Treatment of Commonwealth Payments in the 2012UPDATE

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Treatment of Commonwealth Payments in the 2012UPDATE

I TREATMENT OF COMMONWEALTH PAYMENTS IN THE 2012 UPDATE

Requirements of the terms of reference 1 In 2008, the Australian and State governments established a new intergovernmental agreement (amended in 2011) which:  streamlined specific purpose payments (SPPs) and introduced national partnership payments (NPPs), which may be project payments, facilitation payments or reward payments. The classification of Commonwealth payments is decided by the Australian Government — the commission has no role in that process  indicated governments expect SPPs, National Health Reform (NHR) funding1, project NPPs and general revenue assistance other than the GST to affect State financial capacities and the relativities but that facilitation and reward NPPs would not  indicated changes to the roles and responsibilities for funding and delivering aged care and disability services set out in the NHR Agreement should not influence the per capita relativities, including any adjustments to a State’s entitlement to National Disability SPP. However, the agreement gives the commission discretion to decide the appropriate treatment of NPPs and general revenue assistance, other than the GST, subject to consultation with the Australian and State Governments, and provides for the Treasurer to issue terms of reference directing the commission on the treatment of NPPs. 2 The commission concluded that, after following any directions in the terms of reference, it should decide the treatment of each payment on the basis of equalisation principles. Payments that are available for usual State functions and for which needs have been assessed, including a deliberative equal per capita assessment, will impact on the relativities. The size of payments should not influence the treatment of a payment. 3 The terms of reference for the 2012 Update gave the commission the following directions:  the commission’s assessment should take into account the Intergovernmental Agreement on Federal Financial Relations (as amended)  the following payments should have no direct influence on the relativities:  national partnership reward payments

1 From 1 July 2012 the National Healthcare SPP will be replaced by NHR funding which will be subject to the terms and conditions agreed in the NHR Agreement. 1  payments to deliver the Northern Territory Emergency Response as set out in Schedule M and D of Closing the Gap in the Northern Territory National Partnership Agreement  advance payments made under the Natural Disaster Relief and Recovery Arrangements (NDRRA), where an advance payment in a year is any positive difference between NDRRA payments from the Australian Government to a State and payments of eligible claims under the NDRRA to that State  continue to treat payments as not impacting on the relativities as directed by previous terms of reference. Where those payments are replaced, the commission has discretion on the treatment of those payments.

Guidelines for dealing with Commonwealth payments 4 Apart from those payments that the Commonwealth has provided directions on their treatment, the commission has used the guidelines set out below to assist in its decision-making process. 5 Payments in State (general government) budgets. The guidelines cover transactions treated as payments to the States and Commonwealth own-purpose expenses which relate to State-type services. They cover support for recurrent expenses and capital grants. If the Australian Government were to provide loans these would be treated in the same way as other borrowing by State Governments. However, any debt forgiveness would be treated as a capital grant to the relevant State. 6 The commission has used the following guidelines in dealing with all on-going Commonwealth payments to the States. The treatment of payments that have terminated or are terminating as a result of the IGA will be continued until those payments are no longer in the assessment years.  Any treatment prescribed by the terms of reference will be applied, including to any ongoing payments quarantined in previous terms of reference  National SPPs will have an impact on the relativities — these are available for State budget support and needs are assessed. The exception is non-government schools payments where their disposition does not impact on State fiscal capacities  All other payments should have a direct impact on the relativities unless:  they are a purchase by the Australian Government  they are for programs implemented at the behest of the Australian Government and which lead to above average or unique State outcomes (such as a trial program which is not part of services delivered under average State policy)  they are a payment to a third party that has no impact on State fiscal capacities (States act as an intermediary and the payment does not reduce or increase State needs)  needs have not been able to be assessed for the State expenditures to which the payment relates.2 7 Payments not made to States (general government). The Australian Government also makes payments, including Commonwealth own-purpose expenses, to State trading enterprises (PTEs), nongovernment agencies and individuals. Those payments are not included in our measures of State revenue or expenses. However, they may indirectly affect State fiscal capacities by reducing the call for State provided services. For example, Commonwealth payments direct:  to transport PTEs could reduce the subsidies States are required to provide  to Indigenous community housing authorities may reduce the amount of Indigenous housing States need to provide or  to individuals, such as the Medicare rebates, can reduce the quantity of community health services States provide. 8 A State with above average Commonwealth payments to these third parties may need to spend less than the average per capita amount. Similarly, a State with less than average may be required to spend more. Any such indirect effects on State fiscal capacities need to be recognised if they are material and can be reliably measured. 9 The commission recognises the indirect effects of Commonwealth own-purpose expenses on State budgets if:  there is a conceptual case that they reduce the level of services the States must provide (which will require evidence that the Commonwealth funded services are close substitutes for State services), and  there are reliable data to measure that impact and it is expected to be material. 10 This would be done by acknowledging that these payments result in a disability — States receiving more or less than a per capita share should have this recognised in determining their assessed expenses. The approach means Commonwealth payments to the State or to non-government organisations for similar purposes would have a similar effect and so ensure States have no incentive to structure their Commonwealth payments in a particular way. Such assessments have been made in the Community and other health services category and for remote Indigenous housing in the Welfare and housing services category.

Backcasting 11 If there are major changes in federal financial relations between the historical years used in our assessments and the year the recommended relativities would be applied, we ‘backcast’ the new arrangements, unless the terms of reference direct us not to do so or it cannot be done reliably. Under this backcasting process, State revenues and expenses in the historical years are adjusted to what they would have been if the new federal financial arrangements had been in place at that time. It makes the relativities

2 If an EPC assessment has been made because the commission considers there are no differential disabilities or the assessment would be immaterial, then needs have been assessed. more contemporary by ensuring they better reflect the range, level and interstate allocation of Commonwealth payments that will exist in the application year. 12 The IGA made major changes in the distribution of National SPPs and substantially increased the level of funding available. From 2010-11, the distribution of each National SPP3 will be:  2010-11 — 80% by the distribution set out in Table D3: National SPP share for 2010-11, page D-14 of the Intergovenmental Agreement on Federal Financial Relations plus 20% distributed based on population share  2011-12 — 60% by the distribution set out in Table D4: National SPP share for 2011-12, page D-14 of the Intergovenmental Agreement on Federal Financial Relations plus 40% distributed based on population share  2012-13 — 40% by the distribution set out in Table D5: National SPP share for 2012-13, page D-14 of the Intergovenmental Agreement on Federal Financial Relations plus 60% distributed based on population share  2013-14 — with the exception of NHR funding and the National Disability SPP, 20% by the distribution set out in Table D5: National SPP share for 2012-13, page D-14 of the Intergovenmental Agreement on Federal Financial Relations plus 80% distributed based on population share. NHR funding and National Disability SPP will be distributed 100% based on population share  2014-15 onwards — based on population share. 13 The commission has backcast the distribution of National SPPs from the 2010 Review. Since the application year for the 2012 update is 2012-13, we have:  backcast the 2012-13 distribution of National SPPs into the assessment years because this is a major change in federal financial arrangements affecting the year the relativities will be applied  not backcast the funding increase because it is not practical to estimate the assessment period equivalent amounts or in which expense categories States would have increased their spending and  retained the treatment in past assessment years of payments changing their classification or terminating.

Treatment of each payment 14 Table 1 provides a summary of the treatment accorded each payment. Those payments where treatments are prescribed by the terms of reference are marked with an asterisk. 15 Tables 2 to 4 show payments made in 2008-09 to 2010-11 and the commission’s decision on the treatment of each payment.

3 For the government schools component of the National schools SPP, the relevant population will be each State’s share of full time student enrolments in government schools. 16 Table 5 shows payments commencing in 201112 and 201213. Although these payments will affect the year in which the 2012 update relativities will be applied, we did not backcast any of them. This is because they do not represent a major change in federal financial relations or we have insufficient information on them to make a decision on how they should be backcast. The payments will be reflected in the relativities when they appear in the data for the assessment period in future updates. Table 1 Summary of treatment of Commonwealth payments Payment Year of payments Treatment 08-09 09-10 10-11 GENERAL RVENUE ASSISTANCE GST payments x x x Pool for GST relativities Budget balancing assistance* x No impact on relativities Residual adjustment* x No impact on relativities Royalties x x x Mining revenue Reduced royalties x x x Mining revenue GST policy decisions x x No impact on relativities Snowy Hydro Ltd - company tax compensation x x x Other revenue ACT municipal services x x x No impact on relativities State cellar door subsidy savings* x No impact on relativities

