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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Part 2: Expense Measures (continued)

Social Services

ACT Accommodation — Department of Social Services

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 5.1 2.2 1.0
Related capital ($m)
Department of Social Services 11.6 6.9

The Government will provide $26.8 million over three years (including $18.5 million in capital funding over two years) towards fit‑out, project management and other costs to enable the Department of Social Services to relocate to a new tenancy in the Australian Capital Territory by the end of 2016 when the current lease at Tuggeranong Office Park is due to expire.

Aged Care — Commonwealth Home Support Programme — reduced rate of real funding growth

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services

The Government will achieve savings of $1.7 billion over six years from 1 July 2018 by reducing the rate of real growth in the Commonwealth Home Support Programme from six per cent annually to 3.5 per cent annually. This will broadly align annual growth in the Commonwealth Home Support Programme funding with annual growth in the population aged 65 years and over. This growth funding is allocated by the Government in addition to the annual price indexation of programme funding.

The savings from this measure will be directed to repair the Budget and fund policy priorities.

Aged Care Payroll Tax Supplement — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.6 0.1 0.1 0.1
Department of Veterans' Affairs ‑12.2 ‑25.7 ‑26.9 ‑28.5
Department of Social Services ‑74.1 ‑155.5 ‑161.3 ‑169.4
Total — Expense ‑85.6 ‑181.2 ‑188.1 ‑197.8

The Government will achieve savings of $652.7 million over four years by ceasing Payroll Tax Supplement payments to currently eligible residential aged care providers from 1 January 2015.

The savings from this measure will be redirected to repair the Budget and fund policy priorities.

Aged care services for the Arabic speaking Muslim community in Western Sydney

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 0.5 3.5 6.0

The Government will provide $10.0 million over three years to the Lebanese Muslim Association to build a residential aged care service that will provide culturally appropriate aged care in Western Sydney.

This measure delivers on the Government's election commitment.

Further information can be found in the press release Coalition pledges $20 million for aged care services for Arabic speaking community in Sydney's West.

Aged care services for the Maronite community of Western Sydney

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 6.0 4.0

The Government will provide $10.0 million over two years to support the provision of culturally appropriate residential aged care to the Maronite and other Arabic‑speaking Christian communities of Western Sydney.

This measure delivers on the Government's election commitment.

Further information can be found in the press release Coalition pledges $20 million for aged care services for Arabic speaking community in Sydney's West.

Andrew Fisher Applied Policy Institute for Ageing — redirection

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services ‑1.1 ‑1.2 ‑1.2 ‑1.2 ‑1.2

The Government will achieve savings of $5.9 million over five years by not proceeding with the Support Senior Australians — the Andrew Fisher Applied Policy Institute for Ageing measure, announced in the 2013‑14 Budget.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Apply the One‑Week Ordinary Waiting Period to all Working Age Payments

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.2 4.7 1.7 1.7 1.7
Department of Social Services 0.1 ‑46.2 ‑64.8 ‑66.1 ‑64.7
Total — Expense 0.3 ‑41.4 ‑63.1 ‑64.4 ‑63.0

The Government will achieve savings of $231.7 million over five years by applying the One‑Week Ordinary Waiting Period (OWP) to all Working Age Payments from 1 October 2014.

All claimants of Newstart Allowance and Sickness Allowance are required to wait one‑week before receiving payment, unless the claimant is exempt or the waiting period is waived. This measure will extend the OWP to claimants of Parenting Payment, Widow Allowance and Youth Allowance (other). This measure will also remove the current rule that enables the OWP to be served concurrently with other applicable waiting periods.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Cease indexation of the Clean Energy Supplement

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.5 1.8
Department of Agriculture .. .. .. ..
Department of Veterans' Affairs ‑2.8 ‑5.2 ‑7.3 ‑9.2
Department of Social Services ‑41.3 ‑86.5 ‑140.4 ‑188.6
Total — Expense 0.5 ‑42.3 ‑91.7 ‑147.8 ‑197.9

The Government will achieve savings of $479.1 million over five years by removing further indexation from payment of the Clean Energy Supplement (CES). This will fix the rate of payment at the relevant rate payable prior to 1 July 2014.

