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Finance—Budget 2014-15—Budget papers—No. 3 - Federal Financial Relations

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Federal Financial Relations Budget Paper No. 3 2014-15

Circulated by

The Honourable J. B. Hockey MP Treasurer of the Commonwealth of Australia

and

Senator the Honourable Mathias Cormann Minister for Finance of the Commonwealth of Australia

For the information of honourable members on the occasion of the Budget 2014-15

13 May 2014

ISBN 978-0-642-74976-5

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iii

FOREWORD

This Budget Paper presents information on the Commonwealth’s financial relations with State, Territory and local governments. This includes an overview of major Australian Government reforms and new developments, as well as information on payments to the States and analysis of fiscal developments in the public sector.

Notes

(a) The following definitions are used in this Budget Paper:

- Budget year refers to 2014-15, while the forward years refer to 2015-16, 2016-17 and 2017-18; and

- one billion is equal to one thousand million.

(b) Figures in tables and the text have generally been rounded. Discrepancies in tables between totals and sums of components reflect rounding unless otherwise noted.

- estimates of $100,000 and over are generally rounded to the nearest tenth of a million;

- estimates midway between rounding points are rounded up; and

- percentage changes in tables are based on the underlying unrounded amounts.

- nil

na not applicable

$m millions of dollars

$b billions of dollars

nfp not for publication

0 zero

* unquantifiable

.. not zero, but rounded to zero

~ allocation not yet determined

(d) This Budget Paper uses the following conventions.

- The Australian Capital Territory and the Northern Territory of Australia are referred to as ‘the Territories’.

- References to the ‘States’ or ‘each State’ include the State governments and Territory governments. The State and local government sector is denoted as the ‘State/local sector’.

- References to the ‘State/local sector’ include the Territory governments unless otherwise stated.

- Local governments are instrumentalities of State governments. Consequently, payments made to the State government sector include payments made to the local government sector unless otherwise specified.

- The following abbreviations are used, where appropriate:

NSW New South Wales

VIC Victoria

QLD Queensland

WA Western Australia

SA South Australia

TAS Tasmania

ACT Australian Capital Territory

NT Northern Territory

GST Goods and services tax

(e) The term ‘Commonwealth’ refers to the Commonwealth of Australia. The term is used when referring to the legal entity of the Commonwealth of Australia.

The term ‘Australian Government’ is used when referring to the Government of, and the decisions and activities made by the Government on behalf of, the Commonwealth of Australia.

Budget Paper No. 3, Federal Financial Relations 2014-15, is one of a series of Budget Papers that provides information to supplement the Budget Speech. A full list of the series is printed on the inside cover of this paper. Appendix B: Total Payments to the States by Government Finance Statistics (GFS) Function; Appendix C: Supplementary Tables, and Appendix D: Debt Transactions of this paper are only available online at: www.budget.gov.au.

CONTENTS

Foreword ....................................................................................................................... iii

Executive Summary ...................................................................................................... 1

Part 1: Australia’s Federal Relations........................................................................... 3

Overview ....................................................................................................................... 3

Total payments to the States .......................................................................................... 3

Part 2: Payments for Specific Purposes ..................................................................... 7

Overview of payments ..................................................................................................... 7

Health ............................................................................................................................ 11

Education ..................................................................................................................... 34

Skills and workforce development................................................................................. 43

Community services ...................................................................................................... 47

Affordable housing ........................................................................................................ 56

Infrastructure ................................................................................................................. 60

Environment .................................................................................................................. 70

Contingent payments .................................................................................................... 79

Other National Partnership payments ........................................................................... 81

Part 3: General Revenue Assistance ........................................................................ 89

Overview of payments ................................................................................................... 89

GST entitlement to the States ....................................................................................... 89

Other general revenue assistance ................................................................................ 95

Mirror tax arrangements ................................................................................................ 97

Part 4: Developments in the Consolidated Non-Financial Public Sector .............. 99 Introduction .................................................................................................................... 99

Net operating balance ................................................................................................... 99

Fiscal and cash balances ............................................................................................ 100

Net debt ....................................................................................................................... 102

The Australian Loan Council ....................................................................................... 103

Appendix A: Parameters and Further Information ................................................ 107

Population ................................................................................................................... 107

Age/gender weighted populations ............................................................................... 109

Cross-border adjustments for 2013-14 National Health Reform funding .................... 109 School enrolments....................................................................................................... 109

Wage, price and cost indices ...................................................................................... 110

Data sources ............................................................................................................... 110

Further information ...................................................................................................... 111

Appendix B: Total Payments to the States by Government Finance Statistics (GFS) Function ......................................................................................... 113

Appendix C: Supplementary Tables........................................................................ 119

Appendix D: Debt Transactions ............................................................................... 131

vii

LIST OF TABLES

Table 1.1: Commonwealth payments to the States ..................................................... 5

Table 1.2: Total Commonwealth payments to the States as a proportion of GDP ............................................................................................................ 6

Table 2.1: Total payments for specific purposes by category, 2013-14 to 2017-18 ....................................................................................................... 8

Table 2.2: Total payments for specific purposes by sector, 2013-14 to 2017-18 ....................................................................................................... 9

Table 2.3: Total payments for specific purposes by sector and category, 2013-14 to 2017-18 .................................................................................. 10

Table 2.4: Payments to support state health services ............................................... 11

Table 2.5: Payments to support state education services ......................................... 34

Table 2.6: Payments to support state skills and workforce development services ..................................................................................................... 43

Table 2.7: Payments to support state community services ....................................... 47

Table 2.8: Payments to support state affordable housing services ........................... 56 Table 2.9: Payments to support state infrastructure services ................................... 60

Table 2.10: Payments to support state environment services ..................................... 70

Table 2.11: Contingent payments to the States .......................................................... 79

Table 2.12: Payments to support other state services ................................................ 81

Table 3.1: General revenue assistance ..................................................................... 89

Table 3.2: General revenue assistance by State ....................................................... 89

Table 3.3: Reconciling GST revenue, GST entitlement and GST payments to the States .............................................................................................. 91

Table 3.4: Reconciliation of the GST entitlement estimates since the 2013-14 Budget and 2013-14 MYEFO ..................................................... 91

Table 3.5: Policy decisions since MYEFO that affect the GST entitlement ............... 91 Table 3.6: GST relativities ......................................................................................... 92

Table 3.7: Calculation of GST entitlements ............................................................... 93

Table 3.8: Distribution of the GST entitlement over budget year and forward estimates .................................................................................................. 93

Table A: Difference from equal per capita distribution, 2014-15 ............................. 94

Table 3.9: Reconciliation of the GST administration budget ..................................... 95

Table 3.10: Other general revenue assistance ............................................................ 96

Table 3.11: Mirror taxes accrued on behalf of the States ............................................ 98

Table 4.1: Loan Council Allocation nominations for 2014-15 .................................. 105

Table A.1: Population by State, at 31 December ..................................................... 107

Table A.2: Net overseas migration ........................................................................... 108

Table A.3: Net interstate migration........................................................................... 108

Table A.4: Age/gender weighted population ............................................................ 109

Table A.5: Cross-border adjustments to Commonwealth funding flows .................. 109 Table A.6: School enrolments .................................................................................. 109

Table A.7: Wage, price and cost indices .................................................................. 110

Table B.1: Total payments to the States by GFS function ....................................... 114

Table C.1: General government sector cash balance by level of government as a percentage of GDP ......................................................................... 120

Table C.2: Public non-financial corporations sector cash balance by level of government as a percentage of GDP ..................................................... 121

viii

Table C.3: Non-financial public sector cash balance by level of government as a percentage of GDP ......................................................................... 122

Table C.4: General government sector fiscal balance by level of government as a percentage of GDP ..................................................... 123

Table C.5: Public non-financial corporations sector fiscal balance by level of government as a percentage of GDP ..................................................... 124

Table C.6: Non-financial public sector fiscal balance by level of government as a percentage of GDP ......................................................................... 125

Table C.7: Gross fixed capital formation by sector .................................................. 126

Table C.8: Net debt by sector (as at end of financial year) ...................................... 127

Table C.9: General government sector net financial worth by level of government (as at end of financial year) ................................................ 128

Table C.10: General government sector net worth by level of government (as at end of financial year) .......................................................................... 128

Table C.11: General government sector net interest payments by level of government ............................................................................................. 129

Table D.1: Summary of advances, interest and repayments, by year and State........................................................................................................ 132

LIST OF CHARTS

Chart A: GST redistributed as a proportion of the GST entitlement ............................. 94 Chart 4.1: Consolidated net operating balance by sector ........................................... 100

Chart 4.2: Consolidated fiscal balance by sector ........................................................ 101

Chart 4.3: Consolidated cash balance by sector ........................................................ 102

Chart 4.4: Consolidated net debt by sector ................................................................. 103

EXECUTIVE SUMMARY

â¢ The 2014-15 Budget commences the critical task of budget repair and lays the foundation for future economic prosperity. Budget repair is a national priority and every sector of the community must contribute, including State, Territory and local Governments.

â¢ This Budget includes decisions to modify or terminate a number of payments to the States that are unsustainable or ineffective. The Commonwealth has focused on its core responsibilities, identifying overlap and duplication with state services.

â¢ The previous government’s policies in the areas of public hospitals and schools funding have been revealed to be growing unsustainably into the medium-term, lessening State accountability for their service delivery decisions. The Commonwealth has acted now to address this situation by moving to more realistic funding arrangements for public hospitals (from 1 July 2017) and schools (from 1 January 2018). Whilst preserving the Commonwealth’s commitment of funding for the Students First Programme over the forward estimates period, these changes generate total savings of over $80 billion in the period to 2024-25.

â¢ In addition to addressing unsustainable spending, this Budget is focused on increasing growth, improving infrastructure development and increasing job opportunities. The Commonwealth has taken action to promote growth by directing public expenditure to more productive uses, with substantial investments in productivity-enhancing infrastructure.

â¢ This Budget introduces an Infrastructure Growth Package of $11.6 billion. The $5 billion Asset Recycling Initiative creates an incentive for the States to unlock funds from existing State-owned assets to invest in additional infrastructure that will support economic growth and enhance productivity.

â¢ The Infrastructure Growth Package also provides additional Commonwealth funding to the States for transport infrastructure projects. This includes $2.9 billion for the Western Sydney Infrastructure Plan, and $3.7 billion for other significant projects across Australia including: East-West Link in Melbourne; Perth Freight Link; Toowoomba Second Range Crossing in Queensland; North-South Road Corridor in Adelaide; and Northern Territory road upgrades.

â¢ In 2014-15, the Commonwealth will provide the States with $101.1 billion in total payments, including payments for specific purposes of $46.3 billion and general revenue assistance of $54.9 billion. Payments to the States will be 24.4 per cent of total Commonwealth expenditure in 2014-15. Total payments to the States from 2013-14 to 2016-17 have increased by $9.2 billion since the Mid-Year Economic and Fiscal Outlook 2013-14. This increase is driven by upwards variations in GST entitlements of $4.5 billion, and additional spending on infrastructure.

PART 1: AUSTRALIA’S FEDERAL RELATIONS

OVERVIEW

The 2014-15 Budget is the first major step in the Commonwealth’s strategy to restore budget sustainability and economic prosperity. The Commonwealth is taking action to direct public expenditure to more productive uses, with substantial investments in infrastructure that will support economic growth and enhance productivity.

The 2014-15 Budget introduces an Infrastructure Growth Package of $11.6 billion that will be invested in productivity-enhancing infrastructure. This funding to State and Territory Governments will boost the economy’s productive capacity and help smooth the impact of a downturn in mining investment-led growth.

This Budget also addresses unsustainable spending levels inherited across a range of sectors. Budget repair is a national priority and every sector of the community must contribute, including State, Territory and local Governments. Decisions have been made to modify or terminate a number of payments to the States and Territories (the States) that were unsustainable or inefficient.

Initiatives of the previous government in public hospitals and schools funding have been revealed to have unsustainable levels of growth beyond previously published estimates. The Commonwealth will reset indexation arrangements for public hospitals and schools to ensure funding levels are sustainable and achievable. Further details are included in Part 2 of this Budget Paper.

Sustainable funding is an issue for all levels of government, and the changes in this Budget will provide a platform to consider longer-term arrangements in the context of the White Paper on the Reform of the Federation and the White Paper on the Reform of Australia’s Tax System. The White Papers, to be completed by the end of 2015, will consider the spending and taxation roles and responsibilities of the different levels of government in Australia in detail to ensure that, as far as possible, the States are sovereign in their own sphere.

TOTAL PAYMENTS TO THE STATES

The Commonwealth continues to provide substantial levels of funding to the States, in key sectors such as health, education, community services and affordable housing, and deliver important productivity-enhancing projects and reforms in sectors including infrastructure, and skills and workforce development.

In 2014-15, the Commonwealth will provide the States with payments totalling $101.1 billion. This represents a $3.3 billion increase compared to 2013-14. Total estimated funding for 2014-15 has decreased by $0.6 billion since the Mid-Year

Budget Paper No. 3

Economic and Fiscal Outlook 2013-14. Total payments to the States as a proportion of Commonwealth expenditure are estimated to be 24.4 per cent in 2014-15.

Payments for specific purposes

In 2014-15, the Commonwealth will provide the States with $46.3 billion in payments for specific purposes, an increase of $0.5 billion compared with $45.8 billion in 2013-14. Payments for specific purposes as a proportion of Commonwealth expenditure are estimated to be 11.2 per cent in 2014-15.

National Specific Purpose Payments (National SPPs), along with National Health Reform and Students First funding are expected to total $33.6 billion in 2014-15, a change of $2.5 billion from $31.1 billion in 2013-14.

National Partnership payments are expected to be $12.7 billion in 2014-15, a change of $2.0 billion from $14.7 billion in 2013-14.

Part 2 of this Budget Paper provides further information on payments for specific purposes to the States.

General revenue assistance

General revenue assistance, which principally comprises GST entitlements, provides a further, untied, funding base to support the delivery of State services.

In 2014-15, the States are expected to receive $54.9 billion in general revenue assistance, comprising GST payments of $53.7 billion and other general revenue assistance of $1.2 billion. This is an increase of $2.8 billion from $52.1 billion in 2013-14. Payments for general revenue assistance are estimated to be 13.2 per cent of Commonwealth expenditure in 2014-15.

Part 3 of this Budget Paper provides further information on general revenue assistance to the States, including GST.

Part 1: Australia's Federal Relations

Table 1.1: Commonwealth payments to the States $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 Payments for specific purposes(a) 13,815 12,551 9,147 4,632 2,977 1,015 750 892 45,779

General revenue assistance(b) 15,778 11,451 10,823 2,558 4,618 1,809 1,061 2,808 52,056

Total payments to the States 29,593 24,002 19,970 7,190 7,595 2,825 1,812 3,699 97,834 2014-15 Payments for specific purposes(a) 13,654 11,166 9,792 5,313 3,171 1,039 755 1,041 46,285

General revenue assistance(b) 16,808 11,853 11,736 2,310 4,956 1,911 1,137 3,166 54,861

Total payments to the States 30,462 23,019 21,527 7,623 8,128 2,950 1,892 4,207 101,147 2015-16 Payments for specific purposes(a) 14,847 11,145 10,654 5,394 3,655 1,145 749 1,018 49,905

General revenue assistance(b) 17,603 12,588 12,659 2,405 5,252 2,095 1,204 3,384 58,165

Total payments to the States 32,450 23,733 23,313 7,799 8,906 3,241 1,953 4,402 108,070 2016-17 Payments for specific purposes(a) 16,540 11,743 11,622 6,096 3,510 1,119 812 1,044 53,791

General revenue assistance(b) 18,259 13,257 13,932 2,494 5,699 2,150 1,255 3,571 61,598

Total payments to the States 34,800 25,000 25,554 8,590 9,209 3,269 2,067 4,615 115,389 2017-18 Payments for specific purposes(a) 16,088 11,279 11,089 5,980 3,452 1,087 815 973 51,786

General revenue assistance(b) 19,284 14,181 14,660 2,765 5,921 2,203 1,309 3,658 64,909

Total payments to the States 35,371 25,460 25,750 8,746 9,373 3,290 2,124 4,631 116,695 (a) As State allocations for a small number of programmes have yet to be determined, these payments are not reflected in State totals. As such, total payments for specific purposes will not equal the sum of State totals. (b) As State allocations for royalties are not published due to commercial sensitivities, these payments are

not reflected in State totals. As such, total general revenue assistance will not equal the sum of the State totals.

For 2014-15, total payments to the States as a proportion of GDP are estimated to be 6.2 per cent, with payments for specific purposes estimated to be 2.8 per cent and general revenue assistance estimated to be 3.4 per cent.

Budget Paper No. 3

Table 1.2: Total Commonwealth payments to the States as a proportion of GDP National Health Students National Other Per cent Per

National Reform First Partnership general change cent

SPPs funding funding payments GST revenue from prior of

$million (a) (b) (c) (d) entitlement assistance Total year GDP

2013-14 10,377 13,845 6,872 14,685 50,720 1,336 97,834 - 6.2

2014-15 4,139 15,116 14,374 12,657 53,710 1,151 101,147 3.4 6.2

2015-16 4,243 16,551 15,646 13,465 57,020 1,145 108,070 6.8 6.3

2016-17 4,353 18,095 17,032 14,311 60,440 1,158 115,389 6.8 6.4

2017-18 4,471 18,872 18,149 10,294 63,810 1,099 116,695 1.1 6.2

(a) Includes National Schools SPP funding, which ceased in December 2013. (b) New indexation arrangements for public hospital funding will apply from July 2017. (c) Students First funding commenced from January 2014. New indexation arrangements for schools funding will apply from January 2018.

(d) Includes financial assistance grants for local government and payments direct to local government.

P ROTECTED

S ENSITIVE

: C ABINET

PART 2: PAYMENTS FOR SPECIFIC PURPOSES

OVERVIEW OF PAYMENTS

The Commonwealth provides payments to the States for specific purposes in areas administered by the States. These payments cover most functional areas of state and local government activity, including: health; education; skills and workforce development; community services; housing; Indigenous affairs; infrastructure; and the environment.

The Commonwealth currently supports the States in certain service delivery sectors through three National Specific Purpose Payments (National SPPs) — Skills and Workforce Development, Disability Services and Affordable Housing. The States are required to spend each National SPP in the relevant sector.

The National SPPs are ongoing and are indexed each year by growth factors specified in the Intergovernmental Agreement on Federal Financial Relations (the Intergovernmental Agreement). They are distributed amongst the States in accordance with population shares based on the Australian Statistician’s determination as at 31 December of that year.

Two former National SPPs have been superseded. On 1 July 2012, the National Healthcare SPP was replaced by National Health Reform funding, which comprises base funding equivalent to the National Healthcare SPP and, from 1 July 2014, efficient growth funding. New indexation arrangements will apply from 1 July 2017 for public hospitals funding. Further details are included in the Health section of this Part.

From 1 January 2014, the National Schools SPP was replaced by funding through the Students First programme. New indexation arrangements will apply for this funding from 1 January 2018. Further details are included in the Education section of this Part.

Under the Intergovernmental Agreement, National Partnership payments to the States are the key vehicle to facilitate reforms or support the delivery of specified projects. National Partnerships are typically entered into for a fixed period of time, reflecting the nature of the project or reform involved.

To the fullest extent possible, payments are aligned with the achievement of project milestones and are made after the States have achieved the outcomes or outputs specified in the relevant National Partnership.

National Partnership agreements are publicly available at: www.federalfinancialrelations.gov.au.

Budget Paper No. 3

Total payments for specific purposes

Total payments for specific purposes by category are shown in Table 2.1.

Table 2.1: Total payments for specific purposes by category, 2013-14 to 2017-18 $million NSW VIC QLD WA SA TAS ACT NT Total(a)

2013-14 National Specific Purpose Payments(b) 3,286 2,568 2,124 1,095 772 227 179 127 10,377

National Health Reform funding 4,350 3,464 2,803 1,517 1,006 299 272 135 13,845 Students First funding(c) 2,112 1,683 1,441 706 523 161 122 123 6,872

National Partnership payments(d) 4,067 4,836 2,779 1,315 676 328 178 507 14,685

Total payments for specific purposes 13,815 12,551 9,147 4,632 2,977 1,015 750 892 45,779

2014-15 National Specific Purpose Payments 1,319 1,028 835 460 295 90 68 43 4,139

National Health Reform funding 4,688 3,716 3,163 1,722 1,078 344 271 135 15,116 Students First funding 4,384 3,519 3,055 1,499 1,074 334 248 260 14,374

National Partnership payments(d) 3,264 2,902 2,739 1,632 724 270 168 603 12,657

Total payments for specific purposes 13,654 11,166 9,792 5,313 3,171 1,039 755 1,041 46,285

2015-16 National Specific Purpose Payments 1,347 1,055 858 478 300 91 70 44 4,243

National Health Reform funding 5,148 4,021 3,471 1,919 1,168 365 298 161 16,551 Students First funding 4,725 3,814 3,401 1,662 1,139 361 262 280 15,646

National Partnership payments(d) 3,628 2,255 2,924 1,334 1,047 328 119 533 13,465

Total payments for specific purposes 14,847 11,145 10,654 5,394 3,655 1,145 749 1,018 49,905

2016-17 National Specific Purpose Payments 1,377 1,082 882 498 306 91 72 45 4,353

National Health Reform funding 5,641 4,346 3,804 2,134 1,264 388 328 189 18,095 Students First funding 5,168 4,095 3,766 1,822 1,207 390 277 306 17,032

National Partnership payments(d) 4,354 2,220 3,170 1,642 733 249 135 504 14,311

Total payments for specific purposes 16,540 11,743 11,622 6,096 3,510 1,119 812 1,044 53,791

Part 2: Payments for Specific Purposes

Table 2.1: Total payments for specific purposes by category, 2013-14 to 2017-18 (continued) $million NSW VIC QLD WA SA TAS ACT NT Total(a)

2017-18 National Specific Purpose Payments 1,409 1,112 907 519 312 93 74 46 4,471

Public hospitals funding 5,947 4,694 3,829 2,189 1,316 391 311 195 18,872

Students First funding 5,462 4,280 4,049 2,060 1,277 409 300 311 18,149

National Partnership payments(d) 3,270 1,193 2,304 1,213 547 195 130 421 10,294

Total payments for specific purposes 16,088 11,279 11,089 5,980 3,452 1,087 815 973 51,786

(a) As State allocations for a small number of programmes have yet to be determined, these payments are not included in State totals. As such, total payments may not equal the sum of State totals. (b) Includes National Schools SPP funding, which ceased in December 2013. (c) Students First funding commenced from January 2014. (d) Includes financial assistance grants for local government and payments direct to local government.

