs.
In 2007–08, continued improvements were achieved in funding agreement practices, with a sustained emphasis on standardised terms and conditions across the Department and a more user‑friendly process for making applications for funding, including:
Service providers are also funded to provide services for people with disability and their carers. These include disability employment services, advocacy, Auslan, print disability, respite care and peer support.
In 2007–08, FaHCSIA administered $1.7 billion in direct funding to community service programs to help build the capacity and wellbeing of individuals, families and communities.
The range of services funded includes:
In 2007–08, FaHCSIA administered over $2.0 billion in special purpose payments to states and territories in 2007–08, including:
The Harm Prevention Charities Register was introduced on 1 July 2003 in response to the Inquiry into the Definition of Charities and Related Organisations. Charitable institutions whose principal activity is to promote the prevention or control of behaviour that is harmful or abusive to humans can apply for entry to the register. Entry on the register helps charities to attract public support, as donations and gifts to registered charities are tax deductible.
The Department assessed 17 applications for the register during 2007–08 against eligibility criteria. Eligible applications were then submitted to the Minister for Families, Housing, Community Services and Indigenous Affairs and Minister for Revenue and Assistant Treasurer for their consideration. There are currently 32 institutions listed on the register.
FaHCSIA delivered services to three portfolio Ministers under the previous Government in 2007–08: The Hon. Mal Brough, MP, Minister for Families, Community Services and Indigenous Affairs; Senator the Hon. Nigel Scullion, Minister for Community Services; and the Hon. Julie Bishop, MP, Minister Assisting the Prime Minister for Women’s Issues.
Under the new Government, FaHCSIA delivered services to two portfolio Ministers and one Parliamentary Secretary: the Hon. Jenny Macklin, MP, Minister for Families, Housing, Community Services and Indigenous Affairs; the Hon. Tanya Plibersek, MP, Minister for Housing and Minister for the Status of Women; and the Hon. Bill Shorten, MP, Parliamentary Secretary for Disabilities and Children’s Services.
Ministerial correspondence increased from 12,325 in 2006–07 to 29,786 in 2007–08. Of this correspondence, 8,991 were received during the term of the previous Government, with 20,795 received since the election of the current Government.
FaHCSIA and its portfolio agencies prepared a total of 2,748 ministerial minutes and 1,017 requests for briefing from Ministers and their staff. Of these, 679 minutes and 144 briefings were prepared during the term of the previous Government, with 2,069 minutes and 873 briefings being prepared since the election of the current Government.
The portfolio received 39 parliamentary questions on notice and prepared 1,091 question time briefs. Of these, 12 questions on notice and 225 question time briefs were responded to during the term of the previous government, and 27 questions on notice and 866 question time briefs were responded to since the election of the current government.
The table below provides information on all ministerial and parliamentary services data that has individual indicator reporting requirements. Further information about these indicators is contained throughout Part 2 performance reporting.
| Ministerial correspondence processed | Question time briefsa | Briefingsb | Submissions minutesc | Parliamentary questions on notice | |
|---|---|---|---|---|---|
| 1.1 The whole‑of‑government coordination of policy development and service delivery for Indigenous Australians | 2,248 | 5 | 14 | 223 | 0 |
| 1.2 Services for Indigenous Australiansd | 3,740 | 358 | 207 | 484 | 8 |
| 1.3 Registration, regulation and capacity building of Indigenous corporations | 19 | 0 | 1 | 8 | 0 |
| 2.0 Items applicable across Outcome 2 | 1,860 | 5 | 0 | 2 | 0 |
| 2.1 Support for the aged | 2,942 | 71 | 9 | 66 | 5 |
| 2.2 Support for people with disabilityd | 2,245 | 140 | 201 | 175 | 4 |
| 2.3 Support for carers | 1,010 | 51 | 9 | 32 | 1 |
| 2.4 Addressing youth homelessnesse | 0 | 2 | 0 | 0 | 0 |
| 2.5 Support for womend | 593 | 75 | 140 | 183 | 1 |
| 3.1 Support for families | 1,599 | 106 | 53 | 166 | 5 |
| 3.2 Child support | 483 | 15 | 3 | 70 | 0 |
| 3.3 Child care supporte | 0 | 0 | 0 | 0 | 0 |
| 4.1 Housing support | 2,480 | 132 | 215 | 119 | 1 |
| 4.2 Supporting financial management | 51 | 3 | 5 | 23 | 0 |
| 4.3 Community recovery | 34 | 20 | 0 | 22 | 0 |
| 4.4 Community partnership and delivery | 342 | 45 | 24 | 63 | 2 |
| Non output specific/referrals | 3,545 | 63 | 8 | 433 | 12 |
| Figures from PCMSf | 4,830 | 0 | 128 | 679 | 0 |
| Figures from objectiveg | 1,765 | 0 | 0 | 0 | 0 |
| Total | 29,786 | 1,091 | 1,017 | 2,748 | 39 |
The Department provided a private briefing to the committee on whole‑of‑government arrangements for Indigenous affairs.
