Contents
- Part 1 Executive Summary
- Part 2 Performance reporting
- Part 3 Corporate governance and accountability
- Part 4 Appendices
- Part 5 Financial Management
Annual Report 2008–2009
Skip to content | FaHCSIA Home
Annual Report 2008–2009
Annual Report 2008-2009 » Chapter 1: FaHCSIA overview
Improving the lives of Australians by creating opportunities for economic and social participation by individuals, families and communities.
FaHCSIA is the Australian Government's main source of advice on social policy. In 2008-09 we managed 23 per cent of federal budget outlays.
FaHCSIA manages a diverse range of programs and services designed to support and improve the lives of many of the most vulnerable Australians. How we work within our operating environment is detailed on pages 15-25.
FaHCSIA had an operating deficit of $4.4 million in 2008-09 ($9.8 million deficit in 2007-08) from total income of $1,700.9 million. This deficit is the result of an increase in employee provisions, due to a reduction in the discount factor used in the calculation of employee provisions. The decrease in the discount factor is a result of the current economic conditions.
FaHCSIA administered programs totalling $75,737 million in 2008-09 on behalf of the Government ($55,746 million in 2007-08).
| 2007-08 $m | 2008-09 $m | |
|---|---|---|
| Personal benefits | 51,768 | 72,383 |
| Grants | 3,697 | 2,720 |
| Other expenses | 281 | 510 |
| Payments to CAC bodies | - | 124 |
| Total administered expenses | 55,746 | 75,737 |
The increase in direct personal benefits is related to the Australian Government's Economic Security Strategy and increased customer numbers in 2008-09. Grants expenses include only FaHCSIA related payments and these have decreased as a result of the new Federal Financial Relations Framework arrangements agreed by the Council of Australian Governments. The Treasury is accountable for the payment of grants to states and territories under National Partnership Agreements from 1 January 2009. FaHCSIA's 2008-09 financial statements include only National Partnership Agreements payments made during the period 1 July to 31 December 2008.
There were new arrangements for payments to Commonwealth Authorities and Companies Act (CAC Act) bodies from 1 July 2008. All appropriations for CAC Act bodies within the portfolio are now paid to FaHCSIA for on payment to them.
[ top ]
Over the past year the Department has successfully advanced some key change agendas for the Australian Government. These have included the finalisation of the Pension Review and subsequent Secure and Sustainable Pension Reform package; the announcement of the Paid Parental Leave scheme, in the 2009-10 Budget; implementing the Government's commitment to closing the gap on Indigenous disadvantage; developing and implementing the Council of Australian Governments reforms; and taking large steps in furthering the agenda to reduce homelessness and make housing more affordable.
While pursuing this ambitious agenda, the Department also played a key role in responding to the disasters that occurred during the year, including the Queensland floods and the Victorian bushfires, as well as supporting Australians affected by the global financial crisis. I would like to acknowledge those who have been affected by these events. In particular, I would like to pay my respects to those who lost their lives during the Victorian bushfires, and to express my condolences to their loved ones.
This year is the centenary of the Age Pension, which was first paid on 1 July 1909. Coinciding with the centenary was the Pension Review, which generated a great deal of community interest during the year, culminating in a major package of initiatives in the 2009-10 Budget. After nine months of research, analysis and consultation, the final report was used to inform the Government's Secure and Sustainable Pension Reform package, announced in the 2009-10 Budget.
The package provides greater financial security to Australia's 3.3 million age, carer, disability, war widows and widowers, and service pensioners.
I am proud of the quality of the report and wish to thank the Pension Review Taskforce for their hard work and expertise, and the more than 2,000 individuals and organisations who contributed through the consultation process.
2008-09 has been a very difficult year for many Australians and a challenging one for this Department. On 7 February 2009, the worst bushfires in Australia's history occurred in Victoria, resulting in the loss of 173 lives. Storms and flooding occurred in parts of Queensland and New South Wales, and a terrorist attack took place in Mumbai, India, where many Australians were visiting or living.
In response to these disasters, FaHCSIA implemented a range of the Australian Government's immediate assistance measures, including the Disaster Recovery Payment, Funeral/Memorial Assistance, the Income Recovery Subsidy, and other measures including additional emergency relief.
The impact of the global financial crisis on the Australian economy has posed unique challenges to FaHCSIA's response capacity. The crisis has had an impact on the financial resilience and wellbeing of many individuals, families and communities. In December 2008, under the Government's Economic Security Strategy, the Department made a lump-sum payment through Centrelink to seniors, people with disability and carers of $1,400 for singles and $1,050 for each eligible member of a couple.
We delivered payments to support eligible low and middle-income households, families, and people in housing stress as part of a second stimulus package announced by the Government in February 2009.
As part of the Nation Building - Economic Stimulus Plan the Government has committed $5.64 billion1 over three and a half years to the new Social Housing Initiative.
The Social Housing Initiative represents a commitment by the Australian Government and state and territory governments to significantly increase the supply of social housing throughout Australia and provide much needed accommodation to many disadvantaged Australians, particularly those who are homeless or at risk of becoming homeless.
With the assistance of the not-for-profit housing sector the initiative will see up to 19,200 new public and community housing dwellings built.
A further 10,000 dwellings that would have otherwise been lost to the social housing stock will be retained as a result of repairs and maintenance work funded by the Commonwealth.
We will continue to monitor the impacts of the global financial crisis to assist government.
[ top ]
During 2008-09, a landmark year in the finalisation and progressive implementation of the Council of Australian Governments (COAG) reform agenda, the Department has worked to ensure the successful and seamless implementation of this agenda. Under the new Federal Financial Relations Framework, we have contributed to the management of six national partnership agreements (on social housing, Nation Building and Jobs Plan [Social Housing Initiative], Homelessness, Remote Indigenous Housing, Remote Service Delivery and concessions for pensioners and Seniors Card holders) and three national agreements (on affordable housing, disability and Indigenous reform).
