nulRpr 02 3 I 03 2002– Annual Report Annual Report 2002– 03 I Volume 1 Vo lume 1
Australian Government Department of Family and Community Services 1118 Telephone: 1300 653 227 aCS Internet: www.facs.gov.au F making a difference Annual Report 2002–03 I Volume 1 © Commonwealth of Australia 2003
ISSN: 1442-5238 ISBN: (Volume one) 0642770980 ISBN: (Volume two) 0642770999 ISBN: (set) 0642770972 ISBN: CD-ROM: 1920851003
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth available from the Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Intellectual Property Branch, Department of Communications, Information Technology and the Arts, GPO Box 2154, Canberra ACT 2601 or posted at http://www.dcita.gov.au/cca
Department of Family and Community Services Box 7788 Canberra Mail Centre ACT 2610 Telephone 1300 653 227 (for the cost of a local call, mobile phones at mobile rates)
Internet: www.facs.gov.au/annualreport
ABN: 36 342 015 855 FaCS, Social Security Appeals Tribunal and Australian Institute of Family Studies
ABN: 36 342 015 855 004 Child Support Agency
Acknowledgments Annual Report Team: Liz Clarke, Sophia Collison, Carmel Curran, Greg Moores and Wendy Tierney Editor: Jeff Fitzgibbon Proof reading: Janet Willis
Contents
Letter of transmittal iii Preface 1 Secretary’s introduction 2
Part 1: Overview—the big picture Departmental overview 10 Family and Community Services portfolio structure 19 Organisational structure 21 Financial performance overview 24 Child Support Agency—General Manager’s review 28 Part 2: Achievements and challenges—performance insights Building the evidence base 34 Redeveloping the Child Care Support Broadband 36 Helping parents support their children—the Child Support Agency 37 FaCS–Centrelink strategic alliance 40 Responding to communities in crisis—Bali, bushfires and drought 42 Bali taskforce 42 Canberra bushfires 44 Counselling for drought-affected regions 45 Implementing welfare reform 47 Supporting people with disabilities 51 Helping men with relationships 53 Coordinating support in Indigenous communities 55 Making a difference internationally 57 Part 3: Glossaries and index List of acronyms and initialisms 62 Index 63
v A user’s guide
This year’s annual report of the Department of Family and Community Services (FaCS)—the fifth—has been divided into two volumes for ease of access and readability. It is a continuing challenge for the department to maintain a manageable publication size while ensuring mandatory requirements are met. This is a difficult task for a department that has appropriations of more than $60 billion to report. Volume one provides an overarching view of the department’s functions and summary of its achievements. Volume two provides more detail, covering performance reporting, management and accountability, appendixes and financial statements. Each volume has its own contents page, glossary and index. A CD-ROM of the full report is enclosed in Volume one. This report is available online on the FaCS web site at www.facs.gov.au/annualreport Our essential aim is for the report to meet the needs of our readers—Senators, Members and the public.
vi FaCS Annual Report 2002–03 I Volume 1 Preface
The Department of Family and Community Services (FaCS) is responsible for shaping social policies and ensuring they are delivered efficiently through partnerships with other government and non-government organisations. As well as families, FaCS focuses on groups with differing needs such as young people and students, people living in rural and remote areas, Aboriginal and Torres Strait Islander peoples and people from diverse cultural and linguistic backgrounds. FaCS is responsible for about one-third of total government outlays as is detailed in the remainder of this report. FaCS’ national office is in Canberra. FaCS also has locations in each state and territory throughout Australia, and rural and regional areas. FaCS is part of the Australian Government’s Family and Community Services portfolio. The portfolio is responsible for a broad range of social policy issues affecting Australian society and the living standards of Australian families, communities and individuals. The portfolio consists of: ◗ FaCS*, which incorporates the Child Support Agency ◗ Centrelink, which delivers income support payments and services on behalf of FaCS ◗ The Australian Institute of Family Studies.
* The resources needed to support the operations of the Social Security Appeals Tribunal (SSAT) are also provided through FaCS.
Preface 1 Secretary’s introduction
As Secretary of the Department of Family and Community Services (FaCS), I am pleased once again to introduce our annual report and the departmental overview. This year’s two-volume report for 2002–03 covers FaCS’ performance against our three outcomes. Volume one gives a broad picture of the achievements, challenges and highlights of our policy and program implementation. Volume two includes performance, management and accountability details. The Child Support Agency (CSA) features prominently throughout this report, including a review by the General Manager, Catherine Argall. As a first for FaCS—indeed, as a first for a federal government agency—the department, including the CSA, is also reporting separately on its internal operations against the Triple Bottom Line (TBL). Reporting on the TBL acknowledges that successful organisations are not just concerned with financial issues and shareholder profits—their operations have broader impacts as well. Our TBL report covers performance against social, environmental and economic indicators for 2002–03. The report also makes a number of commitments and establishes benchmarks for performance in future years.
Focusing on participation
The year saw participation firmly on the political, legislative and departmental map. As part of the Australians Working Together (AWT) implementation, the Personal Support Programme was bedded down and more than 450 Personal Advisers started work in Centrelink. The passage of AWT legislation paves the way for introducing other important measures in the coming year, including the second wave of Personal Adviser appointments, the Working Credit initiative, and new participation obligations for people on Parenting Payment and mature-age workers. The department also looked at Newstart Allowance requirements and some changes to breaching policies were agreed. The challenge was to find a balance between ensuring that job seekers make every effort to improve their employment prospects while protecting those whose personal circumstances make it difficult for them to comply.
2 FaCS Annual Report 2002–03 I Volume 1 In planning for and implementing AWT measures, FaCS worked in close and collaborative partnerships with several departments, especially the Department of Employment and Workplace Relations. The progress we made on AWT was a great example of what can be achieved by working alongside other Australian Government agencies. I believe cooperation like this with other departments will continue to grow from strength-to-strength in the coming year.
Taking a whole-of-government approach
During the year, other cooperative partnerships across departments and with state and territory governments contributed to the success of several other FaCS activities. As an active member of the interdepartmental Taskforce on Work and Family, we worked with other departments and agencies to review options that promote choices for parents in balancing their work and family lives. Following the Government’s announcement on developing a National Agenda for Early Childhood, we convened a Taskforce on Child Development, Health and Wellbeing. This includes high-level representation from other federal departments with responsibilities for children’s issues. The taskforce prepared a consultation paper, designed to promote stakeholder and public discussion on the agenda’s content. Along with a number of Australian Government ministers, Professor Fiona Stanley—an early childhood expert and Australian of the Year—supported the initiative. We aim to continue widespread community consultations throughout 2003.
Integrating responses
A whole-of-government approach is also reflected in the Indigenous Community Coordination Pilots. Supported by the Prime Minister and state and territory leaders through the Council of Australian Governments, the pilots are testing integrated responses to the needs of Indigenous communities. FaCS is the ‘sponsoring’ agency for the Wadeye community pilot in remote Northern Territory. I am taking a hands-on interest in progress and making sure the Australian Government delivers on its share of responsibilities. It is still early days at Wadeye and I believe we cannot claim success until we satisfy the community’s own vision for success. However, initial results are showing that things can work a lot better when you have a tri-partite relationship between the Australian Government, the Northern Territory Government and the community itself.
Secretary’s introduction 3 Consulting with others
In the past year, the department placed more emphasis on seeking input from key stakeholders, including experts, peak bodies, non-government organisations, service providers, communities and families themselves. This recognises that the department alone does not have all the answers and that input from others really can add value to the advice we give to government. In FaCS, this focus on consultation applies from the top down. Our senior policy makers understand that consulting widely on policies and programs is part of the department’s culture. Using local networks and community-based contacts, our state and territory office network is at the frontline of this activity. This approach represents a move towards what I call public-private policy partnerships, which have worked well, for instance in managing the welfare reform process and redeveloping the Child Care Support Broadband. Consultation was also a key element in resolving the business relationship management problems with tendering for the Jobs Placement Employment and Training program (JPET). In reviewing what went wrong, we talked with the players, sought external assistance and acted on their recommendations. While the situation was unfortunate and FaCS regrets our failure, the consultations with service providers and peak bodies have, ironically, improved our engagement with and gained the trust of this group of stakeholders.
Forming Alliance 2004
With responsibility for one-third of the Australian Government budget, the health and integrity of the FaCS–Centrelink purchaser–provider relationship remains pivotal to the interests of both organisations. The hard work and application that went into the review of Centrelink’s prices, the agreed outcomes and outputs framework for that relationship, and the pilot business assurance framework will help us report more accurately to government and give them greater confidence that their outlays are well protected. Our joint commitment to the new Alliance 2004 indicates a shared willingness to work together even more effectively.
4 FaCS Annual Report 2002–03 I Volume 1 Negotiating agreements
During the year, complex and difficult negotiations continued on two important agreements between the Australian Government and state and territory governments. All the states and territories agreed to sign the new Commonwealth–State Housing Agreement, which includes major improvements. For the first time, Australian Government funding for housing is indexed. As well, enhanced performance and reporting arrangements require the states, for example, to deliver on private sector investment in public housing and remove workforce disincentives for public housing tenants. While it took almost a year, by 30 June 2003 six of the states and territories had signed the Commonwealth State Territory Disability Agreement. Negotiations saw all jurisdictions working together to deal with some of the barriers, including access issues and the links and transitions between Australian Government and state services. The new agreement means greater transparency in disability spending across Australia and commitments by the states to match Australian Government funding increases each year.
Gaining resources and striving for best practice
Despite the tight budgetary environment, FaCS was able to secure funding for a number of disability, Indigenous and other initiatives in the 2003–04 Budget round. Importantly too, Centrelink will have the resources needed to upgrade its IT capacity to dramatically improve the delivery of services to their six million customers. In 2003–04, we will seek to become a best practice agency by meeting the challenges of our new budget estimates framework and complying 100 per cent with the Chief Financial Officer guidelines. In line with the Government’s clear directions, effective program implementation—supported by the department’s new project management framework—also remains a number one priority.
Wide-ranging services
The services that FaCS manages or provides are as wide-ranging and diverse as Australian families and communities are themselves. The diversity of our work is reflected in initiatives such as supporting accreditation and improving the quality of child care; working with Centrelink to reach out to communities deeply affected by drought; and the introduction of More Choice for Families from November 2002, as part of ongoing efforts to make it easier for families to access their correct Family Tax Benefit. None of this work would be possible, of course, without the efforts of the people of FaCS. The introduction to this year’s annual report covers only some of the department’s work for the year. However, the rest of this report outlines the highlights, challenges and performance of all of FaCS’ business.
Secretary’s introduction 5 Bringing out the best in our people
Two disasters in the past year brought out the very best in FaCS’ people. The Bali tragedy called for a coordinated domestic response. Deputy Secretary at the time, Lisa Paul, met the challenge magnificently as leader of the Bali Inter-Agency Taskforce. FaCS staff worked tirelessly on delivering assistance to victims, their families and friends. The Canberra bushfires affected us deeply. The homes of many Canberra families and friends were lost or damaged. At one stage, national office at Tuggeranong was under threat. Our response to the fires was decisive. In their aftermath, a FaCS crisis response team worked around the clock to keep us up to date with the latest developments. As the flames subsided, the team ensured the department continued to operate effectively and safely. Many staff helped the firefighters, or worked officially or as volunteers with the ACT Government. Others donated generously to the bushfire appeal. The department and the ACT Government publicly acknowledged these efforts. I believe the way FaCS people responded to these disasters reflects the values and behaviours they demonstrate in their day-to-day work. Articulated in our Strategic Statement, these are integrity, responsibility, wisdom, fairness, and care and respect. Finally, a big thank you to everyone in the department for all the hard work you put in during 2002–03.
Mark Sullivan Secretary Department of Family and Community Services
6 FaCS Annual Report 2002–03 I Volume 1 About Mark Sullivan, Secretary
Mark Sullivan commenced as Secretary of the Department of Family and Community Services (FaCS) on 18 January 2002. Mark was well known to many as the CEO of the Aboriginal and Torres Strait Islander Commission, a position he held for nearly three years from May 1999. Before heading up the Commission, Mark was a Deputy Secretary at the Department of Immigration and Multicultural Affairs. He has extensive senior managerial experience in the private and public sectors, including with WANG Australia, SBS, the Department of Social Security and the Australian Taxation Office. Mark is a Fellow of the Society of Certified Practising Accountants and obtained a Bachelor of Economics at Sydney University in 1971.