Total payments for specific purposes by sector are shown in Table 2.2.

Table 2.2: Total payments for specific purposes by sector, 2013-14 to 2017-18 $million 2013-14 2014-15 2015-16 2016-17 2017-18

Health 15,855 16,420 17,500 18,764 19,532

Education 14,389 14,879 15,776 17,106 18,196

Skills and workforce development 1,754 1,824 1,837 2,003 1,515

Community services 2,347 2,168 1,766 1,940 2,148

Affordable housing 2,079 1,962 1,748 1,810 1,871

Infrastructure 6,919 5,703 8,022 9,108 5,674

Environment 547 638 703 526 216

Contingent 184 99 19 - -

Other(a) 1,706 2,593 2,533 2,535 2,634

Total payments for specific purposes 45,779 46,285 49,905 53,791 51,786

(a) Includes financial assistance grants for local government.

Budget Paper No. 3

Total payments for specific purposes by sector and category are shown in Table 2.3.

Table 2.3: Total payments for specific purposes by sector and category, 2013-14 to 2017-18 $million 2013-14 2014-15 2015-16 2016-17 2017-18

Health National Health Reform funding 13,845 15,116 16,551 18,095 -

Public hospitals funding - - - - 18,872

National Partnerships 2,010 1,304 949 669 660

Total health payments 15,855 16,420 17,500 18,764 19,532

Education National Schools SPP(a) 6,352 - - - -

Students First funding(b) 6,872 14,374 15,646 17,032 18,149

National Partnerships 1,165 505 130 73 47

Total education payments 14,389 14,879 15,776 17,106 18,196

Skills and workforce development National Skills and Workforce Development SPP 1,409 1,435 1,460 1,487 1,515

National Partnerships 345 389 377 516 -

Total skills and workforce development payments 1,754 1,824 1,837 2,003 1,515

Community services National Disability SPP(c) 1,334 1,398 1,455 1,514 1,580

National Partnerships 1,013 770 311 426 568

Total community services payments 2,347 2,168 1,766 1,940 2,148

Affordable housing National Affordable Housing SPP 1,283 1,306 1,328 1,352 1,376

National Partnerships 796 656 420 458 495

Total affordable housing payments 2,079 1,962 1,748 1,810 1,871

Infrastructure National Partnerships 6,919 5,703 8,022 9,108 5,674

Environment National Partnerships 547 638 703 526 216

Contingent payments National Partnerships 184 99 19 - -

Other National Partnerships(d) 1,706 2,593 2,533 2,535 2,634

Total payments for specific purposes 45,779 46,285 49,905 53,791 51,786

(a) National Schools SPP funding ceased in December 2013. (b) Students First funding commenced from January 2014. (c) Does not include National Disability SPP adjustments to achieve budget neutrality as this is still subject to negotiation (see footnotes to Table 2.7 in this Part for further details).

(d) Includes financial assistance grants for local government.

Further information on each of these payments is contained in this Part. New measures associated with payments to the States are included in Budget Paper No. 2, Budget Measures 2014-15.

Total payments to the States for specific purposes, as categorised by Government Finance Statistics function, are set out in Appendix B, which is available online.

Part 2: Payments for Specific Purposes

HEALTH

In 2014-15, the Commonwealth will provide funding of $16.4 billion to support state health services, including $15.1 billion in National Health Reform funding and $1.3 billion in National Partnership payments, as detailed in Table 2.4.

This funding will account for approximately 35.5 per cent of the Commonwealth’s $46.3 billion in total payments for specific purposes.

Table 2.4: Payments to support state health services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Health Reform funding 13,844.5 15,115.5 16,551.3 18,094.9 -

Public hospitals funding - - - - 18,872.1

National Partnership payments National Health Reform(a) 916.2 nfp - - -

Health infrastructure 458.9 771.4 380.6 52.4 9.4

Health services 70.3 74.3 71.4 62.4 6.4

Indigenous health 44.3 51.0 17.4 17.6 15.5

Other health payments 520.3 407.4 479.7 536.5 628.7

Total 15,854.6 16,419.7 17,500.4 18,763.8 19,532.0

(a) Reward funding in 2014-15 has been provisioned in the Contingency Reserve.

National Health Reform and public hospitals funding

In 2014-15, National Health Reform funding is estimated to be $15.1 billion. This is an estimated increase in funding of 9.2 per cent compared to 2013-14.

National Health Reform and public hospitals funding (a)(b)(c)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 National Health Reform Hospital services 4,246.8 3,383.8 2,738.2 1,481.3 983.3 291.6 266.6 131.2 13,522.8

Public health 102.9 79.9 64.8 35.2 23.1 7.1 5.3 3.3 321.7

Total 4,349.8 3,463.7 2,803.0 1,516.5 1,006.4 298.7 271.9 134.5 13,844.5

2014-15 National Health Reform Hospital services 4,579.4 3,631.1 3,094.0 1,684.5 1,053.4 336.6 265.5 131.1 14,775.7 Public health 108.3 84.4 68.6 37.8 24.3 7.4 5.6 3.5 339.8

Total 4,687.7 3,715.5 3,162.6 1,722.3 1,077.7 344.0 271.1 134.6 15,115.5

2015-16 National Health Reform Hospital services 5,033.8 3,931.6 3,398.5 1,878.5 1,142.7 357.8 292.5 157.0 16,192.3 Public health 114.0 89.2 72.6 40.5 25.4 7.7 5.9 3.7 359.0

Total 5,147.8 4,020.8 3,471.1 1,919.0 1,168.1 365.4 298.4 160.7 16,551.3

2016-17 National Health Reform Hospital services 5,521.5 4,251.7 3,727.1 2,091.0 1,237.2 380.1 321.9 185.0 17,715.5 Public health 120.0 94.3 76.8 43.4 26.7 8.0 6.3 3.9 379.3

Total 5,641.4 4,346.0 3,803.9 2,134.4 1,263.9 388.1 328.2 189.0 18,094.9

Budget Paper No. 3

National Health Reform and public hospitals funding (continued) (a)(b)(c)

$million NSW VIC QLD WA SA TAS ACT NT Total

2017-18 Public hospitals funding 5,946.6 4,694.3 3,829.5 2,188.8 1,316.0 390.6 311.1 195.3 18,872.1 (a) State allocations of funding for 2013-14 have been adjusted to reflect estimated cross-border activity, where residents of one State receive hospital treatment in another State. See Appendix A for further

details.

(b) The efficient growth funding component of National Health Reform funding in 2014-15, 2015-16 and 2016-17 is indicative only. The distribution of efficient growth funding will be determined by efficient growth in each State.

(c) State allocations of public hospitals funding for 2017-18 are shown on the basis of state population shares of total funding and are not adjusted for cross-border activity.

In 2013-14, National Health Reform funding is equivalent to the amount that would have been previously payable through the former National Healthcare SPP. State funding entitlements have been adjusted for cross-border activity (further details in Appendix A).

From July 2014 to June 2017, National Health Reform funding will be linked to the level of services delivered by public hospitals as provided under the National Health Reform Agreement (the Agreement). During this period, each State’s entitlement will be directly linked to the growth in public hospital activity provided in that jurisdiction. The Australian Government has announced that from 2014-15 the funding guarantees under the Agreement will cease.

From 1 July 2017, the Commonwealth will index its contribution for public hospitals funding by the Consumer Price Index and population growth. This new approach ensures public hospital funding growth is more sustainable. State funding entitlements are reported on an equal per capita basis.

The measures taken in the 2014-15 Budget relating to National Health Reform and public hospitals funding are discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership payments for health

A total of $1.3 billion will be provided to the States in 2014-15 under the following health categories:

â¢ National Partnerships supporting National Health Reform arrangements;

â¢ health infrastructure;

â¢ health services;

â¢ Indigenous health; and

â¢ other health payments.

Part 2: Payments for Specific Purposes

National Partnerships supporting National Health Reform arrangements $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments National Health Reform Public hospital system - additional funding 170.5 - - - -

Financial assistance for long stay older patients 78.2 - - - -

Improving Public Hospital Services Flexible funding pool for emergency departments, elective surgery and subacute care 1.1 - - - -

National elective surgery target Capital funding 1.2 - - - -

Facilitation and reward funding(a) 20.6 nfp - - -

National emergency access target Capital funding 1.9 - - - -

Facilitation and reward funding(a) 10.1 nfp - - -

New subacute beds guarantee funding 632.5 - - - -

Total(a) 916.2 nfp - - -

(a) Reward funding in 2014-15 has been provisioned in the Contingency Reserve.

National Partnership on public hospital system — additional funding $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 46.3 42.5 38.8 15.9 17.1 5.4 4.3 0.4 170.5

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding to offset downward adjustments in National Health Reform funding during 2013-14. This funding will increase certainty to Local Hospital Networks from these within-year adjustments.

National Partnership on financial assistance for long stay older patients $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 36.0 4.1 13.5 7.3 10.6 1.4 4.0 1.3 78.2

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the National Partnership on financial assistance for long stay older patients to assist with the care of long stay older patients in public hospitals.

National Partnership on Improving Public Hospital Services

Several payments are provided under the National Partnership on Improving Public Hospital Services which seeks to contribute to improved public patient access to elective

Budget Paper No. 3

surgery, emergency department and subacute care services elements of the National Health Reform Agreement.

Flexible funding pool for emergency departments, elective surgery and subacute care component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 1.1 - - 1.1

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding to increase hospital capacity and improve services to patients through a flexible funding pool. The funding pool was used by the States to provide additional capacity to respond to capital and ongoing cost needs in the public hospital system in relation to elective surgery, emergency departments and subacute care.

National elective surgery target component

The Commonwealth is providing funding aimed at ensuring elective surgery patients are seen within clinically recommended times, and reducing the number of patients waiting beyond those times.

Capital funding $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 1.2 - - 1.2

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the national elective surgery target to boost elective surgery capacity in public hospitals.

Facilitation and reward funding (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 7.2 5.1 1.8 2.2 1.1 2.3 0.7 0.2 20.6

2014-15 nfp nfp nfp nfp nfp nfp nfp nfp nfp

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Reward funding for 2014-15 has been provisioned in the Contingency Reserve pending assessment of State performance under this agreement.

The Commonwealth has provided facilitation funding to improve patient access to elective surgery.

The Commonwealth is providing reward funding to jurisdictions based on their achievement against the national elective surgery target. The target aims to improve

Part 2: Payments for Specific Purposes

the number of patients treated within the clinically recommended time across all urgency categories.

A savings measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National emergency access target component

The Commonwealth is providing funding to expand capacity in the public hospital system and reduce the time taken to treat, admit or discharge patients in public hospital emergency departments as part of a reform to introduce a four hour national emergency access target for emergency department treatment.

Capital funding $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 1.9 - - 1.9

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the expansion of emergency departments and associated facilities to help achieve the agreed national emergency access target. This measure allowed for the redesign and upgrade of public hospital emergency departments to meet the target.

Facilitation and reward funding (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - 5.3 3.1 1.7 - - 10.1

2014-15 nfp nfp nfp nfp nfp nfp nfp nfp nfp

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Reward funding for 2014-15 has been provisioned in the Contingency Reserve pending assessment of State performance under this agreement.

The Commonwealth has provided facilitation funding to improve patient access to emergency care.

The Commonwealth is providing reward funding to jurisdictions based on their achievement against the national emergency access target. The target aims to improve the percentage of patients that present to a public hospital emergency department and are admitted to hospital, referred to another hospital for treatment, or discharged home, within four hours.

A savings measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Budget Paper No. 3

New subacute beds guarantee funding component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 203.8 154.7 125.9 64.3 46.0 21.0 9.9 6.9 632.5

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for over 1,300 additional beds for subacute services.

By 30 June 2014, States are expected to have delivered an agreed number of new subacute beds or equivalent services in public hospitals or in community settings. Funding is being provided for beds and services for palliative care, rehabilitation, psychogeriatric care, geriatric evaluation and management, and subacute mental health care.

Health infrastructure $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments Health infrastructure Health and Hospitals Fund Hospital infrastructure and other

projects of national significance 98.2 66.4 0.6 - -

National cancer system 125.3 117.5 55.4 - 4.6

Regional priority round 235.5 494.1 251.7 52.4 4.8

Albury-Wodonga Cardiac Catheterisation Laboratory - 5.0 - - -

Bright Hospital - feasibility study - 0.1 0.1 - -

Cancer Support Clinic in Katherine - 0.5 - - -

Construction of Palmerston Hospital - 20.0 20.0 - -

Improving local access to health care on Phillip Island - 2.5 - - -

Oncology Day Treatment Centre at Frankston Hospital - 0.4 0.3 - -

Redevelopment of the Royal Victorian Eye and Ear Hospital - 50.0 50.0 - -

Upgrade of Ballina Hospital - 1.9 2.6 - -

Upgrade of the Casino and District Memorial Hospital - 3.0 - - -

Warrnambool Integrated Cancer Care Centre - 10.0 - - -

Total 458.9 771.4 380.6 52.4 9.4

Health and Hospitals Fund

These projects are funded under the National Partnership on Health Infrastructure or Project Agreements.

Part 2: Payments for Specific Purposes

Hospital infrastructure and other projects of national significance component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 35.6 62.6 - - - - 98.2

2014-15 - - 15.0 50.0 - 1.0 - 0.4 66.4

2015-16 - - - 0.6 - - - - 0.6

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding from the Health and Hospitals Fund to support the development of health infrastructure projects of national significance. The Commonwealth will collaborate with the States to expand and modernise key public hospitals across Australia to improve hospital care.

National cancer system component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 6.3 86.7 12.2 4.6 6.1 3.8 4.5 1.2 125.3

2014-15 - 70.0 34.4 3.4 0.4 8.6 0.1 0.6 117.5

2015-16 - 50.0 0.4 3.5 - 1.5 - - 55.4

2016-17 - - - - - - - - -

2017-18 - - - 4.6 - - - - 4.6

The Commonwealth is providing funding from the Health and Hospitals Fund to support infrastructure to deliver a world class cancer care system in Australia. This funding will help modernise cancer services and improve detection, survival and treatment outcomes, particularly for patients in regional and rural Australia.

Regional priority round component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 136.6 47.9 21.7 2.7 23.3 - 0.5 3.0 235.5

2014-15 214.0 84.8 52.8 26.2 30.1 - - 86.3 494.1

2015-16 110.8 17.2 15.0 16.1 1.0 50.0 - 41.6 251.7

2016-17 29.0 0.4 4.0 10.2 - - - 8.9 52.4

2017-18 - - 2.0 2.8 - - - - 4.8

The Commonwealth is providing funding from the Health and Hospitals Fund to invest in Regional Australia. Regional priority funding will improve access to essential health services for Australians living in rural, regional and remote areas.

Other infrastructure projects

The following projects are funded as Project Agreements.

National Partnership on the Albury-Wodonga Cardiac Catheterisation Laboratory $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - 5.0 - - - - - - 5.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

Budget Paper No. 3

The Commonwealth will provide funding for the National Partnership on the Albury-Wodonga Cardiac Catheterisation Laboratory. This new laboratory will enable local residents suffering from heart conditions to access quality care, without the need to travel long distances to capital cities.

National Partnership on Bright Hospital — feasibility study $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - 0.1 - - - - - - 0.1

2015-16 - 0.1 - - - - - - 0.1

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on Bright Hospital — feasibility study. This study will examine the feasibility of redeveloping the Bright Hospital.

National Partnership for the Cancer Support Clinic in Katherine $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - - - - - 0.5 0.5

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership for the Cancer Support Clinic in Katherine to support the purchase and installation of a chemotherapy chair and associated minor building modification to improve delivery of cancer support services in Katherine Hospital.

National Partnership on construction of Palmerston Hospital $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - - - - - 20.0 20.0

2015-16 - - - - - - - 20.0 20.0

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on construction of Palmerston Hospital. The new hospital will provide a full emergency department, a paediatrics ward, and medical and surgical services.

National Partnership on improving local access to health care on Phillip Island $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - 2.5 - - - - - - 2.5

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

Part 2: Payments for Specific Purposes

The Commonwealth will provide funding for the National Partnership on improving local access to health care on Phillip Island to upgrade healthcare infrastructure on Phillip Island.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on Oncology Day Treatment Centre at Frankston Hospital $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - 0.4 - - - - - - 0.4

2015-16 - 0.3 - - - - - - 0.3

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on Oncology Day Treatment Centre at Frankston Hospital for the expansion and enhancement of the Oncology Day Treatment Centre at Frankston Hospital.

National Partnership on redevelopment of the Royal Victorian Eye and Ear Hospital $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - 50.0 - - - - - - 50.0

2015-16 - 50.0 - - - - - - 50.0

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

This Commonwealth will provide funding for the National Partnership on redevelopment of the Royal Victorian Eye and Ear Hospital for the completion of the development of the Royal Victorian Eye and Ear Hospital.

National Partnership for the upgrade of Ballina Hospital $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 1.9 - - - - - - - 1.9

2015-16 2.6 - - - - - - - 2.6

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership for the upgrade of Ballina Hospital for the construction of a second operating theatre and upgrade of the medical imaging department at Ballina Hospital. This will improve the delivery of services in the hospital and enable an increase in the operating theatre capacity. The upgrade will improve the flow of patients between the emergency department and the medical imaging department.

Budget Paper No. 3

National Partnership for the upgrade of the Casino and District Memorial Hospital $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 3.0 - - - - - - - 3.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership for the upgrade of the Casino and District Memorial Hospital towards the upgrade of the emergency department at the Casino District and Memorial Hospital in northern New South Wales.

National Partnership on Warrnambool Integrated Cancer Care Centre $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - 10.0 - - - - - - 10.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on Warrnambool Integrated Cancer Care Centre towards the construction of the Regional Cancer Centre in Warrnambool to provide cancer services to people in southwest Victoria.

Part 2: Payments for Specific Purposes

Health services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments Health services National antimicrobial utilisation surveillance programme 0.2 - - - -

Northern Territory medical school - funding contribution 2.3 - - - -

Canberra Hospital - dedicated paediatric emergency care - 5.0 - - -

Expansion of the BreastScreen Australia programme 5.5 11.9 13.5 15.6 -

Health care grants for the Torres Strait 4.5 4.5 4.6 4.7 -

Improving Health Services in Tasmania Better access to community based palliative care services 1.8 1.7 1.7 - -

Cradle Coast Connected Care clinical repository 0.3 0.3 0.3 - -

Improving patient pathways through clinical and system redesign 6.9 5.1 5.1 - -

Innovative flexible funding for mental health 1.1 1.0 1.0 - -

Reducing elective surgery waiting lists in Tasmania 8.3 7.1 6.2 - -

National Bowel Cancer Screening Programme - participant follow-up function 1.8 1.9 2.4 4.7 6.4

National Perinatal Depression Initiative 10.9 8.2 8.2 8.2 -

OzFoodNet 1.7 1.7 1.7 1.8 -

Royal Darwin Hospital - equipped, prepared and ready 15.0 15.3 15.5 15.8 -

Torres Strait health protection strategy - mosquito control 0.9 1.0 1.0 1.0 -

Vaccine-preventable diseases surveillance 0.8 0.8 0.8 0.8 -

Victorian cytology service 8.5 8.9 9.4 9.8 -

Total 70.3 74.3 71.4 62.4 6.4

National Partnership on health services

A number of projects are funded as part of the National Partnership on health services.

National antimicrobial utilisation surveillance programme component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - 0.2 - - - 0.2

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the national antimicrobial utilisation surveillance programme. The programme facilitates the collection, analysis and

Budget Paper No. 3

reporting of inpatient antimicrobial usage data in Australian hospitals to support the development of strategies to minimise antimicrobial resistance.

Northern Territory medical school — funding contribution component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 2.3 2.3

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding as a contribution to the costs of the Northern Territory Medical Programme to provide medical training activities across the full four years of the graduate entry medical course. This programme is delivered by Flinders University. From 2014-15, the Commonwealth will provide funding directly for this programme.

A measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Other health services

Several payments have been combined under the category of other health services.

National Partnership for the Canberra Hospital — dedicated paediatric emergency care $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - - - - 5.0 - 5.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership for the Canberra Hospital — dedicated paediatric emergency care for the development of a dedicated service for children within the emergency department of the Canberra Hospital. This will help streamline and better coordinate paediatric emergency and admitted patient services for approximately 15,000 children each year.

National Partnership on the expansion of the BreastScreen Australia programme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 1.0 0.9 0.8 0.6 0.6 0.5 0.5 0.5 5.5

2014-15 3.9 2.9 2.4 1.1 1.0 0.3 0.2 0.1 11.9

2015-16 4.4 3.3 2.7 1.3 1.1 0.4 0.2 0.1 13.5

2016-17 5.1 3.9 3.2 1.5 1.3 0.4 0.2 0.1 15.6

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on expansion of the BreastScreen Australia programme to improve the early detection of breast cancer by

Part 2: Payments for Specific Purposes

expanding the target age range of the BreastScreen Australia programme from women 50 to 69 years of age to women 50 to 74 years of age. This builds on the existing BreastScreen Australia programme, which commenced in 1991.

National Partnership on health care grants for the Torres Strait $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 4.5 - - - - - 4.5

2014-15 - - 4.5 - - - - - 4.5

2015-16 - - 4.6 - - - - - 4.6

2016-17 - - 4.7 - - - - - 4.7

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on health care grants for the Torres Strait. Under this programme, the Commonwealth is contributing funding to Queensland health facilities for the treatment of Papua New Guinea nationals, as a contribution to the costs associated with the provision of these health services.

National Partnership on Improving Health Services in Tasmania

The Commonwealth is providing funding for a package of measures to address pressures on the Tasmanian health system and improve healthcare outcomes for Tasmanians.

Better access to community based palliative care services component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 1.8 - - 1.8

2014-15 - - - - - 1.7 - - 1.7

2015-16 - - - - - 1.7 - - 1.7

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding to strengthen the capacity of the existing publicly funded palliative care services and networks, and to improve access to multi-disciplinary community based palliative care services.