The CES is paid to all recipients of social welfare payments.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Certain Concessions for Pensioners and Seniors Card Holders

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services
Department of the Treasury ‑303.6 ‑314.4 ‑326.6 ‑337.6
Total — Expense ‑303.6 ‑314.4 ‑326.6 ‑337.6

The Government will achieve savings of $1.3 billion over four years by terminating the National Partnership Agreement on Certain Concessions for Pensioners Concession Card and Seniors Card Holders, from 1 July 2014. This Agreement contributes to state and territory government provision of certain concessions for pensioners and seniors.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Commonwealth Seniors Health Card — annual indexation of income thresholds

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 5.3 13.1 21.1 28.4
Department of Health 1.9 4.1 6.8 9.4
Department of Human Services .. 1.3 0.5 0.8 1.0
Department of Veterans' Affairs 0.3 0.4 0.6 0.7
Total — Expense .. 8.8 18.2 29.2 39.5

The Government will provide $95.8 million over five years from 2013‑14 to index current income limits for the Commonwealth Seniors Health Card by the Consumer Price Index from September 2014. This will allow more retirees access to medicines listed on the Pharmaceuticals Benefits Scheme at a concessional rate.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Index the Commonwealth Seniors Health Card.

Commonwealth Seniors Health Card — include untaxed superannuation income in the eligibility assessment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services .. 2.8 .. .. ‑0.1
Department of Veterans' Affairs 0.1 ‑0.1 ‑0.1 ‑0.1
Department of Social Services ‑0.3 ‑1.6 ‑3.3 ‑5.1
Department of Health ‑0.4 ‑2.0 ‑4.4 ‑7.0
Total — Expense .. 2.3 ‑3.6 ‑7.9 ‑12.3
Related capital ($m)
Department of Veterans' Affairs 0.5

The Government will achieve savings of $20.9 million over five years by including untaxed superannuation income in the assessment of income to determine eligibility for the Commonwealth Seniors Health Card (CSHC) from 1 January 2015. The assessment of superannuation income will be the same for CSHC holders as for Age Pension recipients and will align with the 2013‑14 Budget measure to deem the balances of account‑based superannuation of pensioners from 1 January 2015.

All superannuation account‑based income streams held by CSHC holders before the implementation date will be grandfathered under the existing rules.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Cessation of the Seniors Supplement — Commonwealth Seniors Health Card holders

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.1 3.6
Department of Veterans' Affairs ‑24.9 ‑23.9 ‑22.9 ‑21.8
Department of Social Services .. ‑220.1 ‑235.8 ‑253.2 ‑260.4
Total — Expense 0.1 ‑241.4 ‑259.7 ‑276.1 ‑282.2

The Government will achieve savings of $1.1 billion over five years from 2013‑14 by ceasing the Seniors Supplement for holders of the Commonwealth Seniors Health Card (CSHC) from 20 September 2014. Eligible seniors who do not receive a pension will continue to be eligible for a concession card.

CSHC holders will still receive the Clean Energy Supplement and a range of concessional benefits including lower co‑payments for medicines on the Pharmaceutical Benefits Scheme and access to the lower threshold for the extended Medicare Safety Net.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Community Business Partnership — re‑establishment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 1.5 1.5 1.5 1.5

The Government will provide $6.0 million over four years to re‑establish the Community Business Partnership to advise the Government on philanthropy in Australia. The Community Business Partnership, to be chaired by the Prime Minister, will bring together prominent business and community leaders to provide leadership and high level advice for encouraging growth in volunteering and philanthropy and promote partnerships between business and community organisations.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Plan to Encourage Great Philanthropy and Strengthen Australia's Charities and Community Groups.