“ The most enjoyable thing about FaCS is knowing that the work you do impacts on the lives of real people. While you are under the pressure of having to do the job well, there is also the pleasure of knowing that is what you have, in fact, done. The past year in particular saw our staff respond to two major crises in a very professional and caring way. It made me realise, even more, that I’m privileged to work in a wonderful environment with very talented people.”
About Wayne Jackson, Deputy Secretary
As Deputy Secretary of FaCS since July 1998, Wayne Jackson has represented the department on a number of broadly-based policy review bodies, including the Welfare Reform Reference Group (Deputy Chair), the Youth Pathways Action Plan Taskforce and the Family Law Pathways Advisory Group. He is also a member of the Australian Statistics Advisory Council. Before joining FaCS Wayne worked extensively on social policy in both central and line departments. He was Deputy Secretary (Social Policy) in the Department of the Prime Minister and Cabinet (PM&C), and held branch head positions in PM&C, the (now) Department of Health and Ageing and the Department of Finance and Administration. Wayne has an Economics Honours degree from Monash University.
“ You hear about the issues and the complexity of the issues we have to deal with, and then you look at the good spirit in which everybody contributes to them and the array of skills we have … We are seeking to model how a successful public sector agency of the future should look and behave. I’m thinking about collegiality, of making us an attractive place to work for people, and being responsive, and welcoming of diversity and innovative ways of working.”
Secretary’s introduction 7 About Stephen Hunter, Deputy Secretary*
Stephen Hunter joined FaCS as a Deputy Secretary on 1 July 2003. He has diverse public sector experience. For the past five years he was a Deputy Secretary of the Department of the Environment and Heritage with responsibility for natural resource management. Prior to this he held senior positions in the Department of Transport and Regional Development and in various ACT Government departments. Stephen joined the Australian Public Service in 1983 following tentative careers in the mining industry, photo journalism and music. Stephen holds a BA (Hons) from the Australian National University in political science and sociology.
“ Although I have been with FaCS for just a short time, already I am taken by the way it does business. The atmosphere is friendly and cooperative and, at the same time, fiercely professional and dedicated. The issues FaCS has responsibility for are of profound significance to all Australians. And they are not easy issues to address. This creates a great challenge for everyone who works in the department. But I believe we have the skills and enthusiasm to keep meeting this challenge head on.”
* Lisa Paul was Deputy Secretary from 18 January 2002 to 1 January 2003. Lisa left FaCS to take up the position of Deputy Secretary in the Department of Education, Science and Training. Following Lisa’s departure, Glenys Beauchamp, Executive Director, Community Development and Support Cluster was acting Deputy Secretary from 2 January to 30 June 2003.
8 FaCS Annual Report 2002–03 I Volume 1 Part 1 I Overview—the big picture Departmental overview
Strategic Statement 2002–05
The FaCS Strategic Statement clearly sets out FaCS’ strategic directions and what the department has to do to achieve its three outcomes. In essence, the statement is the ‘linchpin’ of all policy and planning approaches, management processes and performance reporting.
Our vision
FaCS is committed to achieving its vision of ‘a fair and cohesive Australian society’.
Our purpose—what we are here to do
FaCS takes the lead and works with others to help families, communities and individuals build their self reliance and make choices through: ◗ economic and social participation ◗ prevention and early intervention ◗ a responsive and sustainable safety net.
Our three outcomes—the difference we will make
Whatever their role, everyone in FaCS works towards achieving three outcomes, which are: ◗ Families are strong ◗ Communities are strong ◗ Individuals reach their potential. (These came into effect formally from the 2003–04 Budget.)
10 FaCS Annual Report 2002–03 I Volume 1 FaCS Priorities Plan 2002–03
FaCS’ Priorities Plan is a working document revisited every 12 months. The plan is designed to help and guide everyone in FaCS with business and other planning. It provides a focus for each person in FaCS to think about their work and how it links with the Government’s objectives and what happens in the rest of the department. The five key policy areas in our 2002–03 Priorities Plan are: ◗ Structural ageing ◗ Welfare reform ◗ Australian Government and state and territory relationships ◗ Children and youth ◗ Implementation and service delivery policy
A new Priorities Plan for 2003–04 FaCS’ new Priorities Plan for 2003–04 builds on priorities of the previous year and reflects a number of Government priorities. The six priorities in the new plan are: ◗ Investing in children and strengthening families ◗ Participation ◗ Implementation and service delivery ◗ Financial integrity ◗ People ◗ Knowledge.
Departmental overview I the big picture 11 Taking a life cycle approach
“ The focus of policy in Australia, as in other OECD countries, is shifting towards a life cycle approach in which investments are made to help drive outcomes in the longer term. This is based on the recognition that problems affecting individuals in a given phase of their life course often influence their opportunities at a later stage, as well as their children’s.” —Wayne Jackson, Deputy Secretary
FaCS recognises that problems affecting individuals at particular points in the life cycle—for instance, in childhood, as teenagers, in education or work, finding a partner, having children, family breakdown, being unemployed, planning for retirement and so on—can influence what happens to them (and their children) later in life. The life cycle policy context (see Figure 1) underpins the important work FaCS is doing across several transition points.
Figure 1 The life cycle context
The Life cycle Context
GO VER ILY NM M EN FA T
Early Youth Work Older Retirees Childhood and Family Workers
Joblessness
CO M S M ES UN SIN ITY BU
Rather than simply responding to needs as they arise, we recognise that problems affect individuals at particular points in the life cycle. We also understand that help for people going through difficult times, like joblessness, is more effective if governments work in partnership with the business and community sectors and with families themselves.
12 FaCS Annual Report 2002–03 I Volume 1 What FaCS spends and where
Total expenses in 2002–03 were $60.0 billion—that is around 8 per cent of Australia’s gross domestic product. The expenses are closely linked to the demographic profile of FaCS’ clients. ◗ Payments to families—22 per cent of total portfolio expenses ◗ Payments to people of workforce age (including Newstart Allowance, Parenting Payment and Disability Support Pension)—36 per cent of expenses ◗ Age Pension payments—30 per cent of expenses. The age profile of clients in terms of the proportion of administered expenses is shown in Figure 2 below.
Figure 2 Total FaCS administered expenses across life stages 2002–03
5000
4000
3000
2000 $ millions
1000
0
0–4 10–14 20–24 30–34 40–44 50–54 60–64 70–74 80–84 90–94 100–104 Age of client Carers Families Disability Retirement Employment Youth and students Employment and Disability
Departmental overview I the big picture 13 Taking a cross-government approach
“ Repositioning the social support system to help jobless people increase their economic and social participation requires FaCS to partner with other Australian Government departments, with state and territory jurisdictions and with a wide network of service provider organisations. Our goal is to achieve coherence and a ‘joined-up’ approach from the initial research and policy design level through to the delivery of assistance on the ground. Our experience to date with welfare reform evidences that the whole is definitely greater than the sum of the parts.” —Serena Wilson, Executive Director, Welfare Reform
In delivering on the Government’s welfare reform agenda, FaCS has continued to work with a number of departments, state and territory governments, service providers and other stakeholders. As part of welfare reform, the Australians Working Together (AWT) package announced in 2001 consisted of a wide range of measures running across a number of portfolios. Since then, we have worked very closely with relevant departments and agencies, including the Department of Employment and Workplace Relations (DEWR), the Department of Education, Science and Training, the Aboriginal and Torres Strait Islander Commission and Centrelink. In 2002–03, FaCS and DEWR worked together to successfully introduce several AWT measures. The evaluation of AWT is also a joint exercise between FaCS and DEWR, in collaboration with the other agencies involved. One important aspect of this will be a longitudinal data source called the Jobseeker dataset, which will merge separate FaCS and DEWR databases into the one database. For the first time, we will be able to follow the progress of people as they take up income support and move into and out of different forms of vocational assistance.
14 FaCS Annual Report 2002–03 I Volume 1 Engagement for our children’s future
“ The national agenda is about getting all our children onto positive pathways of development, education and behaviours. The dividends will benefit not just the kids, but they’ll go right into their capacity to contribute throughout adult life.” —Mark Sullivan, Secretary, FaCS
Increasingly, the evidence shows that intervening early and effectively—in areas like protection, development, health and education—has lasting impacts on children’s lives as they grow up and on the communities in which they live. On 20 February 2003, Minister Anthony launched the first step in the development of a National Agenda for Early Childhood, with the release of a consultation paper Towards the development of a National Agenda for Early Childhood. The consultation paper was a discussion starter, aimed at getting people talking about what a National Agenda for Early Childhood might look like. Public consultations on the paper were held from May to June 2003 in a mix of metropolitan, regional and rural locations. The consultations included stakeholders from children’s services, family support, health, education and the criminal justice system. As well, the paper was presented at the Community and Disability Services Ministers Conference; the Australian Health Ministers Advisory Council; the Ministerial Council on Education, Employment, Training and Youth Affairs; and the Standing Council of Attorneys-General for discussions between Australian Government and state ministers on future opportunities for collaboration. FaCS has received 183 written submissions on the agenda. We will release a report on the outcomes of all the consultations and submissions in late September 2003. Coming out of the consultations were some strong messages about the need for society to better value children and of the fact that there needs to be greater recognition of the role that the family plays in early child development. There is therefore a strong need to support and enable parents to provide a nurturing home environment for their children. The support ranges across the three priority action areas of early child and maternal health; early learning and care and supporting child friendly communities, identified in the consultation paper.
Departmental overview I the big picture 15 Making systems simpler “ In a system that is terribly complex, it’s almost impossible to fix individual problems without making broader changes. That’s why we are trying to re-design and simplify the welfare system.” —Senator the Hon Amanda Vanstone, Minister for Family and Community Services
In 2002–03, FaCS made a concerted effort to simplify our processes and policy development systems. In terms of policy, the next stage of the welfare reform process got underway in December 2002 with Senator Vanstone and Tony Abbott, the Minister for Employment and Workplace Relations, jointly launching a consultation paper called Building a simpler system to help jobless families and individuals. Drafted by FaCS in consultation with DEWR, other agencies and the Welfare Reform Consultative Forum, the paper promoted community discussion about reforming income support for working-age people so that it leads to participation and self reliance, provides stronger incentives for paid work and better tailors assistance and requirements to individual circumstances. Between March and May 2003, consultations were held across the country to allow the community to put forward their views on the objectives, design principles and key features of a new working-age payment system. Participants included income support recipients, welfare organisations, business, service providers and academics. In addition, the department had received 210 written submissions by the end of June 2003. FaCS began working with other agencies on a report to government on broad options for reform, drawing on the findings from the consultation process. Internally, FaCS took steps to make its own systems simpler. In April 2002, the Executive Board agreed to the development of a single, integrated system for managing non-government organisation funding arrangements. This will include a new Internet based Online Funding Management system to support all aspects of our relationships with service providers. The changes are needed because FaCS administers a diverse range of complex funding programs that have different arrangements, business processes and systems. Separate branches manage the programs in a climate of ongoing and changing policy requirements. Incorporating an interface with Centrelink, the new online system will support the whole life cycle of the department’s relationship with service providers—from establishing programs to submitting acquittals. In future, providers will be able to do most of their business with us electronically, reducing time-consuming manual processing. For FaCS, it will mean standardised funding applications and better data management. As part of another simplification initiative called Simple Service Solutions, FaCS streamlined the administration of services for young people. For example, consolidated funding agreements and guidelines were developed on operational requirements for three FaCS-funded programs—the Youth Activity Service and Family Liaison Worker program, Reconnect, and the Job Placement, Employment and Training (JPET) Program. This was aimed at reducing the burden of excessive reporting and administrative processes for non-government organisations. The next step is to streamline accountability requirements, so that providers have more time to focus on helping young people make the most of their lives.