Cradle Coast Connected Care clinical repository component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 0.3 - - 0.3

2014-15 - - - - - 0.3 - - 0.3

2015-16 - - - - - 0.3 - - 0.3

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding to support the continued operation of the Cradle Coast Connected Care clinical repository. The clinical repository stores advance care plans, which document a person’s preferences about health, personal care and preferred health outcomes, and guide future decision making when that person cannot make or communicate decisions relating to their health needs.

Budget Paper No. 3

Improving patient pathways through clinical and system redesign component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 6.9 - - 6.9

2014-15 - - - - - 5.1 - - 5.1

2015-16 - - - - - 5.1 - - 5.1

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the establishment of an emergency medical unit in the Royal Hobart Hospital and a specialist clinic service in the Launceston General Hospital.

Innovative flexible funding for mental health component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 1.1 - - 1.1

2014-15 - - - - - 1.0 - - 1.0

2015-16 - - - - - 1.0 - - 1.0

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for packages of care to support Tasmanians not served well by mainstream care approaches, including those affected by alcohol, drug, and other complex mental health issues. The funding will be innovative and flexible to provide intensive, short-term support that is individualised, community based and recovery focused.

Reducing elective surgery waiting lists in Tasmania component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 8.3 - - 8.3

2014-15 - - - - - 7.1 - - 7.1

2015-16 - - - - - 6.2 - - 6.2

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding to increase Tasmania’s capacity to perform elective surgery procedures, targeting patients who have waited longer than the clinically recommended period for their surgery. This will ensure that these patients receive their operations as a priority, subject to clinical need, and will support Tasmania in managing its elective surgery waiting list.

Part 2: Payments for Specific Purposes

National Partnership on the National Bowel Cancer Screening Programme — participant follow-up function (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 0.6 0.5 0.2 0.2 0.1 0.1 0.1 1.8

2014-15 - 0.6 0.5 0.3 0.2 0.1 0.1 0.1 1.9

2015-16 - 0.8 0.7 0.3 0.3 0.2 0.1 0.1 2.4

2016-17 nfp 1.1 0.9 0.5 0.3 0.2 0.2 0.1 4.7

2017-18 nfp 1.5 1.2 0.6 0.4 0.2 0.2 0.1 6.4

(a) Funding for New South Wales is not published as it is not currently a signatory to this National Partnership. A funding allocation of $1.5 million for 2016-17 and $2.0 million for 2017-18 is set aside.

The Commonwealth is providing funding for the National Partnership on the National Bowel Cancer Screening Programme — participant follow-up function. This initiative funds the follow-up of participants who return a positive test result. The programme will be expanded to provide access for all Australians aged 50 to 74 to biennial screening by 2019-20.

A spending measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on the National Perinatal Depression Initiative (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 3.1 2.6 2.2 1.3 0.7 0.3 0.3 0.3 10.9

2014-15 2.3 1.9 1.6 1.0 0.6 0.3 0.2 0.3 8.2

2015-16 2.3 1.9 1.6 1.0 0.6 0.3 0.2 0.3 8.2

2016-17 2.3 1.9 1.6 1.0 0.6 0.3 0.2 0.3 8.2

2017-18 - - - - - - - - -

(a) State splits from 2014-15 are indicative distributions based on state splits from previous years. Final distribution is contingent on a cost shared agreement to be negotiated.

The Commonwealth is providing funding for the National Partnership on the National Perinatal Depression Initiative. The initiative aims to improve prevention and early detection of antenatal and postnatal depression, and provide better support and treatment for expectant and new mothers experiencing depression.

National Partnership on OzFoodNet $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 1.7

2014-15 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 1.7

2015-16 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 1.7

2016-17 0.4 0.3 0.3 0.2 0.2 0.2 0.1 0.1 1.8

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on OzFoodNet. This is a collaborative initiative with state health authorities for enhanced foodborne disease surveillance. This initiative aims to provide a better understanding of the causes and incidence of foodborne disease in the community and to provide an evidence base for policy formulation.

Budget Paper No. 3

OzFoodNet collaborates nationally to coordinate investigations into foodborne disease outbreaks, particularly those that cross state and country borders.

National Partnership on Royal Darwin Hospital — equipped, prepared and ready $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 15.0 15.0

2014-15 - - - - - - - 15.3 15.3

2015-16 - - - - - - - 15.5 15.5

2016-17 - - - - - - - 15.8 15.8

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on Royal Darwin Hospital — equipped, prepared and ready to maintain the National Critical Care and Trauma Response Centre at Royal Darwin Hospital in a state of readiness to respond to major health incidents in the region.

National Partnership on the Torres Strait health protection strategy — mosquito control $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 0.9 - - - - - 0.9

2014-15 - - 1.0 - - - - - 1.0

2015-16 - - 1.0 - - - - - 1.0

2016-17 - - 1.0 - - - - - 1.0

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the Torres Strait health protection strategy — mosquito control to assist in mosquito detection and elimination. Funding also supports employment of a Torres Strait communication officer to improve communication and coordination between Australia and Papua New Guinea to reduce the spread of communicable diseases in the Torres Strait.

National Partnership on vaccine-preventable diseases surveillance $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.2 0.2 0.2 0.1 0.1 .. .. .. 0.8

2014-15 0.2 0.2 0.2 0.1 0.1 .. .. .. 0.8

2015-16 0.2 0.2 0.2 0.1 0.1 .. .. .. 0.8

2016-17 0.2 0.2 0.2 0.1 0.1 .. .. .. 0.8

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on vaccine-preventable diseases surveillance to improve surveillance reporting of nationally notifiable vaccine-preventable diseases and allow national monitoring, analysis and timely reporting of data to provide an evidence base for policy formulation.

Part 2: Payments for Specific Purposes

National Partnership for Victorian cytology service $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 8.5 - - - - - - 8.5

2014-15 - 8.9 - - - - - - 8.9

2015-16 - 9.4 - - - - - - 9.4

2016-17 - 9.8 - - - - - - 9.8

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership for Victorian cytology service to support the early detection of pre-cancerous cervical conditions by processing pap smears undertaken by general practitioners and other health professionals.

Indigenous health $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments Indigenous health Improving ear health services for Indigenous Australian children 0.7 - - - -

Improving trachoma control services for Indigenous Australians 4.4 4.1 4.2 4.2 4.3

Indigenous early childhood development - antenatal and reproductive health 24.4 31.5 - - -

Reducing acute rheumatic heart fever among Indigenous children 2.9 3.0 3.1 2.7 -

Renal dialysis services in Central Australia 1.7 1.7 - - -

Stronger Futures in the Northern Territory Hearing health services 2.8 3.2 3.1 3.3 3.4

Mobile Outreach Service Plus 4.4 4.5 4.6 4.8 5.0

Oral health services 2.6 2.6 2.5 2.7 2.8

Torres Strait health protection strategy - Saibai Island health clinic 0.5 0.5 - - -

Total 44.3 51.0 17.4 17.6 15.5

National Partnership on improving ear health services for Indigenous Australian children $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.1 .. 0.2 0.2 0.1 - - 0.2 0.7

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the National Partnership on improving ear health services for Indigenous Australian children to support the delivery of additional surgical services, clinical leadership programmes and ear health services.

Budget Paper No. 3

National Partnership on improving trachoma control services for Indigenous Australians $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.3 - - 1.4 1.1 - - 1.7 4.4

2014-15 0.3 - - 1.3 1.0 - - 1.5 4.1

2015-16 0.3 - - 1.4 1.0 - - 1.6 4.2

2016-17 0.3 - - 1.4 1.0 - - 1.6 4.2

2017-18 0.3 - - 1.4 1.0 - - 1.6 4.3

The Commonwealth is providing funding for the National Partnership on improving trachoma control services for Indigenous Australians for the continued expansion of trachoma control activities in jurisdictions where trachoma, an infectious disease which can lead to blindness, is endemic.

National Partnership on Indigenous early childhood development — antenatal and reproductive health $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 5.5 1.4 7.6 3.9 1.1 0.7 0.3 3.8 24.4

2014-15 8.3 1.5 8.0 6.1 1.7 1.1 0.3 4.4 31.5

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on Indigenous early childhood development — antenatal and reproductive health to improve antenatal care, teenage sexual and reproductive health, and pre-pregnancy care, as well as building linkages with existing child and maternal health programmes to increase the uptake of these services.

A spending measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on reducing acute rheumatic heart fever among Indigenous children $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 0.9 0.9 0.4 - - 0.9 2.9

2014-15 - - 0.9 0.9 0.4 - - 0.9 3.0

2015-16 - - 0.9 0.9 0.4 - - 0.9 3.1

2016-17 - - 0.9 0.9 - - - 0.9 2.7

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on reducing acute rheumatic heart fever among Indigenous children to support register and control programmes for acute rheumatic heart fever in Indigenous children.

Part 2: Payments for Specific Purposes

National Partnership on renal dialysis services in Central Australia $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 1.7 1.7

2014-15 - - - - - - - 1.7 1.7

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on renal dialysis services in Central Australia to contribute to the delivery of renal dialysis and support services in Central Australia. This funding will improve access to renal dialysis services targeted to Indigenous Australians.

National Partnership on Stronger Futures in the Northern Territory

The Commonwealth is providing funding to the Northern Territory through the National Partnership on Stronger Futures in the Northern Territory.

There are three health components under the National Partnership on Stronger Futures in the Northern Territory. The Stronger Futures in the Northern Territory initiative is discussed further in the Community Services section of this Part.

Hearing health services component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 2.8 2.8

2014-15 - - - - - - - 3.2 3.2

2015-16 - - - - - - - 3.1 3.1

2016-17 - - - - - - - 3.3 3.3

2017-18 - - - - - - - 3.4 3.4

The Commonwealth is providing funding for integrated hearing health services with the capacity to reach children in remote communities. These services continue to support improved hearing outcomes for Indigenous children across the Northern Territory.

Mobile Outreach Service Plus component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 4.4 4.4

2014-15 - - - - - - - 4.5 4.5

2015-16 - - - - - - - 4.6 4.6

2016-17 - - - - - - - 4.8 4.8

2017-18 - - - - - - - 5.0 5.0

The Commonwealth is providing funding for the Mobile Outreach Service Plus programme. The programme aims to ensure that Indigenous children and their families living in remote areas of the Northern Territory who are affected by trauma associated with child abuse and neglect are provided with counselling and support.

Budget Paper No. 3

Oral health services component $million NSW VIC QLD WA SA TAS ACT NT Total

See Also

The Ethics of AI - The Digital Dilemma

2013-14 - - - - - - - 2.6 2.6

2014-15 - - - - - - - 2.6 2.6

2015-16 - - - - - - - 2.5 2.5

2016-17 - - - - - - - 2.7 2.7

2017-18 - - - - - - - 2.8 2.8

The Commonwealth is providing funding for an integrated oral health programme for Indigenous children in communities in the Northern Territory. The focus on preventive oral health services will decrease the incidence of dental problems and improve oral health practices.

National Partnership on the Torres Strait health protection strategy — Saibai Island health clinic $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 0.5 - - - - - 0.5

2014-15 - - 0.5 - - - - - 0.5

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the Torres Strait health protection strategy — Saibai Island health clinic to provide additional staff for the treatment of communicable diseases at the health care clinic on Saibai Island, and development and implementation of a culturally appropriate sexual health education campaign for people in the Torres Strait.

Other Health National Partnership payments $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments Other Adult public dental services - - 200.0 295.0 390.0

Treating more public dental patients 155.2 119.6 - - -

Essential vaccines 249.5 235.8 234.4 241.5 238.7

National Coronial Information System 0.4 0.4 - - -

Preventive health Healthy children and workers 53.5 - - - -

Healthy communities 11.1 - - - -

Supporting National Mental Health Reform 50.6 51.6 45.3 - -

Total 520.3 407.4 479.7 536.5 628.7

Memorandum item - payments direct to local governments included in payments above Preventive health Healthy communities 11.1 - - - -

Total 11.1 - - - -

Part 2: Payments for Specific Purposes

National Partnership on adult public dental services $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - - - - - - -

2015-16 64.5 49.6 40.1 21.2 14.6 4.6 3.3 2.1 200.0

2016-17 95.1 73.1 59.2 31.3 21.6 6.7 4.9 3.0 295.0

2017-18 125.7 96.7 78.3 41.4 28.5 8.9 6.4 4.0 390.0

The Commonwealth will provide funding for the National Partnership on adult public dental services to support the provision of dental services to adults who rely on the public dental system. This initiative will contribute to long-term improvement in dental health by assisting low income adults to receive treatment.

A measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on treating more public dental patients $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 50.0 38.5 30.4 13.0 12.5 5.5 2.5 2.8 155.2

2014-15 38.5 29.7 23.4 10.1 9.6 4.3 1.9 2.1 119.6

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on treating more public dental patients to assist the States to provide treatment for up to 400,000 people on public dental waiting lists, with a particular focus on Indigenous patients, high risk patients and those from rural areas.

National Partnership on essential vaccines $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 72.4 61.6 56.2 26.2 20.1 5.4 4.0 3.5 249.5

2014-15 70.1 60.5 51.6 24.1 17.4 5.2 3.7 3.2 235.8

2015-16 67.5 59.8 54.7 23.8 17.1 4.9 3.4 3.1 234.4

2016-17 74.5 57.2 53.8 26.6 16.4 5.4 3.8 3.8 241.5

2017-18 73.7 56.4 53.1 26.2 16.1 5.3 3.7 4.3 238.7

The Commonwealth is providing funding for the National Partnership on essential vaccines to improve the health of Australians through the cost-effective delivery of immunisation programmes under the National Immunisation Programme. This National Partnership provides funding to the States for the purchase of essential vaccines, which have not yet transitioned to centralised purchasing arrangements, for all eligible individuals under the National Immunisation Programme.

Budget Paper No. 3

National Partnership on the National Coronial Information System $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 0.4 - - - - - - 0.4

2014-15 - 0.4 - - - - - - 0.4

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the National Coronial Information System. This National Partnership will support the ongoing administration, maintenance and improvement of Australia’s national database of coronial data.

National Partnership on preventive health

The Commonwealth is providing funding for the National Partnership on preventive health.

Healthy children and workers component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 17.3 13.0 11.0 5.6 3.9 1.2 0.9 0.6 53.5

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided facilitation funding for the healthy children and healthy workers initiatives. The funding supported the delivery of programmes for children and workplace health programmes.

A savings measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Healthy communities component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 2.9 2.5 2.2 1.5 1.4 0.3 - 0.3 11.1

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) All payments are made direct to local governments.

The Commonwealth is providing funding direct to local governments for the healthy communities initiative. This funding supports 92 local government areas nationally in the targeted, progressive roll out of community-based healthy lifestyle programmes that facilitate increased access to physical activity, healthy eating and healthy weight activities for disadvantaged adults who are predominantly not in the paid workforce.

Part 2: Payments for Specific Purposes

National Partnership on supporting National Mental Health Reform

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 13.6 9.3 15.3 6.0 3.4 1.6 0.6 0.9 50.6

2014-15 13.6 9.5 15.6 6.4 3.4 1.6 0.6 0.9 51.6

2015-16 13.6 7.6 10.4 7.0 3.4 1.7 0.6 0.9 45.3

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on supporting National Mental Health Reform to deliver improved health, social, economic and housing outcomes for people with severe and persistent mental illness by addressing service gaps and preventing ongoing cycling through state mental health systems.

Budget Paper No. 3

EDUCATION

In 2014-15, the Commonwealth will provide funding of $14.9 billion to support state education services, including $14.4 billion in Students First funding, and $505 million through National Partnership payments, as detailed in Table 2.5.

Table 2.5: Payments to support state education services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Schools SPP(a) 6,351.9 - - - -

Students First funding(b)(c) 6,872.0 14,374.0 15,646.2 17,032.4 18,149.0

National Partnership payments Improving literacy and numeracy 80.8 - - - -

Independent Public Schools 10.0 20.0 20.0 20.0 -

Indigenous early childhood development - children and family centres 78.0 - - - -

MoneySmart Teaching 1.1 1.0 1.1 1.3 -

More support for students with disabilities 81.5 57.7 - - -

National quality agenda for early childhood education and care 19.1 19.1 nfp nfp nfp

National Solar Schools Programme 18.0 - - - -

School Pathways Programme 1.3 1.3 - - -

Schools Security Programme 5.0 5.7 5.7 5.7 -

Smarter Schools(d) Improving teacher quality 173.8 - - - -

Low socio-economic status school communities 140.9 - - - -

Stronger Futures in the Northern Territory(d) Building a quality school workforce Additional teachers 26.4 27.6 28.1 21.6 22.1

Quality teaching 14.5 14.8 14.8 14.8 14.8

Teacher housing 5.1 5.4 6.1 7.4 7.6

Expansion of the school enrolment and attendance measure 2.3 2.3 2.2 2.3 2.1

Trade training centres in schools 100.3 115.6 52.2 - -

Universal access to early childhood education 407.0 234.9 nfp - -

Total 14,388.9 14,879.4 15,776.4 17,105.5 18,195.6

Part 2: Payments for Specific Purposes

Table 2.5: Payments to support state education services (continued) $million 2013-14 2014-15 2015-16 2016-17 2017-18

Memorandum item - payments for non-government schools included in payments above National Schools SPP(a) 4,271.6 - - - -

Students First funding(b)(c) 4,464.1 9,260.4 9,956.7 10,684.9 11,277.2

National Partnership payments Improving literacy and numeracy 18.1 - - - -

More support for students with disabilities 19.9 11.4 - - -

Schools Security Programme 5.0 5.7 5.7 5.7 -

Trade training centres in schools 31.1 46.5 - - -

Total 8,809.9 9,323.9 9,962.4 10,690.6 11,277.2

(a) National Schools SPP funding ceased in December 2013. (b) Students First funding commenced in January 2014. (c) Includes special circ*mstances funding for non-government schools and funding for non-government representative bodies.

(d) Includes government and non-government schools; however payments to non-government schools are not shown in the Memorandum item.

National Schools SPP and Students First funding

Students First funding replaced the National Schools SPP and various schools-related National Partnership payments from January 2014.

The Commonwealth’s Students First policy aims to improve the education outcomes of Australian students and schools. The Commonwealth will work with the States and Territories, the non-government schools sector, teachers and parents to focus on:

â¢ teacher quality;

â¢ school autonomy;

â¢ engaging parents in education; and

â¢ strengthening the curriculum.

In 2014-15, the Commonwealth will provide $14.4 billion in Students First funding to government and non-government schools in all States and Territories. This includes: recurrent funding for government and non-government schools; capital funding and special circ*mstances funding for non-government schools; and funding for non-government representative bodies.

Budget Paper No. 3

National Schools SPP and Students First funding $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 National Schools SPP (a) Government schools 671.7 486.9 440.7 220.0 149.8 51.3 31.7 28.3 2,080.3

Non-government schools 1,323.7 1,088.7 876.7 437.8 330.0 85.4 79.1 50.2 4,271.6

Students First funding (b) Government schools 735.7 548.4 523.1 245.1 184.3 71.3 36.2 63.8 2,407.8

Non-government schools(c)(d) 1,376.4 1,134.1 918.2 461.0 338.3 89.8 86.1 59.6 4,464.1

Total 4,107.5 3,258.1 2,758.5 1,364.0 1,002.4 297.8 233.0 201.9 13,223.9

2014-15 Students First funding Government schools 1,551.8 1,171.3 1,128.1 528.2 379.1 147.8 73.4 133.8 5,113.6

Non-government schools(c)(d) 2,831.8 2,348.0 1,927.3 970.6 694.8 186.6 174.3 125.8 9,260.4

Total 4,383.6 3,519.2 3,055.4 1,498.7 1,073.9 334.4 247.7 259.6 14,374.0

2015-16 Students First funding Government schools 1,716.5 1,291.4 1,300.2 597.7 401.3 159.5 76.1 146.8 5,689.5

Non-government schools(c)(d) 3,008.2 2,522.9 2,101.1 1,064.6 737.3 201.9 185.6 133.7 9,956.7

Total 4,724.7 3,814.3 3,401.3 1,662.3 1,138.6 361.4 261.7 280.5 15,646.2

2016-17 Students First funding Government schools 1,964.3 1,388.6 1,492.5 664.8 424.3 172.2 79.5 161.5 6,347.5

Non-government schools(c)(d) 3,203.7 2,706.3 2,273.5 1,157.0 782.9 218.0 197.6 144.5 10,684.9

Total 5,167.9 4,094.8 3,766.0 1,821.8 1,207.1 390.2 277.1 306.0 17,032.4

2017-18 Students First funding (e) Government schools 2,105.2 1,424.2 1,626.1 824.8 457.8 179.5 95.8 158.4 6,871.8

Non-government schools(d) 3,356.8 2,855.8 2,422.5 1,235.3 819.4 229.2 204.3 152.4 11,277.2

Total 5,462.0 4,280.0 4,048.6 2,060.1 1,277.2 408.7 300.1 310.8 18,149.0

(a) National Schools SPP funding ceased in December 2013. (b) Students First funding commenced in January 2014. (c) Includes funding for non-government representative bodies. (d) Includes special circ*mstances funding. As State allocations cannot be determined, this funding is

included in the total for each year only. As such, the total for each year does not equal the sum of State totals. (e) Final State allocations for the 2018 school year are subject to formal negotiations between the Commonwealth and the States and Territories and the non-government sector.

The Commonwealth will provide recurrent funding for all States and Territories and non-government schools to the end of the 2017 school year in accordance with the Students First — A fairer funding agreement for schools arrangements included in the 2013-14 Mid-Year Economic and Fiscal Outlook.

Consistent with the measure Students First — indexation of school funding from 2018, the Commonwealth will provide an additional $54.1 million in 2017-18 to maintain real Commonwealth school funding beyond the 2017 school year. From the 2018 school year onwards, total recurrent funding will be indexed by the Consumer Price Index, with an allowance for changes in enrolments.

Part 2: Payments for Specific Purposes

Further, from 2018, the Commonwealth will provide equal per student base funding, as well as an even proportion of existing loadings to address disadvantage, noting that final State allocations for the 2018 school year are subject to formal negotiations between the Commonwealth and the States and Territories and the non-government sector.

The measure taken in this Budget relating to Students First funding is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership payments for education

In addition to the National Schools SPP and Students First funding, the Commonwealth will provide funding for state education services through National Partnerships, as detailed below.