HEALTH Specific purpose payments National healthcare SPP x x Impact on relativities National healthcare and Healthcare grants x Impact on relativities Essential vaccines (service delivery) x Impact on relativities National public health (except for Victorian cytology service) x Impact on relativities Youth health services x Impact on relativities National partnership payments National Health Reform (former National Health and Hospitals Network package) Flexible funding for emergency departments, elective x x Impact on relativities surgery and subacute care Four hour national access target for emergency x x Impact on relativities departments – capital Four hour national access target for emergency x Impact on relativities departments – facilitation funding Improving access to elective surgery – capital funding x x Impact on relativities Improving access to elective surgery –facilitation funding x Impact on relativities New subacute beds guarantee funding x Impact on relativities Closing the Gap NT - Indigenous health and related services* x x No impact on relativities Health infrastructure: Impact on relativities Health and hospital fund Impact on relativities Hospital infrastructure and other national significance x Impact on relativities; National cancer system x Impact on relativities Regional priority round x Impact on relativities

Table 1 Summary of treatment of Commonwealth payments (continued) Payment Year of payments Treatment 08-09 09-10 10-11 other health x x x Impact on and hospital relativities; No fund impact - SAHMRI payments, including to SA Health and Medical Research Institute (SAHMRI) Other Health x x x Impact on infrastructure relativities payments Health Services Early x No impact on intervention relativities pilot program Extension of the x x Impact on COAG Long relativities Stay Older Patients Initiative Healthy kids x x x Impact on health checks relativities National x No impact on antimicrobial relativities utilisation surveillance program National bowel x x x Impact on cancer relativities screening National x x x Impact on Perinatal relativities Depression initiative NT medical x Impact on school – relativities funding contribution Pneumococcal x x Impact on disease relativities surveillance OzFoodNet x x x Impact on relativities Satellite renal x x x Impact on dialysis relativities facilities in remote NT communities Sexual assault x x x Impact on counselling in relativities remote NT areas Torres Strait x x x Impact on health relativities protection strategy Reducing acute x x x Impact on rhematic heart relativities fever - indigenous children Royal Darwin x x x No impact on Hospital – relativities equipped, prepared and ready Vaccine- x x Impact on preventable relativities diseases surveillance Victorian x x x No impact on cytology service relativities Health care x No impact on grants for relativities Torres Strait* Supporting x x No impact on nurses back into relativities workforce - cash bonus incentive Supporting x x Impact on nurses back into relativities workforce - training payment Helping public x Impact on patients in relativities hospitals waiting for nursing home places Longer stay x Impact on older patients in relativities public hospitals PET scanner for x Impact on Westmead Hospital, relativities Sydney Preventive health Enabling x Impact on infrastructure relativities Healthy x x No impact on communities relativities Social x Impact on marketing relativities Health and hospital x Impact on workforce reform relativities Highly specialised x No impact on drugs relativities East Kimberley x x Impact on development relativities package - health related project Elective surgery x x x Reward – No waiting list impact Other - reduction program impact Table 1 Summary of treatment of Commonwealth payments (continued) Payment Year of payments Treatment 08-09 09-10 10-11 Health (continued) Essential vaccines (vaccine purchase) x x x No impact on relativities Repatriation x x No impact on general hospitals relativities Organ x x No impact on transplantation relativities services - Recurrent Organ x x No impact on transplantation relativities services - Capital Indigenous early childhood development - Antenatal and x x Impact on relativities reproductive health Indigenous mobile dental program x Impact on relativities

EDUCATION Specific purpose payments National schools SPP- Government x x x Impact on relativities

National schools SPP - Non-government x x x No impact on relativities - School grants (was called Government schools) x Impact on relativities - School grants (was called Non-government schools) x No impact on relativities - Targeted programs - Government schools x Impact on relativities - Targeted programs - Non–government schools x No impact on relativities - Indigenous education strategic initiatives program - x Impact on relativities government National partnership payments Closing the Gap - NT - Indigenous education services x x No impact on relativities (teacher housing, quality teaching, accelerated literacy, additional teachers supporting remote schools)* Digital education revolution x x x Impact - Government; No impact - Non-govt Early childhood education- universal access x x x Impact on relativities East Kimberley development package - education related x x Impact on relativities payments Education Investment Fund x x No impact on relativities Fort Street High School - noise insulation x x No impact on relativities Indigenous early childhood development - children and x x x Impact on relativities family centres Nation Building and Jobs Plan - Building the education x x x Impact - Government; revolution No impact - Non-govt National quality agenda - early childhood education and care x Impact on relativities National solar schools program x x Impact - Government; No impact - Non-govt Pre-apprenticeship treatment x Impact on relativities School pathways program x x No impact on relativities Table 1 Summary of treatment of Commonwealth payments (continued) Payment Year of payments Treatment 08-09 09-10 10-11 Education (continued) Secure Schools Program x x x No impact on relativities Smarter schools - Improving teacher quality x x x Impact on relativities Smarter schools - x x x Impact – Literacy and Government except numeracy reward; No impact - Non-govt, Government reward Smarter schools - x x x Impact on Low socio- relativities economic status school communities Trade training x x x Impact - centres in schools Government; No impact - Non- government Children's services x No impact on relativities

NATIONAL SKILLS AND WORKFORCE DEVELOPMENT Specific purpose payments National skills and x x x Impact on workforce relativities development Skilling Australia's x Impact on workforce relativities National partnership payments Better TAFE x x Impact on facilities relativities National Disaster x No impact on Queensland– relativities Community Work Placements Productivity places x x x Impact on program relativities TAFE fee waivers x x x No impact on for childhood relativities qualifications Youth attainment x x Impact on and transitions - relativities Maximising engagement, attainment and successful transitions

COMMUNITY SERVICES Specific purpose payments National disability x x x Impact on services relativities Disability services x Impact on relativities Young people with x Impact on disabilities relativities National partnership payments Transitioning for x Impact on aged care and relativities disabilities-Basic community care maintenance and support services Aged care x x x Impact on assessment relativities Certain concessions x x x Impact on for pensioner and relativities senior card holders National reciprocal x x x Impact on transport relativities concessions Closing the Gap - x x No Impact on NT - Community relativities services (Remote policing and substance abuse, Community safety - family support, field operations, food security, property and tenancy management)* Home and x x x No impact on community care - relativities services for veterans Home and x x Impact on community care relativities Victorian bushfire x x No impact on reconstruction and relativities recovery plan

Table 1 Summary of treatment of Commonwealth payments (continued) Payment Year of payments Treatment 08-09 09-10 10-11 Community services (continued) Unaccompanied humanitarian minors x No impact on relativities National action plan to build on social cohesion, harmony x No impact on relativities and security Family violence partnerships x Impact on relativities

AFFORDABLE HOUSING Specific purpose payments National affordable housing x x x Impact on relativities - Commonwealth–State housing agreement x Impact on relativities - Community housing x Impact on relativities - Crisis accommodation assistance x Impact on relativities - Housing assistance for Indigenous people x Impact on relativities - Supported accommodation assistance x Impact on relativities National partnership payments East Kimberley development package – social and x x Impact on relativities transitional housing projects First home owners boost x x x No impact on relativities Homelessness x x x Impact on relativities Nation building and jobs plan - social housing (includes first x x x Impact on relativities and second stage construction and repairs and maintenance) Remote Indigenous housing x x x No impact on relativities Social housing x x Impact on relativities Social housing subsidy program x x Impact on relativities

INFRASTRUCTURE National partnership payments East Kimberley development package - States x x x Impact on relativities East Kimberley development package - Local government x x x No impact on relativities Interstate road transport x x x Motor taxes revenue Local Government and Regional Development Infrastructure x x Impact – States; No employment projects (formerly known as Jobs Fund) impact –Local Local community sporting infrastructure x x x No impact on relativities Nation building program (former Auslink) x x x Impact – maintenance, 50 % of construction of National network roads (NNRs), off-NNRs, and Rail; No impact – 50% of NNR, Local roads and Roads to recovery* Nation building program - local government x No impact on relativities Nation building plan for the future x x x Impact - Rail & 50% of NNR; No impact - 50% of NNR Table 1 Summary of treatment of Commonwealth payments (continued) Payment Year of payments Treatment 08-09 09-10 10-11 Infrastructure (continued) Building Australia Fund - rail x x Impact on relativities Building Australia Fund - road x x 50% Impact; 50% No impact North Penrith Thornton Park Car Park x No impact on relativities Regional and Local Community Infrastructure Program x x x No impact on relativities Regional Infrastructure Fund Stream 1 – Committed x Impact on relativities Seamless National Economy – National Heavy Vehicles x No impact on relativities Transport Regulator Seamless National Economy – National Rail Transport Safety x No impact on relativities Regulator Supplementary funding to SA councils for local roads x x x No impact on relativities Federation Fund projects x No impact on relativities Kings Highway upgrade x No impact on relativities

ENVIRONMENT National partnership payments Bioremediation and revegetation x x No impact on relativities Caring for our Country* x x x No impact on relativities Eradication of red imported fire ant x No impact on relativities Environment management of former Rum Jungle mine site x x No impact on relativities Exotic diseases Preparedness program x x x No impact on relativities Great Artesian Basin initiative x x x Impact on relativities Natural disaster recovery and rebuilding relief appeals – x No impact on relativities Commonwealth contribution Natural disaster resilience x x No impact on relativities Bushfire mitigation program x x No impact on relativities Natural disaster mitigation package x x No impact on relativities Plant disease and eradication x x x Impact on relativities Renewable remote power generation x x x Impact on relativities Water for the future x Impact on relativities - Water for the future - States x x Impact on relativities - Water for the future - Local governments x x No Impact on relativities Living Murray (was National Water initiative - Living x x No impact on relativities Murray) Transfer of Commonwealth land to Victoria - Point Nepean x No impact on relativities