16 FaCS Annual Report 2002–03 I Volume 1 Using our network “ Our 500 staff in over 20 locations across the network don’t just service the capital cities. Staff in our New South Wales office travelled over a million kilometres last year and we now have staff outposted in Port Hedland, Hall’s Creek, Gympie and Moree, which enables FaCS to better understand community needs across Australia.” —Cate McKenzie, Executive Director, Alliance and Delivery Frameworks
While the majority of staff work at National Office in Canberra, FaCS also has a presence in state and territory capital cities and in a number of rural and regional areas. In 2002–03, state and territory offices (STOs) continued to use their specialist expertise and locational advantages to help achieve outcomes. Essentially, STOs represent the ‘face of FaCS’ to local communities. This includes developing and maintaining partnerships with communities, peak groups, service providers, tertiary institutions, state and territory governments, local governments, and the regional offices of other Australian Government departments. STOs also maintain strong and effective relationships with their colleagues in Centrelink. Increasingly, network staff are focusing on: ◗ developing integrated solutions that meet the needs of families and communities ◗ using their on-the-ground experience to develop and implement policies ◗ anticipating and managing issues, often before they occur ◗ supporting communities (particularly rural, remote and Indigenous communities) in developing funding proposals ◗ managing a number of FaCS-funded programs.
Departmental overview I the big picture 17 Supporting our people
“ What makes FaCS a good place to work is the people and the diversity and breadth of work. The people are very supportive, knowledgeable and very committed. I’m proud of the leadership role the department plays in the human services area.” —Glenys Beauchamp, Executive Director, Community Development and Support
FaCS recognises that the capability, diversity and health of our people is a priority. To achieve outcomes, we need to build people’s skills and capabilities, support managers and employees, and plan for the future workforce. We also implement and promote initiatives that give employees opportunities to spend more time with their families, work flexible hours, or take on volunteer work in their communities. In 2002–03, FaCS was a joint winner in the large business category of the prestigious Australian Chamber of Commerce and Industry Work and Family Awards. Other highlights for the year included: ◗ recruiting 25 graduates with degrees in economics, law, the arts and sciences. Within their first 12 months, graduates have three rotations in the department, including the chance to work in STOs. This year, they were also involved in outbound activities, such as visits to Centrelink customer service offices and call centres. ◗ holding the Senior Leadership Program ‘Thriving with success and balance’, which targeted FaCS EL2 officers. Designed around feedback from EL2 staff and senior management, the program used well- known speakers who shared their personal and professional experiences. Workshops and group activities on coaching skills and leadership were also held. ◗ using intensive consultations, scenario planning, data collection and analysis to identify current and future workforce needs. This highlighted areas FaCS needs to focus on, including our ageing workforce and higher than average turnover rate. In response, FaCS will develop a Very Experienced Workers Strategy to help retain experienced and skilled people. In the coming year, FaCS will implement a targeted recruitment strategy, so that FaCS takes a more strategic approach to attracting, recruiting, developing and retaining effective people. FaCS will also implement an Indigenous recruitment and retention strategy, which aims to increase the proportion of Indigenous staff in FaCS to 1.5 per cent of total staff by 1 June 2004 and 2.5 per cent of total staff by June 2005.
18 FaCS Annual Report 2002–03 I Volume 1 Family and Community Services portfolio structure
At 30 June 2003, the Family and Community Services portfolio consisted of FaCS (incorporating the Child Support Agency (CSA)), Centrelink and the Australian Institute of Family Studies (AIFS) (Figure 3). The resources needed to support the operations of the Social Security Appeals Tribunal (SSAT) are also provided through FaCS.
Portfolio changes
CRS Australia became part of the Department of Health and Ageing with effect from 1 July 2002 for administrative purposes. However, it still provides rehabilitation services—the majority of its business—on behalf of FaCS.
Figure 3 Portfolio structure at 30 June 2003
Minister for Family and Community Services Senator the Hon Amanda Vanstone
Minister for Children and Youth Affairs The Hon Larry Anthony MP Social Security Appeals Tribunal Parliamentary Secretary for Family and Community Services The Hon Ross Cameron MP
Department of Australian Institute Centrelink Family and of Community Services Family Studies
Outcome: Outcome 1: Outcome: Effective delivery of Stronger Families To inform Commonwealth governments, policy services to eligible Outcome 2: makers, and other customers. Stronger Communities stakeholders on Outcome 3: factors influencing Economic and Social how families Participation function.
Child Support Agency
Family and Community Services portfolio structure 19 Department of Family and Community Services
FaCS is the principal policy formulation and advising body in the portfolio. FaCS is responsible for: ◗ putting to work the Government’s social support policies for families, working-age people and retirees ◗ managing the delivery of a wide range of support services through thousands of provider organisations located across Australia. CSA promotes parental responsibility for the costs of raising their children and provides services to help parents pay child support.
Social Security Appeals Tribunal
The SSAT is a statutory body created by the Social Security (Administration) Act 1999 to conduct reviews of administrative decisions made under a number of enactments, in particular the social security law and the family assistance law. The SSAT aims to provide a mechanism of review that is fair, just, economical, informal and quick. Administrative arrangements of long standing exist between FaCS and the tribunal that allow the tribunal to benefit from FaCS’ infrastructure. Information on staff required to support the operations of the tribunal is included in this report, together with other relevant management information. Funding for the tribunal is included in the price of the departmental outputs. In line with its reporting obligations under section 25 of Part 3 of Schedule 3 to the Social Security (Administration) Act 1999, the Executive Director of the SSAT submits an annual report to the Minister for Family and Community Services, to be laid before each House of Parliament.
Portfolio agencies Centrelink
Centrelink is a service delivery organisation, responsible for providing information, payments and services to the Australian community. The Chairman of the Board of Centrelink must provide an annual report on Centrelink operations to the responsible minister, who is the Minister for Family and Community Services.
Australian Institute of Family Studies
AIFS is an independent statutory authority that promotes the identification and understanding of factors affecting marital and family stability in Australia. AIFS must prepare an annual report to the Parliament.
20 FaCS Annual Report 2002–03 I Volume 1 Organisational structure
Figure 4 shows FaCS’ structure at 30 June 2003, the responsibilities of FaCS senior executives, and the relationship between FaCS’ structure and the outcome and output structure. The organisational structure reflects strategic themes, with responsibilities divided across strategic outcomes. The STO network takes advantage of its specialist expertise and locational advantages to help achieve outcomes. Four key departmental outputs are produced across FaCS. Three outputs cover the policy and management of the delivery of the administered outputs to the community. The service delivery output links directly to the administered outputs or items in each output group. The Child Support Agency (CSA) was the main service delivery arm of FaCS in 2002–03. CRS Australia continued to provide rehabilitation services for FaCS. The remainder of the service delivery output is provided by Centrelink or other external organisations.
Organisational structure 21 Figure 4 I Organisational structure at 30 June 2003
Outcome 1 Outcome 2 Stronger Families Stronger Communities Executive Director Executive Director Family and Children Community Development and David Kalisch Support Linda Powell
Departmental Family Youth and Child Child Care Housing Community Labour Outputs Assistance Student Support Support Support Support Market Support Assistance Output 1.1 Output 1.2 Output 1.3 Output 1.4 Output 2.1 Output 2.2 Output 3.1
1 Family and Youth Family Child Care Housing Community Labour Market POLICY ADVICE Children’s Bureau-Policy Payments and Benefits Support John Higgins and Parenting $76.8 MILLION Policy Matt Davies Child Support Donna Griffin Fiona Smart A/g Evan Lewis David Policy A/g Hazelhurst Youth Bureau- Lynne Curran Indigenous Participation Programs Child Care Policy Strategies Family and Jeff Popple Services Bronwyn Barry Sandison 2 Children’s Dawn Casey Nimmo RESEARCH AND Services EVALUATION $26.9 MILLION Tony Carmichael
Family 3 Payments and PURCHASING, Child Support FUNDING AND Policy RELATIONSHIP Lynne Curran MANAGEMENT $109.2 MILLION
4 SERVICE DELIVERY FACS (including CSA) Child Support $275.5 MILLION Agency CENTRELINK Catherine $1771.0 MILLION Argall OTHER $116.3 MILLION
Output definition: Goods and services produced by agencies on behalf of Corporate government for external Business Client and Governance organisations/individuals Strategy Community Robert Trevor Sutton Sheila Bird Porteous Outcome definition: Results or impacts that the Government wishes to achieve
22 FaCS Annual Report 2002–03 I Volume 1 Secretary Mark Sullivan Deputy Secretary Wayne Jackson Deputy Secretary Glenys Beauchamp, A/g
Chief Internal Auditor Phil Lindenmayer (reports independently to the Secretary)
Outcome 3 Welfare Strategic Alliance and People, Budget and Economic and Social Participation Reform Framework Delivery Business Financial and Ageing Executive Director Executive Frameworks Improvement Management Executive Executive and Support Economic and Social Participation Director Chief Financial Serena Wilson Director Director Executive Peta Winzar Officer Kerry Flanagan Cate McKenzie Director Tim Youngberry Virginia Mudie A/g
Support for Support for Support People with a Carers for the Aged Disability Output 3.2 Output 3.3 Output 3.4
Disability Office of Seniors and Welfare Reform Strategic Service State and People Resource Service Disability Means Test Taskforce Policy and Delivery and Territory Office Liza Carroll Management Reforms Jackie Wilson Alex Dolan Bruce Smith Knowledge Assurance Network Melissa Frances Davies Alison Smith Jeremy Nott Evan Mann Business McClusky A/g Kim Loveday Victoria Information National Working Age International Gwenda Prince Solutions Budget Disability Taskforce Roger Barson Centrelink New South Tony Mee Development Services Chris Foster Relationship Wales Gary Dunn Glen Halloran Jenny Bourne Kerry Elizabeth Business Ministerial Queensland Improvement and Office of Legal Services Glen Halloran and Communication Disability Brendan South Governance Andrew Australia Jackie Wilson Herscovitch Jacomb Steve Heather Jennaway State and Coleman Territory Office Western Network Australia Cheryl Schmidt Tasmania John Hargrave Australian Capital Territory Joseph Murphy North Australia Office Bronwyn Note Nimmo Colour bars represent lines of management
Organisational structure 23 Financial performance overview
FaCS’ financial statements, both departmental and administered, are in Volume two of this report. The resource summary of our price of outputs and administered programs can be found under each outcome summary in Volume two, Part one.
Changes in administrative arrangements
On 1 July 2002, administrative control of CRS Australia transferred to the Department of Health and Ageing (DHA). This gives effect to the agreement between the secretaries of FaCS and DHA flowing from the revised administrative arrangements announced in November 2001. For comparative reporting purposes, the results of CRS Australia are included in FaCS’ financial statements in accordance with the Finance Minister’s Orders.
Operating results Departmental
Operating deficit FaCS generated an operating deficit for 2002–03 of $21.7 million. This deficit mainly arises from the expensing of advance payments to Centrelink for services that were not delivered as at 30 June 2002 of $25.5 million.
Operating revenue increased Total operating revenue was $2381.1 million, up $93.5 million from 2001–02. Total operating revenue consists of: ◗ Government appropriations of $2375.6 million, which has increased $129.6 million from last year due to new Budget measures for Australians Working Together, Recognising and Improving the Work Capacity of People with a Disability, Compliance—Prevention and Detection, and other non-budget measures ◗ Sale of Goods and Services Revenue of $0.7 million, which has decreased $31.9 million from last year due to the transfer of CRS Australia ◗ Interest Revenue of $3.3 million.
24 FaCS Annual Report 2002–03 I Volume 1 Operating expenses increased Between 2001–02 and 2002–03 total operating expenses increased by $150.2 million to $2402.7 million. ◗ Employee expenses decreased by $50.0 million primarily due to the transfer of CRS Australia ($80 million) to DHA. This is offset by: — increases in staff numbers to implement new Budget measures —a 4 per cent pay increase for FaCS core paid from 1 April 2003 — an increase in employee entitlement liabilities due to changes in applicable accounting standards. ◗ Other expenses increased by $240.4 million due to an increase in payments to Centrelink for new Budget measures.
Administered
FaCS administered programs of $57.7 billion in 2002–03 on behalf of the Government.