National Partnership on improving literacy and numeracy (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 25.0 13.7 20.2 9.9 6.6 2.3 0.9 2.2 80.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Includes government and non-government schools.

The Commonwealth is providing funding for the National Partnership on improving literacy and numeracy. This National Partnership was established to improve the performance of students who are falling behind in literacy and/or numeracy, including targeted groups such as students from disadvantaged backgrounds and Indigenous students in participating schools.

National Partnership on the Independent Public Schools initiative (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 3.3 2.3 1.8 1.1 0.8 0.3 0.1 0.2 10.0

2014-15 6.6 4.5 3.7 2.3 1.6 0.6 0.2 0.5 20.0

2015-16 6.6 4.5 3.7 2.3 1.6 0.6 0.2 0.5 20.0

2016-17 6.6 4.5 3.7 2.3 1.6 0.6 0.2 0.5 20.0

2017-18 - - - - - - - - -

(a) State allocations are notional, based on proportionate shares, and are subject to negotiation.

The Commonwealth will provide funding for the National Partnership on the Independent Public Schools initiative. The initiative will support increased autonomy in around 1,500 government schools across Australia, including through greater engagement of parents and local communities in school decision making and the provision of professional development for principals, school leaders and school communities.

Budget Paper No. 3

National Partnership on Indigenous early childhood development — children and family centres $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 25.4 3.8 12.7 11.9 5.3 1.7 1.1 16.3 78.0

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on Indigenous early childhood development — children and family centres to improve outcomes for Indigenous children in their early years and to contribute to COAG’s Closing the Gap targets for Indigenous Australians. This National Partnership provides for the establishment of 38 children and family centres across Australia by mid-2014, which will deliver integrated services, including early learning, childcare and family support programmes.

National Partnership on MoneySmart Teaching $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.3 0.2 0.2 0.1 0.1 - - 0.1 1.1

2014-15 0.2 0.2 0.2 0.1 0.1 - - 0.1 1.0

2015-16 0.3 0.3 0.2 0.1 0.1 - - 0.1 1.1

2016-17 0.3 0.3 0.2 0.2 0.2 - - 0.1 1.3

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on MoneySmart Teaching. This National Partnership supports the delivery of professional learning to teachers in primary and secondary schools and the development of teacher support materials, to improve financial literacy in schools.

National Partnership on more support for students with disabilities (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 26.2 19.8 16.9 8.4 6.0 1.9 1.4 0.9 81.5

2014-15 18.4 14.0 12.1 5.9 4.3 1.4 1.0 0.7 57.7

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Includes government and non-government schools.

The Commonwealth is providing funding for the National Partnership on more support for students with disabilities. This National Partnership supports the education of students with disabilities and recognises the importance of increasing the skills and quality of classroom teachers and enabling a more inclusive culture in schools. Education authorities can direct funding to a series of activities which they consider would best meet the needs of students with disabilities, teachers and schools in their jurisdiction.

Part 2: Payments for Specific Purposes

National Partnership on the national quality agenda for early childhood education and care (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 8.5 4.6 1.5 0.9 2.3 0.3 0.2 0.8 19.1

2014-15 8.5 4.6 1.5 0.9 2.3 0.3 0.2 0.8 19.1

2015-16 nfp nfp nfp nfp nfp nfp nfp nfp nfp

2016-17 nfp nfp nfp nfp nfp nfp nfp nfp nfp

2017-18 nfp nfp nfp nfp nfp nfp nfp nfp nfp

(a) A review of this agreement is scheduled for 2014. Provision has been made in the Contingency Reserve for funding from 2015-16, subject to negotiations with the States.

The Commonwealth is providing funding for the National Partnership on the national quality agenda for early childhood education and care. This National Partnership was established to fund the implementation of an integrated and unified national regulatory system for early childhood education and care, and outside school hours care services.

National Partnership on the National Solar Schools Programme

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 2.4 5.4 4.6 3.4 0.9 0.2 0.4 0.6 18.0

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the National Solar Schools Programme. Funding is being provided for approved schools to install solar and other renewable power systems, solar hot water systems, rainwater tanks and a range of energy efficiency measures.

National Partnership on the School Pathways Programme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - 0.5 0.7 - - - 1.3

2014-15 - - - 0.5 0.7 - - - 1.3

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the School Pathways Programme to encourage the ongoing skilling of the defence industry. The School Pathways Programme focuses on showcasing potential career paths and increasing the number of students undertaking science, technology, engineering and mathematics subjects relevant to the defence industry. The Programme is also increasing employer awareness of options for recruiting young people and the benefits to business of doing so.

Budget Paper No. 3

National Partnership on the Schools Security Programme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 2.2 2.0 0.4 0.3 0.1 - - - 5.0

2014-15 2.6 2.3 0.5 0.3 0.1 - - - 5.7

2015-16 2.6 2.3 0.5 0.3 0.1 - - - 5.7

2016-17 2.6 2.3 0.5 0.3 0.1 - - - 5.7

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the Schools Security Programme. This National Partnership will assist schools that face a special risk of attack, harassment or violence stemming from racial or religious intolerance to meet the costs of security guards and security infrastructure such as fencing, lighting and CCTV cameras.

National Partnership on Smarter Schools — improving teacher quality (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 56.0 44.1 34.5 16.9 12.8 4.2 3.1 2.1 173.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Includes government and non-government schools.

The Commonwealth is providing funding for the National Partnership on Smarter Schools — improving teacher quality. This National Partnership was established to facilitate and reward reforms to attract, train, place, develop and retain quality teachers and school leaders in classrooms and schools.

National Partnership on Smarter Schools — low socio-economic status school communities (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 66.2 20.5 18.6 7.2 17.8 5.2 0.2 5.2 140.9

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Includes government and non-government schools.

The Commonwealth has provided funding for the National Partnership on Smarter Schools — low socio-economic status school communities. This National Partnership was established to address the specific challenges faced by students from disadvantaged backgrounds.

National Partnership on Stronger Futures in the Northern Territory

The Commonwealth is providing funding for the National Partnership on Stronger Futures in the Northern Territory, including the education-related elements described below.

Part 2: Payments for Specific Purposes

The Stronger Futures in the Northern Territory initiative is discussed further in the Community Services section of this Part.

Building a quality school workforce

The Commonwealth is providing funding for the Building a Quality School Workforce initiative. This funding supports the improvement of schooling outcomes for Indigenous children and comprises three components — additional teachers, quality teaching and teacher housing.

Additional teachers component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 26.4 26.4

2014-15 - - - - - - - 27.6 27.6

2015-16 - - - - - - - 28.1 28.1

2016-17 - - - - - - - 21.6 21.6

2017-18 - - - - - - - 22.1 22.1

(a) Includes government and non-government schools.

The Commonwealth is providing funding for the provision and continued maintenance of 200 teaching positions in remote Northern Territory schools, to maintain a strong workforce and provide access to quality teaching that directly engages young people in education and supports the aspirations of Indigenous communities for quality education outcomes for their children.

Quality teaching component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 14.5 14.5

2014-15 - - - - - - - 14.8 14.8

2015-16 - - - - - - - 14.8 14.8

2016-17 - - - - - - - 14.8 14.8

2017-18 - - - - - - - 14.8 14.8

(a) Includes government and non-government schools.

The quality teaching component will enhance the capability of the existing education workforce in remote Northern Territory communities and improve teachers’ abilities to support students with critical needs. Commonwealth funding will allow Northern Territory education providers to develop career pathways for Indigenous staff members, increase the number of Indigenous staff members with education qualifications, and provide professional development support to enable teachers and students to achieve improved outcomes in literacy and numeracy in targeted remote communities.

Teacher housing component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 5.1 5.1

2014-15 - - - - - - - 5.4 5.4

2015-16 - - - - - - - 6.1 6.1

2016-17 - - - - - - - 7.4 7.4

2017-18 - - - - - - - 7.6 7.6

(a) Includes government and non-government schools.

Budget Paper No. 3

The Commonwealth is providing funding for the provision of up to 103 teacher houses in remote Northern Territory communities to address critical staff housing shortages and help attract and retain high quality teachers in remote schools.

Expansion of the school enrolment and attendance measure $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 2.3 2.3

2014-15 - - - - - - - 2.3 2.3

2015-16 - - - - - - - 2.2 2.2

2016-17 - - - - - - - 2.3 2.3

2017-18 - - - - - - - 2.1 2.1

The Commonwealth is providing funding for the expansion of the school enrolment and attendance measure. This measure will use the income support payment system as a way to connect schools and families where children are not enrolled in or attending school, and encourage dialogue between the school and the family on factors impacting on school enrolment and attendance. As a last resort, this measure will use the possible suspension of income support payments to encourage improved school enrolment and attendance behaviours.

National Partnership on trade training centres in schools (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 12.5 48.3 9.7 7.6 3.8 0.3 2.0 16.2 100.3

2014-15 29.9 31.5 22.4 12.3 7.6 1.2 4.7 5.9 115.6

2015-16 13.7 10.1 11.1 7.8 2.1 1.1 3.4 3.0 52.2

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Includes government and non-government schools.

The Commonwealth is providing funding for the National Partnership on trade training centres in schools. This National Partnership was established to fund the creation, upgrade and refurbishment of trade training centres and trade skill centres and to purchase industry standard equipment. The infrastructure funded under the programme will be used to deliver nationally recognised training qualifications to secondary school students seeking to achieve Year 12 or equivalent qualifications.

National Partnership on universal access to early childhood education $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 131.4 97.9 85.0 43.8 27.3 10.0 6.4 5.1 407.0

2014-15 76.0 56.6 49.2 25.4 15.8 5.2 3.7 3.0 234.9

2015-16 nfp nfp nfp nfp nfp nfp nfp nfp nfp

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) A review of this agreement is scheduled for 2014. Provision has been made in the Contingency Reserve for additional funding in 2014-15 and 2015-16, subject to negotiations with the States.

The Commonwealth is providing funding for the National Partnership on universal access to early childhood education. This National Partnership was established to provide affordable, quality early childhood education programmes for all children in the year before full-time school for 600 hours.

Part 2: Payments for Specific Purposes

SKILLS AND WORKFORCE DEVELOPMENT

In 2014-15, the Commonwealth will provide funding of $1.8 billion to support state skills and workforce development services, including $1.4 billion through the National Skills and Workforce Development SPP and $389 million through National Partnership payments, as detailed in Table 2.6.

Table 2.6: Payments to support state skills and workforce development services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Skills and Workforce Development SPP 1,409.0 1,435.2 1,460.0 1,487.2 1,514.6

National Partnership payments Building Australia's Future Workforce Skills reform 238.4 377.2 377.4 516.3 -

Training places for single and teenage parents 26.7 - - - -

Commonwealth/State and Territory joint group training programme 10.5 - - - -

Industry and Indigenous Skills Centres 0.9 - - - -

TAFE fee waivers for childcare qualifications 21.2 11.5 - - -

Youth attainment and transitions Maximising engagement, attainment and successful transitions 18.8 - - - -

Year 12 attainment and transitions 28.2 - - - -

Total 1,753.6 1,823.9 1,837.4 2,003.5 1,514.6

National Agreement for Skills and Workforce Development

The National Agreement for Skills and Workforce Development identifies the long-term objectives of the Commonwealth and the States in the areas of skills and workforce development, and recognises the interest of all Governments in ensuring the skills of the Australian people are developed and utilised in the economy.

The Agreement seeks to deliver a vocational education and training (VET) system with improved quality and greater transparency for students, employers and governments; greater access to training opportunities and improved outcomes for disadvantaged students; and greater efficiency.

The reforms needed to achieve the objectives and outcomes of this Agreement include reforming training to achieve a more demand-driven and client-focused system, and driving the next wave of innovation and productivity.

Budget Paper No. 3

National Skills and Workforce Development SPP $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 454.5 349.7 281.5 151.6 102.3 31.4 23.4 14.6 1,409.0

2014-15 457.4 356.6 289.5 159.5 102.4 31.1 23.7 14.9 1,435.2

2015-16 463.6 362.9 295.1 164.6 103.4 31.2 24.1 15.1 1,460.0

2016-17 470.4 369.8 301.2 170.1 104.5 31.3 24.5 15.4 1,487.2

2017-18 477.3 376.7 307.3 175.7 105.6 31.3 25.0 15.7 1,514.6

The National Skills and Workforce Development SPP is the funding associated with the National Agreement for Skills and Workforce Development and is provided to work towards increasing the skill levels of all Australians.

Growth factor

The Intergovernmental Agreement defines the growth factor for the National Skills and Workforce Development SPP as the product of:

â¢ 0.85 x wage cost index 1 + 0.15 x wage cost index 6.

The growth factor is currently estimated to be 1.86 per cent in 2014-15.

National Partnership payments for skills and workforce development

In addition to the National Skills and Workforce Development SPP, the Commonwealth will provide funding through National Partnerships as detailed below.

Building Australia’s Future Workforce — National Partnership on skills reform $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 76.6 59.3 48.7 24.9 17.3 5.3 3.8 2.5 238.4

2014-15 121.2 93.9 77.0 39.3 27.4 8.4 6.0 3.9 377.2

2015-16 121.3 93.9 77.1 39.4 27.4 8.4 6.1 3.9 377.4

2016-17 165.9 128.5 105.4 53.8 37.5 11.6 8.3 5.3 516.3

2017-18 - - - - - - - - -

The Commonwealth is providing funding for Building Australia’s Future Workforce ï¾ National Partnership on skills reform, to progress reforms of the VET sector. The agreed reforms aim to create:

â¢ accessible training for working-age Australians and, in particular, a more equitable training system, which provides greater opportunities for participation in education and training;

â¢ a transparent VET sector, which enables better understanding of the VET activity that is occurring in each jurisdiction;

â¢ a higher quality VET sector, which delivers learning experiences and qualifications that are relevant to individuals, employers and industry; and

Part 2: Payments for Specific Purposes

â¢ a more efficient VET sector, which is responsive to the needs of students, employers and industry.

Building Australia’s Future Workforce — National Partnership on training places for single and teenage parents $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 8.5 6.3 5.7 2.6 2.2 0.8 0.2 0.3 26.7

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for Building Australia’s Future Workforce ï¾ National Partnership on training places for single and teenage parents to improve their skills. The funding will provide training places at the Certificate II level or above.

A savings measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on the Commonwealth/State and Territory joint group training programme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 3.1 3.2 2.6 1.1 - 0.3 0.2 10.5

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the Commonwealth/State and Territory joint group training programme. This National Partnership supports group training organisations to deliver strategies and initiatives to improve Australian apprenticeship commencements and completions.

National Partnership on Industry and Indigenous Skills Centres $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 0.1 0.3 0.2 0.1 0.1 0.1 0.1 0.9

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on Industry and Indigenous Skills Centres to assist industry and/or Indigenous community organisations to purchase, construct, fit out or refurbish capital infrastructure intended for the delivery of VET.

Budget Paper No. 3

National Partnership on TAFE fee waivers for childcare qualifications $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 5.8 6.1 5.4 1.6 1.2 0.5 0.5 .. 21.2

2014-15 1.7 4.4 2.4 1.4 1.3 0.3 0.1 - 11.5

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on TAFE fee waivers for childcare qualifications. This National Partnership removes fees for the Diploma and Advanced Diploma of Children’s Services courses delivered at TAFE institutions, or by other government VET providers.

National Partnership on youth attainment and transitions

The Commonwealth is providing funding for the National Partnership on youth attainment and transitions. This National Partnership was established to support the achievement of a national Year 12 or equivalent attainment rate of 90 per cent by 2015, and to halve the gap in Indigenous Year 12 or equivalent attainment by 2020. Measures under this National Partnership aim to increase the educational engagement and attainment of young people and to improve their transition to post-school education, training and employment.

The maximising engagement, attainment and successful transitions component of the National Partnership provides funding to assist with the implementation of strategies to address multiple learning pathways, career development and mentoring. The Year 12 attainment and transitions component provides reward funding for the achievement of participation and attainment targets.

Maximising engagement, attainment and successful transitions component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 4.2 8.5 2.8 1.4 1.0 0.3 0.3 0.2 18.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

Year 12 attainment and transitions component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 10.2 7.2 - 4.8 3.9 0.7 0.5 1.0 28.2

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

Part 2: Payments for Specific Purposes

COMMUNITY SERVICES

In 2014-15, the Commonwealth will provide funding of $2.2 billion to support state community services, including $1.4 billion through the National Disability SPP and $770 million through National Partnership payments, as detailed in Table 2.7.

Table 2.7: Payments to support state community services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Disability SPP 1,333.9 1,398.2 1,454.9 1,513.8 1,580.3

Changed roles and responsibilities - adjustment to achieve budget neutrality(a) nfp nfp nfp nfp nfp

National Partnership payments Transitioning responsibilities for aged care and disability services - Specialist disability services(a) nfp nfp nfp nfp nfp

Assisting preparation towards the trial of the National Disability Insurance Scheme 7.1 4.3 0.6 - -

Certain concessions for pensioners and seniors card holders Certain concessions for pensioners 279.7 - - - -

National reciprocal transport concessions 12.5 - - - -

Home and Community Care(a) 541.0 586.4 nfp nfp nfp

Home and Community Care - services for veterans 8.1 - - - -

National Occasional Care Programme - 3.1 3.1 3.2 3.2

Pay equity for the social and community services sector 82.4 84.9 107.7 158.4 197.7

Payments from the DisabilityCare Australia Fund - - 73.9 188.5 298.0

Stronger Futures in the Northern Territory Alice Springs Transformation Plan 4.7 4.2 1.8 - -

Child, youth, family and community wellbeing 13.6 11.3 11.6 11.9 3.1

Community safety and justice 40.3 35.0 35.8 34.8 35.6

Municipal and essential services 15.4 20.9 21.4 21.9 22.3

Remote engagement and coordination 4.2 4.2 3.7 3.5 3.5

Tackling alcohol abuse 3.8 4.0 4.0 4.0 4.1

Trial of My Way sites - 11.8 43.2 - -

Total(b) 2,346.7 2,168.3 1,765.8 1,939.9 2,147.9

(a) Where applicable, funding amounts are not published as negotiations are still being finalised. (b) Total in 2015-16 includes $4.1 million as detailed in the National Partnership on Home and Community Care table.

National Disability Agreement

The National Disability Agreement commits the Commonwealth and the States to strive, through the provision of disability support services, to help people with disabilities and their carers achieve an enhanced quality of life and participate as valued members of the community.

Budget Paper No. 3

To meet these objectives, governments have agreed to reform their services, including to:

â¢ improve the provision of services and opportunities to enhance the capacity of people with disability;

â¢ ensure that services are person-centred and provide timely access to the necessary support needs;

â¢ identify, plan and respond to the development and support needs of people with disability at an early stage and at key life transition points; and

â¢ support the role of carers and families, including through strengthening their informal support networks.

National Disability SPP $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 426.8 331.3 268.6 146.1 95.9 29.4 22.0 13.8 1,333.9

2014-15 445.7 347.4 282.1 155.4 99.8 30.3 23.0 14.5 1,398.2

2015-16 461.9 361.6 294.1 164.1 103.0 31.1 24.0 15.1 1,454.9

2016-17 478.8 376.4 306.6 173.1 106.4 31.8 25.0 15.7 1,513.8

2017-18 498.0 393.1 320.7 183.3 110.2 32.7 26.0 16.4 1,580.3

The National Disability SPP is the funding associated with the National Disability Agreement. The Commonwealth is providing funding to the States under this National SPP to support disability services.

Growth factor

The Intergovernmental Agreement defines the growth factor for the National Disability SPP as the rolling five year average of year-on-year growth in nominal Gross Domestic Product.

For the purpose of calculating indexation, the Disabilities Assistance Package forms part of the base to calculate funding for 2012-13 onwards.

The growth factor for the National Disability SPP is currently estimated to be 4.82 per cent in 2014-15.

Part 2: Payments for Specific Purposes

Changed roles and responsibilities — adjustment to achieve budget neutrality (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 nfp - nfp - nfp nfp nfp nfp nfp

2014-15 nfp - nfp - nfp nfp nfp nfp nfp

2015-16 nfp - nfp - nfp nfp nfp nfp nfp

2016-17 nfp - nfp - nfp nfp nfp nfp nfp

2017-18 nfp - nfp - nfp nfp nfp nfp nfp

(a) Funding amounts are not published as negotiations are still being finalised.

Under the National Partnership on transitioning responsibilities for aged care and disability services, the Commonwealth makes an adjustment to ensure the budget neutrality of changes to Commonwealth and State roles and responsibilities for aged care and disability services as part of the National Health Reform arrangements.

National Partnership payments for community services

In addition to the National Disability SPP, the Commonwealth will provide funding through National Partnerships as detailed below.

National Partnership on transitioning responsibilities for aged care and disability services

The National Partnership on transitioning responsibilities for aged care and disability services implements changes to the roles and responsibilities associated with the Commonwealth taking full funding, policy and operational responsibility for basic community care services for people aged 65 years and over (50 years and over for Indigenous Australians), as well as funding responsibility for specialist disability services to people aged 65 years and over (50 years and over for

Indigenous Australians).

Specialist disability services (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 nfp - nfp - nfp nfp nfp nfp nfp

2014-15 nfp - nfp - nfp nfp nfp nfp nfp

2015-16 nfp - nfp - nfp nfp nfp nfp nfp

2016-17 nfp - nfp - nfp nfp nfp nfp nfp

2017-18 nfp - nfp - nfp nfp nfp nfp nfp

(a) Funding amounts are not published as negotiations are still being finalised.

The Commonwealth is providing funding for specialist disability services for people aged 65 years and over (50 years and over for Indigenous Australians), in participating States.

Victoria has agreed to transition responsibilities for aged care and disability services from 1 July 2015. Discussions between Western Australia and the Commonwealth are ongoing.

Budget Paper No. 3

National Partnership on assisting preparation towards the trial of the National Disability Insurance Scheme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 0.7 6.4 - 7.1

2014-15 - - - - - 0.6 3.7 - 4.3

2015-16 - - - - - 0.6 - - 0.6

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on assisting preparation towards the trial of the National Disability Insurance Scheme. In recognition of the unique circ*mstances in these States, the funding will assist the

Australian Capital Territory and Tasmania in the transition to the new operating environment under the National Disability Insurance Scheme (NDIS) and to support the Australian Capital Territory to expand services ahead of the trial of the NDIS.