FaHCSIA appeared before the committee on 26 June 2008.
The committee will report on how the Australian Government can better address the impact of the importation, production, sale, use and prevention of illicit drugs on families.
In September 2007, the final Winnable war on drugs: The impact of illicit drug use on families report was tabled in Parliament.
Of the 31 recommendations in the report, FaHCSIA was identified as being responsible for responding to two of these recommendations and were asked to provide input into a further three recommendations.
Two FaHCSIA officers attended the committee hearing to provide evidence.
The committee will report on the role and contribution of carers in society and how this should be recognised, the barriers to social and economic participation for carers, and practical measures required to better support carers, including key priorities for action.
On 28 May 2008, FaHCSIA provided a presentation to committee. This presentation identified the role and contribution of carers in society, provided an overview of existing Australian Government support for carers and their families, and identified key findings of emerging research.
On 4 July 2008, FaHCSIA will be submitting a joint submission with the Department of Health and Ageing and the Department of Veterans’ Affairs to the committee.
JSCOT reviews and reports on all treaty actions proposed by the Government before action is taken that binds Australia to the terms of the treaty.
The National Interest Analysis (NIA) on the UN Convention on the Rights of Persons with Disabilities was tabled on 4 June 2008. The NIA was prepared by the Attorney‑General’s Department, with substantial input from FaHCSIA and the Department of Foreign Affairs and Trade. FaHCSIA officials appeared as witnesses before the committee at a public hearing on 16 June 2008. JSCOT tabled its report on 19 June 2008, recommending that Australia ratify the Convention.
The committee will report on why more families of dependents with disability are not making use of Special Disability Trusts, and will look at barriers in the legislation to their establishment.
FaHCSIA lodged a joint submission with the Department of Veterans’ Affairs on 13 June 2008. This outlined the policy and legislative framework under which Special Disability Trusts currently operate and presented feedback the Department received through consultation processes on Special Disability Trusts.
On 9 August 2007, the Senate referred to the Standing Committee on Legal and Constitutional Affairs five bills comprising the legislative package for the Australian Government’s response to the ‘national emergency’ relating to the welfare of Indigenous children in the Northern Territory. FaHCSIA appeared before the committee on 10 August 2007. It was a joint appearance with the Department of Employment and Workplace Relations, the Department of Education, Science and Training and the Department of Health and Ageing.
The committee’s report contained seven recommendations which included: regular reporting to the Parliament and public, particularly in regard to the impact of the measures on the welfare of Indigenous children; the conduct of a culturally appropriate public information campaign to allay any fears in Indigenous communities; and the need for additional drug and alcohol rehabilitation services (including additional funding) in the Northern Territory.
The committee tabled its report on 13 August 2007.
The committee was established on 14 February 2008 to inquire and report on the barriers to home ownership in Australia. The committee held public hearings throughout Australia between 1 April and 7 May 2008 and over 100 submissions were lodged.