Table 1 Summary of actual administered expenses 2002–03 Actual expenses 2001–02 Actual expenses $’000 $’000 Subsidies 11 705 10 517 Personal benefits 53 829 993 52 568 182 Grants 2 525 248 2 461 076 Suppliers 50 819 32 137 Write down of assets 430 998 593 132 Interest 47 958 50 323 Other 753 796 693 320 Total administered expenses 57 650 517 56 408 687
Suppliers’ expense increased by $18.7 million as a result of the full year effect of the transfer of administered items to FaCS from the former Department of Education, Training and Youth Affairs in November 2001. There was a $162.1 million decrease in the write down of assets, primarily the result of a decrease in the provision for doubtful debts for the Student Financial Supplement Scheme ($386.6 million). This was offset by an increase in the provision for doubtful debts for other personal benefits ($224.5 million) due to a change in methodology for calculating the provision for doubtful debts.
Financial performance overview 25 Balance sheet Departmental
Net asset position reduced The net asset position decreased to $10.7 million due to the transfer of CRS Australia to DHA on 1 July 2003.
Total assets decreased Total assets decreased by $41.4 million primarily due to the transfer of assets used in the operation of CRS Australia ($61.3 million) to DHA. Cash balances decreased by $92.2 million to $2.9 million. The decrease relates to a return of cash to the Official Public Account ($54.2 million) and the transfer of CRS Australia ($47.4 million). In line with the recommendations from the Budget Estimates and Framework Review, agencies are now required to keep cash balances only to an agreed working capital level. Amounts owed to us increased by $77.1 million due to the return of unspent cash to the Official Public Account ($54.2 million) and the recognition of overpayments to Centrelink for adjustments under the Regional Funding Model ($27.7 million). Intangible assets decreased by $11.1 million mainly a result of a review of FaCS’ internally developed software assets which resulted in a write off of $7.3 million. In addition, intangible assets for CSA decreased by $3.0 million due to a change in the useful life of its business system ‘Cuba’.
Total liabilities increased Total liabilities increased by $6.7 million mainly due to an increase in employee provisions and an increase in other payables. This is offset by a decrease in liabilities due to the transfer of CRS Australia ($33.0 million). Employee provisions are our main liability, a continuing result of accruing leave entitlements to staff. This liability decreased by $7.3 million from 2001–02 due to the transfer of employee provisions for CRS Australia ($17.7 million). This decrease is offset by an increase in employee entitlement liabilities ($10.4 million) due to an increase in staff numbers and changes in applicable accounting standards.
26 FaCS Annual Report 2002–03 I Volume 1 Figure 5 Comparison of departmental position
250 000
Assets Liabilities Equity 200 000
150 000
($’000) 100 000
50 000
0 2002–03 2001–02 2000–01
Administered
Total assets increased by $397.2 million Total administered assets increased by $397.2 million to $2278.8 million, mainly because of an increase in the receivable for Personal Benefits. Total administered liabilities increased by $1.1 million to $2401.7 million. Personal Benefits payable increased due to an increase in the number of days between payment dates and 30 June 2003. Loans decreased due to a reduction in the amount owing to the Commonwealth Bank for Student Financial Supplement Scheme loans from $843.5 million to $734.5 million.
Figure 6 Administered assets and liabilities
3000000
2 500 000 Assets Liabilities
2 000 000
1 500 000 ($’000) 1 000 000
500 000
0 2002–03 2001–02 2000–01
Financial performance overview 27 Child Support Agency I General Manager’s review
The Child Support Agency’s (CSA) job is to help separated parents take responsibility for the financial support of their children. Nearly 1.3 million parents are presently registered with CSA, and have annual child support responsibilities of some $2.1 billion a year. CSA assisted in the transfer of over $1.9 billion in child support in 2002–03. The work we do with separated parents reflects our community’s expectation that all parents support their children according to their capacity, thus balancing private and public responsibilities. CSA is a semi-autonomous business unit within FaCS. We collaborate closely with a range of areas within FaCS, while differing from other core areas in that we provide direct services for clients, employers and the community. CSA is accountable to the Secretary of FaCS and the Minister for Children and Youth Affairs. As General Manager I am a member of the FaCS Executive Board. 2002–03 was a year of consolidation for CSA. We strengthened the business and further improved our capacity to deliver services to separated parents, building on the March 2002 implementation of our new IT system, ‘Cuba’ (named after the Roman goddess who protects children). The technology platform, which integrates telephone contact from our clients with their history, has given us the opportunity to move to the next level of client service. Our priorities for the year included recruiting more people to match our caseload growth, and providing our people with workload prediction and management support. The integration and discipline in harnessing technology, people and workloads are what makes the difference in delivering quality child support outcomes.
28 FaCS Annual Report 2002–03 I Volume 1 Key performance results and achievements Promoting parental independence
Our strategies to encourage and support parental self reliance have paid dividends. This year, for the first time, more than half of all parents registered with CSA transferred their child support privately, with minimal intervention from us. Nearly 70 per cent of all newly separated parents now choose this approach. Of the $1.94 billion in child support payments transferred between separated parents, $1.27 billion was transferred directly between parents. This is a clear indication of how CSA improves outcomes for children by helping parents achieve and maintain independence while supporting their children after separation.
Making connections across government and community
CSA occupies a crucial gateway position for separated parents accessing the family law system. Around 90 per cent of separated parents are registered with us. We have been working hard to develop cross- sector partnerships among government and community agencies to recognise parents’ emotional, legal, financial and parenting needs. The high standard of our effort to build on the intent of the Family Law Pathways Report has been recognised in the Australian Government response to the report. A number of initiatives this year reflect our commitment to this joined-up approach to family law issues: ◗ we enhanced referral options for clients, including our partnerships with Mensline Australia, Crisis Support Services, UnitingCare Burnside, Unifam and Wesley Dalmar. These services helped parents identify and work through their problems. Early indications show parents appreciate and act on the support offered. ◗ a model to actively address issues for separated parents by providing support and information through the workplace has been developed in partnership with Interrelate (Newcastle) ◗ a ‘gateway’ project in the Hunter Valley region was established to educate staff and clients in other family law and community agencies about child support issues ◗ we enhanced our electronic information channel to include The guide, an easy-to-read online explanation of child support legislation and decision-making for clients, community service providers and other interested groups.
Child Support Agency I General Manager’s review 29 International child support cases
Since we took on responsibility for registration, assessment, transfer and enforcement of payments in international child support cases, we have augmented our capability in this area—necessary because our international caseload has increased by more than 50 per cent since June 2002. To administer the caseload effectively, our Hobart office is now specialising in international work.
Collecting child support debts for children
It was a disappointment for CSA this year that the amount of debt owed by parents for child support continued to trend upwards—maintenance debt increased from $759 million in June 2002 to $844 million in June 2003. The rising debt can be attributed to three main factors: ◗ an increase in the total CSA caseload. The number of cases registered with CSA has increased from 667 957 in June 2002 to 711 541 in June 2003. ◗ the growth in the international caseload, which includes overseas cases that have come to Australia with significant existing debts ◗ the introduction of the minimum child support liability ($260 a year) legislation in July 1999. To tackle the upward debt trend, we developed a national collection strategy that is already making an impact on collections and stemming debt growth. This ensures more parents support their children according to their capacity to do so. The strategy also provides a basis for implementing the 2003–04 Budget measures to target recalcitrant debt.
Continuing focus to improve services to clients and the community
CSA is a large business operation, with 3000 people located in 16 major metropolitan areas and 21 regional service centres. To enhance client access, our operations are supported by visiting services to suburban, regional and rural Australia. Feedback from parents and the community confirms that these services are appreciated. This year we made a major investment to engage CSA leaders across the country by holding a national leadership conference to continue improvement of the services we provide to the community and parents. New technologies made sure that staff could all make immediate contributions. We will build conference outcomes into all levels of CSA planning for next year.
30 FaCS Annual Report 2002–03 I Volume 1 External recognition of our efforts
In October 2002 CSA extended our network of international connections by hosting the 8th Annual International Child Support Heads of Agencies Conference. Other countries attending the conference recognised our excellent performance in helping support Australian children. Our efforts have also been acknowledged by: ◗ the Australian National Audit Office performance audit of CSA. This report recognised our significant improvements against all previous audit report recommendations—particularly in relation to improved quality of client service. ◗ the Prime Minister’s Awards for Excellence in Public Sector Management, at which we won a silver award for our people development and a special commendation for our implementation of ‘Cuba’.
Into the future
The Government recently announced an inquiry into child custody, including aspects of the operation of the child support formula as it relates to parental contact with children after separation. CSA will support the committee with its inquiry. Other initiatives and priorities for CSA in the coming year will include: ◗ implementing the two new CSA Budget measures: — help for newly separated unemployed parents — child support debt collection—additional compliance activity ◗ reviewing the CSA client charter so we can extend how we put it into practice in our everyday business. In 2002–03 CSA succeeded in building on the strong foundation we have already established. We moved forward with key initiatives to improve the services we deliver to parents and children. We also refined the support structure we provide for our people, who are the key to delivering improved outcomes for parents, children and the wider community. We will continue to work towards our vision that all Australian parents meet their child support responsibilities.
Catherine Argall General Manager Child Support Agency
Child Support Agency I General Manager’s review 31 About Catherine Argall
Catherine Argall PSM is General Manager of the Child Support Agency (CSA) within the Australian Government Department of Family and Community Services. Since joining the CSA in 1996, Catherine has built a leadership team and business development framework that are driving the transformation of what was once described as the most complained about agency in government. Catherine was awarded the Public Service Medal in 1995 for outstanding service in public sector management as General Manager, Australian Property Group, and was further recognised this year as a recipient of the Centenary Medal. Over a career of 30 years Catherine has served the Australian Government in positions spanning other departments including Finance, Veterans’ Affairs and Administrative Services.
32 FaCS Annual Report 2002–03 I Volume 1 Part 2 I Achievements and challenges— performance insights Building the evidence base
Key points ◗ The first set of Jobseeker data has been created. ◗ By June 2003, more than 160 individuals were licensed to use the Wave 1 Household, Income and Labour Dynamics in Australia (HILDA) survey data. ◗ Light has been shed on sole parents’ dependence on Parenting Payment Single and on labour supply incentives.
Understanding the social trends making an impact on Australian society, and finding evidence of the policies that work and why, are critical to FaCS’ policy advising and implementation. Social policy research supports the creation of this knowledge. Research findings have deepened understanding of key social policy issues and enriched our contribution to social policy debates. Some of the key research outcomes in 2002–03 included: ◗ the achievement of several milestones in the development of our longitudinal initiatives. For example: — the creation of the first set of Jobseeker data, a collaborative project of FaCS and the Department of Employment and Workplace Relations (DEWR) — the release of the 2000 and 2001 General Customer Survey datasets — the release to approved researchers of Wave 1 data from the HILDA survey. ◗ the harvest of early findings from FaCS’ investments in data. For example: —research on sole parents’ dependence on welfare using the FaCS Longitudinal Data Set (LDS) has clarified earlier evidence that relatively short duration of spells on Parenting Payment Single obscured longer-term dependence on this and other payments over longer periods — LDS data informed development of the working-age payment reform consultation paper Building a simpler system to help jobless families and individuals. ◗ the sharing of research and data. For example: — the availability of HILDA data between October 2002 and June 2003 has resulted in more than 160 licensed users, including DEWR, the Department of Immigration, Multicultural and Indigenous Affairs, the Department of Education, Science and Training, the Department of Health and Ageing, Treasury and the Reserve Bank, as well as Australian and overseas academics —a broad range of early HILDA findings, notably on parent–child contact after separation, on women’s work preferences, and partnering and fertility patterns, were shared by researchers at the Australian Institute of Family Study Conference in February 2003 and the HILDA Conference (March 2003).