Community Development Financial Institutions Pilot Project — one year extension

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 1.5

The Government will provide $1.5 million to extend the Community Development Financial Institutions Pilot Project for one year from 1 July 2014. Community Development Financial Institutions provide small loans and financial literacy education services to individuals who are not able to access affordable and fair financial products and services or who may resort to relying on riskier credit sources.

Disability and Carers Industry Advisory Council — establishment

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 0.2 0.2 0.2 0.2

The Government will provide $0.9 million over four years to establish the Disability and Carers Industry Advisory Council (DCIAC). The DCIAC will be co‑chaired by a respected industry expert and the Assistant Minister for Social Services. The DCIAC will provide advice and recommendations to Government on proposed legislation and polices affecting the disability and carers sectors.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Disability and Carers.

Disability Employment Services — Disability Management Services — partial tender

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 7.0 0.1
Related capital ($m)
Department of Social Services 1.4

The Government will provide $8.5 million over two years (including $1.4 million in capital funding in 2014‑15) to conduct a partial tender for the Disability Management Services component of Disability Employment Services. The tendered services will be for the period 2 March 2015 to 4 March 2018.

Disability Support Pension — compulsory participation requirements for recipients aged under 35 years

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 6.5 6.0 1.5 ‑1.0
Department of Human Services 0.4 5.9 3.3 2.2 2.2
Department of Employment 0.5 0.6 0.7 0.7
Total — Expense 0.4 12.8 9.9 4.4 1.8

The Government will provide funding of $29.3 million over five years from 2013‑14 to introduce compulsory activities for Disability Support Pension (DSP) recipients under 35 years of age with an assessed work capacity of eight hours or more a week who have a participation plan. These activities will vary depending on a person's circumstances and will focus on obtaining employment. Sanctions for non‑compliance will be introduced.

DSP recipients with a severe impairment and an assessed work capacity of less than eight hours a week will be exempt.

This measure forms part of the Government's broader welfare reform agenda.

Any savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Disability Support Pension — reduced portability

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.1 8.8 4.1 3.8 4.3
Department of Social Services 0.1 ‑8.6 ‑12.2 ‑12.8
Total — Expense 0.1 8.9 ‑4.4 ‑8.4 ‑8.5

The Government will achieve savings of $12.3 million over five years by reducing the amount of time Disability Support Pension (DSP) recipients can leave Australia and still receive DSP. Recipients will receive DSP for a maximum of four weeks in a 12 month period should they travel overseas. All DSP recipients who leave Australia on or after 1 January 2015 will be subject to the new rules. Currently, DSP can be paid for absences from Australia for up to six weeks, on multiple occasions in any one year.

Portability extension and exception provisions, which allow a longer or unlimited portability period under special circumstances, will continue to apply.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Disability Support Pension — review recipients aged under 35 years

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.4 12.6 8.5
Department of Employment 1.1 1.9 2.4 2.7
Department of Social Services 1.1 2.1 7.0 6.7
Total — Expense 0.4 14.8 12.4 9.4 9.4

The Government will provide $46.4 million over five years from 2013‑14 to review, against current eligibility criteria, Disability Support Pension (DSP) recipients aged under 35 years who were granted DSP between 1 January 2008 and 31 December 2011. Recipients who are granted continued eligibility following this review will be required to complete a programme of activities to build their work capacity. The measure will terminate on 30 June 2019.

Recipients granted DSP before 1 January 2008 or who have a severe impairment with work capacity assessment of less than eight hours a week will be exempt.

This measure forms part of the Government's broader welfare reform agenda.