The committee tabled its report on 16 June 2008. The report contains 32 recommendations targeted at all levels of government on a range of matters impacting upon housing affordability in Australia.
Officers from the Department appeared before the committee on 1 April 2008 and again on 7 May 2008.
The Department’s submission to the committee was lodged on 30 May 2008. The submission provided the committee with key statistics on the current level of housing affordability in Australia and outlined the range of Australian Government programs that address housing affordability issues. The submission also responded to the specific terms of reference for the committee.
Inquiry into the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Emergency Response Consolidation) Bill 2008. The committee examined the provisions of the Bill, which included provisions in relation to the permit system for Aboriginal Land in the Northern Territory, R18+ Pay TV programming in prescribed areas, the transport of prohibited material through prescribed areas and the licensing of roadhouses as community stores.
Two FaHCSIA officers gave evidence to the inquiry at a public hearing on 30 April 2008. The committee’s report was tabled on 15 May 2008.
On 28 March 2007, on the motion of Senator Lyn Allison, the Senate referred the matter of mental health services in Australia to the Community Affairs Committee for inquiry and report by 30 June 2008. Following the commencement of the 42nd Parliament, the Senate readopted the inquiry on 14 February 2008.
The terms of reference required the committee to examine ongoing efforts towards improving mental health services in Australia, with reference to the National Action Plan on Mental Health agreed upon at the July 2006 meeting of the Council of Australian Governments. In particular, the committee examined the commitments and contributions of the different levels of government with regard to their respective roles and responsibilities. The committee, in considering this matter, also gave consideration to:
Officers from the Department appeared before the Senate Standing Committee in November 2007 and May 2008 with the Department of Health and Ageing and the Department of Education, Employment and Workplace Relations.
FaHCSIA contributed to a joint submission to the Inquiry.
On 14 June 2007, the Senate established this inquiry, which reported in March 2008.
FaHCSIA provided submissions to the inquiry and officers from the Department appeared before the committee on 20 September 2007.
The committee examined the financial circumstances of older Australians and found that there is a disparity in the distribution of wealth amongst older Australians. It found that cost of living pressures are placing some seniors in financial stress, particularly those in private rental accommodation.
The committee recommended measures to alleviate these pressures, including a review of certain pension rates and indexation arrangements and improved access to services. Superannuation and housing issues were also considered by the committee.
The committee’s terms of reference focused on the impact of measures announced in the 2008–09 Budget, including changes to Family Tax Benefit Part B and the Baby Bonus. This included an examination of eligibility, financial impacts, administration and modelling underpinning the measures.
The committee’s focus shifted to the treatment of fringe benefits in the calculation of family assistance entitlements following the emergence of unintended consequences for employees working in not-for-profit organisations.
A change to the definition of income for family assistance purposes—to assess the gross value of reportable fringe benefits, rather than the net value—was taken by the previous Government and included in the 2006–07 Budget. This was part of the Child Support Reforms and was to have applied from 1 July 2008.
Prior to the committee hearing, the Government announced that it would restore the use of net value of reportable fringe benefits in the definition of family assistance. This was designed to protect low‑income earners in not-for-profit organisations from losing family assistance entitlements.
FaHCSIA appeared before the committee on 20 June 2008, but did not make a written submission due to a late shift in the terms of reference.
On 12 March 2008, the Senate referred the Stolen Generation Compensation Bill 2008 (a private bill introduced by Senator Andrew Bartlett) to the Legal and Constitutional Affairs Committee for inquiry and report.
The Bill proposed a compensation model for ex‑gratia payments to be made to Aboriginal and Torres Strait Islander persons who are found to be eligible for such payments.
The committee examined the viability of the Bill’s proposed compensation model, considered existing domestic and international compensation models and reviewed any relevant unimplemented recommendations of the 1997 Bringing Them Home report.
On 16 April 2008, two FaHCSIA officers attended committee hearings at the request of the committee. Their role was to clarify and elaborate on the Government’s position with regard to compensation to members of the Stolen Generations.