34 FaCS Annual Report 2002–03 I Volume 1 ◗ The challenge is to collaborations. For example: —we collaborated with the Centre for Mental Health Studies (at the improve our Australian National University) in a project looking at the prevalence of understanding of mental health disorders among income support recipients the factors —we commissioned a report on the impact of social policy initiatives on influencing labour supply incentives. Further work using the Melbourne Institute Tax and Transfer Simulator (MITTS) has developed a number of labour supply pathways and models to better understand the impact of policy change on household outcomes for and individual labour supply behaviour. individuals and —we continued a successful partnership with state and territory families by governments through the National Youth Affairs Research Scheme, which is a well established research initiative that specifically focuses on youth understanding issues. In 2002–03, six research studies were in train and three new ones what policy were developed to be commissioned. settings work, and ◗ evaluation work. For example: when and for — the evaluation of the Welfare Reform Pilots was used to improve the whom they work. design of some measures in the Australians Working Together package, such as the implementation of Personal Advisers — the evaluations of the case based funding trial and of a trial to involve private providers in delivering rehabilitation services were used to develop the package of measures to improve employment services for people with disabilities. ◗ building on previous work. For example: —research produced by the Social Policy Research Centre (at the University of New South Wales) under a services agreement with FaCS used a combination of data from the Customer Participation Survey (1998), the General Customer Survey and the LDS to update and expand research findings on the determinants and impact of participation among our clients. ◗ contributions to parliamentary committees and inquiries, most notably: — our submissions to the Senate Inquiry into Superannuation and Living Standards in Retirement, the Senate Select Committee on Superannuation Inquiry into Planning for Retirement, the House of Representatives Standing Committee on Ageing, and the Senate Standing Committee on Community Affairs Inquiry into Poverty and Financial Hardship. Our major research challenge is to improve our understanding of the factors influencing pathways and outcomes for individuals and families. To meet this challenge, we are continuing to develop informative data sources and collaborative research arrangements to help us understand what policy settings work, and when and for whom they work.
Building the evidence base 35 Redeveloping the Child Care Support Broadband
Key point ◗ A redevelopment of the $180 million-a-year Child Care Support Broadband will improve the targeting of funding to child care services.
In September 2002, the Minister for Children and Youth Affairs, Larry Anthony announced a redevelopment of the Child Care Support Broadband. From an allocation of about $180 million a year, the Broadband supports a range of child care programs, including assistance to children with special needs, families in rural and regional areas and Indigenous communities, and quality assurance. The redevelopment will explore how to improve outcomes for children within the available funding. The redevelopment is a response to recommendations made by the Commonwealth Child Care Advisory Council in its report Child Care: Beyond 2001. These recommendations were based on extensive research and over 1000 hours of consultation with parents, child care providers and other interested stakeholders. The current range of child care programs and funding arrangements have been developed and implemented incrementally over several decades. Until now, there had never been an assessment of the overall direction of child care funding that takes into account the needs of both children and families and current Government priorities, and which is informed by research into early childhood development and early intervention and prevention strategies. The redevelopment has reached the stage of analysing the data and submissions of nationwide consultation that ran throughout March and April 2003. More than 1200 people attended consultations run by external consultants, Community Link Australia. Over 560 written contributions were received. The next stage involves a forum where representatives of peak bodies and services will consider the options Community Link develops through analysis of consultation feedback. Minister Anthony will then be provided with options, drawing on the consultation process. We expect the redevelopment project to be completed later in 2003.
36 FaCS Annual Report 2002–03 I Volume 1 Helping parents support their children I the Child Support Agency
Key points ◗ By 30 June 2003, nearly 1.3 million Australian parents had registered with the Child Support Agency (CSA), resulting in child support for some 1.1 million children. ◗ For the first time, over half (50.6 per cent) of the parents registered with the CSA or transferred their child support payments privately. ◗ Integrated IT and telephony systems are working well to boost efficiency and client satisfaction. ◗ Extended networks with other agencies to simplify client navigation of the family law system.
CSA helps parents who do not live together meet their responsibility for supporting their children financially. By 30 June 2003, nearly 1.3 million Australian parents had registered with CSA, resulting in child support for some 1.1 million children. The year 2002–03 has been one of consolidation for CSA. In 2001–02 CSA implemented integrated IT and national telephony systems, two of the biggest changes undertaken since its establishment in 1988. The key achievements this year have been to overcome the initial teething problems of these new technologies, to meet the challenge of fully integrating them into everyday business, and to realise their potential to enrich outcomes for both clients and staff. The IT system ‘Cuba’ has been an outstanding success, maximising the ability of our staff to effectively resolve client issues. Following the implementation of ‘Cuba’, staff had concerns about using the new system. CSA has worked hard to overcome identified areas of difficulty, with the result that in March 2003, 90 per cent of staff indicated they are comfortable using ‘Cuba’ in their daily activities. Client and staff feedback told of the need to improve the readability of letters, so CSA established a project team to do this. CSA has safeguarded the solid technological foundation by investing in disaster recovery enhancements for computing and telephony. It continues to explore further initiatives in electronic service delivery. By focusing on new clients during the first nine months of their child support obligations, CSA helps parents become more self reliant. For the first time, over half (50.6 per cent) of the registered parents transferred their child support payments privately.
Helping parents support their children I the Child Support Agency 37 The collection rate for CSA-collect cases since the inception of the Child Support Scheme is now 88.7 per cent, while the total transfer rate (including private collect cases) is 94.1 per cent. In 2002–03 $1.94 billion was transferred between parents for the benefit of children. Around $1.27 billion of this was transferred directly between parents and $672 million was transferred through collections. The business priorities for CSA in 2002–03 were to improve client satisfaction, build stronger partnerships, continue staff support, simplify career advancement and improve workload management. CSA has significantly addressed all these priorities.
For CSA clients
The report of the Family Law Pathways Advisory Group led CSA to focus this year on extending its network of connections with other government and community agencies. CSA recognises it is in a vital gateway position for separated parents in relation to the wider family law system, and many of our key client achievements this year reflect the aim to make navigation of the system as simple and effective as possible. ◗ CSA deployed revised client management principles to ensure that no matter whether clients choose to contact by telephone, letter, through the web site or face to face, they will receive the same high level of service ◗ CSA launched an online reference guide to child support legislation and decision-making for clients, staff and community service providers ◗ In conjunction with the Family Court of Australia, CSA continued to identify and resolve difficulties experienced by mutual clients ◗ CSA entered into partnerships with community service providers—working with Interrelate to develop a workplace information and support program for parents and with Relationships Australia to pilot a primary dispute resolution model. Early results of this model, as well as the Supporting Parents Referral Service, indicate a high rate of take-up by parents of our proactive referrals to community agencies. ◗ The international caseload has increased by 55 per cent since 2001–02 and CSA have responded by devoting our Hobart site to the management of international clients. The Hobart site now takes responsibility for implementing and maintaining the effective procedures we developed to manage international child support arrangements. ◗ Further to CSA’s research into debt collection, funding has been allocated in the 2003–04 Budget for targeted compliance work and extra help for newly separated unemployed parents.
38 FaCS Annual Report 2002–03 I Volume 1 For CSA staff
Throughout the year CSA made significant investments in its people. CSA held a national leadership conference to ensure its leadership capability continues to expand. CSA negotiated and implemented a new agency agreement. The emphasis is on improving workload management so we can increase the level of service to clients while helping staff manage their daily work activities more effectively. The agreement has also allowed CSA to begin streamlining staff advancement procedures. This is a high priority as staff have indicated that advancement arrangements were too complex. Staff advancement is an area that will require further improvement measures over the coming year. Recruitment of new staff is ensuring CSA delivers quality client service. The ‘Quality outcomes for clients’ training modules and the implementation of a new business coaching strategy have increased the skills base of existing staff. A recent survey of corporate health in CSA identified a decrease in the morale of staff at the APS4 level. CSA aims to better understand and cater for the needs of these staff and has already begun to tackle the problem with a series of targeted focus groups. CSA’s efforts on behalf of Australian children and separated parents have been recognised by external agencies through: ◗ the 2002–03 Australian National Audit Office performance audit report, which acknowledged that CSA has significantly dealt with the issues arising from the previous audit and noted marked improvements in relation to the quality of client service. The report identified a need for improvement in the CSA Employer Withholding processes and in response we have made a number of positive adjustments in this area. ◗ the Prime Minister’s Awards for Excellence in Public Sector Management, at which CSA received a Silver award for people development and a special commendation for the implementation of ‘Cuba’ ◗ the Government response to the Family Law Pathways Advisory Group Report, which highlighted many CSA initiatives implementing the report recommendations. In June 2003 the Australian Government announced an inquiry into child custody arrangements. The child support formula is one of the issues that will be investigated and CSA will add valuable input to the inquiry.
A group of participants at the CSA Leadership Conference held in May.
Helping parents support their children I the Child Support Agency 39 FaCS–Centrelink strategic alliance
Key points ◗ A pilot of the Business Assurance Framework will firm up accuracy of outlays and payment correctness. ◗ An agreed outcomes and outputs framework sets out our respective contributions to shared outcomes. ◗ Centrelink’s costs were reviewed as an important input to developing the Centrelink funding model. ◗ A project, Alliance 2004, is being developed to strengthen the FaCS–Centrelink relationship.
Centrelink is the primary agency for delivering FaCS’ income support payments and some related human services. The Business Partnership Agreement between FaCS and Centrelink emphasises improving delivery of policy outcomes and services for the Government and the community. The FaCS–Centrelink relationship blends elements of purchaser–provider responsibilities with elements of partnership and alliance. The purchaser–provider responsibilities arise from various legislated accountabilities. The ‘alliance’ aspect of the relationship reflects the broader way FaCS and Centrelink interact. It recognises that each agency has its own business drivers but are interdependent. An important aspect of the strategic alliance is the emphasis on business assurance and the development of assurance-related performance indicators, which focus on outcomes and outputs. One of the key principles of business assurance is that management of risk sits with the organisation that controls that risk.
40 FaCS Annual Report 2002–03 I Volume 1 Business assurance framework
The Business Assurance Framework, stage 1—accuracy of outlays and payment correctness—was piloted on the Age Pension payment during 2002–03. A number of recommendations have been made for improving the framework. If accepted, the recommendations from the pilot will be incorporated in the full implementation of the payment accuracy framework during the 2003–04 financial year. Further development of the framework will focus on services to clients provided through Centrelink, such as participation support services.
The FaCS–Centrelink outcomes and outputs framework
In November 2002, FaCS reached agreement with Centrelink on an outcomes and outputs framework. The framework sets out a suite of high-level key performance indicators that measure Centrelink’s contribution to the shared outcomes. It also identifies what FaCS will provide to Centrelink to enable them to meet the indicators.
Centrelink funding model
During 2001–02, the Government accepted the basic principles for a new funding model for Centrelink. The new model will link the funding Centrelink receives for the services it provides with the outcomes sought by Centrelink’s major purchasing departments. In 2002–03, the funding model underwent substantial development. A review of Centrelink’s prices was conducted for Centrelink by the Boston Consulting Group and provided input to the model.
Challenges
A new challenge facing the strategic alliance is how to consolidate the gains from the development of the new frameworks while at the same time achieving the required cultural change within both organisations.
FaCS–Centrelink strategic alliance 41 42 F aCS Annual Report 2002–03I aCS Annual Report Volume 1 ommunity pirit the Inter-Agency Taskforce. to victims,theirfamiliesandfriends, aswell astoprovide asecretariat for taskforce (theFaCS Taskforce) tocoordinate policyanddelivery ofassistance Fr T St ◗ ◗ ◗ ◗ ◗ ◗ Australian Government domesticresponse, whichincluded: T W placed tocoordinate thepolicyanddelivery ofthisassistance’. Government’s domesticresponse totheBalitragedy asFaCS was‘best In October2002thePrime MinisterappointedFaCS theleadagencyin BALI TASKFORCE Bali, bushfires anddrought R askforce.
c saskforce. The taskforce metdailyintheearlystagesto coordinate the om 24Octoberto15November 2002,we establishedaninternalBali ro ithin aday, FaCS hadconvened thefirstmeetingofBaliInter-Agency esponding tocommunitiesincrisis the seamlessdelivery ofinformation. a communicationstrategy toensure awhole-of-government approach and payments streamlined accesstoincomesupport the release andreturn ofpersonaleffects oftheinjured within Australiatransportation medical assistance assistance forBalivictimsandtheirfamiliesthrough ex-gratia payments ng linksandclosecollaboration were hallmarks oftheInter-Agency I The FaCS Taskforce developed a series of guidelines to help Bali victims and their families with expenses associated with the tragedy, including: ◗ assistance for family members or friends of Bali victims needing to stay on in Bali ◗ assistance for immediate family members/next of kin to: —re-unite with hospitalised victims —travel to Bali to support victims and families — attend the funeral of a Bali victim. Up to $5000 was made available to help with funeral costs. FaCS developed the communications strategy, which included: ◗ a Centrelink Bali domestic hotline and an international hotline operating 24 hours a day. As of 30 June 2003, 2609 inquiries had been received. The hotlines continue to help clients. ◗ a Baliassist web site (www.baliassist.com.au) containing links to other relevant sites and providing a ‘one-stop shop’ for information. By the end of May 2003, there were 16 353 site visits. ◗ a Bali update newsletter targeted at victims, their families and friends. Two editions have been distributed (in December 2002 and April 2003) and a third edition is planned in the lead-up to the Bali tragedy first anniversary date. ◗ fact sheets covering specific issues such as financial assistance, personal support and health issues ◗ a mini contact card listing important contact numbers, produced and distributed to Bali victims and their families and friends. Since 18 November 2002, a small FaCS team has continued to develop assistance for victims and families of those who died in the Bali tragedy. Most recently, FaCS developed a package of travel and accommodation assistance to help those travelling to the trials of the Bali bombing suspects. Assistance with home and vehicle modifications is also being developed.