National Partnership on certain concessions for pensioners and seniors card holders

Two payments are provided under the National Partnership on certain concessions for pensioners and seniors card holders.

Certain concessions for pensioners component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 97.3 69.5 48.6 24.5 27.7 8.9 2.0 1.4 279.7

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding to assist the States with the cost of funding concessions for all pensioner concession card holders, without discrimination, in relation to council land and water rates, utilities including energy and sewerage, motor vehicle registration and public transport.

A savings measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National reciprocal transport concessions component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 5.9 1.6 3.8 0.4 0.4 0.1 0.2 0.1 12.5

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for public transport concessions to enable seniors’ card holders to access public transport concessions when they travel outside their home state.

Part 2: Payments for Specific Purposes

A savings measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on Home and Community Care (a)(b)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 378.5 - 162.4 - - - - 541.0

2014-15 - 410.5 - 175.9 - - - - 586.4

2015-16 - nfp - 4.1 - - - - nfp

2016-17 - nfp - nfp - - - - nfp

2017-18 - nfp - nfp - - - - nfp

(a) Funding for 2015-16 onwards is provisioned for in the Contingency Reserve subject to negotiations. (b) The $4.1 million in 2015-16 for Western Australia relates only to the trial of My Way sites, with further funding for the Home and Community Care programme subject to negotiations.

The Commonwealth is currently providing funding to Victoria and Western Australia to continue the joint Commonwealth-State Home and Community Care programme. This programme provides funding for basic community care maintenance and support services such as domestic assistance and personal care to older people.

The Commonwealth and Victoria are working on transitioning Home and Community Care responsibilities for older people to the Commonwealth from 1 July 2015.

National Partnership on Home and Community Care — services for veterans $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.9 4.0 1.2 1.5 0.3 0.1 0.1 .. 8.1

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the National Partnership on Home and Community Care — services for veterans. This National Partnership was established to facilitate access by veterans to services through home and community care programmes.

National Partnership on the National Occasional Care Programme (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 ~ ~ ~ ~ ~ ~ ~ ~ 3.1

2015-16 ~ ~ ~ ~ ~ ~ ~ ~ 3.1

2016-17 ~ ~ ~ ~ ~ ~ ~ ~ 3.2

2017-18 ~ ~ ~ ~ ~ ~ ~ ~ 3.2

(a) State allocations are yet to be finalised.

The Commonwealth will provide funding for the National Partnership on the National Occasional Care Programme. This National Partnership will support non-Child Care Benefit approved child care service providers, particularly in rural, regional and remote areas.

Budget Paper No. 3

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on pay equity for the social and community services sector $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 10.8 18.8 35.4 9.2 4.3 1.9 1.0 0.9 82.4

2014-15 12.1 23.9 28.2 12.7 4.1 1.9 1.3 0.7 84.9

2015-16 17.6 28.5 34.2 16.0 5.9 2.7 1.9 1.0 107.7

2016-17 25.6 46.8 42.3 25.3 9.9 4.3 2.6 1.7 158.4

2017-18 32.5 59.9 49.3 32.6 12.6 5.4 3.3 2.1 197.7

The Commonwealth is providing funding for the National Partnership on pay equity for the social and community services sector. This National Partnership funds the Commonwealth’s share of the wage increases arising from Fair Work Australia’s decision on 1 February 2012 to grant an Equal Remuneration Order in the Social and Community Services sector.

The Commonwealth’s commitment includes providing funding for its share of the wage increases for in-scope programmes funded through existing National SPPs and National Partnership agreements.

National Partnership on payments from the DisabilityCare Australia Fund (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - - - - - - -

2015-16 27.5 21.3 - nfp 6.3 2.0 7.1 0.8 73.9

2016-17 56.9 44.0 35.6 nfp 13.1 4.1 14.7 1.7 188.5

2017-18 161.8 45.5 36.9 nfp 13.6 4.2 15.2 1.8 298.0

(a) As Western Australia has not yet agreed to full implementation of the National Disability Insurance Scheme funding is not published. A funding allocation of $8.9 million for 2015-16, $18.4 million for 2016-17 and $19.0 million for 2017-18 is set aside should Western Australia agree to the offer.

The Commonwealth is working closely with the States towards the goal of having full national roll out of the NDIS by 1 July 2019. The Commonwealth will provide funding through the National Partnership on payments from the DisabilityCare Australia Fund.

The Commonwealth will assist the States with their contribution to the NDIS for 10 years by allocating some of the payments going into the DisabilityCare Australia Fund, which comes into effect on 1 July 2014. The annual amount flowing into the fund to be set aside for the States will be $825 million in 2014-15, which will grow in future years by 3.5 per cent per year.

The States will be able to draw down from the Fund when they meet key conditions such as agreement to fully roll out the NDIS and milestones relating to the participation of people with significant and permanent disability in the scheme.

Part 2: Payments for Specific Purposes

National Partnership on Stronger Futures in the Northern Territory

The Commonwealth is providing funding for the National Partnership on Stronger Futures in the Northern Territory.

The Stronger Futures in the Northern Territory initiative is a $3.4 billion 10 year investment in programmes and services that are designed to close the gap in Indigenous disadvantage and make improvements in areas such as education, health, housing, policing, jobs and support for families and children.

Indigenous people in the Northern Territory were consulted extensively to ensure that the Stronger Futures in the Northern Territory initiative responds directly to their needs.

Further details of Commonwealth funding being provided for the National Partnership on Stronger Futures in the Northern Territory can be found in the Health, Education and Affordable Housing sections of this Part.

Alice Springs Transformation Plan component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 4.7 4.7

2014-15 - - - - - - - 4.2 4.2

2015-16 - - - - - - - 1.8 1.8

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding to continue key social services for Indigenous children, families and individuals in Alice Springs. These initiatives complement the broader reform agenda of the Alice Springs Transformation Plan, which includes improving the delivery, accessibility, and coordination of services, facilitating land tenure reforms and improving the safety and wellbeing of Indigenous people in Alice Springs.

Child, youth, family and community wellbeing component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 13.6 13.6

2014-15 - - - - - - - 11.3 11.3

2015-16 - - - - - - - 11.6 11.6

2016-17 - - - - - - - 11.9 11.9

2017-18 - - - - - - - 3.1 3.1

The Commonwealth is providing funding to strengthen the safety and wellbeing of Indigenous children, youth and their families. This funding is supporting a range of important initiatives in communities, including:

â¢ continued funding for playgroups, home and parenting support services, youth workers and safe houses;

Budget Paper No. 3

â¢ an expansion of the number of Stronger Communities for Children sites, which offer services to help parents provide a safe, happy and healthy environment for their children; and

â¢ remote Indigenous family and community workers and the continuation of Mobile Child Protection Teams.

Community safety and justice component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 40.3 40.3

2014-15 - - - - - - - 35.0 35.0

2015-16 - - - - - - - 35.8 35.8

2016-17 - - - - - - - 34.8 34.8

2017-18 - - - - - - - 35.6 35.6

The Commonwealth is providing funding for remote policing, community night patrols and legal assistance services. These services are critical to continuing to improve safety for Indigenous people in Northern Territory communities.

Municipal and essential services component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 15.4 15.4

2014-15 - - - - - - - 20.9 20.9

2015-16 - - - - - - - 21.4 21.4

2016-17 - - - - - - - 21.9 21.9

2017-18 - - - - - - - 22.3 22.3

The Commonwealth is providing support for the delivery of municipal and essential services to outstations and homelands, such as access to power, water, as well as sewerage and road maintenance. It also supports garbage collection and dog control programmes.

Remote engagement and coordination component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 4.2 4.2

2014-15 - - - - - - - 4.2 4.2

2015-16 - - - - - - - 3.7 3.7

2016-17 - - - - - - - 3.5 3.5

2017-18 - - - - - - - 3.5 3.5

The Commonwealth is providing funding to the Northern Territory for more effective engagement with communities through continued support for the Northern Territory Aboriginal Interpreter Service and the Northern Territory coordination effort of the Stronger Futures in the Northern Territory initiative.

Part 2: Payments for Specific Purposes

Tackling alcohol abuse component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 3.8 3.8

2014-15 - - - - - - - 4.0 4.0

2015-16 - - - - - - - 4.0 4.0

2016-17 - - - - - - - 4.0 4.0

2017-18 - - - - - - - 4.1 4.1

The Commonwealth is providing funding to tackle alcohol abuse in the Northern Territory. Funding includes support to continue alcohol restrictions, licensing compliance and the development of alcohol management plans in communities.

National Partnership on trial of My Way sites (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - 11.8 - - - - 11.8

2015-16 - - - 43.2 - - - - 43.2

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Funding allocations are yet to be finalised.

The Commonwealth will provide funding for the National Partnership on trial of My Way sites. This National Partnership will assist Western Australia to commence the trial of My Way in the Lower South West region from 1 July 2014 and the co*ckburn/Kwinana region from 1 July 2015.

The My Way sites will run in parallel with the NDIS trial site in the Perth Hills region for two years from 1 July 2014. Together, the trials in Western Australian will provide support to around 8,400 eligible participants.

The trials seek to inform the delivery of disability reform by evaluating the merits of the My Way and NDIS trial sites during the trial period.

Budget Paper No. 3

AFFORDABLE HOUSING

In 2014-15, the Commonwealth will provide funding of $2.0 billion to support state affordable housing services, including $1.3 billion through the National Affordable Housing SPP and $656 million through National Partnerships, as detailed in Table 2.8.

Table 2.8: Payments to support state affordable housing services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Affordable Housing SPP 1,282.7 1,305.8 1,328.0 1,351.9 1,376.2

National Partnership payments Building Better Regional Cities 48.7 - - - -

First Home Owners Boost 0.4 - - - -

Homelessness 154.9 115.0 - - -

Remote Indigenous Housing 541.1 485.6 368.2 411.7 447.6

Stronger Futures in the Northern Territory Housing 51.2 55.9 52.3 46.2 47.4

Total 2,079.0 1,962.2 1,748.4 1,809.8 1,871.3

Memorandum item - payments direct to local governments included in payments above Building Better Regional Cities 48.7 - - - -

Total 48.7 - - - -

National Affordable Housing Agreement

The National Affordable Housing Agreement commits the Commonwealth and the States to the objective that all Australians have access to affordable, safe and sustainable housing which will assist them to participate in the labour force and, more broadly, in the community.

The Commonwealth and the States committed to reforms that will enhance housing programmes and services, including by improving:

â¢ the integration of homelessness services and other mainstream services, such as employment services;

â¢ the operational efficiency of public housing and the employment outcomes of public housing tenants; and

â¢ the efficiency in the supply of housing through planning reforms.

National Affordable Housing SPP $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 409.4 311.5 256.6 139.0 94.0 30.0 22.5 19.6 1,282.7

2014-15 416.2 324.4 263.4 145.1 93.2 28.3 21.5 13.5 1,305.8

2015-16 421.6 330.1 268.4 149.8 94.0 28.4 21.9 13.8 1,328.0

2016-17 427.6 336.2 273.8 154.6 95.0 28.4 22.3 14.0 1,351.9

2017-18 433.6 342.3 279.3 159.6 96.0 28.5 22.7 14.2 1,376.2

Part 2: Payments for Specific Purposes

The National Affordable Housing SPP is the funding associated with the National Affordable Housing Agreement. The Commonwealth is providing a financial contribution to support services in the housing sector.

This funding is being used to support a range of measures including social housing, assistance to people in the private rental market, support and accommodation for people who are homeless or at risk of homelessness, and home purchase assistance.

Growth factor

The Intergovernmental Agreement outlines the agreed growth factor for the National Affordable Housing SPP. The growth factor is the wage cost index 1, comprising a safety net wage adjustment weighted by 75 per cent and the all groups Consumer Price Index weighted by 25 per cent.

The growth factor for the National Affordable Housing SPP is currently estimated to be 1.80 per cent in 2014-15.

National Partnership payments for affordable housing

In addition to the National Affordable Housing SPP funding, the Commonwealth will provide a total of $656 million in 2014-15 through National Partnerships to support state affordable housing services. Further details on these National Partnerships are provided below.

Building Better Regional Cities (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 40.6 2.2 3.5 2.4 - - - - 48.7

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) All payments are made direct to local governments.

The Building Better Regional Cities programme is a commitment by the Commonwealth to invest in local housing infrastructure projects that are helping build more affordable homes in high growth regional cities.

Budget Paper No. 3

National Partnership on the First Home Owners Boost $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.6 0.2 .. -0.2 -0.2 - - .. 0.4

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth introduced the First Home Owners Boost to stimulate housing activity, support the construction industry and assist first home buyers to enter the housing market. The availability of the First Home Owners Boost ceased in December 2009.

The continuation of the First Home Owners Boost payment in 2013-14 reflects the final application period and the timeframes allowed for the construction of new homes. Negative expenditure for some States reflects an estimate of funds recovered from applicants later found to be ineligible; these funds were returned to the Commonwealth.

National Partnership on homelessness (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 38.7 30.1 36.8 18.7 15.4 4.6 5.5 5.2 154.9

2014-15 30.0 22.8 28.7 15.0 8.9 2.8 1.5 5.3 115.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Under this National Partnership, States are required to match Commonwealth funding.

The Commonwealth is providing funding for the National Partnership on homelessness. The agreement focuses on three key strategies to reduce homelessness:

â¢ prevention and early intervention to stop people becoming homeless;

â¢ breaking the cycle of homelessness; and

â¢ improving and expanding the service response to homelessness.

A new National Partnership is being negotiated with the States for 2014-15. This agreement will reinstate service delivery funding for another year, providing much needed certainty for homelessness services. The Commonwealth will work closely with the States on future funding arrangements and a longer term solution for homelessness.

A spending measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Part 2: Payments for Specific Purposes

National Partnership on Remote Indigenous Housing $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 44.8 2.5 177.5 191.3 36.4 2.9 - 85.7 541.1

2014-15 60.7 2.5 155.6 165.6 27.8 2.5 - 71.0 485.6

2015-16 16.3 2.5 137.3 124.3 18.7 2.5 - 66.6 368.2

2016-17 15.5 2.5 128.3 97.4 14.4 2.7 - 151.0 411.7

2017-18 19.6 2.5 138.6 106.2 15.7 2.8 - 162.3 447.6

The Commonwealth is providing funding for the National Partnership on Remote Indigenous Housing. This National Partnership was established to facilitate significant reform in the provision of housing for Indigenous people in remote communities and to address overcrowding, homelessness, poor housing conditions and severe housing shortages.

National Partnership on Stronger Futures in the Northern Territory

The Commonwealth is providing funding to the Northern Territory Government through the National Partnership on Stronger Futures in the Northern Territory.

The Stronger Futures in the Northern Territory initiative is described further in the Community Services section of this Part.

Housing component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 51.2 51.2

2014-15 - - - - - - - 55.9 55.9

2015-16 - - - - - - - 52.3 52.3

2016-17 - - - - - - - 46.2 46.2

2017-18 - - - - - - - 47.4 47.4

The Commonwealth is supporting the provision of safe and healthy houses for Indigenous Australians. This includes funding towards asbestos removal in homes and other buildings.

This funding complements the funding being provided under the National Partnership on Remote Indigenous Housing.

Budget Paper No. 3

INFRASTRUCTURE

In 2014-15, the Commonwealth will provide funding of $5.7 billion to support state infrastructure services, as detailed in Table 2.9.

Table 2.9: Payments to support state infrastructure services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments Infrastructure Investment Programme Black spot projects 64.5 60.0 60.0 60.0 60.0

Bridges renewal programme - 60.0 60.0 60.0 60.0

Heavy vehicle safety and productivity 40.0 48.0 40.0 40.0 40.0

Improving the national network(a) 0.8 - - - -

Investment Rail 332.7 353.7 124.2 23.5 24.6

Road(b) 4,279.6 3,005.9 3,973.4 5,311.6 2,780.0

Off-network projects Rail 89.6 115.9 219.0 160.1 3.0

Road 404.8 556.4 354.3 395.4 222.6

Supplementary(a) 7.5 - - - -

Roads to Recovery 373.2 349.8 349.8 349.8 349.8

Infrastructure Growth Package - Asset Recycling Fund Asset Recycling Initiative - 335.0 1,278.0 1,285.0 1,007.0

New investments(b) - 201.7 1,010.1 969.2 519.3

Western Sydney Infrastructure Plan - 103.0 210.2 351.6 530.9

Building Australia Fund Rail 1,128.0 331.0 232.1 - -

Road 71.0 48.1 - - -

Centenary of Canberra 2013 - a gift to the national capital - 10.0 - - -

Community Infrastructure Grants - Glenbrook precinct upgrade 0.8 - - - -

Interstate road transport 77.0 77.0 77.0 77.0 77.0

Latrobe Valley economic diversification 2.4 5.4 3.1 - -

Liveable communities 9.5 - - - -

Local Government and Regional Development - infrastructure employment projects 1.6 - - - -

Managed motorways 20.8 9.4 - - -

Murray-Darling Basin regional economic diversification programme 10.0 32.5 30.5 24.7 -

Townsville Convention and Entertainment Centre 5.0 - - - -

Total 6,918.6 5,702.9 8,021.8 9,107.8 5,674.2

Part 2: Payments for Specific Purposes

Table 2.9: Payments to support state infrastructure services (continued) $million 2013-14 2014-15 2015-16 2016-17 2017-18

Memorandum item - payments direct to local governments included in payments above Infrastructure Investment Programme Bridges renewal programme - 60.0 60.0 60.0 60.0

Off-network projects Rail 2.5 - - - -

Road 300.0 114.0 - - -

Supplementary(a) 7.5 - - - -

Roads to Recovery 357.7 331.5 331.5 331.5 331.5

Infrastructure Growth Package - Asset Recycling Fund New investments - - 331.5 - -

Latrobe Valley economic diversification 1.0 4.1 2.4 - -

Liveable communities 4.4 - - - -

Local Government and Regional Development - infrastructure employment projects 1.6 - - - -

Townsville Convention and Entertainment Centre 5.0 - - - -

Total 679.7 509.6 725.5 391.5 391.5

(a) Figures represent expenses incurred against prepayments made to the States in prior years. (b) Additional funding for East West Link (Victoria) under the Infrastructure Growth Package is included in the 2013-14 amount under the Infrastructure Investment Programme — investment — road.

National Partnership payments for infrastructure

Infrastructure Investment Programme

The Commonwealth is providing funding for road and rail infrastructure through the Infrastructure Investment Programme. The programme assists economic and social development regionally and nationally by providing funding to improve the performance of land transport infrastructure.

The Infrastructure Investment Programme comprises several components that are detailed in the tables below.

The measures associated with this programme are discussed in Budget Paper No. 2, Budget Measures 2014-15.

Black spot projects $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 21.4 16.2 12.2 6.2 4.8 2.1 0.8 0.8 64.5

2014-15 19.2 13.7 12.2 6.6 4.8 1.6 1.0 1.0 60.0

2015-16 19.2 13.7 12.2 6.6 4.8 1.6 1.0 1.0 60.0

2016-17 19.2 13.7 12.2 6.6 4.8 1.6 1.0 1.0 60.0

2017-18 19.2 13.7 12.2 6.6 4.8 1.6 1.0 1.0 60.0

Black spot projects improve the safety of road sites which have been identified as high risk areas for serious crashes. Most funding goes to projects to treat sites that have a

Budget Paper No. 3

record of at least three accidents involving casualties over a five year period and can demonstrate a robust benefit to cost ratio of at least 2:1.

In addition to the amounts shown above, the Commonwealth will provide additional funding for black spot projects through the new investments component of the Infrastructure Growth Package, to be funded from the Asset Recycling Fund. The table below shows the consolidated Commonwealth funding for black spot projects, including the additional funding from the Asset Recycling Fund.

Black spot projects — including additional funding from the Asset Recycling Fund $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 21.4 16.2 12.2 6.2 4.8 2.1 0.8 0.8 64.5

2014-15 19.2 13.7 12.2 6.6 4.8 1.6 1.0 1.0 60.0

2015-16 51.2 36.4 32.5 17.6 12.8 4.3 2.6 2.7 160.0

2016-17 51.2 36.4 32.5 17.6 12.8 4.3 2.6 2.7 160.0

2017-18 19.2 13.7 12.2 6.6 4.8 1.6 1.0 1.0 60.0

Bridges renewal programme (a)(b)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 19.1 14.9 12.1 6.8 4.2 1.3 1.0 0.6 60.0

2015-16 19.1 14.9 12.1 6.8 4.2 1.3 1.0 0.6 60.0

2016-17 19.1 14.9 12.1 6.8 4.2 1.3 1.0 0.6 60.0

2017-18 19.1 14.9 12.1 6.8 4.2 1.3 1.0 0.6 60.0

(a) All payments are made direct to local governments. (b) State allocations have not been determined for the bridges renewal programme. These amounts have been notionally allocated on an equal per capita basis to all States.

The Commonwealth will provide funding to upgrade bridges across the nation to deliver on a commitment made as part of the 2013 election. The bridges renewal programme will renew and replace bridges to improve productivity and community access.

Heavy vehicle safety and productivity (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 13.7 5.7 4.6 4.2 3.3 1.9 0.4 6.3 40.0

2014-15 15.2 11.9 9.7 5.4 3.4 1.0 0.8 0.5 48.0

2015-16 12.7 9.9 8.1 4.6 2.8 0.8 0.7 0.4 40.0

2016-17 12.7 9.9 8.1 4.6 2.8 0.8 0.7 0.4 40.0

2017-18 12.7 9.9 8.1 4.6 2.8 0.8 0.7 0.4 40.0

(a) Some amounts in 2014-15 onwards remain unallocated. These amounts have been notionally allocated on an equal per capita basis to all States.

The Commonwealth is contributing to the safety and productivity of heavy vehicles by providing funding for projects aimed at improving the capacity of roads to deal with larger and higher mass vehicles, and other projects including rest stops, de-coupling bays and trials of innovative technology.

Part 2: Payments for Specific Purposes

Improving the national network (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - 0.8 - - - 0.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Figures in this table represent expenses against prepayments made to the States in 2005-06.

The Commonwealth provided a one-off supplementary payment of $1.8 billion in 2005-06 to the States to complete major works packages. Works included the Pacific and Hume Highways in New South Wales, the Bruce Highway in Queensland, the Eyre, Great Eastern and Great Northern Highways in Western Australia, the Sturt Highway in South Australia, the East Tamar Highway in Tasmania and the Victoria Highway in the Northern Territory. The table above provides a profile of State expenditure against this supplementary payment.