CONTINGENCIES National partnership payments Exceptional circumstances assistance x x x No impact on relativities Equine influenza emergency response x No impact on relativities Hepatitis C settlement fund x x x No impact on relativities Natural disaster recovery and rebuilding (former Natural x x x No impact on relativities disaster relief)

Table 1 Summary of treatment of Commonwealth payments (continued) Payment Year of payments Treatment 08-09 09-10 10-11 OTHER STATE SERVICES National partnership payments Digital regions initiative - States x x Impact - States; No impacts - payments to third parties Digital regions initiative - Local government x No impact on relativities Improving policing in very remote areas x x x Impact on relativities Legal assistance services x x x No impact on relativities Local Government and Regional Development Reform Fund x Impact on relativities Native title x No impact on relativities Pilot of drought reform measures in Western Australia* x No impact on relativities Remote Indigenous public internet access x x Impact on relativities Sinking fund on State debt* x x x No impact on relativities Standard business reporting program x x x No impact on relativities Tasmanian forest contractors financial support program x No impact on relativities World Sailing Championships x x No impact on relativities Film and literature classifications x x No impact on relativities Restoration of Albert Hall, Canberra x No impact on relativities Queensland Premier's Disaster Relief Appeal x No impact on relativities Seamless national economy x No impact on relativities CrimTrac reference system x No impact on relativities North East Tasmania micro capital scheme x Impact on relativities Sydney Cricket Ground - new grandstand x No impact on relativities Strengthening Tasmania x No impact on relativities National emergency warning system x No impact on relativities

LOCAL GOVERNMENT – FINANCIAL ASSISTANCE GRANTS Local government general purpose assistance x x x No impact on relativities Untied local road grants x x x No impact on relativities Table 1 Summary of treatment of Commonwealth payments (continued) Payment Year of payments Treatment 08-09 09-10 10-11 Commonwealth own-purpose expenses – Payments to States Payments to States for emergency services x x x Impact on relativities Health and Substance Abuse program grants - Indigenous x x x Impact on relativities purposes Family violence partnerships x x x Impact on relativities Payments to States for Australian technical colleges (paid as x Impact - Government; NPP until 2007-08) No impact - Non- government Other COPEs to States x x x No impact on relativities

* Treatment prescribed by the terms of reference. Source: Commonwealth of Australia Final Budget Outcome and information collected from other Commonwealth agencies. Table 2 General revenue assistance Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ General revenue assistance (GRA) GST payments 2008-09 to GST revenue 2010-11 Budget Assistance to the States during the transitional 2008-09 to No impact on Required by balancing period (expired 30 June 2009) if a State’s share of 2009-10 relativities terms of assistance and GST payments in a financial year is less than its reference. Residual minimum guaranteed amount for that year. adjustment ACT municipal Payments to compensate the ACT for the effects of Payment to ACT only. 2008-09 to No impact on For a unique services national capital influences on the costs of proving 2010-11 relativities State policy or municipal type services. above average effort. Royalties Includes the transfer of two-thirds of 2008-09 to Mining Commonwealth Government’s petroleum royalties 2010-11 revenue and from North Shelf Project to Western Australia; and assessed APC payment to the Northern Territory in lieu of uranium royalties. Reduced Payment to Western Australia for the loss of shared An initial payment of 2008-09 to Mining royalties (was Offshore Petroleum Royalty revenue resulting from $80 million was paid to 2010-11 revenue and called imposing the Crude Oil Excise on condensate. This Western Australia in assessed APC Compensation - arises because Crude Oil Excise payments are a 2007-08, with payments in crude oil excise deductible expense for calculating the Offshore subsequent years adjusted condensate) Petroleum Royalty. to equal the impact of removing the condensate.

Table 2 General revenue assistance (continued) Payment Program description Interstate distribution Conditions Year paid in Treatme Reason for ‘No U2012 nt in impact’ U2012 General revenue assistance (GRA) (continued) GST policy decisions To compensate the 2008-09 to 2009-10 No impact on Payment relates only (former GST deferral States for the deferral relativities to timing of GST of GST collections payments. that may occur when organisations move to annual lodgement. This ensures that the full financial impact of the Commonwealth’s decision is borne by the Commonwealth and not the States. Snowy Hydro Ltd — To compensate 2008-09 to 2010-11 Other revenue and company tax Victoria and New assessed EPC compensation South Wales for company tax payments by Snowy Hydro Ltd. Snowy Hydro is jointly owned by the Commonwealth, New South Wales and Victorian Governments. State cellar door States previously 2009-10 No impact on Required by terms of subsidy savings agreed to return relativities reference. savings arising to them from the Commonwealths introduction of the wine equalisation tax provider rebate. Rather than the States returning these savings annually, the Commonwealth recovered the present value to extinguish all current and future State commitments. Source: Commonwealth of Australia Final Budget Outcomes. Table 3 Other payments Payment Program description Interstate distribution Year paid in U2012 Treatment in Reason for ‘No U2012 impact’ Health services specific purpose payment (SPPs) National Healthcare Funding to support The National 2009-10 to 2010-11 Impact on relativities SPP State healthcare healthcare SPP services. The 2009-10 includes Healthcare base funding for this grants, National SPP will be provided public health, Youth on an on-going basis health services and and indexed from 1 Essential vaccines July 2010 by a growth (service delivery). factor. Healthcare grants Funding under the Distributed on an States are required to 2008-09 Impact on relativities Australian Health annual basis in maintain a level of Care Agreements accordance with the public patient which assists the Agreements, subject services. provision of public to a determination by hospital services free Minister for Health of charge to eligible and Aged Care. persons. National public health To provide subsidies Based on a resource . 2008-09 Impact on relativities — excluding for health promotion allocation formula, Victorian Cytology and disease COAG Diversion and service prevention. It Illicit Drugs, includes: Public Hepatitis C are based Health Outcome on weighted predicted Funding Agreements, population estimates Council of Australian each year. Governments Diversion Initiative, the Non-government Treatment Grants (NSW only), Hepatitis C Education and Prevention Budget Initiative and COAG Illicit Drug Diversion Package. Youth health services To fund community Based on State States match funding 2008-09 Impact on relativities based organisations to population on a dollar for dollar enable them to distributions with basis. develop and ACT and NT implement innovative receiving a minimum primary health care percentage of the services for homeless overall funding. and at-risk youth.

Table 3 Other payments Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ Health services SPPs (continued) Essential Funding for the delivery of 2008-09 Impact on vaccines vaccines under the national relativities (service immunisation program. Only delivery) the service delivery component of this program is included in the National Healthcare SPP. National Partnership Payments for Health services Health and To improve the efficiency of States 2008-09 Impact on hospital public hospital services, contribute to relativities workforce enhance health workforce the Workforce reform capability and supply, enablers increase the volume and components. quality of subacute care services, and improve the operations of emergency departments. National Funding for hospitals and Western Australia has been treated as a signatory 2009-10 Impact on health and mental health. Consists of State. relativities hospital payments for 1) Hospital for network Four hour national access package target for emergency departments, Improving access to elective surgery, New sub-acute hospital beds, Flexible funding for emergency departments, elective surgery and subacute care, 2) Mental health for Expanding the early psychosis prevention and intervention centre model, 3) Aged care for supporting long stay older patients and 4) Expanding access to multi- purpose services. National Improving public hospital 2010-11 Impact on Health services – relativities Reform Flexible funding for emergency departments, elective surgery and subacute care; Four hour national access target for emergency departments-capital; Improving access to elective surgery-capital; New subacute beds guarantee funding Closing the Indigenous health and related 2009-10 to No Impact on Required by Gap – NT services 2010-11 relativities terms of reference. Table 3 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatme Reason for ‘No U2012 nt in impact’ U2012 National Partnership Payments for healthcare (continued) Health infrastructure To support 2008-09 to 2010-11 No impact– Payment No impact - Payment – Health and hospital infrastructure for to SA Health and to a third party – fund three reform Medical Research States act as an priorities: expand and Institute; Impact – intermediary and the modernise key public Other payments payment does not hospitals; deliver reduce or increase national consistent State needs. cancer services; and invest in translational medical research.