Within a day, FaCS Table 2 Take-up of assistance as at 30 June 2003 had convened the Description No. of clients Total amount first meeting of the Assistance with airfares 358 $289 664 Bali Inter-Agency Fares booked by Centrelink with Qantas 161 flights $156 902 Taskforce. Assistance with accommodation 470 $794 864 Funeral and memorial expenses 44 $106 525 Payments to funeral directors 62 $277 572 Total 1095* $1 625 527 * The same client may have been assisted under more than one guideline or on more than one occasion.
Responding to communities in crisis I Bali, bushfires and drought 43 appeal. to thebushfire more than$11000 44 Fa payroll deductions, Through cashand Government. the ACT firefighters orwith staff helpedas FaCS More than30 CS
staff donated F aCS Annual Report 2002–03I aCS Annual Report Volume 1 community spirit informally withintheirindividualworkareas. made. More than$11000wasdonated.Anumberofstaffalsoraised funds Bushfire Appealviapayroll deductions,althoughcashdonationscouldalsobe F Many othershelpedindirectly. Government publicly acknowledged theircontribution. counsellors. The ACT Government inanumberofroles, such ascommunityrecovery officersor More than30staffhelpedasvolunteer firefighters orwiththeACT then lessregularly, toensure FaCS continuedtooperate effectively andsafely. The CrisisResponse Team metdailyforthefirstweek afterthebushfires, and ◗ ◗ ◗ ◗ The 18January2003Canberra bushfires drew amulti-level response from FaCS: C aCS alsoputinplacearrangements forstafftomakedonationstheACT ANBERRA BUSHFIRES and appreciates theflexibilityshown by FaCS inallowing himtoworkthere. an awfulexperience.Hebelieves hehaslearntagreat dealthrough hiswork toworkwithandassistpeople whohavehave undergone theopportunity to thatithasbeena‘quite reports assistance. Martin humblingexperience’ A Recovery Worker helpsbushfire-affected people witharange ofpractical secondment asaRecovery Worker. butisnow onalong-term process. He wasinitiallysecondedforafortnight Recovery Team intheinitialrecovery seeking staffwillingtojointheACT wasoneofmanystaffwhoresponded toFaCSMartin internalemails how great itwastoseesomanyFaCS peoplehelping. impressed withhow well thingswere notice, and organised atsuchshort including victimregistration, counsellingandphonework.Mira recalls being anumberofduties, including workingsomeweekends. She undertook working withpeopleaffectedby thebushfires forthenextthree weeks, Centrelink. From 24JanuaryshewasbasedattheLyons Recovery Centre, Mira, arecent recruit toFaCS, hadpreviously beenasocialworkerwith Zigon. Zivkovic andMartin Mira T Fa via salarydeductions Government’s Bushfire Recovery team we we we and Recovery Section we oo h ayFC tf eoddt h C recovery were effort wo ofthemanyFaCS staffsecondedtotheACT CS
assisted FaCS staffadversely affected. Bushfire Appeal made itpossibleforstafftomakedonationstheACT formally released staffforfirefighting dutiesandsecondmenttotheACT immediately activated ourCrisisResponse Team andDisasterResponse
tf epteATrecover staff helptheACT ommunity pirit ◗ we Outreach activitiesinvolved attendingcommunitymeetings,establishing The fundingallowed themtomakecontactwiththousandsofpeople. r r and 32counsellingorganisations with110outletsfundedby family F adversely affectedby thedrought. forpeople provided services $2millionforcounsellingandothersupport ofawhole-of-governmentAs part drought package,theGovernment C ◗ Achievements included: werecircumstances provided offarmfamilies,allservices free ofcharge. Given thesensitivityaround drought counselling andtheexceptional through counselling. appointments formore formalsupport success ofoutreach approaches ledtoagradual increase inpeoplemaking until sometrusthadbeenestablishedthrough lessformalcontact. The the drought wouldseek assistanceby makingappointmentsforcounselling It quicklybecameapparent thatvery fewfarmfamiliesandothersaffectedby communities. unite innovative practices, suchasphotographic exhibitions,thathelped on copingwithpsychological andsocialaspectsofthedrought, andother egional communities. providers topeopleinruralelationship service todeliver and theservices
c s aCS arranged foradditionalCentrelink socialworkersandpsychologists OUNSELLING FOR DROUGHT-AFFECTED REGIONS ihothers. with trust ofpeoplewhomaynotusuallydiscusstheirpersonalissues Officers.Byworkingasateam,counsellorsinformally gainedthe Service R in theAlbury/Wodonga area, socialworkersandcounsellorsfrom r the difficultiesforcommunity. The imagesalsocelebrated the where peoplecouldcelebrate theachievements ofyouth andacknowledge living indrought-affected areas. The event wasa positive communityevent ‘W Graphics tocreate a Mudgee Shire Council,FletchersFotographics andCTP Reconnect, in Mudgee,Centrelink socialworkersworkedwithBarnados’ b esilience andresourcefulness ofthedrought-affected community. elationships Australia travelled tofielddays withFinancialInformation sites, organising workshops,distributinglocallyproduced information ahrteWahr photographic exhibitioninvolving young people eather the Weather’ R esponding tocommunities incrisisIBali,bushfires and drought 45 ground wassohard I Mudgee Weather the Mudgee Weather 46 Nareeda Endacott— could barely scratch thirsty earth. ‘The thirsty earth. w Drought—A dry eather project. F in theletters’, aCS Annual Report 2002–03I aCS Annual Report Volume 1 community spirit ◗ ◗ ◗ ◗ ◗ r National Farmers Federation representatives, andran farmfamily inradio and participated TV promotions withlocalpoliticiansand presentations oneffectsofstress andparenting indrought-affected areas, in SouthAustralia, Centacare andRelationships Australia gave r farming women,attendedmen’s andshearingsheddays’,conducted ‘BBQ for conducted familynights,workshopsforwomenand‘time-outdays’ in central Victoria, Relationships Australia, Centacare andLifeworks communityworkshops agents andprovided ‘coping withrural stress’ counselling informationthrough businesses,schools,stockandstation distributed forged linkswithlocalfinancialcounsellingservices, southernNSW, and Relationships Australia andCentacare in theACT developing abookletforlocallibraries andschools program inlocal highschoolsand delivering a‘coping withdrought’ in south-easternNSW, Centacare andAnglicare workedtogether newspapers andran informationsessionsforstockandstationagents. information displaysatcattlesales,madecontributionstorural agricultural groups, attendedagricultural exposandfielddays,staffed on conductingsuicideprevention programs. They madepresentations to centacare andRelationships Australia incentral Queenslandconcentrated elationships workshops. anddirect-mailed 4000farmers adio interviews ◗ ◗ ◗ people indrought-affected areas. tohelp community-based support developing sustainable assistance the trustofpeoplewhoneed finding innovative waysofgaining inrural areas counselling services significant distancesofdelivering ov challenges included: outcomes inanenvironment where achieved these services The support ercoming thehighcost and Implementing welfare reform
Key points ◗ More than 450 Personal Advisers started work with Centrelink in September 2002. ◗ The Australians Working Together (AWT) evaluation is now well underway. ◗ Extensive consultations are guiding the Government on the direction of reform of income support for working-age people. ◗ Over 5700 people took up extra AWT disability employment assistance places. ◗ The number of people claiming Disability Support Pension has decreased significantly under AWT measures.
Welfare reform continues to be a major social policy priority of the portfolio. More Australians are relying on income support as a result of a range of factors, including population ageing, relationship breakdown and structural changes in the labour market. Another driver of welfare reform is the high incidence of long-term reliance on income support among working-age people. Sustained periods of joblessness have high social costs, including intergenerational effects. The objective of welfare reform is to increase economic participation and support social engagement while maintaining an effective social safety net. Building people’s capacities to be more self reliant is a key goal. Achievements in welfare reform in 2002–03 include the successful implementation of the first AWT measures: ◗ more than 450 Personal Advisers started work with Centrelink in September 2002. Personal Advisers have conducted more than 80 000 interviews with their target group. ◗ the personal Support Programme (PSP) began on 1 July 2002. As at 30 June 2003, approximately 26 300 individuals had commenced in PSP, including about 12 500 people who transferred from the Community Support Programme. ◗ the disability employment measure provided more opportunities for people with a disability to gain assistance in employment. Over 5700 new jobseekers received assistance from service providers using the case based funding model.
Implementing welfare reform 47 The objective of After successful passage of AWT legislation in March 2003, FaCS will implement the second phase of measures in September 2003. They include: welfare reform is to ◗ Working Credit increase economic ◗ the Language Literacy and Numeracy Supplement participation and ◗ participation requirements for Parenting Payment customers whose youngest support social child is 13–15 years old, and annual interviews extended to parents whose engagement while youngest child has turned six maintaining an ◗ closing access to Mature Age Allowance and Partner Allowance effective social ◗ participation interviews for new Widow Allowance recipients safety net. ◗ flexible arrangements for mature-aged people on Newstart Allowance ◗ the second tranche of Personal Advisers.
AWT evaluation and research
The AWT evaluation is now well underway. In January 2003, FaCS released the AWTEvaluation Strategy publicly. FaCS undertook a joint project with the departments of Employment and Workplace Relations and Education, Science and Training to develop a Jobseeker dataset. The dataset will bring together for the first time longitudinal administrative data on clients as they progress through income support, employment assistance and training-related programs. The final report of the AWT evaluation will be released by June 2006.
The next stage
For many people of working age, the income support system is very complex and does not always treat people in similar circumstances the same way. Some people face poor financial rewards from taking up work or increasing their hours of work. The next stage of welfare reform involves a review of income support for working-age people. It will seek to ensure they have incentives and rewards for paid work, support to participate and become self reliant, and have participation requirements and assistance tailored to their individual capacities and circumstances.
48 FaCS Annual Report 2002–03 I Volume 1 The Minister for Family and Community Services, Senator Amanda Vanstone, and the Minister for Employment and Workplace Relations, Mr Tony Abbott, jointly released a consultation paper and brochure in December 2002 to promote discussion of these issues in the broader community and guide the Government on possible directions for reform. Roundtable discussions involving welfare organisations, business, service providers and academics were held in all capital cities and selected regional centres, and information sessions ran in other parts of the country. Focus groups gathered the views of income-support recipients and non-recipients. The community could also contribute through written submissions. A total of 210 submissions were received by the end of June 2003.
A day in the life of a Personal Adviser—Maree’s story
Personal Advisers provide an individual assessment and referral service to a range of Centrelink customers, including parents with school-age children, eligible mature-age customers, Indigenous Australians and people with special needs. Maree, a Personal Adviser in a regional Centrelink office, may conduct as many as five interviews a day with a range of customers. Her first appointment is with Helen, a sole parent whose youngest child is 15-year-old Jack. Maree will help Helen develop a Participation Plan so she is prepared for a return to work when Jack turns 16. With another Personal Adviser, Maree then visits the local prison. They talk to Pete and Joe about participation options on release from prison and how Personal Advisers can help link them to employment and other social services, such as life skills programs. Maree returns to the office and does some outreach work with a local volunteering organisation. This organisation may be able to help Maree’s customers, a number of whom are interested in voluntary work, including some who receive Mature Age or Partner Allowance. Maree then meets with Robbie, a young Indigenous adult on Newstart Allowance who needs emergency accommodation. Maree has organised short-term accommodation for him for six weeks. She also refers Robbie to a Job Network provider as he had previously expressed interest in working in the automotive industry. At the end of the day Maree reviews her schedule for the following day. She notes she will be interviewing Sharon, a customer who recently lodged a medical certificate and is exempt from looking for work. Maree makes a note to talk to the Centrelink Disability Officer.