Investment

Rail component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 281.6 - - 17.2 0.6 33.3 - - 332.7

2014-15 326.0 - - - 0.2 27.5 - - 353.7

2015-16 101.0 - - - - 23.2 - - 124.2

2016-17 - - - - - 23.5 - - 23.5

2017-18 - - - - - 24.6 - - 24.6

Road component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 1,641.9 1,660.9 596.5 244.5 73.7 16.6 0.3 45.3 4,279.6

2014-15 912.8 367.0 1,006.7 493.5 144.2 45.1 0.6 36.1 3,005.9

2015-16 1,501.6 676.0 1,230.2 333.0 135.4 68.1 12.3 16.8 3,973.4

2016-17 2,284.8 830.1 1,535.1 444.8 130.0 69.5 0.6 16.8 5,311.6

2017-18 1,200.3 108.1 1,004.5 284.4 127.9 37.3 0.6 16.8 2,780.0

(a) Additional funding for East West Link (Victoria) under the Infrastructure Growth Package is included in the 2013-14 amount above.

The investment component of the Infrastructure Investment Programme targets nationally significant projects. These projects will improve the efficiency and safety of the national land transport network. Funding is provided for road and rail construction projects and network maintenance, including transport development, innovation projects and grants to land transport research entities.

In addition to the amounts shown above, the Commonwealth will provide additional funding for significant road projects through the new investments component of the Infrastructure Growth Package, to be funded from the Asset Recycling Fund. The table below shows the consolidated Commonwealth funding for road projects, including the additional funding from the Asset Recycling Fund.

Budget Paper No. 3

Investment road projects — including additional funding from the Asset Recycling Fund (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 1,641.9 1,660.9 596.5 244.5 73.7 16.6 0.3 45.3 4,279.6

2014-15 1,031.9 379.6 1,016.9 573.2 197.8 46.2 1.4 63.6 3,310.6

2015-16 1,726.5 687.6 1,406.6 494.3 302.5 69.1 13.1 44.2 4,743.9

2016-17 2,667.3 854.5 1,740.0 889.1 266.9 71.5 2.2 40.8 6,532.4

2017-18 1,741.7 116.4 1,244.3 491.3 180.2 38.0 1.1 17.1 3,830.2

(a) State allocations have not been determined for the National Highway Upgrade Programme to be funded under the new investments component of the Infrastructure Growth Package. These amounts have been notionally allocated on an equal per capita basis to all States.

Off-network projects

Rail component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 10.8 6.6 68.4 3.8 - - - - 89.6

2014-15 - 7.4 108.0 0.5 - - - - 115.9

2015-16 - 19.0 200.0 - - - - - 219.0

2016-17 - 18.1 142.0 - - - - - 160.1

2017-18 - 3.0 - - - - - - 3.0

(a) These figures include payments direct to local governments.

Road component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 12.0 39.6 304.8 3.2 0.3 19.6 - 25.3 404.8

2014-15 46.1 194.3 172.9 73.7 5.0 9.0 0.3 55.1 556.4

2015-16 45.1 22.1 124.9 71.7 15.0 10.9 - 64.7 354.3

2016-17 74.0 19.0 147.6 85.7 25.0 10.5 - 33.7 395.4

2017-18 55.5 2.5 50.0 89.6 25.0 - - - 222.6

(a) These figures include payments direct to local governments.

Supplementary component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - 7.5 - - - - 7.5

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) The supplementary component of the off-network projects represents expenses against prepayments made to local governments in 2006-07.

The off-network projects programme is designed to improve road and rail infrastructure not included in the national land transport network. It improves safety, assists industry development and supports job creation in local communities.

Part 2: Payments for Specific Purposes

Roads to Recovery (a)(b)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 110.5 73.0 78.3 56.9 31.1 10.3 .. 13.0 373.2

2014-15 97.5 71.2 71.2 51.2 31.5 11.4 5.6 10.2 349.8

2015-16 97.5 71.2 71.2 51.2 31.5 11.4 5.6 10.2 349.8

2016-17 97.5 71.2 71.2 51.2 31.5 11.4 5.6 10.2 349.8

2017-18 97.5 71.2 71.2 51.2 31.5 11.4 5.6 10.2 349.8

(a) These figures include payments direct to local governments. (b) Payments to South Australia include funding in 2013-14 paid to local governments through the State.

The Commonwealth is providing funding for the Roads to Recovery programme for road construction and maintenance projects at a local level. Decisions on projects to be funded are made locally and reported to the Commonwealth.

In addition to the amounts shown above, the Commonwealth will provide additional funding for the Roads to Recovery programme through the new investments component of the Infrastructure Growth Package, to be funded from the Asset Recycling Fund. The table below shows the consolidated Commonwealth funding for the Roads to Recovery programme, including the additional funding from the Asset Recycling Fund.

Roads to Recovery — including additional funding from the Asset Recycling Fund (a)(b)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 110.5 73.0 78.3 56.9 31.1 10.3 .. 13.0 373.2

2014-15 97.5 71.2 71.2 51.2 31.5 11.4 5.6 10.2 349.8

2015-16 195.0 142.4 142.4 102.4 63.0 22.8 11.2 20.4 699.6

2016-17 97.5 71.2 71.2 51.2 31.5 11.4 5.6 10.2 349.8

2017-18 97.5 71.2 71.2 51.2 31.5 11.4 5.6 10.2 349.8

(a) These figures include payments direct to local governments. (b) Payments to South Australia include funding in 2013-14 paid to local governments through the State.

Infrastructure Growth Package — Asset Recycling Fund

The Commonwealth will establish an Asset Recycling Fund to provide funding for additional investment in high quality economic infrastructure under the Infrastructure Growth Package. Three components of the Growth Package are detailed in the tables below: the Asset Recycling Initiative; new investments; and the Western Sydney Infrastructure Plan.

The spending measures associated with this package are discussed in Budget Paper No. 2, Budget Measures 2014-15.

Budget Paper No. 3

Asset Recycling Initiative (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 ~ ~ ~ ~ ~ ~ ~ ~ 335.0

2015-16 ~ ~ ~ ~ ~ ~ ~ ~ 1,278.0

2016-17 ~ ~ ~ ~ ~ ~ ~ ~ 1,285.0

2017-18 ~ ~ ~ ~ ~ ~ ~ ~ 1,007.0

(a) State allocations have not been determined for payments under the Asset Recycling Initiative. Projects will be agreed between the Commonwealth and individual States on a first-come, first-served basis, until the total amount of funding available under this measure is exhausted.

Under the Asset Recycling Initiative, the Commonwealth will provide financial incentives to States that sell assets and reinvest the sale proceeds into new productive infrastructure. The total funding available under this component of the Infrastructure Growth Package is $5 billion over five years. Funding will be allocated to specific projects on a first-come, first-served basis, as projects are agreed between the Commonwealth and individual States.

New investments (a)(b)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 16.1 12.6 10.2 79.7 53.6 1.1 0.8 27.5 201.7

2015-16 144.2 105.6 267.9 223.5 206.5 15.1 8.0 39.3 1,010.1

2016-17 62.9 47.2 225.2 455.4 144.8 4.7 3.2 25.7 969.2

2017-18 10.5 8.3 239.8 206.9 52.3 0.7 0.5 0.3 519.3

(a) Additional funding for East West Link (Victoria) under the Infrastructure Growth Package is included in the 2013-14 amount under the Infrastructure Investment Programme — investment — road. (b) State allocations have not been determined for the National Highway Upgrade Programme. These amounts have been notionally allocated on an equal per capita basis to all States.

Under the new investments component of the Infrastructure Growth Package, the Commonwealth will provide $3.7 billion in additional funding to expedite investment in high quality economic infrastructure. This funding will be administered under the existing Infrastructure Investment Programme.

Western Sydney Infrastructure Plan

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 103.0 - - - - - - - 103.0

2015-16 210.2 - - - - - - - 210.2

2016-17 351.6 - - - - - - - 351.6

2017-18 530.9 - - - - - - - 530.9

Under the Western Sydney Infrastructure Plan component of the Infrastructure Growth Package, the Commonwealth will provide $2.9 billion in additional funding over ten years to enhance capacity and improve transport infrastructure, including for the development of an airport at Badgerys Creek. This funding will be administered under the existing Infrastructure Investment Programme.

Part 2: Payments for Specific Purposes

Other National Partnership payments

Building Australia Fund — rail component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 1,128.0 - - - - - - 1,128.0

2014-15 - 331.0 - - - - - - 331.0

2015-16 - - - - 232.1 - - - 232.1

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

Building Australia Fund — road component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 8.0 - - - - - 63.0 - 71.0

2014-15 - - - - - - 48.1 - 48.1

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Building Australia Fund rail and road components are supporting future economic growth by improving the quality and efficiency of Australia’s transport networks with the intention of increasing city liveability and sustainability in the context of a growing population.

A measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Centenary of Canberra 2013 — a gift to the national capital $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - - - - 10.0 - 10.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the Centenary of Canberra 2013 — a gift to the national capital. A contribution was provided toward the development of the National Arboretum Canberra, which opened in February 2013. A contribution is also being provided for the redevelopment of the Constitution Avenue road corridor and public realm space, including dedicated bus and cycle lanes and shared commuter paths.

Further details of Commonwealth funding provided for the Centenary of Canberra 2013 can be found in the Other section of this Part.

Budget Paper No. 3

Community Infrastructure Grants — Glenbrook precinct upgrade $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.8 - - - - - - - 0.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding to improve facilities for visitors to the Glenbrook precinct of the Blue Mountains National Park, which is a major gateway to the Greater Blue Mountains World Heritage Area.

Interstate road transport $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 35.5 20.7 7.3 3.1 9.3 0.4 0.4 0.4 77.0

2014-15 35.5 20.7 7.3 3.1 9.3 0.4 0.4 0.4 77.0

2015-16 35.5 20.7 7.3 3.1 9.3 0.4 0.4 0.4 77.0

2016-17 35.5 20.7 7.3 3.1 9.3 0.4 0.4 0.4 77.0

2017-18 35.5 20.7 7.3 3.1 9.3 0.4 0.4 0.4 77.0

The Commonwealth is providing funding to the States under the Interstate Road Transport Act 1985 that is equal to total revenue received from registrations made under the Federal Interstate Registration Scheme.

Latrobe Valley economic diversification $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 2.4 - - - - - - 2.4

2014-15 - 5.4 - - - - - - 5.4

2015-16 - 3.1 - - - - - - 3.1

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for two projects which will support economic diversification in the Latrobe Valley in Victoria; namely, the Moe Rail revitalisation project and the upgrade of the Warragul Station precinct project.

Liveable communities (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 3.0 1.6 0.2 2.9 1.1 0.2 0.3 0.2 9.5

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) These figures include payments direct to local governments.

The Commonwealth has provided funding to help improve the planning and design of capital cities and major regional centres that are experiencing population growth pressures and housing and transport affordability pressures.

Part 2: Payments for Specific Purposes

Local Government and Regional Development — infrastructure employment projects (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 1.6 - - - - - 1.6

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) All payments are made direct to local governments.

The Commonwealth has provided funding for infrastructure employment projects under the National Partnership on Local Government and Regional Development.

Managed motorways $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 3.0 9.8 8.0 - - - - - 20.8

2014-15 - - 9.4 - - - - - 9.4

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for smart infrastructure technologies to reduce congestion, and improve both traffic demand management and the overall efficiency of the transport network in major cities. Managed motorways integrate data collection sensors and control tools to improve real time management of motorways to secure a higher and more consistent level of motorway performance.

Murray-Darling Basin regional economic diversification programme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 3.3 2.6 1.5 - 2.6 - - - 10.0

2014-15 10.8 8.3 5.0 - 8.3 - - - 32.5

2015-16 10.2 7.8 4.7 - 7.8 - - - 30.5

2016-17 8.2 6.3 3.8 - 6.3 - - - 24.7

2017-18 - - - - - - - - -

The Commonwealth will provide funding to New South Wales, Victoria, Queensland and South Australia to support economic diversification in regional communities likely to be affected by the implementation of the Murray-Darling Basin Plan. Projects will encourage sustainable economic development through joint government, private and community sector investment in regional communities.

Townsville Convention and Entertainment Centre (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 5.0 - - - - - 5.0

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) All payments are made direct to local government.

The Commonwealth is providing funding for the construction of the Townsville Convention and Entertainment Centre.

Budget Paper No. 3

ENVIRONMENT

In 2014-15, the Commonwealth will provide funding of $637.5 million to support state environment services, as detailed in Table 2.10.

Table 2.10: Payments to support state environment services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments Assistance for water infrastructure and pest management in drought-affected areas 5.0 17.0 - - -

Assistance to farm businesses for water-related infrastructure 10.1 - - - -

Bushfire mitigation - 5.0 5.0 5.0 -

Coal seam gas and large coal mining development 19.7 - - - -

Environmental management of the former Rum Jungle Mine site 3.4 3.9 4.3 - -

Great Artesian Basin Sustainability Initiative 15.8 - - - -

Implementation of the National Insurance Affordability Initiative 7.0 3.0 7.0 - -

Implementation of the Tasmanian Forests Intergovernmental Agreement 12.5 13.0 12.8 10.0 10.3

Implementing water reform in the Murray-Darling Basin 13.5 20.0 20.0 20.0 20.0

National Urban Water and Desalination Plan 6.5 7.1 2.1 - -

National Water Security Plan for Cities and Towns 23.1 10.1 2.9 - -

Natural disaster resilience 17.6 39.2 26.1 26.1 nfp

Pest and disease preparedness and response programmes Animal and plant pest and disease eradication 17.9 10.9 11.4 11.7 13.1

Exotic disease preparedness 0.4 - - - -

South Australian River Murray Sustainability Programme Irrigation efficiency and water purchase 14.0 29.0 45.0 23.5 8.5

Irrigation industry assistance 9.0 17.0 28.0 39.5 16.5

Regional economic development 7.0 9.0 7.0 2.0 -

Sustainable Australia - Sustainable regional development 0.8 0.1 - - -

Sustainable Rural Water Use and Infrastructure Programme 363.8 453.0 530.9 388.3 147.9

Whale and dolphin entanglements - 0.3 0.1 0.2 -

Total 547.2 637.5 702.6 526.3 216.3

Part 2: Payments for Specific Purposes

Table 2.10: Payments to support state environment services (continued) $million 2013-14 2014-15 2015-16 2016-17 2017-18

Memorandum item - payments direct to local governments included in payments above National Urban Water and Desalination Plan 1.0 5.5 2.1 - -

National Water Security Plan for Cities and Towns 4.3 - - - -

Sustainable Australia - Sustainable regional development 0.8 0.1 - - -

Total 6.0 5.6 2.1 - -

National Partnership payments for the environment

National Partnership on assistance for water infrastructure and pest management in drought-affected areas (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 1.5 - 3.5 - - - - - 5.0

2014-15 5.5 - 11.5 - - - - - 17.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) Up to $4 million of the funding in 2014-15 is notionally allocated as a contingency should additional States have drought-affected areas, or if further areas of Queensland or New South Wales become drought-affected. This is subject to the outcomes of negotiations with the States.

The Commonwealth will provide funding for the National Partnership on assistance for water infrastructure and pest management in drought-affected areas. This National Partnership will assist drought-affected farm businesses with installing water-related infrastructure and with managing the impacts of pest animals in drought-affected areas, with the pest management component contingent upon equal contributions from the States. Funding for water infrastructure is a continuation of funding provided for the National Partnership on assistance to farm businesses for water-related infrastructure.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on assistance to farm businesses for water-related infrastructure $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 3.0 - 7.1 - - - - - 10.1

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on assistance to farm businesses for water-related infrastructure. Funding is provided to New South Wales and Queensland to supplement these states’ existing Emergency Water Infrastructure Rebate programmes.

Budget Paper No. 3

National Partnership on bushfire mitigation (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 ~ ~ ~ ~ ~ ~ ~ ~ 5.0

2015-16 ~ ~ ~ ~ ~ ~ ~ ~ 5.0

2016-17 ~ ~ ~ ~ ~ ~ ~ ~ 5.0

2017-18 - - - - - - - - -

(a) State allocations are yet to be finalised.

The Commonwealth will provide funding for the National Partnership on bushfire mitigation. This National Partnership will enable states to implement long-term bushfire mitigation strategies and improved fuel reduction activities.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on coal seam gas and large coal mining development $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 7.0 4.1 7.4 - 1.3 - - - 19.7

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on coal seam gas and large coal mining development. This National Partnership strengthens the regulation of coal seam gas and large coal mining development by ensuring that future decisions are informed by substantially improved science and independent expert advice.

National Partnership on the environmental management of the former Rum Jungle Mine site $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - 3.4 3.4

2014-15 - - - - - - - 3.9 3.9

2015-16 - - - - - - - 4.3 4.3

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the environmental management of the former Rum Jungle Mine site (Stage 2). This National Partnership will continue the programme of work established to improve the daily management of the site and to further develop a rehabilitation strategy. This work continues to be developed in partnership with stakeholders, including the site’s traditional owners.

Part 2: Payments for Specific Purposes

National Partnership on the Great Artesian Basin Sustainability Initiative $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 7.4 - 6.8 - 1.6 - - - 15.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the Great Artesian Basin Sustainability Initiative to continue work on the repair of uncontrolled artesian bores and the replacement of wasteful open earth bore drains with piped water reticulation systems through the Great Artesian Basin.

The Great Artesian Basin Sustainability Initiative is being delivered through State agencies, with the Commonwealth contributing jointly with State governments and private bore owners.

National Partnership on the implementation of the National Insurance Affordability Initiative $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 7.0 - - - - - 7.0

2014-15 - - 3.0 - - - - - 3.0

2015-16 - - 7.0 - - - - - 7.0

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the implementation of the National Insurance Affordability Initiative to reduce flood risk and bring about reductions in insurance premiums. The National Insurance Affordability Initiative will provide funding for the construction of a flood levee in Roma and improving the flood defences in Ipswich.

A savings measure associated with this National Partnership is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on the implementation of the Tasmanian Forests Intergovernmental Agreement $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 12.5 - - 12.5

2014-15 - - - - - 13.0 - - 13.0

2015-16 - - - - - 12.8 - - 12.8

2016-17 - - - - - 10.0 - - 10.0

2017-18 - - - - - 10.3 - - 10.3

The Commonwealth is providing funding for the National Partnership on the implementation of the Tasmanian Forests Intergovernmental Agreement 2013. Funding will support the implementation of this Intergovernmental Agreement as well as the ongoing management of additional native forest reserves.

Budget Paper No. 3

National Partnership on implementing water reform in the Murray-Darling Basin $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 6.3 4.6 1.3 - 1.0 - 0.2 - 13.5

2014-15 9.4 6.8 2.0 - 1.5 - 0.3 - 20.0

2015-16 9.4 6.8 2.0 - 1.5 - 0.3 - 20.0

2016-17 9.4 6.8 2.0 - 1.5 - 0.3 - 20.0

2017-18 9.4 6.8 2.0 - 1.5 - 0.3 - 20.0

The Commonwealth is providing funding for the National Partnership on implementing water reform in the Murray-Darling Basin. This National Partnership supports the cooperative implementation of the Intergovernmental Agreement on Implementing Water Reform in the Murray-Darling Basin. This Agreement will ensure continuing progress in restoring the Basin’s rivers to health and securing strong regional communities and sustainable food and fibre production.

National Urban Water and Desalination Plan (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - 5.6 - - 1.0 - - - 6.5

2014-15 - 1.6 - - 5.5 - - - 7.1

2015-16 - - - - 2.1 - - - 2.1

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) These figures include payments direct to local governments.

The Commonwealth is providing funding for four specific urban water management projects in large urban centres as part of the National Urban Water and Desalination Plan. These projects will help secure water supplies and reduce reliance on traditional rainfall dependent water sources.

National Water Security Plan for Cities and Towns (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 14.2 - 1.3 7.4 0.3 - - - 23.1

2014-15 9.2 - - 0.9 - - - - 10.1

2015-16 2.9 - - - - - - - 2.9

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) These figures include payments direct to local governments.

The Commonwealth is providing funding for six specific urban water management projects and 18 other projects across remote communities, under the National Water Security Plan for Cities and Towns. These projects will assist in the implementation of the COAG Strategy for Water and Wastewater in Remote (including Indigenous) Communities.

Part 2: Payments for Specific Purposes

National Partnership on natural disaster resilience (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 3.4 2.1 6.0 3.1 1.0 0.7 0.7 0.7 17.6

2014-15 10.2 6.3 9.0 4.7 3.1 2.0 2.0 2.0 39.2

2015-16 6.8 4.2 6.0 3.1 2.1 1.3 1.3 1.3 26.1

2016-17 6.8 4.2 6.0 3.1 2.1 1.3 1.3 1.3 26.1

2017-18 nfp nfp nfp nfp nfp nfp nfp nfp nfp

(a) Funding in 2017-18 has been provided for in the Contingency Reserve.

The Commonwealth is providing funding for the National Partnership on natural disaster resilience which supports the States to strengthen community resilience and minimise the impact of a range of natural disasters in Australia.

This National Partnership is a joint funding arrangement that provides the flexibility for States to address their specific natural disaster risk priorities. This arrangement recognises that the Commonwealth and the States have a mutual interest in reducing the impact of, and increasing resilience to, natural disasters. It formalises their commitment to work together with other parties, such as volunteers, the private sector and local government, to achieve this outcome.

National Partnership on pest and disease preparedness and response programmes

The Commonwealth is providing funding for the National Partnership on pest and disease preparedness and response programmes. The funding contributes to a series of projects under national animal and plant pest and disease preparedness and response programmes and surveillance initiatives.

Animal and plant pest and disease eradication component (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 4.2 0.9 11.4 0.1 - - - 1.4 17.9

2014-15 1.0 1.1 8.4 0.1 - - - 0.3 10.9

2015-16 1.6 1.0 8.7 - - - - 0.1 11.4

2016-17 1.6 1.1 9.0 - - - - - 11.7

2017-18 1.6 1.1 10.5 - - - - - 13.1

(a) Funding from 2013-14 is allocated to States based on 2012-13 data and represents indicative estimates only. This funding is conditional on agreed national responses to pest or disease incursions.