Health infrastructure Funding for health PET scanner for 2008-09 to 2010-11 Impact on relativities – Other Health infrastructure Westmead Hospital, infrastructure projects. Includes: Sydney (now in Tasmanian health Health services from package; Tasmanian 2009-10) health package — PET scanner for the Royal Hobart Hospital; PET scanner for Calvary Mater Hospital, Newcastle; PET scanner for Westmead Hospital, Sydney; Olivia Newton-John Cancer Centre, Melbourne; Children’s cancer centre, Adelaide; Lismore integrated cancer centre; Cairns Base Hospital chemotherapy cancer initiative; Cairns integrated cancer centre; Health infrastructure projects in Tasmania; and Health infrastructure grants for Victoria, New South Wales and Queensland; Contribution towards the new Women’s and Children’s Hospital in Hobart; Funding for Grafton Hospital;. Table 3 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for healthcare (continued) Health Consist of payments for: PET scanner for Westmead Hospital, Sydney (was 2008-09 to Cash bonus – Cash bonus to services Health kids health checks; in Health infrastructure until 200809) 2010-11 No impact on nurses – States Reducing rheumatic heart relativities act as an fever for Indigenous children; intermediary National bowel cancer Others – and the screening program; National Impact on payment does peri-natal depression relativities not reduce or initiative; OzFoodNet; increase State Pneumococcal disease needs. surveillance; Vaccine preventable diseases surveillance program; National health program — human quarantine services; Torres Strait Islander health protection strategy — mosquito control; Sexual assault counselling in remote NT areas; Satellite renal dialysis facilities in remote NT communities; Supporting nurses back into the workforce; Helping public patients in public hospitals waiting for nursing homes. The program also consists of 2008-09 to No impact on Required by payments quarantined by the 2009-10 relativities terms of terms of reference: Victorian reference. cytology services; Royal Darwin Hospital — equipped, prepared and ready; and Healthcare grants for the Torres Strait. Preventive Enabling infrastructure –The 2009-10 to Impact on health – Commonwealth has 2010-11 relativities Enabling established the Australian infrastructure, National Preventive Health Social Agency, and has created the marketing Australian Health Survey. The Survey collects representative data on the prevalence of chronic diseases and lifestyle related risk factors amongst Indigenous and non- Indigenous Australians, including nutrition, physical activity and biomedical measures. Social marketing – funding to develop social marketing campaigns that extend and complement the Australian Better Health Initiative and reinforce local activities on preventive health. Table 3 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for healthcare (continued) Preventive The Commonwealth 2009-10 No impact on Payment to a health – provides funding to support relativities third party – healthy the national rollout of States act as an communities successful and effective intermediary communitybased physical and the activity and healthy eating payment does programs. not reduce or increase State needs. Other - East Funding for health Payment to Western Australia. 2009-10 to Payments for Purchase of Kimberley infrastructure projects. 2010-11 environment services by development Priorities under the package health Commonwealth package – include primary and measures and or local health related preventive health care, drug Aged care - government projects and alcohol services, short No impact on functions. term patient accommodation, relativities housing for health service Others – providers, improvements to Impact on remote clinics, aged care relativities facilities and environmental health measures. Other - To reduce waiting lists for Funding is also available as performance rewards 2008-09 to Impact on Required by Elective surgery in public hospitals. for those States which reduce elective surgery 2010-11 relativities; terms of surgery Includes funding for the waiting times and increase surgery throughput. No impact on reference – waiting list construction of additional relativities – reward reduction operating theatres and the reward payments program and purchase of new surgical payments incentives equipment to improve long- term elective surgery performance. Table 3 Other payments (continued) Payment Program description Interstate distribution Treatment in U2012 Reason for Year paid in ‘No impact’ U2012 National Partnership Payments for healthcare (continued) Essential Funding for essential vaccines for immunisation 2008-09 to 2010-11 No impact on Purchase by vaccines under the National Vaccine Schedule. Paid as a relativities Commonwealth National Partnership payment until the Government. Commonwealth enters into centralised purchasing arrangements for individual vaccines. Indigenous Payment of $107 million over five years to 2009-10 to 2010-11 Impact on early childhood improve access to antenatal care by young relativities development – Indigenous mothers, and support young antenatal and Indigenous women to make informed decisions reproductive about their sexual and reproductive health. health Organ To reimburse New South Wales and South Australia Payment to New South 2008-09 to 2009-10 Recurrent and Payment to a transplantation for 40% of the cost of certain transplantation-related Wales and South Australia capital – No third party – services services conducted by the Australian Red Cross only. impact on States act as an Blood Service. relativities intermediary The Commonwealth will meet its future payment and the commitments to States by providing a single payment does payment in 200809 and ceasing future payments. not reduce or increase State needs. Indigenous To provide mobile dental facilities to the 2010-11 Impact on mobile dental indigenous Australians relativities program Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for healthcare (continued) Repatriation Funding for a nontreatment nature such as accrued Payments to New South 2008-09 to No impact on Purchase of general leave credits, income maintenance, superannuation Wales, Victoria, South 2009-10 relativities services by hospitals differential etc in accordance with agreements Australia and Tasmania Commonwealth reached on integration of repatriation general only. Government. hospitals. The Commonwealth will meet its future payment commitments to States by providing a single payment in 200809 and ceasing future payments. Closing the Payment of $18.7 million over three years to the 2009-10 No impact on Continuation of Gap – NT Northern Territory to continue strengthening the relativities NTER – Indigenous measures initiated under the Northern Territory quarantined by health and Emergency Response (NTER) for health. previous terms related of reference services Highly To provide access to certain drugs under the The Commonwealth 2008-09 No impact on Purchase of specialised Pharmaceutical Benefits Scheme supplied through Government funds all use relativities services by drugs (became hospitals to outpatients, because of special need in of highly specialised drugs Commonwealth Commonwealth clinical administration or monitoring. A small by hospital outpatients. Government. own-purpose number of hospitals have commenced this transition expense and by 2012 all hospitals will be claiming directly (COPE) from 1 from Medicare Australia. July 2009) Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatme Reason for ‘No U2012 nt in impact’ U2012 Education services SPP National Funding to support schools. Includes Government and 2008-09 to Govern Non-government Schools Non-government school 2010-11 ment – Payment to a third grants, Indigenous Impact party – States act as education strategic on an intermediary and initiatives — relativiti the payment does not Government, Targeted es reduce or increase programs — Government Non- State needs. and Nongovernment governm ent – No impact on relativiti es School Grants Recurrent grants — Recurrent grants — Recurrent — No 2008-09 Impact on relativities Government (was for staff salaries, per student basis and matching conditions; called Government teacher profession adjusted for Capital —50% for schools) development, movements in facilities for existing curriculum average government students. development and school operating general operation costs. provisions. Capital grants — Capital grants — for based on total school the provision, enrolments. maintenance and upgrading of school facilities. Indigenous education Funding to State 2008-09 Impact on relativities strategic initiatives — education providers in government the pre-school, school and vocational education and training sectors, as well as project based funding aimed at improving Indigenous education outcomes. Targeted programs — Funding to 2008-09 Impact on relativities government government schools for the improvement of literacy, numeracy and educational outcomes for educationally disadvantaged students, to promote the study of other languages, and to assist in the transition from school to work. Table 4 Other payments (continued) Payment Program description Interstate distribution Year paid in U2012 Treatm Reason for ‘No ent in impact’ U2012 Education services SPP (continued) School grants Non- Funding to Recurrent grants — Capital – 50% of 2008-09 No impact on Payment to a third government (was nongovernment number of eligible funds allocated in a relativities party – States act as called non- schools through per students enrolled in triennium for existing an intermediary and government schools) capita general non-government school students. the payment does not recurrent grants and schools. Capital reduce or increase capital grants as well grants — according to State needs. as hostels for rural a schedule approved students. by the Minister each year. Targeted Funding to non- 2008-09 No Payment to a third programs — government schools for the impact party – States act as Nongovernment improvement of literacy, on an intermediary and numeracy and educational relativit the payment does not outcomes for educationally ies reduce or increase disadvantaged students, to State needs. promote the study of other languages, and to assist in the transition from school to work. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ National Partnership Payments for education Closing the Gap The Government's Teacher Housing — Funding to support the 2009-10 to 2010-11 No Continuation of in the NT - Indigenous education construction of up to 22 additional teacher impact NTER – quarantined Quality initiatives strategically houses in NTER communities. on by previous terms of teaching, target issues impacting Quality teaching, accelerated literacy — Funding relativit reference accelerated adversely on the of $44.3 million to improve teacher quality and ies literacy; educational outcomes of foster better outcomes for Indigenous students in Supporting Indigenous students and remote NTER communities. Supporting remote remote schools – focus on the attainment of schools — Funding to support remote schools additional the 'Closing the Gap' teachers; targets. Teacher housing education Digital Education A National Secondary 2008-09 to 2010-11 Government – Impact Non-government Revolution (includes School Computer on relativities Payment to a third National secondary Fund has been Non-government – party – States act as schools computer established to provide No impact on an intermediary and fund) grants of up to relativities the payment does not $1 million to eligible reduce or increase secondary schools to State needs. assist them in providing new or upgraded information and communication technology to students in Years 9 to 12.

Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ National Partnership Payments for education (continued) Early childhood Funding with the 2008-09 to 2010-11 Impact on relativities education – universal objective that children access to early have access to education affordable, quality early childhood education in the year East Kimberley Paymentbefore for formal education Concerted action in these areas will improve 2009-10 to 2010-11 No Payment to a third development and training infrastructure socio-economic status, employment and impact party – States act as package – projects. Investment workforce participation of Indigenous people. – an intermediary and education priorities under the teacher the payment does not related package include early training reduce or increase payments childhood development, facilitie State needs. primary and secondary s schooling, post secondary Other education and training, paymen and community meeting ts - facilities in remote Impact locations. on relativit ies Education investment Payment of (The Fund is a major Payments to States 2009-10 to 2010-11 No impact on Payment to a third fund $38 million to New component of the other than New relativities party – States act as South Wales over Government's South Wales are an intermediary and two years. Education made directly to the payment does not Funding under this Revolution. The role service providers. reduce or increase program is available is to build a modern, The administrative State needs. to higher education productive, arrangements in New institutions, internationally South Wales should vocational education competitive not affect its and training Australian economy relativities.) providers and by supporting research institutions. worldleading, Staff at DEEWR strategicallyfocused advised that VET infrastructure providers must be a investments that will registered training transform Australian organisation (RTO) tertiary education). to be eligible for the funding. The administrative arrangements in New South Wales are such that the State is a RTO and is eligible to receive funding. In the other States, payments go directly to RTOs. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for education (continued) Fort Street High Payment over three years to New South Wales to 2009-10 to No impact on Purchase of school – noise provide aircraft noise insulation works at the Fort 2010-11 relativities services by the insulation Street High School in the State. The work is Commonwealth managed by New South Wales and will be done in conjunction with on-campus works associated with the Building the Education Revolution Program. Indigenous early Funding to reduce the 2008-09 to 2010-11 Impact on relativities childhood gap in development development — between Indigenous education – child and and nonIndigenous family centres children by improving access to early childhood education. Nation Building To improve capital infrastructure for the benefit of Primary Schools for the 2008-09 to Government – Non- and Jobs Plan – schools and their local communities in Australia. 21st Century enrolment 2010-11 Impact on government Building the This measure is part of the Nation Building and Jobs numbers; Science and relativities Payment to a education Plan announced by the Government in February Language Centres for 21st Non- third party – revolution - 2009. It includes Primary Schools for the 21st Century Secondary government – States act as an Primary schools Century; Science and Language Centres for 21st Schools secondary No impact on intermediary for the 21st Century Secondary Schools; and National School schools submit a priority relativities and the payment century Pride program. list of projects to the does not reduce Commonwealth for or increase State approval; National School needs. Pride program — enrolment numbers. National quality To improve educational and development outcomes 2010-11 Impact on agenda for early for children, improve public knowledge of and relativities childhood access to, information about the quality of early education and childhood education and care services. care Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ National Partnership Payments for education (continued) National Solar Payment to help primary and secondary schools 2009-10 to Government – Non-government Schools around the country take practical action to save 2010-11 Impact on Payment to a Program energy and water while cutting their utility bills. relativities third party – Non- States act as an government – intermediary and No impact on the payment relativities does not reduce or increase State needs. Pre-apprenticeship To help increase the 2010-11 Impact on relativities training number of pre- apprenticeship training opportunities. School Payment over five years to South Australia and Focus will be on 2009-10 to No impact on Purchase of pathways Western Australia with a focus on providing a advanced 2010-11 relativities services by the program career path for young people wanting to enter the manufacturing, maritime Commonwealth defence industry. and technology skills. The program is designed to increase the pool of young people ready to move from school into further education and apprenticeships and parttime work/study combinations in the defence industry. Secure Schools To assist at-risk 2008-09 to 2010-11 No impact on Payment relates to program religious, ethnic and relativities State expenses where secular schools meet needs could not be their particular assessed. security needs. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for education (continued) Smarter schools To attract, train, place, develop and retain quality 2008-09 to Government– - Improving teachers and leaders in schools. These reforms 2010-11 Impact on teacher quality provide a platform for raising student performance relativities and support other school reforms targeting low socio- economic status school communities and literacy and numeracy outcomes. Smarter schools Funding to improve literacy and numeracy, with a 2008-09 to Government – Non- - Literacy and priority focus on primary-aged students at risk of 2010-11 Impact on government numeracy falling behind, including Indigenous students. The relativities Payment to a reforms contribute to literacy and numeracy Government third party – outcomes identified in the National Education reward States act as an Agreement and the COAG target to halve the gap for payments and intermediary Indigenous students in reading, writing and Non- and the numeracy within a decade. government – payment does No impact on not reduce or relativities increase State needs; Government reward payments as per Terms of Reference. Smarter schools Funding to improve education outcomes in low 2008-09 to Government– - Low socio- socioeconomic status (SES) communities. The 2010-11 Impact on economic status National Partnership contributes to COAG's social relativities school inclusion and Indigenous disadvantage agendas communities through the identification of reforms and models of service delivery that achieve improved educational outcomes for low SES school communities. Table 4 Other payments (continued) Payment Program description Interstate distribution Year paid in U2012 Treatme Reason for ‘No nt in impact’ U2012 National Partnership Payments for education (continued) Trade training centres For the provision of 2008-09 to 2010-11 Government – Impact Non-government in Schools facilities to enhance on relativities Payment to a third vocational education Non-government – party – States act as opportunities for No impact on an intermediary and students in years 9 to relativities the payment does not 12 in every reduce or increase government and State needs. nongovernment secondary school. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatme Reason for ‘No U2012 nt in impact’ U2012 National skills and workforce development SPPs National skills To work towards increasing the skill levels of all Includes skilling 2008-09 to Impact and workforce Australians, including Indigenous Australians. Australia’s workforce 2010-11 on development from 2009-10 relativiti SPP es Skilling To provide a nationally identifiable and consistent Population share (mix of 2008-09 Impact Australia’s vocational education and training system. Funds are historical and current). on Workforce paid to the Australian National Training Authority relativiti (ANTA) for allocation to the States. es National Partnership Payments for national skills and workforce development Better TAFE Payment to improve infrastructure in TAFE Paid in 2009-10 only. 2009-10 Impact facilities facilities. These payments are part of the overall on $500 million being invested under the Teaching relativiti and Learning Capital Fund for Vocational es Education and Training announced as part of the Nation Building Package. National To provide jobs for local displaced residents for up 2010-11 No Payment to a third Disaster QLD – to six months to assist with the reconstruction of impact party – States and the Community public and community infrastructure. Projects are on payment does not Work developed in flood and cyclone affected areas relativiti reduce or increase Placements throughout Qld with a focus on areas of greatest es State needs. need. Productivity To reduce skills shortages and increase the The Commonwealth 50/40/10 cost 2008-09 to Impact places program productivity of industry and enterprises. It is part of provides data to Skills sharing across 2010-11 on the Skilling Australia for the Future initiative. Australia to assist in the relativiti identifying industries, Commonwealth, es occupations and regions States and with skill shortages. private sources. Table 4 Other payments (continued) Payment Program description Interstate distribution Year paid in U2012 Treatme Reason for ‘No nt in impact’ U2012 National Partnership Payments for national skills and workforce development TAFE fee To remove fees for the The Agreement applies to student activity of the 2008-09 to 2010-11 No Purchase of services waivers for diploma and advanced 2009 calendar year only. A longer term impact by Commonwealth childcare diploma of children's arrangement will be negotiated by the parties to on Government. qualifications services courses delivered this agreement in 2010. relativiti at TAFE institutions, or es other government VET providers. This agreement will assist in meeting the objectives of agreement on Early Childhood Education, agreed by COAG on 29 November 2008. Youth Funding over five years to The NPP includes two payments to the States: 2009-10 to 2010-11 Impact attainment and improve young people's  to address the reform areas of multiple on transitions – engagement with learning, learning pathways, career development, and relativiti maximising levels of Year 12 or mentoring — maximising engagement, es – engagement, equivalent attainment, and attainment and successful transitions; and reward attainment and transition to further  to improve participation rates in 2010 and payment successful education, training, or Year 12 or equivalent attainment rates in 2012 s will be transitions employment. — reward funding. States that receive the decided It also provides reward funding will use it for education and when it $100 million in reward training purposes. is paid funding to the States for progress towards the COAG target of 90% Year 12 or equivalent attainment for 20 to 24 year olds by 2015. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ Community Services SPPs National To support State community services. At its meeting Includes payments for 2008-09 to Impact on disability SPP of 29 November 2008, COAG agreed to a oneoff Young people with 2010-11 relativities payment of $70 million to the States in 200809, and disabilities and Disability to roll the Disabilities Assistance Package into the services from 2009-10 base National Disability SPP. Young people To reduce the numbers of younger people with a The States will contribute 2008-09 Impact on with disabilities disability in residential aged care, with priority given up to $122 million over relativities to people aged less than 50 years. the 5 years on an annual basis. Disability To assist in the provision of accommodation support Based on historical Additional 2008-09 Impact on services and other services for people with disabilities. arrangements during the funding based relativities first agreement (1991-92 on population to 1996-97). shares. National Partnership Payments for community services Aged care To enable Aged Care Assessment Teams to Needs-adjusted, 2008-09 to Impact on assessment comprehensively assess the care needs of frail older population-based 2010-11 relativities people and to establish their eligibility for approach. appropriate residential aged care, transitional care and community care services. Certain To contribute towards the cost of certain concessions 2008-09 to Impact on concessions for for pensioners. It includes the Extension of Fringe 2010-11 relativities pensioner and Benefits. seniors card holders National To enable Seniors Card holders to access public 2008-09 to Impact on reciprocal transport concessions when they travel outside their 2010-11 relativities transport home State. concessions Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ National Partnership Payments for community services (continued) Closing the Gap Payment of $161.3 million Includes payments for Remote policing and 2009-10 to 2010-11 No Continuation of in the Northern over three years from substance abuse, Community safety – family impact NTER – quarantined Territory 200910 to continue and support, Field operations and Property and tenancy on by previous terms of strengthen the measures management relativiti reference initiated under the es Northern Territory Emergency Response (NTER) for community services. Transitioning To implement roles 2010-11 Impact responsibilities associated with on for aged care Commonwealth taking full relativiti and disability funding for basic es community care services and specialist disability services for people aged 65 years and over. Home and To support Home and 2008-09 to 2010-11 No Purchase of services Community Community Care program impact by Commonwealth Care — services provision of community on Government. for veterans care services to veterans. relativiti es Home and For the provision of Equal per capita across target population. 2008-09 to 2009-10 Impact community care appropriate community care on services to help frail aged relativiti people and people with a es disability live independently in their homes as long as possible. Victorian In October 2009, the This program covers projects that are not funded 2009-10 to 2010-11 No Payment to a third bushfire Commonwealth and under the NDRRA, and the payment is made in impact party – States act as reconstruction Victorian Governments addition to $21.2 million is being provided on an intermediary and and recovery agreed to provide funding towards the Rebuilding Together plan relativiti the payment does not plan for initiatives in es reduce or increase Rebuilding Together: A State needs. State-wide Plan for Bushfire Reconstruction and Recovery (Rebuilding Together plan). The Rebuilding Together plan represents the framework for community recovery and the restoration of core services and infrastructure following the 2009 Victorian bushfires. Table 4 Other payments (continued) Payment Program description Interstate distribution Year paid in U2012 Treatme Reason for ‘No nt in impact’ U2012 National Partnership Payments for community services (continued) Unaccompanied To assist humanitarian Number of refugee minors receiving supervision 2008-09 No Payment relates to humanitarian minors without parents in and care in each location. impact State expenses where minors Australia and families on needs could not be providing their care through relativiti assessed. early intervention, es counselling and assistance by State welfare agencies. National action Contribution to partnership Funding is distributed according to an assessment 2008-09 No Payment relates to plan to build on projects with State of State proposals, and after Minister for impact State expenses where social cohesion, governments aimed at Immigration and Citizenship approvals. on needs could not be harmony, and further integrating the relativiti assessed. security Muslim community into es broader Australian society. Children’s To contribute to the cost of Distributed by demand and/or historical costs. 2008-09 No Purchase of services Services (in establishing additional new impact by Commonwealth education child care places. on Government. services) relativiti Family violence To assist the States to On merit basis. 2008-09 Impactes partnership jointly fund projects on designed to reduce and relativiti prevent the incidence of es family violence in Indigenous communities. This was Commonwealth own-purpose expense prior to 200708. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ Affordable housing services SPP National Funding to support State Includes CSHA, Community housing, Crisis 2008-09 to Impact on Affordable services in the housing accommodation, Housing Assistance for 2010-11 relativities Housing SPP sector, including social Indigenous people and Supported accommodation housing, assistance to assistance people in the private rental market, support and accommodation for people who are homeless or at risk of homelessness, and home purchase assistance. Commonwealth- For the provision of public Base funding is distributed across States on a States 2008-09 Impact on State housing rental housing for low to modified per capita basis. contribute relativities agreement moderate income 48.95% of their (CSHA) — base households. It includes share of base funding housing assistance such as funding. public and community housing, home purchase assistance and private rental assistance. Community To develop community Per capita basis. State matching 2008-09 Impact on Housing housing which provides funds are relativities appropriate and affordable determined as a rental accommodation for set proportion low to moderate income of CSHA Base earners. States use the Funding. funding to subsidise non- government organisations in providing low cost accommodation. Crisis Funding under the CSHA Per capita basis. State matching 2008-09 Impact on Accommodation for the purchase, funds are relativities Assistance construction, renovation, determined as a maintenance and lease of set proportion dwellings to provide of CSHA Base accommodation for use Funding. under the Supported Accommodation Assistance Program. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ National affordable housing SPPs (continued) Housing To assist Indigenous people with low to moderate Based on Indigenous 2008-09 Impact on Assistance for incomes to access affordable, appropriate and secure housing needs. relativities Indigenous rental accommodation, including public and people community-owned rental housing. States can use the grants for construction, upgrades, maintenance and other related housing functions. Supported To assist people who are homeless and in crisis. Historical basis. 2008-09 Impact on accommodation Services are provided by community organisations relativities assistance and local governments under contracts to State government welfare departments. National Partnership Payments for affordable housing East Kimberley The Commonwealth 2009-10 to 2010-11 Payments for Purchase of services development package will provide environment health by Commonwealth or – Indigenous housing $50 million to measures and Aged local government Western Australia for care - No impact on functions. Indigenous housing relativities projects from the East Others – Impact on Kimberley relativities development package. Investment priorities under the package focus on improving the provision of social and transition housing, where noticeable gaps exist in the region. Improved housing outcomes for Indigenous people will provide the foundation for lasting improvements in living standards, social and economic wellbeing and access to life opportunities, such as employment and education. First Home As part of the Economic Security Strategy, to 2008-09 to 2010-11 No impact on Purchase of Owners Boost stimulate housing activity, support the construction relativities services by industry and assist first homebuyers to enter the Commonwealth housing market. Government. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatme Reason for ‘No U2012 nt in impact’ U2012 National Partnership Payments for affordable housing (continued) Homelessness To support homelessness initiatives consistent with 2008-09 to Impact the priorities identified in the Commonwealth 2010-11 on Government’s White Paper on Homelessness: The relativiti Road Home, with a focus on prevention, early es intervention and breaking the cycle of homelessness through a better connected service system. Nation Building To invest in additional public and community 2008-09 to Impact and Jobs Plan housing to meet priority social housing needs, 2010-11 on — Invest in including reducing homelessness. This includes relativiti social housing – $200 million in 200910 for repairs to existing public es construction and housing stock. Repairs and maintenance Social Housing To establish a Social Housing Growth Fund to On a per capita 2008-09 to Impact provide capital funding to support a range of basis, subject to 2009-10 on projects to increase the supply of social housing and each State relativiti enable more disadvantaged households to access submitting es safe and secure housing that meets their needs. suitable proposals. Social Housing To subsidise New South Wales for its recurrent costs Requirement to 2008-09 to Impact Subsidy of financing rental accommodation in the private and match the 2009-10 on Program non government sectors for low to moderate income Commonwealth relativiti earners. The Commonwealth will meet its future Government es payment commitments by providing a single funding dollar payment in 2009-10 and ceasing future annual for dollar. payments. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ National Partnership Payments for Affordable housing (continued) Remote To facilitate significant reform in the provision of 2008-09 to 2010-11 No impact on Purchase of Indigenous housing for Indigenous people in remote relativities services by Housing communities and to address overcrowding, Commonwealth homelessness, poor housing conditions and severe Government. housing shortages in remote Indigenous communities. Table 4 Other payments (continued) Payment Program description Interstate distribution Year paid in U2012 Treatme Reason for ‘No nt in impact’ U2012 National Partnership Payments for infrastructure East Kimberley The East Kimberley Payment for Western Australia only. Conditional 2008-09 to 2010-11 Paymen Payments for development development package was on a joint assessment with the Western Australian ts for environment health package – other launched by the Prime Government of most effective infrastructure environ measures, teacher infrastructure Minister in Kununurra on 3 investments. Funding to State Government, local ment training facilities and projects July 2009. From 200809, governments and not for profit organisations to health aged care – payments this package will provide support economic development in the East measure for Commonwealth or $195 million to the Kimberley region through investment in social and s, local government Wyndham Shire and common use infrastructure. teacher functions. associated Indigenous training organisations in the East facilities Kimberley region of and Western Australia to support aged economic development care and through investment in social local and commonuse govern infrastructure. The package ments – comprises four different sets No of projects: impact on relativiti es Other payment s – Impact on relativiti es Interstate road Payments of funds received Based on road use from ABS surveys, with the 200809 to 201011 Assesse transport through the Federal exception that under a Ministerial agreement of d as Interstate Registration 1986, Australian Capital Territory, Tasmania and motor Scheme that provides an the Northern Territory receive a fixed 0.5% of tax alternative to State funds collected for expenditure on road revenue registration for vehicles maintenance. engaged in interstate trade. The intention is to provide funds for the maintenance and upkeep of roads used by these vehicles. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment Reason for ‘No U2012 in U2012 impact’ National Partnership Payments for infrastructure (continued) Local The Commonwealth Government is consulting with A methodology which Payments to 2008-09 to No impact Payment to a third Government and councils to determine options for assisting the includes relative need, local 2010-11 on party – States act as Regional rebuilding effort in their communities after a major population and growth. governments relativities an intermediary and Development disaster. The program supports major investments the payment does not infrastructure in a range of regional and local community reduce or increase employment infrastructure projects and takes a strategic State needs. projects (former approach in responding to local priorities and Jobs fund – needs. Infrastructure employment projects) Local Payments to New South Wales for local Payment to New South 2008-09 to No impact Payment to a third community community sporting infrastructure. Wales only. 201011 on party – States act as sporting relativities an intermediary and infrastructure the payment does not reduce or increase State needs. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment Reason for ‘No U2012 in U2012 impact’ National Partnership Payments for infrastructure (continued) Nation building To assist national and regional economic and social 2008-09 to Maintenanc Local roads – program development by the provision of funding aimed at 2009-10 e of NNRs Payment to a third (formerly improving the performance of land and rail and off- party – States act as Auslink) infrastructure. NNRs – an intermediary and Impact the payment does not (needs reduce or increase assessed in State needs. Roads); Roads to recovery – Constructio required by terms of n of NNRs reference. – Impact (needs assessed in Investment - half assessed using payment distribution and half assessed same as other road investments ); Rail – Impact (increase State net financial worth); Local roads – No impact; Roads to recovery – No impact. Nation Payment to the prosperity of the economy and the 2008-09 No impact Payment to a third Building wellbeing of all Australians by assisting local on party – States act as program – local governments to manage their own futures, including relativities an intermediary and government providing essential services and developing the payment does not effective planning initiatives. reduce or increase State needs. Table 4 Other payments (continued) Payment Program description Interstate distribution Year paid in U2012 Treatment in Reason for ‘No U2012 impact’ National Partnership Payments for infrastructure (continued) Nation building Funding for nationally 2008-09 to 2009-10 Constructio plan for the significant transport n of NNRs – future and infrastructure investment Impact Building that will provide the (needs Australia Fund building blocks for assessed in Australia's long term Investment – economic, environmental half assessed and social prosperity. using Regional areas will benefit payment from improved freight distribution supply chains and export and half infrastructure, better assessed connections between major same as towns and cities, and other road improved investments); telecommunications. Rail – Impact (increase State net financial worth); Other projects – Impact North Penrith Funding towards 2010-11 No impact Payment made direct Thornton Park construction and landscaping on to local government Car Park costs associated with the relativities and does not affect construction of a multi-level State fiscal needs. car park in the North Penrith Thornton Park to the local government. Kings Highway Funding for upgrading the Payments for New South Wales and the ACT. 2008-09 No impact Purchase of services upgrade Kings Highway between on by Commonwealth Queanbeyan and relativities Government. Bungendore, New South Wales. Federation fund The Commonwealth 2009-10 No impact Purchase of services projects provided funding to Victoria on by Commonwealth in 200910 for Centenary of relativities Government. Federation Fund projects. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for infrastructure (continued) Regional To support projects already committed in 2010 2010-11 Impact on Infrastructure infrastructure and transport portfolio. relativities Fund Stream 1 – Committed infrastructure projects Seamless To reduce unnecessary and inconsistent regulation 2008-09 No impact Purchase of services national across jurisdictions and to improve processes for on by Commonwealth economy regulation-making and review. relativities Government. Seamless To the creation of project implementation teams to 2010-11 No impact Purchase of services National establish national heavy vehicle safety regulators. on by Commonwealth Economy – relativities Government. National Heavy Vehicles Transport Regulator Seamless To the creation of project implementation teams to 2010-11 No impact Purchase of services National establish rail regulators. on by Commonwealth Economy relativities Government. National Rail Transport Safety Regulator component Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for infrastructure (continued) Supplementary Supplementary funding to South Australia to Payment to South 2008-09 to No impact Payment made direct funding to SA address the State’s current disadvantage under the Australia only. 2010-11 on to local government Councils for current distribution of the untied local roads grants. relativities and does not affect local roads. State fiscal needs. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for environment Bioremediation The Government will provide $1.9 million in 2009-10 to No impact on Payment relates and 2010—11 for bioremediation and revegetation 2010-11 relativities to State expenses revegetation trials in suitable sites in and around South where needs Australia's lower lakes. The trials will continue to could not be engage and involve local communities. assessed. Caring for our To integrate delivery of the previous natural Payment to regional 2008-09 to No impact on Required by Country resource management programs: the Natural bodies through the States 2010-11 relativities terms of Heritage Trust; the National Action Plan for on a project basis. reference. Salinity and Water Quality; the National Landcare Program; the Environmental Stewardship Program; and the Working on Country Indigenous land and environmental program. Environmental The Commonwealth will provide $7 million in Not applicable 2009-10 to No impact on Payment relates management of financial assistance over four years from 200910 2010-11 relativities to State expenses the former Rum to the Northern Territory to support the ongoing where needs Jungle mine management of the former Rum Jungle mine site. could not be The measure includes funding to: site assessed.  support environmental management and monitoring of the site; and assist with the development of site management and rehabilitation strategies in partnership with industry and the site's traditional owners. Exotic Disease To support investigations of wildlife species in On a project basis. States match 2008-09 to No impact on Payment relates Preparedness the maintenance and spread of emerging animal dollar for 2010-11 relativities to State expenses diseases and incursions of major exotic diseases. dollar. where needs could not be assessed. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for environment (continued) Great Artesian To assist with the implementation of Great Initial distribution of 2008-09 to Impact on Basin Artesian Basin Management Plan. Grants are funds was determined for 2010-11 relativities Sustainability made to States and Territories to assist bore each Management Zones Initiative rehabilitation. Supplementary incentives are also defined by hydro- being made available for the replacement of open geologic, biophysical drains with piping. and industry characteristics. The available funds were partitioned up to each zone in proportion to the results of the need analysis. Natural disaster The Commonwealth contribution for flood 2010-11 No impact on Purchase of recovery and reconstruction and recovery relativities services by rebuilding relief Commonwealth appeals – Government Commonwealth contributions National To strengthen efforts to combat manmade and 2008-09 to No impact on Payment to a disaster natural threats and disasters across Australia. 201011 relativities third party – resilience Grants are provided for projects developed to States act as an address disaster risks through disaster mitigation intermediary and works which minimise the risks to communities. the payment does not reduce or increase State needs. Plant Disease To assess plant health emergencies and States match 2008-09 to Impact on and Eradication development and implementation of appropriate dollar for 201011 relativities response plans to mitigate impacts and dollar. eradication. Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for environment (continued) Renewable To provide a rebate to the Based on Diesel Fuel Excise paid by the States States to 2008-09 to Impact on Remote Power States for the installation for ‘offgrid public generation’ maintain their 201011 relativities Generation of renewable energy existing generation technologies in commitment areas of Australia for renewable currently reliant on diesel energy. for electricity generation. Water for the To support the sustainable The Commonwealth has agreed inprinciple to Payments to 2008-09 to Impact on Payment to a Future – rural water use and fund significant Statebased water infrastructure. States and 201011 relativities- third party – National Urban infrastructure program. In Local payments to States act as an Water and July 2008 the governments States; No intermediary and Desalination Commonwealth and State impact – the payment Plan; National governments finalised the payments to does not reduce Water Security Agreement on Local or increase State Plan for Cities MurrayDarling Basin governments needs. and Towns; Reform to secure a Sustainable sustainable future for the Rural Water Murray-Darling Basin. Use and infrastructure Eradication of Funding for the Payment to Queensland only. States match 2008-09 No impact on Payment relates Red Imported eradication of red dollar for relativities to State expenses Fire Ant imported fire ant from dollar. where needs Queensland. could not be assessed. Transfer of Payment as part of the Payment to Victoria only. 2008-09 No impact on Payment relates Commonwealth transfer of the ownership relativities to State expenses land to Victoria of the Quarantine Station where needs – Point Nepean at Point Nepean from the could not be Commonwealth to the assessed. Victorian Government - for ongoing management of the Station