Discretionary Grant Programme Reform

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services ‑51.9 ‑57.1 ‑71.0 ‑60.0

The Government will achieve savings of $240.0 million over four years by reforming discretionary grant programmes administered by the Department of Social Services. This will consolidate existing grants to create more efficient and effective programmes which will reduce red tape for service providers and remove the duplication of funding and services.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Education Entry Payment — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.8 0.8
Department of Social Services ‑9.5 ‑19.2 ‑19.2 ‑19.2
Total — Expense 0.8 ‑8.7 ‑19.2 ‑19.2 ‑19.2

The Government will achieve savings of $65.4 million over five years from 2013‑14 by ceasing the Education Entry Payment from 1 January 2015.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Family Payment Reform — better targeting of Family Tax Benefit Part B

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 3.4 ‑1.8 ‑2.3 ‑4.2
Department of Social Services 0.4 ‑377.4 ‑419.8 ‑427.7
Total — Expense 3.7 ‑379.2 ‑422.0 ‑431.9
Related revenue ($m)
Australian Taxation Office 8.0 8.0

The Government will achieve savings of $1.2 billion over four years by reducing the Family Tax Benefit Part B (FTB‑B) primary earner income limit from $150,000 per annum to $100,000 per annum, from 1 July 2015. The income threshold for the Dependent (Invalid and Carer) Tax Offset will also be reduced to $100,000 as it is linked to the FTB primary income earner limit.

This reform will better target assistance to families on lower incomes and will improve the ongoing sustainability of family payments.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Family Payment Reform — limit Family Tax Benefit Part B to families with children under six years of age

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.9 16.6 16.8 9.1 ‑21.8
Department of Social Services 0.6 ‑87.2 ‑244.8 ‑1,578.8
Total — Expense 0.9 17.1 ‑70.5 ‑235.7 ‑1,600.6

The Government will achieve savings of $1.9 billion over five years by limiting Family Tax Benefit Part B (FTB‑B) to families whose youngest child is younger than six years of age from 1 July 2015. As a transitional arrangement, families with a youngest child aged six and over on 30 June 2015 will remain eligible for FTB‑B for two years.

This measure encourages increased workforce participation by primary carers when their youngest child reaches primary school age.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

See also the related expense measure titled Family Payment Reform — new Family Tax Benefit allowance in the Social Services Portfolio.

Family Payment Reform — limit the Large Family Supplement to families with four or more children

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 1.4 1.9 0.5 0.2
Department of Social Services 0.4 ‑124.7 ‑125.1 ‑128.2
Department of Health ‑0.2 ‑1.0 ‑2.8
Total — Expense 1.9 ‑123.1 ‑125.7 ‑130.8

The Government will achieve savings of $377.7 million over four years by limiting the Family Tax Benefit Part A Large Family Supplement (currently $313.90 per child per annum) to families with four or more children from 1 July 2015. The Large Family Supplement will be paid in respect of the fourth and each subsequent child in a family.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Family Payment Reform — maintain Family Tax Benefit payment rates for two years

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 1.2 1.9 ‑0.3 ‑1.1 ‑1.1
Department of Health ‑0.3 ‑1.2 ‑4.5 ‑4.7
Department of Social Services ‑398.8 ‑718.5 ‑730.4 ‑740.6
Total — Expense 1.2 ‑397.3 ‑720.0 ‑736.1 ‑746.5

The Government will achieve savings of $2.6 billion over four years by maintaining current Family Tax Benefit (FTB) payment rates for two years from 1 July 2014. Under this measure, indexation of the maximum and base rates of FTB Part A, and the rate of FTB Part B will be paused until 1 July 2016.

This reform will improve the ongoing sustainability of the family payments system.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Family Payment Reform — new Family Tax Benefit allowance

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.4 11.4 8.1 3.3 3.5
Department of Social Services 0.5 8.1 29.6 90.1
Total — Expense 0.4 11.9 16.2 32.9 93.6

The Government will provide $155.0 million over four years for a new allowance for single parents on the maximum rate of Family Tax Benefit (FTB) Part A whose youngest child is aged between six and 12 years old from the point when they become ineligible for FTB Part B. This allowance will provide $750 for each child aged between six and 12 years old in an eligible family from 1 July 2015.

See also the related savings measure titled Family Payment Reform — limit Family Tax Benefit Part B to families with children under six years of age in the Social Services Portfolio.