Commonwealth funding contributes to national programmes to eradicate exotic animal and plant pests and diseases, which if allowed to establish and spread, would have serious economic and environmental impacts.

The Commonwealth is involved due to the potential implications for biodiversity, market access issues for agricultural products and the need to protect nationally significant environmental assets.

Budget Paper No. 3

Exotic disease preparedness component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.3 .. 0.1 - .. .. - .. 0.4

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Exotic Disease Preparedness Programme was established to improve Australia’s preparedness for emergency and emerging diseases through funding to support the development of technologies and strategies to prevent, control or eradicate disease specifically in wildlife and feral animals, focusing on those that could threaten Australia’s livestock industries.

A savings measure associated with this programme is discussed in

Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on the South Australian River Murray Sustainability Programme

The Commonwealth is providing funding for the National Partnership on the South Australian River Murray Sustainability Programme. The four components of this National Partnership support the Murray-Darling Basin water reforms by contributing to a healthy working river system, strong communities and sustainable food and fibre production.

Irrigation efficiency and water purchase components $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - 14.0 - - - 14.0

2014-15 - - - - 29.0 - - - 29.0

2015-16 - - - - 45.0 - - - 45.0

2016-17 - - - - 23.5 - - - 23.5

2017-18 - - - - 8.5 - - - 8.5

The Commonwealth is providing funding for South Australia to deliver a grants programme to support more efficient delivery and use of water by irrigation water providers and irrigators, as well as delivery of a water access entitlement purchase programme. In total, these components aim to return 36 gigalitres of ‘gap bridging’ long term average annual yield water to the Commonwealth.

Irrigation industry assistance component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - 9.0 - - - 9.0

2014-15 - - - - 17.0 - - - 17.0

2015-16 - - - - 28.0 - - - 28.0

2016-17 - - - - 39.5 - - - 39.5

2017-18 - - - - 16.5 - - - 16.5

Part 2: Payments for Specific Purposes

The Commonwealth is providing funding for South Australia to deliver a grants programme to improve the productivity of the South Australian River Murray irrigation industry.

Regional economic development component $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - 7.0 - - - 7.0

2014-15 - - - - 9.0 - - - 9.0

2015-16 - - - - 7.0 - - - 7.0

2016-17 - - - - 2.0 - - - 2.0

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the redevelopment of the Loxton Research Centre; a programme of industry-led research; and a Regional Development and Innovation programme. This component aims to create opportunities for economic diversification and regional development for Basin communities in South Australia.

Sustainable Australia — Sustainable regional development (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - 0.4 0.4 - 0.1 0.8

2014-15 .. - - - .. .. - - 0.1

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

(a) All payments are made direct to local governments.

The Commonwealth is providing funding to support selected local government authorities in capacity building and other activities associated with the development and/or implementation of regional sustainability planning. This planning will help to ensure that future population change is compatible with the economic, environmental and social wellbeing of Australia.

Sustainable Rural Water Use and Infrastructure Programme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 77.6 187.6 19.0 1.9 46.8 28.0 2.3 0.6 363.8

2014-15 119.8 228.0 28.6 1.3 56.5 13.8 4.5 0.5 453.0

2015-16 158.8 277.1 42.8 0.7 40.8 7.2 3.3 0.2 530.9

2016-17 110.8 190.7 40.6 - 19.2 - 27.0 - 388.3

2017-18 54.5 56.8 6.6 - - - 30.0 - 147.9

The Commonwealth is providing funding for the Sustainable Rural Water Use and Infrastructure Programme. This funding is provided under numerous arrangements, such as the National Partnership on Water for the Future and Water Management Partnership Agreements relating to the Intergovernmental Agreement on Murray-Darling Basin Reform. The programme is improving the efficiency and productivity of rural water management and usage, delivering substantial and lasting water returns to the environment and helping secure a long-term sustainable future for irrigated agriculture.

Budget Paper No. 3

A measure associated with this programme is discussed in Budget Paper No.2, Budget Measures 2014-15.

National Partnership on whale and dolphin entanglements $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 .. .. .. 0.1 .. .. - .. 0.3

2015-16 .. .. .. .. .. .. - .. 0.1

2016-17 .. .. .. .. .. .. - .. 0.2

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on whale and dolphin entanglements. This National Partnership will support State government purchase of equipment and training aimed at improving responses to whale and dolphin entanglements. This funding forms part of the Commonwealth’s broader Whale and Dolphin Protection Plan.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Part 2: Payments for Specific Purposes

CONTINGENT PAYMENTS

Contingent payments arise where the Commonwealth has committed to provide compensation when an event occurs or otherwise guarantees the States’ financial position. Payments to the States will only arise if the relevant event occurs.

Table 2.11 provides information on contingent payments.

Table 2.11: Contingent payments to the States $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments Hepatitis C settlement fund 0.7 0.7 0.7 - -

Natural Disaster Relief and Recovery Arrangements 182.9 97.8 18.0 - -

Total 183.7 98.6 18.8 - -

Contingent payments

Hepatitis C settlement fund $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.5 - - 0.1 0.1 - 0.1 - 0.7

2014-15 0.5 - - 0.1 0.1 - 0.1 - 0.7

2015-16 0.5 - - 0.1 0.1 - 0.1 - 0.7

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is contributing to the participating States’ schemes for out-of-court settlement costs for eligible individuals who contracted Hepatitis C through the blood supply service between 1985 and 1991.

Natural Disaster Relief and Recovery Arrangements (NDRRA)

NDRRA accrual estimates $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 41.1 4.3 135.3 1.7 0.2 0.4 - - 182.9

2014-15 2.5 2.6 92.6 .. 0.1 - - - 97.8

2015-16 - - 18.0 .. - - - - 18.0

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding under the NDRRA to assist the States with relief and recovery assistance following eligible natural disasters. This includes payments to the States in response to recent natural disasters including the bushfires in New South Wales in October 2013 and Victoria in January 2014. Payments are also being made for past disasters such as the January 2013 floods and Tropical Cyclone Oswald, as well as the November 2010 to February 2011 floods, bushfires and Tropical Cyclone Yasi.

Budget Paper No. 3

The Commonwealth recognises a liability equal to the present value of future payments expected to be made to the States under the NDRRA. This is regardless of whether or not a State has completed eligible disaster reconstruction work or submitted an eligible claim under the NDRRA.

The estimated expenses in the table above reflect expected Commonwealth costs associated with disasters that have occurred in 2013-14 and the unwinding of the discount on the provision, which reflects the time value of money.

The estimated cash payments are presented in the table below, illustrating the estimated timing of when the Commonwealth expects to reimburse the States for costs incurred in relation to past disasters.

NDRRA cash estimates $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 472.9 1.0 1,514.5 53.2 - 13.6 - - 2,055.3

2014-15 94.4 95.4 2,787.1 1.2 3.1 - - - 2,981.2

2015-16 - - 668.8 0.3 - - - - 669.1

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

Part 2: Payments for Specific Purposes

OTHER NATIONAL PARTNERSHIP PAYMENTS

The Commonwealth also makes various payments to the States to support other services, including payments in respect of:

â¢ agriculture, forestry and fishing;

â¢ public order and safety;

â¢ recreation and culture;

â¢ tourism; and

â¢ transport and communication.

Table 2.12 provides information on payments to the States to support these services.

Table 2.12: Payments to support other state services $million 2013-14 2014-15 2015-16 2016-17 2017-18

National Partnership payments 2014 G20 leaders' summit security 83.5 65.0 - - -

2018 Gold Coast Commonwealth Games 156.0 - - - -

Addressing insurance costs in North Queensland - 3.1 6.3 3.1 -

Assistance to Tasmania to implement national policy reforms 30.0 - - - -

Australian Capital Territory emergency services 4.0 - - - -

Centenary of Canberra 2013 - joint national programme 1.0 - - - -

Developing demand-driver infrastructure for the tourism industry - 11.0 10.7 10.7 10.7

Financial assistance to local governments Financial assistance grants 1,150.2 2,286.7 2,286.7 2,286.7 2,385.3

Supplementary funding to South Australia for local roads 17.8 - - - -

Legal assistance services 200.6 204.4 207.8 211.6 215.0

Pilot of drought reform measures in Western Australia 1.2 - - - -

Port Arthur Penitentiary restoration - 1.5 - - -

Provision of fire services 18.4 19.0 19.7 20.3 21.1

Remote Indigenous public internet access 2.1 2.2 2.2 2.2 2.3

Seamless National Economy 41.8 - - - -

Sinking fund on state debt .. .. .. .. ..

Total 1,706.5 2,592.9 2,533.4 2,534.7 2,634.3

Budget Paper No. 3

Other National Partnership payments

National Partnership on the 2014 G20 leaders’ summit security $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 83.5 - - - - - 83.5

2014-15 - - 65.0 - - - - - 65.0

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing funding for the National Partnership on the 2014 G20 leaders’ summit security to upgrade Queensland’s policing capacity to support the G20 leaders’ summit in Brisbane, and the finance ministers’ and central bank governors’ meeting in Cairns.

National Partnership on the 2018 Gold Coast Commonwealth Games $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - 156.0 - - - - - 156.0

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on the 2018 Gold Coast Commonwealth Games to support investment in Games-related infrastructure.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on addressing insurance costs in North Queensland $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - 3.1 - - - - - 3.1

2015-16 - - 6.3 - - - - - 6.3

2016-17 - - 3.1 - - - - - 3.1

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on addressing insurance costs in North Queensland to undertake a grants programme for engineering inspections of North Queensland strata title properties. The assessments will provide better information to insurers which will enable them to set premiums that more accurately reflect individual property risks, and help residents of strata title properties to be fully aware of the risks to their properties from natural disasters.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Part 2: Payments for Specific Purposes

Assistance to Tasmania to implement national policy reforms $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - 30.0 - - 30.0

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding to assist Tasmania with budget flexibility in the case of expected challenges arising from the implementation of national policy reforms.

National Partnership on Australian Capital Territory emergency services $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - 4.0 - 4.0

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the National Partnership on Australian Capital Territory emergency services. This funding was used to assist in the operation of the ACT Rural Fire Service, as well as to support the ACT State Emergency Service and the Emergency Management, Risk and Spatial Services programme.

National Partnership on the Centenary of Canberra 2013 — joint national programme $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - 1.0 - 1.0

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided funding for the National Partnership on the Centenary of Canberra 2013 — joint national programme to celebrate the Centenary of Canberra in 2013. These activities included cultural, sporting and civic awareness events which engaged communities across Australia to celebrate the centenary of Canberra’s role as the nation’s capital.

Further details of Commonwealth funding provided for the Centenary of Canberra 2013 can be found in the Infrastructure section of this Part.

Budget Paper No. 3

National Partnership on developing demand-driver infrastructure for the tourism industry (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 ~ ~ ~ ~ ~ ~ ~ ~ 11.0

2015-16 ~ ~ ~ ~ ~ ~ ~ ~ 10.7

2016-17 ~ ~ ~ ~ ~ ~ ~ ~ 10.7

2017-18 ~ ~ ~ ~ ~ ~ ~ ~ 10.7

(a) State allocations are yet to be finalised.

The Commonwealth will provide funding for the National Partnership on developing demand-driver infrastructure for the tourism industry. This National Partnership will fund projects that create and encourage tourism, and assist the tourism industry to meet the national tourism strategy, Tourism 2020.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Financial assistance to local governments — financial assistance grants $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 General purpose financial assistance 255.7 197.5 160.4 86.0 57.8 17.8 13.2 8.2 796.7

Untied local roads grants 102.6 72.9 66.2 54.1 19.4 18.7 11.3 8.3 353.5

Total financial assistance grants 358.2 270.4 226.6 140.1 77.2 36.5 24.5 16.5 1,150.2

2014-15 General purpose financial assistance 506.8 393.4 318.9 173.5 113.9 34.9 26.1 16.4 1,583.9

Untied local roads grants 203.9 144.9 131.7 107.5 38.6 37.2 22.5 16.5 702.8

Total financial assistance grants 710.7 538.3 450.6 280.9 152.5 72.1 48.6 32.9 2,286.7

2015-16 General purpose financial assistance 504.9 393.6 319.5 176.1 113.0 34.3 26.1 16.4 1,583.9

Untied local roads grants 203.9 144.9 131.7 107.5 38.6 37.2 22.5 16.5 702.8

Total financial assistance grants 708.8 538.4 451.2 283.5 151.7 71.6 48.6 32.9 2,286.7

2016-17 General purpose financial assistance 502.9 393.7 320.2 178.6 112.2 33.8 26.1 16.4 1,583.9

Untied local roads grants 203.9 144.9 131.7 107.5 38.6 37.2 22.5 16.5 702.8

Total financial assistance grants 706.8 538.6 451.9 286.1 150.8 71.1 48.6 32.9 2,286.7

2017-18 General purpose financial assistance 522.6 410.8 334.6 189.0 116.1 34.7 27.2 17.1 1,652.2

Untied local roads grants 212.7 151.1 137.4 112.1 40.3 38.9 23.5 17.2 733.1

Total financial assistance grants 735.3 562.0 472.0 301.1 156.4 73.6 50.7 34.3 2,385.3

Part 2: Payments for Specific Purposes

The Commonwealth is providing a financial contribution through State governments for the provision of local government services to the community. Current arrangements for financial assistance grants are made up of general purpose assistance and untied local roads grants. General purpose assistance is the larger component and is distributed between the States on a per capita basis, while untied local roads grants are distributed according to fixed historical shares.

Financial assistance grants are paid to State governments, after which state grants commissions determine the intrastate distribution of the grants between local governments. Both forms of funding are untied and can be spent according to each local government’s own priorities.

A savings measure associated with financial assistance grants is discussed in Budget Paper No. 2, Budget Measures 2014-15.

Financial assistance to local governments — supplementary funding to South Australia for local roads $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - 17.8 - - - 17.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth has provided supplementary funding to South Australia for local roads.

National Partnership on legal assistance services $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 63.4 44.9 41.7 20.2 15.9 6.0 4.5 4.0 200.6

2014-15 64.6 45.8 42.5 20.5 16.2 6.1 4.6 4.0 204.4

2015-16 65.7 46.6 43.2 20.9 16.5 6.2 4.6 4.1 207.8

2016-17 66.9 47.4 44.0 21.3 16.8 6.3 4.7 4.2 211.6

2017-18 68.0 48.2 44.7 21.6 17.0 6.4 4.8 4.2 215.0

The Commonwealth is providing funding for the National Partnership on legal assistance services to the States so they can provide legal assistance to disadvantaged persons in accordance with Commonwealth policy priorities.

National Partnership on the pilot of drought reform measures in Western Australia $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - 1.2 - - - - 1.2

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

Budget Paper No. 3

The Commonwealth is providing funding for the National Partnership on the pilot of drought reform measures in Western Australia. This National Partnership was established to trial a package of measures developed in response to the national review of drought policy, including assistance for farm business planning, on-farm projects and capacity building and community activities, as well as support for farm households and communities.

The aim of the pilot was to better support farmers, their families and rural communities in preparing for future challenges. The pilot trialled measures directed at helping farmers to move from a crisis management approach to risk management. The pilot, which concluded in June 2012, was always limited in its timeframe. Payments to approved applicants under the Building Farm Business measure of the pilot will continue until June 2014.

National Partnership on the Port Arthur Penitentiary restoration $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - - - -

2014-15 - - - - - 1.5 - - 1.5

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth will provide funding for the National Partnership on the Port Arthur Penitentiary restoration. This National Partnership will support conservation works on the Port Arthur Historic Site’s Penitentiary ruin in Tasmania. The funding will contribute to a structural solution to support the building and make it safe for visitors.

Funding for this National Partnership is a new spending measure in the 2014-15 Budget. This measure is discussed in Budget Paper No. 2, Budget Measures 2014-15.

National Partnership on provision of fire services $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 4.0 2.8 2.8 1.3 0.9 0.2 4.8 1.5 18.4

2014-15 4.1 2.9 2.9 1.3 1.0 0.3 4.9 1.6 19.0

2015-16 4.3 3.0 3.0 1.4 1.0 0.3 5.1 1.6 19.7

2016-17 4.4 3.1 3.1 1.4 1.0 0.3 5.3 1.7 20.3

2017-18 4.6 3.2 3.2 1.4 1.1 0.3 5.5 1.7 21.1

The National Partnership on provision of fire services provides the States with equitable payment arrangements for the fire protection of Commonwealth-owned buildings.

National Partnership on remote Indigenous public internet access $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 0.2 - 0.4 0.7 0.2 - - 0.7 2.1

2014-15 0.2 - 0.4 0.7 0.2 - - 0.7 2.2

2015-16 0.2 - 0.4 0.8 0.2 - - 0.8 2.2

2016-17 0.2 - 0.4 0.8 0.2 - - 0.8 2.2

2017-18 0.2 - 0.4 0.8 0.2 - - 0.8 2.3

Part 2: Payments for Specific Purposes

The Commonwealth is providing funding for the National Partnership on remote Indigenous public internet access under the Closing the Gap framework. This National Partnership was established to improve public internet access facilities and provide related computer training in remote Indigenous communities. This funding also covers maintenance of facilities installed in previous years under this arrangement.

National Partnership to Deliver a Seamless National Economy $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 22.2 - 11.5 1.4 4.1 1.6 0.5 0.6 41.8

2014-15 - - - - - - - - -

2015-16 - - - - - - - - -

2016-17 - - - - - - - - -

2017-18 - - - - - - - - -

The Commonwealth is providing reward funding for the delivery by the States of regulatory reforms under the National Partnership to Deliver a Seamless National Economy, aimed at reducing inefficient and costly regulation. Final payments to jurisdictions reflect the achievement of agreed reform outcomes as specified in the National Partnership.

Sinking fund on state debt $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 .. .. - - - - - - ..

2014-15 .. .. - - - - - - ..

2015-16 .. .. - - - - - - ..

2016-17 .. .. - - - - - - ..

2017-18 .. .. - - - - - - ..

The Commonwealth is contributing to the Debt Retirement Reserve Trust Account on behalf of New South Wales and Victoria in accordance with the Financial Agreement Act 1994. Monies standing to the credit of the Account are applied to repurchase State debt that is governed by this legislation.

PART 3: GENERAL REVENUE ASSISTANCE

OVERVIEW OF PAYMENTS

General revenue assistance is a broad category of payments. This assistance is provided to the States without conditions, to spend according to their own budget priorities. The main form of general revenue assistance is the GST entitlement. Other general revenue assistance includes payments in relation to municipal services in the Australian Capital Territory, royalties, and Snowy Hydro Limited tax compensation.

In 2014-15, the States will receive $54.9 billion from the Commonwealth in total general revenue assistance — $53.7 billion for the GST entitlement and $1.2 billion for other general revenue assistance. This represents a 5.9 per cent increase in the GST entitlement compared to the $50.7 billion the States are expected to receive in 2013-14. In 2014-15, total general revenue assistance to the States will represent 13.2 per cent of total Commonwealth expenditure. Total general revenue assistance provided to the States by the Commonwealth is shown in Table 3.1 and Table 3.2 shows a breakdown by State.

Table 3.1: General revenue assistance $million 2013-14 2014-15 2015-16 2016-17 2017-18

GST entitlement 50,720.0 53,710.0 57,020.0 60,440.0 63,810.0

Other payments ACT municipal services 37.3 38.0 38.6 39.3 40.0

Reduced royalties 72.8 54.9 56.9 61.5 56.2

Royalties 1,149.7 983.5 974.5 981.8 928.2

Snowy Hydro Limited tax compensation 76.0 75.0 75.0 75.0 75.0

Total other payments 1,335.8 1,151.4 1,145.1 1,157.6 1,099.4

Total 52,055.8 54,861.4 58,165.1 61,597.6 64,909.4

Table 3.2: General revenue assistance by State (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 15,777.8 11,451.4 10,822.7 2,557.6 4,618.2 1,809.5 1,061.2 2,807.6 52,055.8 2014-15 16,808.1 11,853.4 11,735.7 2,310.1 4,956.3 1,911.4 1,136.5 3,166.4 54,861.4 2015-16 17,602.6 12,588.4 12,658.8 2,405.2 5,251.8 2,095.2 1,204.2 3,384.2 58,165.1 2016-17 18,259.4 13,256.7 13,932.4 2,493.6 5,698.5 2,149.6 1,254.7 3,571.0 61,597.6 2017-18 19,283.5 14,180.6 14,660.3 2,765.3 5,921.3 2,202.9 1,309.5 3,657.7 64,909.4 (a) State splits for royalties are not published due to commercial sensitivities. Therefore, total general

revenue assistance will not equal the sum of the state splits above.

GST ENTITLEMENT TO THE STATES

Under the Intergovernmental Agreement on Federal Financial Relations, the States are entitled to receive payments from the Commonwealth equivalent to the revenue received from the GST. GST revenue refers to the amount of GST recognised by the Australian Taxation Office (ATO), less the amount not remitted to the ATO as at

Budget Paper No. 3

30 June of each financial year. GST entitlement refers to the amount of GST which is entitled to be distributed to the States. GST payments reflect the GST entitlement which is distributed to the States adjusted for any balancing amount from the prior financial year.

Specifically, GST revenue for a financial year varies from the amount of GST paid to the States for that year because of:

â¢ GST revenues which are recognised on a Commonwealth whole-of-government basis, but not remitted to the ATO by 30 June of each financial year, as the revenues will not be remitted until the following financial year;

â¢ penalties, other than general interest charge (GIC) penalties, which are not included in the definition in the Federal Financial Relations Act 2009 of GST to be paid to the States;

â¢ the GST component of sales by Commonwealth agencies which has been collected by those agencies but which, as at 30 June in each financial year, has not been remitted to the ATO, because it is not due to be paid until the next Business Activity Statement is lodged; and

â¢ a balancing adjustment to account for any variation in the previous financial year between the Treasurer’s final outcome determination, and GST payment advances made during that financial year.

States receive monthly advances of GST throughout the year based on the Commonwealth estimate of the GST entitlement. The Treasurer makes a determination of the components of GST revenue collected in the financial year upon receipt of the final outcome after the close of the financial year. Any variation between GST advances and the final outcome is settled in the following financial year.

In 2013-14, an amount of $361.0 million was added to the States’ 2013-14 GST entitlement as a balancing adjustment for the difference between the final amount and advances made during the 2012-13 financial year.

A reconciliation of GST revenue, GST entitlement and GST payments to the States is provided in Table 3.3.