The Commonwealth Ombudsman received 165 approaches about the Department in 2007–08, an increase on the 43 approaches received in 2006–07.
During 2007–08, 90 approaches were finalised. Of these, the Ombudsman investigated 38 and exercised his discretion not to investigate 52. None of the 38 approaches investigated by the Ombudsman led to a finding of defective administration by FaHCSIA.
The main contributing factor to the increase in the number of approaches has been the Northern Territory Emergency Response (NTER). FaHCSIA is the lead Australian Government agency for the NTER. Implementation of the NTER has led to a large number of approaches (101), raising issues associated with matters such as store cards, income management and the transfer of persons from CDEP to income support payments.
There has been no significant increase in approaches concerning any other aspects of FaHCSIA programs.
Generally, act of grace payments are a means of providing compensation to persons who may have been unfairly disadvantaged by the Australian Government, but who have no legal claim against it.
During the 2007–08 financial reporting year, the total amount of act of grace payments was $368,671.
The Auditor General tabled seven audit reports in Parliament relevant to departmental operations. One of these was the report of an agency audit where FaHCSIA was a key stakeholder, while six reports related to cross‑agency audits. Relevant areas of the Department have been working on addressing the findings from this Australian National Audit Office (ANAO) activity. The substance of the audit reports is presented below.
The audit objectives were to assess the appropriateness of the use of confidentiality provisions in Australian Government contracts and whether selected agencies had compiled Internet listings of contracts, as required by the Senate Order and agreed to by the Government.
Key findings from this audit are identified below:
The ANAO considered that reporting processes and quality controls could be strengthened in some agencies by reconciling the Senate Order internet listing with contract information contained in Financial Management Information Systems (FMIS) and reported in AusTender.
The objective of this FaHCSIA-specific audit was to determine whether the proof of identity information recorded by Centrelink accorded with relevant policy and thereby effectively supported informed decision‑making regarding eligibility for the payment of various benefits to Centrelink customers.
Key findings from the audit are identified below:
The objective of this cross‑portfolio audit was to assess how four key departments: Education, Science and Training; Employment and Workplace Relations; Families, Housing, Community Services and Indigenous Affairs; and Health and Ageing are implementing the Government’s policy objective for Indigenous service delivery.
Key findings from this audit are identified below:
This cross‑portfolio report complemented the interim phase report, Audit Report No.51 2006–07 Interim Phase of the Audit of Financial Statements of General Government Sector Entities for the year Ending 30 June 2007. The Report provided a summary of the final audit results of the audits of the financial statements of all Australian Government entities, including the consolidated financial statements for the Australian Government.
Key findings from this audit are identified below:
The objective of this cross‑portfolio audit was to assess whether selected regulatory agencies have cost recovery procedures and practices that comply with the Government’s guidelines. To address this objective, the audit assessed the management of cost recovery against the following criteria for regulatory agencies:
Key findings from this audit are listed below:
The objective of this cross‑portfolio audit was to assess whether APS agencies had sound approaches to recruitment that assist in providing the workforce capability to deliver government programs effectively.
Key findings of this audit found that sound approaches to recruitment involve agencies:
The objective of this cross‑portfolio audit was to examine the administration of credit cards, including agency policies, controls over card issue, agency procedures and card holder obligations. With regard to agency policy, the audit examined issues such as documents governing the use of the card, descriptions of positions and work functions that would qualify for the card, payment methods and measures for dealing with improper use of the card.
Controls examined in the audit around the issue of a credit card included application for the card, utilisation of an assessment criteria against the application for the issue of a card, appointment of a delegated officer to approve the issue of the card, and the existence of a register of users. As part of the review of operational controls, this audit tested a sample of credit card transactions to assess compliance with policies and the probity and propriety of expenditure. Finally, the ANAO tested periodic reporting to the Executive (or delegated officer) on the credit card use within the agency.
Key findings from this audit are identified below:
Key controls over credit card expenditure include requiring approvals prior to credit card expenditure, setting expenditure limits, requiring appropriate supporting documentation and reviewing monthly reconciliation statements.