The Department also led the development of the National Framework for Protecting Australia's Children 2009-2010. COAG endorsed Protecting children is Everyone's Business: National Framework for Protecting Australia's Children 2009-2010, in April 2009. The Australian Government will continue to work in partnership with the state and territory governments and the non-government sector to implement and deliver the National Framework, and report on progress.
In an endeavour to improve effectiveness and better target programs, FaHCSIA undertook a comprehensive review of a number of its community programs during the year. As a result, we were able to consolidate 20 community programs into four—Community Investment, Financial Management, Family Support and Women. These new programs allow streamlining of administered arrangements, and better targeting of services to direct resources to clients and better respond to changing circumstances.
We have reformed our grant-related administrative practices by introducing a suite of simpler and more user-friendly funding agreements.
Now we have common terms and conditions for all our programs. This will reduce the administrative burden for a large number of our service providers while continuing to ensure funds are used effectively.
FaHCSIA's Strategic Framework 2008-10 sets out six key objectives through which the Department achieves its purpose—improving the lives of Australians by creating opportunities for economic and social participation by individuals, families and communities.
Each year, the Department identifies a number of priorities and actions under these objectives that reflect Government priorities. These priorities are supported by project and business plans across the Department. As I look through the list of priorities for 2008-09, I'm pleased to say that FaHCSIA has delivered on the Government's priorities, and is now strongly positioned to meet emerging challenges and priorities for 2009-10.
In the year ahead, challenges for FaHCSIA will include the continuing need to respond to the global financial crisis, implementation of the COAG reform agenda—including the National Framework for Protecting Australia's Children and the Plan to Reduce Violence against Women and their Children—and implementation of the Government's key reforms—including the Secure and Sustainable Pension Reform package, the Paid Parental Leave scheme and the National Disability Strategy. FaHCSIA will continue to lead the development of a national compact with the not-for-profit sector. A draft compact will be developed by December 2009.
The Department will continue to lead the Australian Government's response to assist the Victorian bushfire recovery and reconstruction effort and respond to other disasters as they occur. Supporting the Government's reform agenda requires a strong evidence base. To this end, FaHCSIA's Research and Evaluation Plan and the Indigenous Affairs Whole-of-Government Research and Evaluation plan provide strategic direction for our research, evaluation and data activities—key components in helping us to develop sound evidence-based policy.
Supporting the Minister and the Government in their agenda to close the gap between Indigenous and non-Indigenous Australians, particularly for those living in remote Australia, continues to be one of the Department's highest priorities.
There are particular challenges for the Department in ensuring effective and timely delivery of the COAG reforms, particularly in respect of remote Indigenous housing and reforms in the priority communities under the Remote Service Delivery National Partnership. Welfare payment reform and moving the Northern Territory Emergency Response into a sustainable development phase—in which income management and other key measures conform with the Racial Discrimination Act 1975—are further challenges in the year ahead.
[ top ]
During the year, the Department welcomed Senator the Hon. Ursula Stephens to the portfolio as Parliamentary Secretary for Social Inclusion and the Voluntary Sector. In this role, Senator Stephens will be working closely with those in the non-government sector.
The Hon. Bill Shorten, MP assumed the additional responsibility of Parliamentary Secretary for Victorian Bushfire Reconstruction.
The year has also seen changes in the Department's Deputy Secretary roles. Geoff Leeper, who had been with the Department for almost two and a half years, moved to take up the position of Deputy Secretary of the Australian Climate Change Regulatory Authority. I would like to take the opportunity to thank Geoff for his dedicated and outstanding contribution to the Department.
FaHCSIA also welcomed two new Deputy Secretaries during 2008-09—Bruce Hunter and Serena Wilson. Bruce and Serena have extensive experience in the Australian Public Service and we are looking forward to their contribution in taking the Department forward in challenging times.
I would like to take this opportunity to thank all staff for their tireless and professional work, and their dedication in the face of significant challenges. Without you we would not have successfully served our Ministers and Parliamentary Secretaries, or contributed to a more positive social landscape for all Australians.
Jeff Harmer
Following the report by the Senate Community Affairs Committee Inquiry into the cost of living pressures on older Australians, in May 2008 the Hon. Jenny Macklin, MP, Minister for Families, Housing, Community Services and Indigenous Affairs, requested that the Secretary of the Department, Dr Jeff Harmer, undertake a review of the pension system. The review investigated the appropriate levels of income support and allowances; the frequency of payments; and the structure and payment of concessions or other entitlements of seniors, carers and people with disability.
An extensive public consultation process received more than 1,800 written submissions from individuals and organisations. To inform this process and address the terms of reference for the review, the Pension Review Background Paper was released in August 2008.
The review held public forums in all capital cities as well as Newcastle, Rockhampton and Wangaratta. Focus groups held in Perth, Melbourne, Sydney, Armidale and Devonport discussed the issues identified in public forums in more depth.
Public consultation also involved the establishment of a Reference Group whose members were drawn from key seniors, carers and disability groups, as well as academia. It included members from organisations such as the Council on the Ageing, National Seniors Australia, Carers Australia, the Association of Superannuation Funds of Australia, the Australian Council of Trade Unions and the Australian Council of Social Services.
As well as the public consultations, the Pension Review undertook a program of research and analysis.
Completed in February 2009, the Pension Review's report assisted the Government to structure the Secure and Sustainable Pension Reform package announced as part of the 2009-10 Budget. The report will also inform the broader inquiry into Australia's Future Tax System.
Next: The portfolio
Previous: Table of contents