Family Payment Reform — remove the Family Tax Benefit Part A per child add‑on

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.7 0.7 0.2 0.2
Department of Social Services 0.4 ‑76.7 ‑69.3 ‑62.2
Department of Health ‑0.5 ‑1.5 ‑3.2
Total — Expense 1.0 ‑76.4 ‑70.6 ‑65.2

The Government will achieve savings of $211.2 million over four years by removing the Family Tax Benefit Part A per child add‑on to the higher income free threshold for each additional child from 1 July 2015.

This reform will reduce complexity and improve the ongoing sustainability of the family payments system.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Family Payment Reform — revise Family Tax Benefit end‑of‑year supplements

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.6 2.3 16.2 9.9 6.0
Department of Social Services .. ‑410.0 ‑399.0 ‑424.5
Department of Health ‑0.8 ‑2.8 ‑7.5
Total — Expense 0.6 2.3 ‑394.5 ‑391.9 ‑425.9

The Government will achieve savings of $1.2 billion over four years by revising the Family Tax Benefit (FTB) end‑of‑year supplements to their original values and ceasing indexation from 1 July 2015.

The revised supplements will provide $600 per annum per FTB Part A child and $300 per family per annum for each FTB Part B family.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Grants Management Platform Business Case

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 2.1
Department of Finance 0.1 0.1 0.1 0.1
Total — Expense 2.2 0.1 0.1 0.1

The Government will provide $2.1 million in 2014‑15 for the Department of Social Services to develop a second pass business case to further scope options to replace its grants management platform with a more flexible and integrated system.

The Government will also provide $0.5 million over four years to the Department of Finance to apply the Gateway Review Process to this project.

Housing Help for Seniors — pilot — reversal

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Veterans' Affairs ‑0.7 ‑1.5 ‑2.6 ‑3.6 ‑3.1
Department of Human Services 0.5 ‑2.0 ‑2.4 ‑2.4 ‑1.5
Department of Social Services ‑9.3 ‑28.9 ‑50.9 ‑63.2
Total — Expense ‑0.2 ‑12.8 ‑33.9 ‑56.9 ‑67.7
Related capital ($m)
Department of Veterans' Affairs ‑1.5

The Government will achieve savings of $173.1 million over five years (including $1.5 million in capital savings in 2013‑14) by not proceeding with the Supporting Senior Australians — Housing Help for Seniors — pilot measure, announced in the 2013‑14 Budget, and due to commence on 1 July 2014.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Improving the allocation of home care places

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 36.3 116.2 ‑3.0 ‑149.5

The Government will bring forward the allocation of a number of home care places to allow for a more consistent annual release of operational home care places across the period 2014‑15 to 2017‑18. The number of new home care places currently allocated for release beyond the forward estimates will not be affected by this measure.

This measure is Budget neutral over the forward estimates.

Income Management — one year extension and expansion to Ceduna, South Australia

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 76.3
Department of Social Services 24.8
Total — Expense 101.1

The Government will provide $101.1 million in 2014‑15 to extend income management in existing locations for one year.

This will continue income management in the Northern Territory, and in trial sites in Perth and the Kimberley region, Laverton, and Ngaanyatjarra Lands of Western Australia and Anangu Pitjantjatjara Yankunytjatjara Lands in South Australia.

Income Management will also be expanded to the Ceduna Region in South Australia from 1 July 2014.

Income management in Greater Shepparton, Logan, Rockhampton, Playford, and Bankstown is already funded until 30 June 2016 and Cape York until 31 December 2015.

Increase the Age Pension qualifying age to 70 years

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services
Department of Human Services
Total — Expense

From 1 July 2025, the Age Pension qualifying age will continue to rise by six months every two years, from the qualifying age of 67 years that will apply by that time, to gradually reach a qualifying age of 70 years by 1 July 2035.

People born before 1 July 1958 will not be affected by this measure.