There have been two judicial decisions of major significance to the Department in the 2007–08 financial year.
The decision by the Full Court of the Federal Court of Australia in Secretary, Department of Family and Community Services v Waldron [2007] FCAFC 131 held, in the context of qualification for double orphan pension, that an adoptive parent is a person who has adopted a young person under the law of any place, whether in Australia or not, relating to the adoption of children.
In the context of qualification for Disability Support Pension, the Full Federal Court held in Secretary, Department of Families, Housing, Community Services and Indigenous Affairs v Jansen [2008] FCAFC 48 held that the decision concerning whether there is a medical or compelling reason for a person not undertaking further treatment is to be determined by the relevant medical officer in each case.
There is also one significant ongoing matter which may have an impact on the operations of the Department once decided. The matter of Wurridjal & Ors v The Commonwealth of Australia (M122/2007) concerns a challenge to whether certain provisions of the Northern Territory National Emergency Response Act 2007 and the Families, Community Services and Indigenous Affairs and Other Legislation Amendment (Northern Territory National Emergency Response and other Measures) Act 2007 have resulted in an acquisition of property, other than on just terms and are therefore constitutionally invalid. No decision has been made in relation to this matter as at 30 June 2008.
The Social Security Appeals Tribunal (SSAT) is a statutory body under the Social Security (Administration) Act 1999 that conducts merit reviews of administrative decisions made under a number of enactments, in particular the social security law, family assistance law and child support law. SSAT’s primary objective is to provide a mechanism of review that is fair, just, economical, informal and quick. SSAT submits an Annual Report to the Minister for Families, Housing, Community Services and Indigenous Affairs that is presented to the Parliament.
FaHCSIA provides advice to the Minister on SSAT related matters, and works with external stakeholders including the Department of Education, Employment and Workplace Relations, the Department of Human Services and Centrelink on matters relating to the SSAT.
Activities include:
A Memorandum of Understanding between FaHCSIA and the SSAT covers the administrative services support FaHCSIA provides to the SSAT. FaHCSIA financial and personnel management information systems are purchased by the SSAT to assist in performing its purchasing, accounts payment, budgeting and staff management functions.
FaHCSIA has a strong framework of measures in place to protect the privacy of individuals. This framework includes secrecy legislation, privacy legislation, arrangements with the service delivery agencies and a number of detailed measures, such as confidentiality deeds and declarations with providers and staff.
In addition to the obligations imposed by the Privacy Act 1988, legislation administered by FaHCSIA contains broad secrecy provisions that expressly prohibit the release of customer information, except in limited circumstances. Those provisions include criminal offences that may result in a term of imprisonment.
FaHCSIA’s business partnership agreements with its partner agencies include mechanisms that allow FaHCSIA to monitor and contribute to the protection of customer privacy and enables all parties to cooperate on handling matters related to privacy. See also protective security, in Chapter 11.
FaHCSIA liaises with the Privacy Commissioner on policy development related to privacy issues around social security, family assistance, Indigenous affairs and the handling of personal information.
FaHCSIA and the Office of the Privacy Commissioner participated in a joint project that produced privacy guidance materials. These consisted of information brochures, post cards and posters to assist Northern Territory liquor licensees and proprietors of remotely‑located community stores to collect and use customers’ personal information in a safe and secure manner that is in accordance with the Privacy Act 1988.
The Privacy Commissioner received one complaint regarding FaHCSIA in the 2007–08 financial year. The complaint was resolved by the Department to the Privacy Commissioner’s satisfaction.
The improper use and disclosure of personal information by staff, or the collection of personal information from staff, are matters treated seriously by the Department. FaHCSIA ensures that investigations are carried out in relation to any complaints or allegations of breaches of privacy or confidentiality.
FaHCSIA handles all freedom of information (FOI) requests in accordance with the Freedom of Information Act 1982. Supplementary materials, such as the FOI Guidelines, are used to inform the handling of FOI requests where necessary. These guidelines are available at: www.pmc.gov.au.