Implementing welfare reform 49 Welfare reform and disability
Because welfare reform also has an impact on people with disabilities, the Better Assessment and Early Intervention measure was introduced in September 2002. Under this measure, people who are ill, injured or have a disability can benefit from a better assessment based on the advice and expertise of a broader range of professionals. These assessors are specialists in their professions and are able to identify clients’ capacity to work and a range of appropriate early interventions and assistance. Since the introduction of the measure in September 2002, there has been a substantial decrease (28 per cent) in the number of Newstart Allowance clients exempt from the activity test due to incapacity. There has also been a significant decrease (14 per cent) in the number of people claiming Disability Support Pension compared to the same nine-month period in the previous year. These meet the expected outcomes of the measure as Centrelink focuses more on engaging and assisting clients, rather than focusing on their incapacity.
50 FaCS Annual Report 2002–03 I Volume 1 Supporting people with disabilities
People with disabilities still face many barriers when they try to participate in the labour force and the community. Australia has one of the lowest employment rates of people with disabilities among OECD countries. Around one in 19 people of workforce age receive the Disability Support Pension (DSP). Less than 10 per cent of recipients have earnings from employment, even though many have the capacity to work some hours. FaCS introduced new arrangements last year that put a greater focus on assessing work capacity of potential entrants to DSP and identifying what services and supports may help them back into work or to continue to work. Seven external providers were contracted in 2002 to provide these better assessments. As part of Australians Working Together, the Government boosted funding for additional places in disability employment services. In 2002–03 these places have increased the capacity of services to assist job seekers with disabilities. By end June 2003, 5743 job seekers were receiving assistance as a result of this measure. In July 2002, quality assurance was legislated to ensure disability employment services meet minimum standards that protect the rights of individuals and deliver fair wages and quality services. Quality assurance certification must be achieved by December 2004. To 30 June 2003, 21 per cent of organisations had achieved certification with most services intending to seek certification in 2003–04. FaCS trialled a fee-for-service arrangement for funding services extensively between 1999 and 2002. An independent evaluation in 2002 found the case based funding model will improve employment outcomes by 30 per cent. Extensive consultations with employment providers and consumers in November 2002 were used to design a fee-for-service funding model with more transparency and better incentives to provide the wider range of supports needed by job seekers and workers with disabilities. The following case study demonstrates how the new system will work.
Supporting people with disabilities 51 Overcoming the barriers—Helen’s story
Helen is 21 years old and has quadriplegia. She has been referred to a disability employment provider. Helen would like to do an IT traineeship because she wants to become a web designer. The provider works with Helen over a number of weeks to find out her barriers to work and her employment goals, and to assess the level of assistance she needs. The provider is able to help Helen find a job in a computer business with an 18-month traineeship, where Helen works for 15 hours a week. The provider is also able to arrange work-based personal assistance for Helen, to help her with toileting and eating while she is at work. Over the following months, the provider keeps in regular contact and offers ongoing support to Helen and her employer.
Implementing major reform will not be without some challenges. There are some concerns in the community about workers in business services being displaced or services closing because new quality assurance requirements could affect financial viability. Over the past two years FaCS has been meeting regularly with a business services review group made up of providers, ACROD (the national industry association for disability services), and consumer representatives to discuss issues raised by the reforms. Consultations will begin shortly on possible safety net measures to be put in place to ensure continuity of services. It will also be important to make sure mainstream services such as the Job Network improves its capacity to meet the needs of more vulnerable job seekers such as people with disabilities.
52 FaCS Annual Report 2002–03 I Volume 1 Helping men with relationships
Key point ◗ An evaluation has demonstrated the success of the Men and Family Relationships program.
The Men and Family Relationships program is pioneering innovative approaches to improving men’s individual and family relationship outcomes. The program funds 45 community organisations that have piloted activities working with men who would not otherwise use relationship services. FaCS engaged Phoenix Projects to evaluate the program between November 2000 and August 2002. The evaluation found the Men and Family Relationships program successful in providing services to a range of men in their relationships, including men from culturally and linguistically diverse populations, men from socially disadvantaged backgrounds, and Indigenous men. The evaluation also found that the program has proved—despite popular opinion—that men will seek assistance and are open to relationship support, provided the approach is male-friendly and non-judgmental. The findings showed that the program helps men better manage family relationships to reduce the likelihood of separation or to deal with its emotional consequences. The figures show that men using the services have achieved positive outcomes: ◗ 96 per cent of the men rated them as good or very good. ◗ 99 per cent said they would recommend the services to other men, with 44 per cent stating that they had already done so. ◗ 93 per cent of the men felt they were making progress with the issue that brought them to the service.
Helping men with relationships 53 Re-establishing contact—Tom’s story
Tom is 45 years old and works full time. He contacted a Men and Family Relationships (M&FR) service four months after his separation. At that stage he had not been able to see his 2-year-old daughter and his 5-year-old son since he had separated from their mother. After the initial approach to the M&FR service, he attended an emotional support group for separated fathers. He presented as being very frustrated, isolated and angry about his situation. He found it hard to talk coherently about the separation or his needs. Several weeks after he first attended the group, the service provider helped him to get mediation via the mother’s lawyer. Within a few days of mediation, it was arranged for him to have contact with his children at a fathers’ playgroup conducted within the service. The amount of time for contact progressively increased over a 12-month period to a stage where the children now stay with their father overnight at his home every second weekend. Because of M&FR service support, all negotiations, including the children’s issues and property settlement, were handled through a mediation service. Tom saved at least $20 000 in legal costs as a result. After his involvement with the M&FR service, Tom became more emotionally stable. He focused on his relationship with the children rather than the conflict around the relationship breakdown. Tom says, ‘I’m enjoying life again and I’m focused on a positive future for myself and my children. I’m confident I can resolve any future issues.’ During his involvement with the service, Tom regularly attended Saturday information workshops for separated fathers, an emotional support group, a psychoeducational group called ‘Hey, Dad!’ for separated fathers and a playgroup with his children. He still maintains occasional contact with the M&FR service.
54 FaCS Annual Report 2002–03 I Volume 1 Shared Responsibility Minister Vanstone members signa and community Agreement ommunity pirit Government departments. coordinate activityatanationallevel through secretaries ofAustralian An IndigenousCommunitiesCoordination Taskforce wassetupto basedonprioritiesagreed withthecommunities. services communities inupto10regions toprovide more flexibleprograms and This initiative sawallgovernments agree totrialworkingwithIndigenous Coordination Pilot. the CouncilofAustralian Governments IndigenousCommunities with theAustralian Government Territory andNorthern Government in In November 2002,the Wadeye communityagreed tobecomepartners APPROACH A PARTNERSHIP Pr Many Wadeye residents rely ontheCommunityDevelopment Employment peopleoccupytheaverageIt alsohasasevere home. housingshortage—17 shop, atake-awayfoodoutlet,policestation,garage andonepublicphone. care programs, awomen’s centre, ageneral store, abakeryandbutcher The communityhasaprimaryschool,healthclinicwithvisitingdoctor, aged population ofmore than2200—1500ofthemunder25years old. W improve outcomesforIndigenouspeople. that isshowing how governments canworkwithIndigenouscommunitiesto F communities Indigenous in Coordinating support
c s aCS istheleadagencyinapilotschemeat Wadeye Territory intheNorthern adeye isaremote community420kilometres south-west ofDarwinwitha ogram foremployment. Coordinating support inIndigenous communities Coordinating support we Agreement at Wadeye. Signatories signing ofaShared Responsibility r approach wasformally The partnership Territorythe Northern Government. the ChiefMinisterleadspilotfor Territory.Northern of Department The Government agencyforthepilotin F ecognised on21March 2003withthe aCS istheleadAustralian re
Minister forFamily and 55 56 F aCS Annual Report 2002–03I aCS Annual Report Volume 1 ommunity pirit have agoodunderstanding oftheshared approach. meetings andworkshopsatthe communitylevel make sure thatallinvolved Government agenciesmeetregularly tomonitorprogress, andfrequent ◗ ◗ ◗ ◗ some gains. between alllevels ofgovernment andthecommunityhave already brought andpartnership The pilotisinitsearlydays,butcoordinated effort G R oftheShared steering committee,theseactionplanswillbecomepart r The workinggroups are developing action plansthatoutlinekeyactionsand agreement, are tacklingthesepriorityareas. P across thethree areas. tobegivenwanted employment ahighfocus andtraining opportunities with themon:womenandfamilies,youth, andconstruction. The community sets outthepriorities Wadeye communitywantsgovernments towork inthepilotand The agreement identifiestheresponsibilities ofeachpartner land-owning groups thatsiton Thamarrurr, theRegional Governing Council. representatives ofthe20 Territory,Northern andmore than70 Clare Martin, SenatorAmanda Community Services, Vanstone, ChiefMinisterofthe
c sesponsibilities foreachpartner. Oncecompletedandendorsedby the riority Working Groups, madeupofrepresentatives tothe from eachparty esponsibility Agreement. AINS SOFARAINS three parties r A More AccessibleGovernment agreement hasbeendeveloped, Territorythe Northern ofHealthandCommunityServices Department appropriate andeducation,hasbeenfundedby FaCS interventions and A Family Program, developed by Wadeye womenandbasedonculturally T the comingtogetherofallrelated Australian Government andNorthern in employment andtrainingWadeye. opportunities This planwillrequire planthatwillformtheblueprintfor ‘Local jobs forlocalpeople’ ofEmployment and The Department Workplace Relations hasfundeda r Other government agencieshave beenworkingwith Thamarrurr to esulting inonlyonefundingagreement beingneededandsignedby all edesign existingcontracts erritory agenciestodevelop acoordinated response totheissue. Making a difference internationally
Key points ◗ As the number of significant migrant source countries continues to expand, we will need to negotiate new social security agreements with those countries. ◗ Nine Asian and European countries sought our expertise and assistance in reforming their social protection systems.
Nearly 25 per cent of Australians are first-generation migrants, and another 19 per cent have at least one parent born overseas. Australians are increasingly likely to spend their work or retirement years in more than one country—every year around 92 000 Australian residents leave to live and work outside Australia for 12 months or more. FaCS policies and programs therefore operate in an increasingly open and more mobile global environment.
International agreements
Every year 92 000 In this environment, it is important to ensure that periods of work in any country Australian contribute toward the eventual costs of a worker’s retirement. In the past year we revised five existing reciprocal social security agreements (with Austria, residents leave to Canada, The Netherlands, Portugal and Spain) and implemented new live and work agreements with Denmark, New Zealand, the United States and Germany. We outside Australia negotiated and signed new agreements with Belgium, Slovenia, Chile and for 12 months Croatia (to be implemented progressively from 2004) and are continuing negotiations with Switzerland, Norway and Malta. or more. By the end of 2003 we hope to have 19 signed agreements, up from 11 in 1996. Other countries pay pensions to nearly 290 000 of their former residents who have retired in Australia, valued at $1.19 billion a year. Australia pays pensions to around 56 000 former residents who live overseas, at a cost of $355 million a year (figures as at January 2003). Rates of both clients receiving foreign pensions and Australian pensioners living overseas are growing at about 3 per cent a year.