This measure has a long implementation timeframe to allow people who would be affected to consider their retirement income arrangements.

This measure will contribute to the repair of the Budget over the medium to long term.

Increasing the age of eligibility for Newstart Allowance and Sickness Allowance

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.3 17.1 39.0 48.8 46.3
Department of Social Services ‑26.1 ‑183.2 ‑232.2 ‑218.1
Total — Expense 0.3 ‑9.1 ‑144.2 ‑183.4 ‑171.7

The Government will achieve savings of $508.1 million over five years by increasing the age of eligibility for Newstart Allowance and Sickness Allowance from 22 to 24 years of age, from 1 January 2015. Current recipients of Newstart Allowance and Sickness Allowance, aged 22 to 24 years of age on 31 December 2014, will remain on those allowances.

This measure will strengthen the incentive for young unemployed people to participate in education, training and employment.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Index Pension and Pension Equivalent Payments by the Consumer Price Index

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 1.8 1.6 0.1 2.0 3.1
Department of Veterans' Affairs ‑65.1
Department of Social Services ‑1.1 ‑16.4 ‑43.9 ‑331.3
Total — Expense 1.8 0.5 ‑16.2 ‑41.8 ‑393.2

The Government will achieve savings of $449.0 million over five years by indexing pension and equivalent payments and Parenting Payment Single by the Consumer Price Index (CPI).

This measure will commence on 1 July 2014 for Parenting Payment Single recipients and from 1 September 2017 for Bereavement Allowance and pension payments such as: Age Pension; Disability Support Pension; Carer Payment and Veterans' Affairs pensions.

Currently, these payments are indexed in line with the higher of the increases in the CPI, Male Total Average Weekly Earnings or the Pensioner and Beneficiary Living Cost Index.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Limit the Six‑Week Portability Period for Student Payments

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.2 3.7 0.3 0.1 0.1
Department of Social Services 0.1 ‑29.4 ‑41.0 ‑42.8 ‑44.4
Total — Expense 0.2 ‑25.7 ‑40.7 ‑42.7 ‑44.3

The Government will achieve savings of $153.1 million over five years by limiting the Six‑Week Portability Period for Student Payments from 1 October 2014.

Currently, students are able to receive income support while travelling overseas for up to six weeks. This measure limits student payments to students travelling overseas to those undertaking eligible study or training that counts toward their Australian qualification, receiving eligible medical treatment, or attending an acute family crisis.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Maintain eligibility thresholds for Australian Government payments for three years

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 1.9 4.5 0.7 1.5 4.3
Department of Agriculture
Department of Veterans' Affairs ‑4.7
Department of Health ‑0.1 ‑0.2 ‑0.5 ‑0.6
Department of Education ‑32.9 ‑49.2 ‑71.4 ‑76.9
Department of Social Services ‑132.4 ‑245.9 ‑374.6 ‑500.7
Total — Expense 1.9 ‑160.9 ‑294.7 ‑445.1 ‑578.5

The Government will achieve savings of $1.5 billion over four years by maintaining eligibility thresholds for the Australian Government payments for three years.

Eligibility thresholds for non‑pension payments will be maintained for three years from 1 July 2014. Major non‑pension payments include Family Tax Benefit, Child Care Benefit, Child Care Rebate, Newstart Allowance, Parenting Payments and Youth Allowance.

Eligibility thresholds for pension and pension related payments will be maintained for three years from 1 July 2017. Major pension related payments include the Aged Pension, Carer Payment, Disability Support Pension and the Veterans' Service Pension.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

National Homelessness Research Strategy — reduced funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services ‑3.1

The Government will achieve savings of $3.1 million by returning uncommitted funding for the National Homelessness Research Strategy to the Budget. Homelessness research activities under way in 2013‑14 are not affected.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

National Partnership Agreement on Homelessness — extension

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury 115.0
Department of Social Services
Total — Expense 115.0

The Government will provide $115.0 million in 2014‑15 to extend the National Partnership Agreement on Homelessness for a further year. This will ensure critical homelessness services continue to support some of Australia's most vulnerable people. This will provide much needed certainty for homelessness services.