The FOI Coordinator in FaHCSIA provides advice on FOI matters to any interested parties and liaises with applicants.
Formal applications for access to documents under FOI must be made by letter or written request. It must be accompanied by a $30 application fee, though this may be waived in certain circumstances. The application should be submitted to the FOI Coordinator in National Office or with a State FOI Contact Officer from any of FaHCSIA’s state offices. Further details are provided at Appendix 6.
The Business Partnership Agreement 2006–2010 (BPA) governs the business relationship between FaHCSIA and Centrelink. The BPA sets out the performance measures and assurance mechanisms for payments and services delivered by Centrelink on behalf of FaHCSIA.
FaHCSIA ensures Centrelink has controls in place to minimise the incidence of incorrect payment and fraud. This in turn leads to a framework that maximises correct payment and the accuracy of program outlays. The success of this approach is measured through a set of performance indicators agreed to by FaHCSIA and Centrelink. For more information on fraud, see Chapter 11.
The FaHCSIA control framework focuses on prevention and detection of incorrect payment and fraud, and relies on a risk management approach to optimise compliance. FaHCSIA works with Centrelink to:
Controls are designed to be cost effective, while minimising customer impacts. Customers are promptly notified of determinations resulting from reviews that affect a rate of payment or result in a debt or action to recover a debt.
The FaHCSIA control framework includes:
The Random Sample Survey Program provides an estimate of the accuracy and inaccuracies of program outlays and intelligence about emerging outlay risks. The surveys also provide useful information that assists the policy development process.
The Random Sample Survey also provides assurance information required under the BPA. Random samples are a point in time analysis of customers’ circumstances.
During 2007–08, on FaHCSIA’s behalf, Centrelink undertook Random Sample Surveys of:
* Note: The responsibility for Disability Support Pension was transferred to FaHCSIA, with the Administrative Arrangements Order issued on 25 January 2008.
| Payment type | Inaccuracy (95% confidence) as a percentage of outlays |
|---|---|
| Age Pension | 1.9%d |
| Carer Allowance | 0.8%e |
| Carer Payment | 4.1f |
| Special Benefit | 3.2g |
| Disability Support Pension | 1.8%h |
| Family Tax Benefit | 2.4%i |
| Overall rate of inaccuracy | 2.0%j |
| All FaHCSIA payments (except DSP and Child Care) | ||
|---|---|---|
| Performance indicator | Target | Actual |
| Compliance and fraud | Savings of $126.4m | In 2007–08, savings from 119,589 reviews were $168.33 million. |
| Profiling reviews | Savings of $35.4m | In 2007–08, savings from 276,619 reviews were $65.27 million. |
| Debt raised | 70 per cent of the undetermined debt base | Total debt determined as a percentage of the undetermined debt base for the financial year was 78.3 per cent. |
| Debt recovered | 72 per cent of debts recovered as a portion of the debts raised (in dollar terms) | Total debt recovered was 76.6 per cent of debts recovered as a portion of the debts raised (in dollar terms). |
| Debt under management | 65 per cent of debts under recovery as a percentage of the total debt base | Total value of debts under recovery as a percentage of the debt base for the financial year was 70.0 per cent. |
| Overall outlay accuracy | 95 per cent | 98.0 per cent. |
| Disability Support Pension | |
|---|---|
| Performance Indicator | Achievements |
| Compliance and fraud | Savings from 93,030 reviews were $117.4 million. |
| Profiling reviews | Savings from 211,293 reviews were $48.28 million. |
| Debt raised | Total determined as a percentage of the undetermined debt base was 72.1 per cent. |
| Debt recovered | Total debt recovered was 77.2 per cent of debts recovered as a portion of the debts raised (in dollar terms). |
| Debt under management | Total value of debts under recovery as a percentage of the debt base for the financial year was 77.8 per cent. |
| Overall outlay accuracy | 98.2 per cent. |
Centrelink raised 757,471 FaHCSIA debts (including Disability Support Pension debts and excluding child care debts) valued at $333.44 million. Of these, debts raised for recovery totalled $312.96 million with a further $20.48 million waived at determination. The recoveries amounted to $240.49 million.
