12-May-2010

12 May 2010

While the 2010-11 Federal Budget includes significant growth in Commonwealth disability funding to the States, it offers little in the year ahead to the disability services the Commonwealth directly funds.
Under the terms of the National Disability Agreement funding to the States rises from $903.7 million in 2009-10 to $1,052 million in 2010-11. Even excluding the Disabilities Assistance Package which was folded into the Agreement, the estimated growth factor is still significant at 6.8%.

Disability Employment Services
Modest but welcome open employment initiatives in the Budget will assist young job seekers and those with intellectual disability.
$7.4 million will fund a two-year trial of a 70% loading on selected service fees, placement fees and outcome fees for Disability Employment Services (DES) assisting job seekers with moderate intellectual disability. The post-placement loadings will only apply if the job seeker secures work of 15 hours or more per week.
A further $0.5 million over the next two years will pilot new arrangements for certain young people to directly access DES without the need to undergo a Job Capacity Assessment. The direct registration arrangements currently applying to school leavers will be extended to young people on State-administered 'Transition to Work' programs as well as those accessing DES services within a year of leaving school.
A 'Gateway Review', funded from existing DEEWR resources, will provide quality assurance during the DES IT implementation to ensure the intended outcomes of the project are achieved.

Employment Innovation
Although not announced in the Budget, the Government will provide $3 million over two years to stimulate the development of new models of disability employment service – hybrid social enterprises combining elements of Australian Disability Enterprises and open employment. These models could function as a stepping stone to open employment for people with disability or they could be an end in themselves. DEEWR will provide the funding through its Innovation Fund. The criteria for the new models have yet to be determined. NDS will assist in developing the criteria.
There are two catches.  The funding is limited to two years, meaning that organisations would need to undertake a pilot with a plan for it to become self-sustaining or have an exit strategy or persuade the Government that the model warrants recurrent funding.
Second, access to the Innovation Fund is limited to existing members of the Innovation Fund panel. The list of panel members is long and includes NDS members. Panel members will be encouraged to enter into partnerships to develop the new models; partners do not have to be panel members.

Job Capacity Assessment
The Government is looking to make savings of $383 million over four years by tightening Job Capacity Assessments (JCA) and strengthening the focus on a person's potential to work with appropriate capacity-building and rehabilitation.
From January 2012, Disability Support Pension claimants without sufficient evidence of future work capacity of less than 15 hours a week may be referred to an alternative income support payment and offered employment assistance through DES or Job Services Australia.

Vocational Education and Training
The Budget claims ambitious reforms of the Vocational Education and Training (VET) system, although this will depend on negotiations with State and Territory governments. The reforms will include a training entitlement for all young people under 25 and those wishing to gain new skills. They also include a commitment to improve quality within the sector and improve regulations.
Foundation skill packages offer additional training places in language, literacy and numeracy which could assist both DES job seekers and workers.
There are measures to boost traditional trade apprenticeships and combined government and industry funding will help deliver training places and lift the number of workers available in skill shortage areas of national significance.

National Disability Strategy and Human Rights
$520,000 will be made available to disability and carer peak bodies to assist the engagement of people with disability and their families with the proposed National Disability Strategy, the Productivity Commission's inquiry into a long-term disability care and support scheme and the proposed National Carer Strategy.
FaHCSIA (using $6.2 million of its own resources) will establish a policy coordination and secretariat unit to implement the National Disability Strategy. The unit will engage stakeholders; develop action plans; establish governance arrangements to negotiate with States and Territories; and ensure robust reporting on outcomes. A comprehensive information portal covering disability programs, services and support will be built. Significantly more resources will be required if the National Disability Strategy is to deliver on what promises to be an ambitious vision.
The Government will provide $18.3 million over four years to implement a new framework for the protection and promotion of human rights in Australia. The framework is designed to raise human rights awareness in the community and the public sector through education initiatives, increased parliamentary scrutiny, consolidated anti-discrimination laws and a National Action Plan on Human Rights.
Overseas development assistance of $30.2 million over four years will help AusAID build capacity to address disability issues. This is an important step forward.

Special Disability Trusts
Changes to Special Disability Trusts will expand the definition of a beneficiary to include people with disability who can work up to seven hours a week. The current rules require that a beneficiary "has a disability as a result of which he or she is not working and who has no likelihood of working for a wage that is at or above the relevant minimum wage."
The allowable uses for the Trust will also expand (a positive change) to include medical expenses, including membership of private health funds, property maintenance and discretionary spending of up to $10,000 per year.

Communications and Transport
The Australian Competition and Consumer Commission will be funded to advise on pricing and quality issues for the National Broadband Network. This will provide an opportunity to highlight access and cost equity for people with sensory disability who are heavily reliant on internet-based communication and assistive technology.
The Budget also provides new technology funding for passengers and cargo in international airports. NDS is represented on the Aviation Access Working Group, which will be working to ensure people with disability are considered and consulted regarding the introduction of this new technology.
The Medicare rebate for cataract surgery has been revised from the planned 50% to only 12%. But there will be $5 million over four years for additional cataract operations in rural and remote areas.
 
Contact Information:
Ken Baker, Chief Executive, NDS National, Ph 02 6283 3200, ken.baker@nds.org.au