Further information can be found in the press release of 30 March 2014 issued by the Minister for Social Services.

National Rental Affordability Scheme — discontinue incentive allocations

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury
Department of Social Services ‑7.2 ‑19.6 ‑20.2
Australian Taxation Office ‑28.8 ‑78.5 ‑80.9
Total — Expense ‑36.0 ‑98.1 ‑101.1

The Government will achieve savings of $235.2 million over three years by not proceeding with Round 5 of the National Rental Affordability Scheme (NRAS). Funding for incentives from earlier rounds that are uncontracted or not used within agreed timeframes will be returned to the Budget. Funding for tenanted NRAS properties is not affected.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

National Respite for Carers Programme — redirection

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services ‑7.7

The Government will achieve savings of $7.7 million by not proceeding with further grants rounds in 2013‑14 under the National Respite for Carers Programme, with $965.1 million over four years remaining in the Programme.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Pensioner Education Supplement — cessation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.1 ‑1.2 ‑2.7 ‑2.5 ‑2.4
Department of Social Services ‑41.1 ‑79.8 ‑77.7 ‑74.0
Total — Expense 0.1 ‑42.3 ‑82.5 ‑80.2 ‑76.3

The Government will achieve savings of $281.2 million over five years from 2013‑14 by ceasing the Pensioner Education Supplement from 1 January 2015.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Remove Grandfathering of Student Start‑Up Scholarship Recipients

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 3.7 0.5 0.1
Australian Taxation Office 0.2 0.1 0.2 0.2
Department of Social Services ‑218.4 ‑202.0 ‑55.9 ‑16.6
Total — Expense ‑214.5 ‑201.3 ‑55.6 ‑16.4
Related revenue ($m)
Department of Social Services 2.8 5.9 7.3
Australian Taxation Office
Department of Human Services
Total — Revenue 2.8 5.9 7.3

The Government will achieve savings of $503.8 million over five years (including $15.9 million in revenue savings over three years) by ceasing grandfathering arrangements for recipients of the Student Start‑up Scholarship (SSS) from 1 January 2015.

A decision was made in the 2013‑14 Budget to convert the SSS into an income contingent loan for full‑time higher education students in receipt of Youth Allowance, Austudy or ABSTUDY.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Remove Relocation Scholarship Assistance for Students Relocating Within and Between Major Cities

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.2 6.2 0.7 0.7 0.7
Department of Social Services ‑55.5 ‑77.0 ‑81.0 ‑84.9
Total — Expense 0.2 ‑49.3 ‑76.4 ‑80.4 ‑84.2
Related revenue ($m)
Department of Human Services
Department of Social Services .. .. ..
Total — Revenue .. .. ..

The Government will achieve savings of $290.1 million over five years by removing Relocation Scholarship Assistance for students relocating within and between major cities.

Access to the Relocation Scholarship will remain available to students moving from or to regional areas for the purpose of undertaking higher education. Additionally, assistance will be available to students from major cities who have to move to pursue courses that are only offered by regional education providers.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Reprioritising the Aged Care Workforce Supplement

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services ‑77.4 104.8 21.5 ‑43.2 ‑59.6
Department of Veterans' Affairs ‑10.8 14.2 ‑0.3 ‑10.5 ‑12.0
Department of Human Services 0.1
Total — Expense ‑88.1 119.0 21.1 ‑53.7 ‑71.6

The Government will reprioritise funding of $1.5 billion over five years from the Aged Care Workforce Supplement (Supplement) by increasing aged care subsidies for home and residential care providers and relevant community programmes by 2.4 per cent on 1 July 2014 and by providing an ongoing 20 per cent increase in the Viability Supplement to eligible residential aged care providers. The Government will also provide non‑ongoing funding of $0.8 million to meet commitments to those providers that signed onto the Supplement.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Healthy Life, Better Ageing.