Table 4 Other payments (continued) Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership Payments for environment (continued) The Living To implement a package of A partnership of the Australian, New South Treatment 2008-09 to No impact on Payment relates Murray (was water recovery and water Wales, Victorian, South Australian and ACT changed in 2009-10 relativities to State expenses National Water use efficiency activities to Governments. 2011 Update as where needs Initiative — address water payment is for could not be Living Murray) overallocation in the environment assessed. Murray Darling Basin and purposes. (change in improve the health of the treatment from Murray Darling system R2010) Table 4 Other payments (continued)

57 Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership payments for contingencies Exceptional Interest rate subsidies to 2008-09 to No impact Payment to a circumstances eligible farmers and 201011 relativities third party – assistance small business operators States act as an in a region experiencing intermediary and a severe downturn due to the payment does a rare and severe climatic not reduce or or other event. increase State needs. Hepatitis C Contribution to the States’ Based on agreed settlements. 2008-09 to No impact on Payment to a settlement fund schemes for out-of-court 201011 relativities third party – settlement costs for States act as an eligible individuals who intermediary and contracted Hepatitis C the payment does through the blood supply not reduce or between 1985 and 1991. increase State needs. Natural Funding under the 2008-09 to No impact on Purchase of disaster Natural Disaster Relief 2010-11 relativities services by recovery and and Recovery Commonwealth rebuilding Arrangements, to Government. (former partially reimburse States Natural for their expenditure on disaster relief) relief assistance following an eligible natural disaster. Equine Funding towards 200809 No impact Purchase of influenza response costs associated relativities services by emergency with eradication of the Commonwealth response equine influenza. Government.