Recoveries of FaHCSIA and Family Assistance Office debts by cash and withholdings amounted to $240.49 million. These figures include compensation debts. Further performance information can be found in Part 2, performance reporting.
Total debt determined as a percentage of the undetermined debt base for the financial year was 78.3 per cent. Further performance information can be found in Part 2 performance reporting.
Total value of debts under recovery, as a percentage of the debt base for the financial year was 70.0 per cent.
These figures exclude Family Tax Benefit reconciliation and tax return non‑lodger debts.
The compensation provisions in the Social Security Act 1991 are structured to encourage people to use private financial resources, such as compensation payments, before accessing the tax-payer funded social security system. The provisions also ensure that people who receive compensation for an injury or illness have those payments considered in the calculation of any social security benefits.
Compensation provisions provide for:
To ensure the community understands the effect of compensation on social security benefits, Centrelink provides an outreach and information service to compensation authorities and to legal, insurance, union and community representatives.
In 2007–08, application of the compensation provisions across all income support payments made under the Social Security Act 1991, administered by FaHCSIA and the Department of Education, Employment and Workplace Relations, achieved estimated savings to outlays of $455.8 million.
In 2007–08, 1,016 cases of alleged social security fraud were referred to the Commonwealth Director of Public Prosecutions (CDPP). The CDPP prosecuted 387 cases, resulting in 355 convictions (91.7 per cent conviction rate).
FaHCSIA and Centrelink work together on fraud prevention. FaHCSIA was involved in whole‑of‑government activities through participation in the Commonwealth Reference Group on Identity Security to combat fraud.
Table 3.5 shows the incidence of identity fraud against FaHCSIA payments delivered by Centrelink detected in 2007–08.
| Payments | Reviews | Cases of identity fraud identified | Debts | Value |
|---|---|---|---|---|
| All FaHCSIA payments (excluding Disability Support Pension) | 4,585 | 135 | 337 | $6.12m |
| Disability Support Pension | 1,279 | 113 | 293 | $3.99m |
The Budget measure, Fraud and Compliance—Age Pension—additional assessments of the value of real estate assets, and the associated education campaign announced in the 2007–08 Budget, was an extension of the 2006–07 real estate measure. The measure was implemented due to the identification of more Age Pension recipients who were likely to be affected. These age pension recipients, who hold real estate assets other than their own home, were contacted by a direct mail-out in early 2008.
The 2007–08 Budget measure, Fraud and Compliance—consistent assessment of Family Tax Benefit, provided further development of the technology‑based interface between Centrelink and the Australian Taxation Office (ATO). This is to ensure consistency in Family Tax Benefit (FTB) processing by the Family Assistance Office.
This measure has changed due to the 2008 Budget decision Responsible Economic Management—Better targeting and delivery of Family Tax Benefit—Streamlining administration, which removes the option for lump sum FTB payments being made by the ATO as of 1 July 2009. The measure will now target previous lump sum payments made by the ATO to ensure customers were qualified for payments.
The 2007–08 Budget measure, Fraud and Compliance—Age Pension—data exchange with the United Kingdom, provides for recipients of Age Pension who also receive a United Kingdom pension to have their Centrelink payments reviewed as a result of the implementation of a data exchange arrangement with The Pension Service (United Kingdom).
The 2007–08 Budget measure, Fraud and Compliance—transfer of death registration information, provides for the State and Territory Registrars of Birth Deaths and Marriages to provide death registration data on a daily basis to Centrelink and the Department of Veterans’ Affairs.
The 2007–08 Budget measure, Fraud and Compliance—preventing carer payment debt, provides for Carer Allowance and Carer Payment reviews to now focus on customers identified as being at higher risk of incorrect payment, through possible undeclared income and assets or relinquishment of care.
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