Making a difference internationally 57 International technical assistance
Countries in the Asian region and in the developing economies of Europe continue to seek our expertise and assistance in reforming their social protection systems. In 2002–03, FaCS (and Centrelink) worked with our counterparts in Singapore, Vietnam, Indonesia, Thailand and China, Bosnia and Herzegovina, Mauritius, Mongolia and East Timor. This work included: ◗ examining options for social security policy reform ◗ exploring new family-centred and community-based service delivery approaches to social programs ◗ identifying learning and development priorities ◗ articulating and implementing a social welfare strategy to provide adequate protection to vulnerable groups in a war-torn country ◗ reforming social and child welfare policies, institutional arrangements and financing strategies. The work will contribute to the effectiveness of social security coverage in our region (and globally) as inherited ‘entitlement’ systems are brought into line with current fiscal and institutional capacity and sustainability. Australia continues to be a valued source of advice and a favoured destination for study tours. In 2002–03, FaCS hosted 34 delegations from China, Hong Kong, Singapore, Vietnam, Indonesia, Thailand, Korea, Japan, India, the United States, Mauritius and Ghana. They were specifically interested in retirement incomes policies, overcoming barriers to workforce and community participation, supporting young people and families with children, and housing assistance.
International Policy
FaCS develops international policy to enhance the integrity and effectiveness of Australia’s social security system. Budget measures developed and announced in May 2003 will: ◗ improve the Assurance of Support scheme ◗ improve compliance and reduce debt caused by overpayment of pensions and benefits when people leave Australia ◗ encourage all people of workforce age to participate in employment or training in Australia by reducing the period of portability.
Reform of the Assurance of Support Scheme The Assurance of Support Scheme allows migrants at greater risk of needing income support to come to Australia, but protects the Australian government from financial exposure by enabling a Australian resident to assure payment for any Australian social security benefit claimed by the migrant for a specified period after arrival. Jointly with the Department of Immigration, Multicultural and Indigenous Affairs; the scheme is being reformed to provide a far more effective service for assurers and new migrants, and reduce administration costs.
58 FaCS Annual Report 2002–03 I Volume 1 Strengthening the notification obligations for people departing Australia FaCS continues to look at ways of improving compliance and reducing debts caused by overpayment of pensions and benefits. The 2003–04 Budget contained a measure to strengthen the requirement that all clients notify Centrelink of any intended travel overseas with payment being suspended where this is not done. This will help ensure that rights and obligations are understood and correct payments are made while a client is overseas.
Changes to overseas portability rules In the 2003–04 Budget it was announced that the permitted period of overseas absence for ‘portable’ pensions and allowances paid to people of workforce age would be limited to 13 weeks. Age pensions or pensions paid under reciprocal social security agreements with other countries are not affected.
Outlook
Almost one million As the number of significant migrant source countries continues to expand, we Australians are will need to negotiate new social security agreements with those countries. living and working overseas.
Making a difference internationally 59 Strengthening the relationship with China
FaCS has continued to strengthen its relationship with the People’s Republic of China through close collaboration with key social policy-related ministries, such as the National Development and Reform Commission, the Ministry of Labour and Social Security, the Ministry of Finance and the Ministry of Civil Affairs. This has contributed to the Australian Government’s whole-of-government relationship with China. Collaborative activities in 2002–03 have included: ◗ examining links between community development and employment in an innovative joint research project with the National Development and Reform Commission ◗ helping the Shanghai Municipality Finance Bureau increase its capacity to sustain pension and unemployment benefit schemes ◗ examining community development activities in China and the relevance to China of Australian models and Australia’s approach to funding its social safety net ◗ discussing means-testing policy and arrangements with the Ministry of Finance. Our major activity with China over the past year was the Sectoral Conference on Social Insurance (January 2003). This conference, the first event of its kind, brought together senior-level government, private business and academic representatives from Australia and China to share their understanding and ideas. The conference was co-hosted by FaCS and the Chinese Ministry of Labour and Social Security and opened by Minister Vanstone and Vice Minister Liu Yongfu of the Ministry of Labour and Social Security. It provided an important opportunity to exchange innovative ideas and experiences (as well as promoting trade opportunities) between Australia and China in social security, retirement income policy and practice, and funds management.
Deputy Secretary, Wayne Jackson, addresses the Sectoral Conference in Shanghai.
60 FaCS Annual Report 2002–03 I Volume 1 Part 3 I Glossaries and index List of acronyms and initialisms
ACT Australian Capital Territory AIFS Australian Institute of Family Studies ANAO Australian National Audit Office ATSIC Aboriginal and Torres Strait Islander Commission AWT Australians Working Together CSA Child Support Agency DEST Department of Education Science and Training DEWR Department of Employment and Workplace Relations DHA Department of Health and Ageing DIMIA Department of Immigration, Multicultural and Indigenous Affairs FaCS Department of Family and Community Services HILDA Household, Income and Labour Dynamics in Australia survey IT Information Technology JPET Job Placement, Employment and Training Program LDS Longitudinal Data Set PSP Personal Support Programme SSAT Social Security Appeals Tribunal STOState and Territory Office
62 FaCS Annual Report 2002–03 I Volume 1 Index
Aboriginal Australians, see Indigenous Australians Online Funding Management system, 16 activity test, 50 overpayments to, 26 administered programs, 25, 27 Personal Advisers, 47, 48, 49 administrative arrangements, changes in, 24, 26 certified agreements, 39 Age Pension, 13, 41 charitable activities, staff, 44 international agreements, 57 Child Care Advisory Council, 36 agency (certified) agreements, 39 Child Care Support Broadband, 36 agreement making, 5 child custody inquiry, 39 Albury/Wodonga area, 45 Child Support Agency, 28–32, 37–9 Anglicare, 46 children, 3, 15 assets and liabilities, 26–7 China, 60 Assurance of Support Scheme, 58 Commonwealth Bank, 27 audits 39 Commonwealth–State Housing Agreement, 5 Australian Capital Territory bushfires, 6, 44 Commonwealth State Territory Disability Agreement, 5 Australian Chamber of Commerce and Industry, 18 computing, see information technology; Internet Australian Institute of Family Studies, 20, 34 conferences, 34 Australian National Audit Office, 39 international, 31, 60 Australian National University, 35 staff, 39 Australians Working Together package, 2–3, 48 consultation, 3, 4 disability employment services, 51 Child Care Support Broadband redevelopment, 36 Welfare Reform Pilots, 35 disability services reforms, 51, 52 awards and recognition, 18 consultation papers, 15–16, 34 Child Support Agency, 39 Council of Australian Governments Indigenous Community Coordination Pilot, 55–6 balance sheet, 26–7 counselling services, 45–6 Bali tragedy, 42–3 Crisis Response Team, 44 Barnados’ Reconnect, 45 cross-government approach, 14 Better Assessment and Early Intervention CRS Australia, 24, 26 measure, 47, 50 CTP Graphics, 45 bushfires, 6, 44 ‘Cuba’, 26, 37, 39 Business Assurance Framework, 41 data, 34–5 Canberra bushfires, 6, 44 debts carers, 13 child support, 30, 38 caseload, CSA, 30 Student Financial Supplement Scheme, 25, 27 cash balances, 26 Department of Employment and CentaCare, 46 Workplace Relations, 14, 16, 56 Centre for Mental Health Studies, 35 Department of Health and Ageing, 24 Centrelink, 5, 20, 40–1, 50 departmental balance sheet, 26–7 drought regions, counselling in, 45, 46 departmental operating results, 24
Index 63 deputy secretaries, 6, 7–8 information technology, 26 disabilities, people with, 5, 47, 50–2 ‘Cuba’, 26, 37, 39 expenditure on, 13 see also Internet; systems Disability Support Pension, 50, 51 intangible assets, 26 Disaster Response and Recovery Section, 44 Interdepartmental Taskforce on Work and Family, 3 dispute resolution, 38 international agreements, 57 drought-affected regions, counselling for, 45–6 international child support cases, 38 International Child Support Heads of Agencies early childhood development, 3, 15 Conference, 31 early intervention, 50 international policy, 58 education and training, 13, 56 international technical assistance, 58–9, 60 Student Financial Supplement Scheme, 25, 27 Internet, 16, 29 employment, 35 work and family arrangements, 3: FaCS staff, 18 jobless people and job seekers, 2–3, 16, 48 see also job seekers with disabilities, 5, 47, 50–2 evaluation, see research and evaluation expenditure on payments to, 13 evidence base, 34–5 Indigenous, 56 newly separated, 38 family and work, 3 longitudinal dataset, 14 FaCS staff, 18 see also welfare reform Family Court of Australia, 38 Job Placement, Employment and Training, 4 family payments, 13 family relationships, 53–4 key policy areas, 11 fee-for-service funding model, 51–2 finance, 5, 24–7 labour supply incentives, 35 Centrelink funding model, 41 leadership programs, 18, 39 child support collections, 38 liabilities and assets, 26–7 expenditure areas, 13 life cycle context, 12, 13 financial counselling, 45, 46 life/work balance, 3 Fletchers Fotographics, 45 FaCS staff, 18 foreign pensions, 57 Lifeworks, 46 foreign travel, 59 lone parents, 34 longitudinal data, 34 General Manager, CSA, 32 graduate recruitment, 18 machinery of government changes, 24, 26 The guide, 29 Melbourne Institute Tax and Transfer Simulator, 35 Men and Family Relationships program, 53–4 HILDA survey, 34 mental health disorders, 35 House of Representatives committees, 35 migrants, 58 housing, 5 minimum child support liability, 30 Mudgee, 45 immigrants, 58 income support, 50, 51 National Agenda for Early Childhood, 3, 15 mental health and, 35 National Youth Affairs Research Scheme, 35 see also Age Pension; jobless people; welfare Newstart Allowance, 2–3, 50 reform Northern Territory, 55–6 Indigenous Australians, 55–6 staff, 18
64 FaCS Annual Report 2002–03 I Volume 1 Official Public Account, 26 senior executive staff, 7–8, 31 one-parent families, 34 Senior Leadership Program, 18 Online Funding Management system, 16 Simple Service Solutions, 16 operating results, 24–5 single parents, 34 organisation and structure, 19–24 Social Policy Research Centre, 35 outcomes, 10 Social Security Appeals Tribunal, 20 outcomes and outputs framework, FaCS–Centrelink, 41 software, 26 overseas pensions, 57 sole parents, 34 overseas travel, 59 staff, 6, 44 staff management, 18 Parenting Payment Single, 34 Child Support Agency, 39 parents, separated, 28–32, 37–9 state and territory offices, 17 parliamentary committees, 35 Child Support Agency, 38 participation, 2–3 Strategic Statement 2002–05, 10 see also welfare reform structure and organisation, 19–24 Personal Advisers, Centrelink, 47, 48, 49 student and youth support, 13 Personal Support Programme, 47 Student Financial Supplement Scheme, 25, 27 Phoenix Projects, 53 suicide prevention, 46 photographic exhibitions, 45 policy priorities, 11–12 Taskforce on Child Development, Health and portability rules, overseas, 59 Wellbeing, 3 portfolio, 19–20 travel overseas, 59 Prime Minister’s Awards for Excellence in Public Sector triple bottom line reporting, 2 Management, 39 Priorities Plan, 11 unemployed people, see jobless people private child support collections, 29, 37 public housing, 5 values, 6 purpose statement, 10 vision statements, 10, 31 visiting delegations, 58 quality assurance, disability employment services, 51, volunteers, 44 52 Wadeye community, 55–6 recruitment of staff, 18, 39 welfare dependence, 34 Regional Funding Model, 26 welfare reform, 2–3, 16, 35, 47–50 rehabilitation services, 24, 26 Welfare Reform Consultative Forum, 16 relationships (personal), 53–4 Welfare Reform Pilots, 35 see also Child Support Agency whole-of-government approach, 3 Relationships Australia, 38, 46 women, Indigenous, 56 research and evaluation, 34–5 work, see job seekers Australians Working Together, 48 work and family, 3 Men and Family Relationships program, 53 FaCS staff, 18 retirement, 13 workforce planning, 18 see also Age Pension workplace agreements, 39 rural and regional Australians, 45–6 young people, 16 Secretary, 7 departing Australia, 59 Sectoral Conference of Social Insurance, 60 research, 35 Senate committees, 35 youth and student support, 13
Index 65 How to find out more
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To obtain copies of other FaCS publications For copies of this or other FaCS publications, telephone 1800 050 009 (a free call except from mobile and pay phones).
66 FaCS Annual Report 2002–03 I Volume 1 nulRpr 02 3 I 03 2002– Annual Report Annual Report 2002– 03 I Volume 1 Vo lume 1
Australian Government Department of Family and Community Services 1118 Telephone: 1300 653 227 aCS Internet: www.facs.gov.au F making a difference