Table 4 Other payments (continued)

57 Payment Program description Interstate distribution Year paid in U2012 Treatmen Reason for ‘No t in impact’ U2012 National Partnership payments to support other State services Digital regions The Commonwealth will Payments to States and Local government 2009-10 to 2010-11 Impact Payment to a third initiative provide $26.8 million to on party – States act as the States in 201011 for relativitie an intermediary and the Digital Regions s - the payment does not Initiative, subject to the Payments reduce or increase outcomes of the initiative's to States. State needs. competitive funding No rounds. This initiative will impact – cofund innovative digital payments enablement projects to to local support improved governm education, health and ent and emergency services in non- regional, rural and remote governm communities. ent organisati ons that do not create a State asset. Improving To address violence and Based on assessment of needs 2008-09 to 201011 Impact policing in very child abuse in Indigenous on remote areas communities by improving relativitie police services in very s remote areas. Includes the construction of police stations, police housing, and funding for sniffer dog teams in the Northern Territory. Legal To provide funding to 2008-09 to 201011 No Purchase of services assistance State Legal Aid impact on by Commonwealth services commission for the relativitie Government.

57 (former Legal provision of legal s aid) assistance on the Commonwealth Government matters.

Table 4 Other payments (continued)

57 Payment Program description I Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership payments to support other State services (continued) Local Government To provide funding to the States for projects 2010-11 Impact on Regional that support the implementation of relativities Development – Local nationally consistent frameworks for local Government Reform government asset and financial management Fund and/or improve collaboration in the local government sector. Native title For expenditure under part 9 of the Native 2010-11 No impact on Purchase of Title Act 1993. Funding is to assist States relativities services by and Territories implement to consistent Commonwealth framework for dealing with native title Government issues of meeting compensation costs. Pilot of drought To test a package of new measures 2010-11 No impact on Required by reform measures in developed in response to the national review relativities terms of WA of drought policy. reference. Remote Indigenous The Commonwealth will provide 2009-10 to Impact on public internet access $2.3 million to the States in 201011 for 2010-11 relativities remote Indigenous public internet access. This program will provide funding in collaboration with the States for new or expanded public internet access and delivery of computer training in nominated remote Indigenous communities that have limited or no public access internet facilities. Funding will also cover maintenance of facilities installed in 200910 under this program.

Table 4 Other payments (continued)

57 Payment Program description Interstate distribution Year paid in Treatment Reason for Year paid in U2012 in U2012 ‘No impact’ U2012 National Partnership payments to support other State services (continued) Sinking fund Contributions to the Debt The Commonwealth Government contributes 2008-09 to No impact on Required by on State debt Retirement Reserve Trust 0.28% of the net public debt of the States as at 2010-11 relativities terms of Account on behalf of the the preceding 30 June. reference. six States and the Northern Territory in accordance with the Financial Agreement Act 1994. Standard To simplify business-to- 2008-09 to No impact on Purchase of business government reporting by 2010-11 relativities services by reporting making forms easier to Commonwealth program understand, using Government. accounting or record- keeping software to automatically pre-fill government forms and introduce a single secure way to interact online with participating agencies. Tasmanian To assist forest contractors 2010-11 No impact on Payment to a forest to respond to the relativities third party – contractors challenges facing the States act as an financial Tasmanian native forest intermediary and support industry. the payment program does not reduce or increase State needs. World sailing The Commonwealth will Payment to Western Australia only. Payment 2009-10 to No impact on Payment relates championships provide $2.0 million to through the States. 2010-11 relativities to State expenses Western Australia in where needs 201011 to contribute to the could not be staging of the International assessed. Sailing Federation World Championships in Western Australia in December 2011.

57 57 Table 4 Other payments (continued)

57 Payment Program description Interstate distribution Conditions Year paid in Treatment in Reason for ‘No U2012 U2012 impact’ National Partnership payments to support other State services (continued) North East To provide business Grants of up to $50,000 are available to eligible 2008-09 Impact on Tasmania microcapital to create applicants. relativities micro- capital sustainable jobs in the scheme north-east regions of Tasmania. Sydney Cricket To improve facilities and Payment to New South Wales only 2008-09 No impact on Payment to a Ground — new increase the capacity of the relativities third party – grandstand new Victor Trumper States act as an Grandstand at the Sydney intermediary and Cricket Ground. the payment does not reduce or increase State needs. Strengthening To strengthen Tasmania’s Payment to Tasmania only. In 2008-09, the 2008-09 No impact on Payment to a Tasmania economy and building a payment of $2.5 million was for projects in the relativities third party – better community through Launceston City Council, the Burnie Council States act as an various sporting and and the Devonport Council. intermediary and community facility the payment upgrades and initiatives. does not reduce One of the initiatives is the or increase State refurbishment of buildings needs. in the Low Head Historic Precinct to promote increased visitation. Film and Payments to States for Not applicable 2008-09 to No impact on Purchase of literature participation in the national 2009-10 relativities services by classification cooperative censorship Commonwealth scheme as per inter- Government. governmental agreement signed in November 1995.

57 Table 4 Other payments (continued)

57 Payment Program description Interstate distribution Year paid in U2012 Treatment in Reason for ‘No U2012 impact’ National Partnership payments to support other State services (continued) CrimTrac police Payments to State police agencies for their A fixed amount 2008-09 No impact on Purchase of reference system contribution toward a national information determined by the relativities services by sharing solution through the CrimTrac Australasian Police Commonwealth Police Reference System. Ministers’ Council. Government. Restoration of Albert $0.5 million to the ACT in 200910 for the This grant is to assist the 2009-10 No impact on Payment to a Hall, Canberra restoration of the Albert Hall. The Albert ACT Government in this relativities third party – Hall is a historic and cultural landmark of $2.7 million project States act as an Canberra and is listed in the Register of the intermediary and National Estate on the Australian Capital the payment does Territory Heritage Register. The Australian not reduce or Capital Territory Government is increase State responsible for the management and needs maintenance of the Albert Hall and is refurbishing it under a conservation plan. Queensland In 200910, the Commonwealth has 2009-10 No impact on Payment to a Premier’s disaster provided $0.5 million to the Queensland relativities third party – relief appeal Premier's Disaster Relief Appeal to help States act as an people affected by the 2010 monsoonal intermediary and floods in Queensland. the payment does not reduce or increase State needs. National emergency The Commonwealth will provide 2009-10 No impact on Purchase of warning system $15.7 million in 200910 to fund the relativities service by the development of a telephone based national Commonwealth emergency warning system, Emergency Government. Alert. Emergency Alert enables the States to deliver warnings to landline and mobile telephones based on the customer's service address. Table 4 Other payments (continued) 57 Payment Program description Interstate distribution Year paid in U2012 Treatment in Reason for ‘No U2012 impact’ Payments to support local government - Financial assistance grants Local government Untied funding to local governments Interstate allocation is 2008-09 to 2010-11 No impact on Payment to a general purpose through the States. on a per capita basis. relativities third party – assistance States act as an intermediary and the payment does not reduce or increase State needs. Untied local road Untied assistance to local government Level of funding to each 2008-09 to 2010-11 No impact on Payment to a grants authorities in place of specific purpose States originated from relativities third party – payments formerly passed on to local historical relative local States act as an government by the States for expenditure road needs and indexed intermediary and on local roads. every year. the payment does not reduce or increase State needs. Source: Commonwealth of Australia Final Budget Outcome and information collected from other Commonwealth agencies.

57 Treatment of Commonwealth payments Table 5 Treatment of Commonwealth own-purpose expenses Commonwealth payment Year paid in U2012 Treatment in U2012 Reason for ‘No impact’ Family violence partnerships 2008-09 to 2010-11 Impact on relativities (various payments) Indigenous health and 2008-09 to 2010-11 Impact on relativities substance abuse Emergency services 2008-09 to 2010-11 Impact on relativities All other COPE payments(a) 2008-09 to 2010-11 No impact on Purchase of services by relativities Commonwealth Government. (a) The commission does not have information on all COPE payments and therefore would not be able to consider the treatment of each payment.

57

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