Reset the Assets Test Deeming Rate Thresholds

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 2.0 1.6 13.8
Department of Social Services 0.1 ‑45.6
Department of Veterans' Affairs ‑4.6
Total — Expense 2.0 1.8 ‑36.5

The Government will achieve savings of $32.7 million over five years by resetting the deeming thresholds used in the pension assets test to $30,000 for singles and $50,000 for couples from 20 September 2017.

This measure ensures better targeting of pension payments, by tightening the assets test.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Social Security Agreement with India

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 2.4 0.5 0.4 0.4
Department of Social Services 0.2 0.6 0.6 0.7
Australian Taxation Office
Total — Expense 2.7 1.2 1.1 1.2
Related revenue ($m)
Department of Social Services
Australian Taxation Office ‑0.6 ‑1.4 ‑2.8
Total — Revenue ‑0.6 ‑1.4 ‑2.8
Related capital ($m)
Australian Taxation Office 0.8

The Government will provide $11.7 million over four years to establish a new bilateral Social Security Agreement with the Republic of India. The new Agreement will cover provisions relating to the age pension, and remove the double coverage of superannuation contributions for workers seconded to either country.

This measure aligns with the Government's commitment to reduce the administrative burden for Australian businesses while still providing appropriate social security protection and superannuation entitlements for Australian citizens.

The Social Security Agreement will commence from 1 July 2015, subject to the completion of legal and treaty processes for both countries.

Stronger Participation Incentives for Job Seekers under 30

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Human Services 0.4 41.7 67.6 65.7 63.0
Department of Employment 19.4 152.2 184.4 215.0
Department of the Prime Minister and Cabinet 6.0 17.2 19.8 19.8
Department of Social Services ‑293.0 ‑582.2 ‑622.5 ‑626.6
Total — Expense 0.4 ‑225.9 ‑345.1 ‑352.5 ‑328.9
Related capital ($m)
Department of Employment 4.7
Department of Human Services
Department of Social Services
Department of the Prime Minister and Cabinet
Total — Capital 4.7

The Government will achieve savings of $1.2 billion over four years by changing access to income support for people under 30 years of age, to encourage young people with full work capacity to be earning, learning or participating in Work for the Dole.

From 1 January 2015, all new claimants of Newstart Allowance and Youth Allowance (Other) who are under 30 years of age must demonstrate appropriate job search and participation in employment services support for six months before receiving payments. Prior workforce participation may reduce the waiting period. After six months, claimants will be required to participate in 25 hours per week Work for the Dole to receive income support, and following this may continue to access employment services for a further six month period, including access to a wage subsidy in lieu of income support.

From 1 July 2015, existing recipients of Newstart Allowance and Youth Allowance (Other) who are under 30 years of age will also become subject to these new arrangements. These people will have already served six months on Work for the Dole.

Payment recipients who have a partial capacity to work, are the principal carer of a child, are part‑time apprentices, are in education or are job seekers in Disability Employment Services or Job Services Australia Streams 3 and 4 will be exempt.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Stronger Relationships Trial

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 19.9 0.1

The Government will provide $20.0 million over two years to assist couples to access marriage and relationship education and counselling. Under this trial, the Government will issue $200 vouchers to up to 100,000 couples between 1 July 2014 and 30 June 2015.

This measure delivers on the Government's election commitment.

Further information can be found in the press release of 28 February 2014 issued by the Minister for Social Services.

Young Carer Bursary Programme

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Social Services 0.5 1.0 1.0 0.5

The Government will provide $3.0 million over four years to fund a bursary programme to assist young carers to continue their studies by relieving the financial pressure on them to undertake part‑time work in addition to their education and caring responsibilities. The funding will provide 150 bursary payments of $4,000, $6,000 or $10,000 per annum for three years from January 2015. The eligibility criteria will target young carers up to 25 years of age in greatest financial need.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Disability and Carers.