Part 3: General Revenue Assistance

Table 3.3: Reconciling GST revenue, GST entitlement and GST payments to the States $million 2013-14 2014-15 2015-16 2016-17 2017-18

GST revenue 54,321 56,970 60,370 63,740 67,300

less change in GST receivables 3,318 2,992 3,080 3,017 3,201

GST receipts 51,003 53,978 57,290 60,723 64,099

less non-GIC penalties collected 250 260 270 280 290

less GST collected by Commonwealth agencies but not yet remitted to the ATO 33 8 0 3 -1

GST entitlement 50,720 53,710 57,020 60,440 63,810

plus prior year balancing adjustment 361

GST payments to the States 51,081 53,710 57,020 60,440 63,810

Table 3.4 provides a reconciliation of the GST entitlement estimates since the 2013-14 Budget and 2013-14 MYEFO. The reconciliation accounts for policy decisions and parameter and other variations. The GST entitlement in 2014-15 has been revised up by $1.0 billion since the 2013-14 MYEFO.

Table 3.4: Reconciliation of the GST entitlement estimates since the 2013-14 Budget and 2013-14 MYEFO $million 2013-14 2014-15 2015-16 2016-17

GST entitlement at 2013-14 Budget 50,250 52,820 55,800 58,670

Changes between 2013-14 Budget and MYEFO Effect of policy decisions 92 152 232 303

Effect of parameter and other variations -362 -272 -252 -33

Total variations -270 -120 -20 270

GST entitlement at 2013-14 MYEFO 49,980 52,700 55,780 58,940

Changes between 2013-14 MYEFO and Budget Effect of policy decisions -2 4 9 23

Effect of parameter and other variations 742 1,006 1,231 1,477

Total variations 740 1,010 1,240 1,500

GST entitlement at 2014-15 Budget 50,720 53,710 57,020 60,440

Specific policy decisions taken since MYEFO that affect the GST entitlement are shown in Table 3.5. These decisions increase the amount of the GST entitlement by $71.1 million over five years to 2017-18.

Detailed information on policy decisions since the 2013-14 MYEFO is included in Budget Paper No. 2, Budget Measures 2014-15.

Table 3.5: Policy decisions since MYEFO that affect the GST entitlement $million 2013-14 2014-15 2015-16 2016-17 2017-18

Migration Programme - allocation of places for 2014-15 -1.8 -6.0 -11.3 -17.0 -22.8

Reintroduction of fuel excise indexation 0.0 10.0 20.0 40.0 60.0

Total -1.8 4.0 8.7 23.0 37.2

Budget Paper No. 3

Distribution of the GST entitlement among the States

The Commonwealth distributes GST among the States in accordance with the principle of horizontal fiscal equalisation and having regard to the recommendations of the Commonwealth Grants Commission (the Commission).

The Commission recommends GST revenue sharing relativities to be used in calculating each State’s entitlement of the GST pool. The relativities determine how much GST each State receives compared with an equal per capita share and are determined such that, if each State made the same effort to raise revenue from its own sources and operated at the same level of efficiency, each State would have the capacity to provide services and the associated infrastructure at the same standard.

This does not necessarily result in the same standard of government services being delivered — just the equalisation of each State’s capacity to provide the same standard of services. In calculating GST relativities, the Commission takes into account differences in the States’ capacities to raise revenues and differences in the costs the States would incur in providing the same standard of government services, including through acquiring the infrastructure used to deliver those services.

Table 3.6 shows the relativities recommended by the Commission and determined by the Treasurer for 2013-14 and 2014-15, and the Commonwealth projected relativities for distributing GST for 2015-16 to 2017-18. The Commission does not provide projected relativities.

Table 3.6: GST relativities NSW VIC QLD WA SA TAS ACT NT

2013-14 0.96576 0.90398 1.05624 0.44581 1.26167 1.61454 1.22083 5.31414

2014-15 0.97500 0.88282 1.07876 0.37627 1.28803 1.63485 1.23600 5.66061

2015-16(a) 0.96513 0.88240 1.09328 0.36355 1.29491 1.71346 1.23444 5.70038 2016-17(a) 0.94732 0.87560 1.13192 0.34988 1.33452 1.68279 1.21322 5.67391 2017-18(a) 0.95023 0.88592 1.12472 0.36364 1.32193 1.65697 1.19896 5.50247 (a) Treasury projection.

The Commonwealth’s relativity projections utilise a simplified version of the Commission’s workings, starting with each State’s relative fiscal need from the Commission’s most recent Update report, in this case, the Report on GST Revenue Sharing Relativities — 2014 Update. Technical adjustments are then made for estimated changes in the size of the GST pool, State population shares and the distribution of National SPPs. This means that the Commonwealth’s projections do not try to predict future State revenues, expenses or take into account any other major changes in Commonwealth-State financial relations.

Consistent with the Commission’s approach, the projected relativity for an individual year is the average of relativities for three historical assessment years. For example, the 2015-16 projected relativity is based on relativities for 2011-12, 2012-13 and 2013-14.

Part 3: General Revenue Assistance

The detailed calculation for the distribution of the GST entitlement in 2013-14 and 2014-15 is shown in Table 3.7. Table 3.8 shows the distribution of the GST entitlement over the budget year and forward estimates.

Table 3.7: Calculation of GST entitlements (a)

Share of

Estimated Adjusted adjusted Share of

31 December GST population population GST pool

population relativities (1) x (2) % $million

(1) (2) (3) (4) (5)

2013-14 NSW 7,463,711 0.96576 7,208,154 31.0% 15,727.2

VIC 5,793,116 0.90398 5,236,861 22.5% 11,426.1

QLD 4,696,215 1.05624 4,960,330 21.3% 10,822.7

WA 2,554,574 0.44581 1,138,855 4.9% 2,484.8

SA 1,677,635 1.26167 2,116,622 9.1% 4,618.2

TAS 513,657 1.61454 829,320 3.6% 1,809.5

ACT 384,395 1.22083 469,281 2.0% 1,023.9

NT 242,149 5.31414 1,286,814 5.5% 2,807.6

Total 23,325,452 na 23,246,235 100.0% 50,720.0

2014-15 NSW 7,566,847 0.97500 7,377,676 31.2% 16,758.1

VIC 5,898,590 0.88282 5,207,393 22.0% 11,828.4

QLD 4,789,361 1.07876 5,166,571 21.9% 11,735.7

WA 2,638,729 0.37627 992,875 4.2% 2,255.3

SA 1,694,049 1.28803 2,181,986 9.2% 4,956.3

TAS 514,719 1.63485 841,488 3.6% 1,911.4

ACT 391,290 1.23600 483,634 2.0% 1,098.6

NT 246,259 5.66061 1,393,976 5.9% 3,166.4

Total 23,739,844 na 23,645,600 100.0% 53,710.0

(a) Amounts shown in 2013-14 are estimates of each jurisdiction’s GST entitlement based on the estimated total GST pool. These amounts do not take into account the prior year balancing adjustment for underpayments made in 2012-13, totalling $361.0 million, which was paid in 2013-14.

Table 3.8: Distribution of the GST entitlement over budget year and forward estimates (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 15,727.2 11,426.1 10,822.7 2,484.8 4,618.2 1,809.5 1,023.9 2,807.6 50,720.0 2014-15 16,758.1 11,828.4 11,735.7 2,255.3 4,956.3 1,911.4 1,098.6 3,166.4 53,710.0 2015-16 17,552.6 12,563.4 12,658.8 2,348.3 5,251.8 2,095.2 1,165.5 3,384.2 57,020.0 2016-17 18,209.4 13,231.7 13,932.4 2,432.1 5,698.5 2,149.6 1,215.4 3,571.0 60,440.0 2017-18 19,233.5 14,155.6 14,660.3 2,709.2 5,921.3 2,202.9 1,269.4 3,657.7 63,810.0 (a) Amounts shown in 2013-14 are estimates of each jurisdiction’s GST entitlement based on the estimated

total GST pool. These amounts do not take into account the prior year balancing adjustment for underpayments made in 2012-13, totalling $361.0 million, which was paid in 2013-14.

Budget Paper No. 3

Box 3.1: The effect of horizontal fiscal equalisation

It is common for individual States within a federation to have different capacities to raise revenue or deliver services. The practice of equalising revenue capacities and/or expenditure capacities between the States in a federation is common. Australia has had various forms of fiscal equalisation since 1901.

One way to view the degree of horizontal fiscal equalisation is to compare each State’s share of the GST entitlement using the GST relativities, with a notional distribution on an equal per capita basis. In 2014-15, around $5.6 billion (or 10.4 per cent) of the GST entitlement will be redistributed among the States, compared with an equal per capita distribution (Table A).

Table A: Difference from equal per capita distribution, 2014-15 GST distribution Equal per capita 2014-15 distribution Projected Per capita

Budget of GST Redistribution(a) population redistribution

$million $million $million '000 $

NSW 16,758.1 17,119.5 -361.5 7,567 -47.8

VIC 11,828.4 13,345.2 -1,516.8 5,899 -257.2

QLD 11,735.7 10,835.6 900.0 4,789 187.9

WA 2,255.3 5,970.0 -3,714.7 2,639 -1,407.8

SA 4,956.3 3,832.7 1,123.6 1,694 663.3

TAS 1,911.4 1,164.5 746.9 515 1,451.1

ACT 1,098.6 885.3 213.3 391 545.1

NT 3,166.4 557.1 2,609.2 246 10,595.4

Total 53,710.0 53,710.0 5,593.0 23,740

(a) The total redistribution of $5,593 million is the sum of positive items in that column.

Chart A below shows the proportion of the GST entitlement being redistributed in 2014-15 and since the GST commenced.

Chart A: GST redistributed as a proportion of the GST entitlement

2000-01 2002-03 2004-05 2006-07 2008-09 2010-11 2012-13 2014-15

Per cent Per cent

Part 3: General Revenue Assistance

GST administration

States compensate the Commonwealth for the agreed costs incurred by the ATO in administering the GST, including costs incurred by the Australian Customs Service. The GST administration budget for the ATO is estimated to be $692.7 million for 2014-15, as shown in Table 3.9.

Table 3.9: Reconciliation of the GST administration budget $million 2013-14 2014-15 2015-16 2016-17 2017-18

Administration budget at 2013-14 Budget 698.6 715.0 725.4 592.4 na

Total parameter variations from 2013-14 Budget to MYEFO - -7.1 -14.6 -11.5 -

Administration budget at 2013-14 MYEFO 698.6 707.9 710.8 580.9 na

Changes from MYEFO to 2014-15 Budget Parameter variations - -8.4 -10.1 -15.8 -

Other variations - -6.8 -6.8 -5.5 -

Total variations - -15.2 -16.9 -21.3 565.1

Administration budget at 2014-15 Budget 698.6 692.7 693.9 559.6 565.1

less prior year adjustment -11.0

equals State government payments 709.6 692.7 693.9 559.6 565.1

In 2012-13, the GST administration payments made by the States were $11 million less than the combination of the total final audited GST administration cost for 2012-13 and the States’ 2011-12 net underpayment. This underpayment was added to the estimated administration costs of $698.6 million for 2013-14.

OTHER GENERAL REVENUE ASSISTANCE

The Commonwealth makes payments of other general revenue assistance to the States, including:

â¢ payments to the Australian Capital Territory for municipal services;

â¢ compensation for reduced royalties;

â¢ royalties; and

â¢ Snowy Hydro Limited tax compensation.

Similar to GST, other general revenue assistance is provided to the States without conditions, to spend according to their own budget priorities. These payments are detailed below.

Budget Paper No. 3

Table 3.10: Other general revenue assistance $million 2013-14 2014-15 2015-16 2016-17 2017-18

ACT municipal services 37.3 38.0 38.6 39.3 40.0

Reduced royalties 72.8 54.9 56.9 61.5 56.2

Royalties 1,149.7 983.5 974.5 981.8 928.2

Snowy Hydro Limited tax compensation 76.0 75.0 75.0 75.0 75.0

Total other general revenue assistance 1,335.8 1,151.4 1,145.1 1,157.6 1,099.4

Payments in respect of Australian Capital Territory municipal services $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - - - - 37.3 - 37.3

2014-15 - - - - - - 38.0 - 38.0

2015-16 - - - - - - 38.6 - 38.6

2016-17 - - - - - - 39.3 - 39.3

2017-18 - - - - - - 40.0 - 40.0

The Commonwealth provides general revenue assistance to the

Australian Capital Territory to assist meeting the additional municipal costs which arise from Canberra’s role as the national capital; and to compensate the Australian Capital Territory for additional costs resulting from the national capital planning influences on the provision of water and sewerage services.

The level of funding is based upon the findings of the Commonwealth Grants Commission, in its second and third reports on financing for the

Australian Capital Territory, prior to the move to self-government in 1989.

Reduced royalties $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - 72.8 - - - - 72.8

2014-15 - - - 54.9 - - - - 54.9

2015-16 - - - 56.9 - - - - 56.9

2016-17 - - - 61.5 - - - - 61.5

2017-18 - - - 56.2 - - - - 56.2

The Commonwealth provides general revenue assistance to compensate Western Australia for the loss of royalty revenue resulting from the removal of the exemption of condensate from crude oil excise in the 2009-10 Budget.

Royalties (a)

$million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 - - - nfp - - - nfp 1,149.7

2014-15 - - - nfp - - - nfp 983.5

2015-16 - - - nfp - - - nfp 974.5

2016-17 - - - nfp - - - nfp 981.8

2017-18 - - - nfp - - - nfp 928.2

(a) State splits for royalties are not published due to commercial sensitivities.

Part 3: General Revenue Assistance

Royalty payments to Western Australia

The Commonwealth provides general revenue assistance to Western Australia from royalties collected under the Offshore Petroleum (Royalty) Act 2006 in respect of the North West Shelf oil and gas project off the coast of Western Australia. The Commonwealth collects these royalties because it has jurisdiction over offshore areas.

These royalties are shared between the Commonwealth (approximately one third) and Western Australia (approximately two thirds). These payment arrangements are in accordance with the revenue sharing arrangements in section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

Royalty payments to the Northern Territory

The Commonwealth provides general revenue assistance to the Northern Territory in lieu of royalties on uranium mining in the Ranger Project Area, due to the Commonwealth’s ownership of uranium in the Northern Territory.

General revenue assistance is payable biannually at the royalty rate of 1.25 per cent of the net proceeds of sales. These royalties are paid under a continuing agreement established under the 1978 Memorandum of Understanding between the Commonwealth and the Northern Territory.

Snowy Hydro Limited tax compensation $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 50.7 25.3 - - - - - - 76.0

2014-15 50.0 25.0 - - - - - - 75.0

2015-16 50.0 25.0 - - - - - - 75.0

2016-17 50.0 25.0 - - - - - - 75.0

2017-18 50.0 25.0 - - - - - - 75.0

On 28 June 2002, the Snowy Mountains Hydro Electric Authority was corporatised. The assets and business of the Authority were transferred to Snowy Hydro Limited, a company jointly owned by the Commonwealth, New South Wales and Victoria (with 13 per cent, 58 per cent and 29 per cent shareholdings respectively).

The Commonwealth provides compensation payments to New South Wales and Victoria, in the form of general revenue assistance, for Commonwealth income taxes paid by Snowy Hydro Limited in proportion to the States’ shareholdings.

Payments are made in accordance with the Snowy Hydro Tax Compensation Deed between the Commonwealth, New South Wales and Victoria. These taxes would have previously been payable to the States through tax equivalence regime payments.

MIRROR TAX ARRANGEMENTS

The Commonwealth introduced mirror tax arrangements in 1998 to ensure that the States were not financially disadvantaged by the High Court decision in

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Allders International Pty Ltd v Commissioner of State Revenue (Victoria), which invalidated state taxes on Commonwealth places. These arrangements mirror certain state taxes, including payroll taxes, land taxes and stamp duties, with respect to Commonwealth places. The States collect these mirror taxes on behalf of the Commonwealth and bear the administrative costs of collection. All mirror tax revenues are credited to the Commonwealth and simultaneously appropriated to the States. Hence, mirror taxes are recorded as both a Commonwealth revenue and expense, with no net impact on the Commonwealth’s budget position, as shown in Table 3.11.

Table 3.11: Mirror taxes accrued on behalf of the States $million 2013-14 2014-15 2015-16 2016-17 2017-18

Mirror taxes 508.4 524.3 559.8 593.2 615.7

less Payments to State governments 508.4 524.3 559.8 593.2 615.7

Commonwealth Budget impact - - - - -

PART 4: DEVELOPMENTS IN THE CONSOLIDATED NON-FINANCIAL PUBLIC SECTOR

INTRODUCTION

This Part provides a perspective on the financial position of all levels of government in Australia.

It discusses trends in key fiscal indicators including the net operating balance, fiscal balance, cash balance and net debt, at the Commonwealth level, State level, and the consolidated level, which includes local government.

This Part focuses on trends in the non-financial public sector (NFPS) which comprises the general government sector and the public non-financial corporations (PNFC) sector.1 The general government sector provides non-market goods and services such as policing, health and education. The PNFC sector comprises government controlled corporations engaged in providing market goods such as electricity and public transport, but not financial services.

For further information on the fiscal indicators and the institutional structure of the public sectors see Budget Paper No. 1, Budget Strategy and Outlook 2014-15, Statement 9: Budget Financial Statements.

State estimates in this Part come from their most recent publicly available financial reports. Victoria’s are based on their 2014-15 Budget, while the remaining jurisdictions are drawn from their mid-year 2013-14 financial reports. Aggregate State data are only available to 2016-17, so references to the forward estimates in this Part relate to the period 2014-15 to 2016-17.

Additional data tables can be found in Appendix C (available online).

NET OPERATING BALANCE

The net operating balance measures in accrual terms the gap between recurrent expenses and revenue for a given period. This is the headline budget measure used by most States to provide an indication of the medium-term sustainability of the existing level of government services. The Commonwealth does not use net operating balance as a headline fiscal indicator.

1 Due to inter-sectoral transfers, NFPS does not always equal the sum of the general government and PNFC sectors.

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In aggregate, the States are expecting the general government sector to record a net operating surplus of 0.1 per cent of GDP in 2014-15, improving to a surplus of 0.3 per cent of GDP in 2016-17.

In aggregate, on average across the forward estimates, the States are expecting revenue as a proportion of GDP to be 13.9 per cent, which is below the

pre-Global Financial Crisis 10-year average of 14.3 per cent of GDP. The return to surplus reflects a moderation in State expenses as a proportion of GDP.

As shown in Chart 4.1, the consolidated general government sector is expected to record a net operating deficit of 1.2 per cent of GDP in 2014-15, improving to a surplus of 0.3 per cent of GDP in 2016-17.

Chart 4.1: Consolidated net operating balance by sector (a)

-4

-3

-2

-1

-4

-3

-2

-1

2001-02 2004-05 2007-08 2010-11 2013-14 2016-17

Per cent of GDP Per cent of GDP

General Government PNFC NFPS

Estimates

(a) Data for the PNFC sector (and therefore NFPS) are not available beyond 2014-15.

FISCAL AND CASH BALANCES

A fiscal surplus indicates that a government is saving more than enough to finance all of its investment spending and is therefore not contributing directly to the current account deficit. A fiscal deficit indicates that a government needs to borrow or liquidate financial assets in order to fund its capital and/or recurrent expenditures.

As the fiscal balance includes capital transfers and investment in non-financial assets, which are not included in the net operating balance, the difference between the fiscal balance and the net operating balance is the effect of investment in non-financial assets, including infrastructure.

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101

Chart 4.2: Consolidated fiscal balance by sector (a)

-8

-7

-6

-5

-4

-3

-2

-1

-8

-7

-6

-5

-4

-3

-2

-1

2001-02 2004-05 2007-08 2010-11 2013-14 2016-17

Per cent of GDP Per cent of GDP

General Government PNFC NFPS

Estimates

(a) Data for the PNFC sector (and therefore the NFPS) are not available beyond 2014-15.

The fiscal balance of the Commonwealth general government sector is expected to remain in deficit over the forward estimates, however the expected 2014-15 deficit of 1.6 per cent of GDP will decrease in both 2015-16 and 2016-17.

Aggregate State net capital investment is forecast to decline from 0.5 per cent of GDP in 2014-15 to a low of 0.4 per cent of GDP in 2016-17. Despite this decline in net capital investment and improvements in forecast general government State net operating balances over the forward estimates, the aggregate State fiscal balance is expected to remain in deficit.

At the consolidated level, the general government sector fiscal balance is expected to remain in deficit across the forward estimates, although the deficit is expected to narrow from 2.4 per cent of GDP in 2014-15 to 0.8 per cent of GDP by 2016-17. A fiscal deficit of 0.6 per cent of GDP is expected in the PNFC sector for 2014-15, contributing to an NFPS deficit of 3.3 per cent of GDP in 2014-15.

The cash balance is the equivalent of a fiscal balance measured on a non-accrual basis, capturing payments and receipts as they occur. It therefore reflects the extent to which cash is available to a government.

The cash balance of the Commonwealth general government sector is expected to remain in deficit over the forward estimates, with a deficit of 1.8 per cent of GDP in 2014-15 improving to a deficit of 0.6 per cent of GDP in 2016-17. At the State level, the expected 2014-15 deficit of 0.5 per cent of GDP will improve to a deficit of 0.1 per cent of GDP in 2016-17.

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As shown in Chart 4.3, the consolidated general government sector cash balance is expected to be a deficit of 2.6 per cent of GDP in 2014-15, before improving to a deficit of 0.9 per cent of GDP in 2016-17. A cash deficit of 0.7 per cent of GDP is also expected in the PNFC sector in 2014-15, contributing to an NFPS deficit of 3.3 per cent of GDP in 2014-15.

Chart 4.3: Consolidated cash balance by sector (a)

-7

-6

-5

-4

-3

-2

-1

-7

-6

-5

-4

-3

-2

-1

2001-02 2004-05 2007-08 2010-11 2013-14 2016-17

Per cent of GDP Per cent of GDP

General Government PNFC NFPS

Estimates

(a) Data for the PNFC sector (and therefore the NFPS) are not available beyond 2014-15.

NET DEBT

Net debt is the sum of selected financial liabilities (deposits held, advances received, government securities, loans and other borrowing) less the sum of selected financial assets (cash and deposits, advances paid, investments, loans and placements). Net debt does not include superannuation-related liabilities.

As shown in Chart 4.4, consolidated general government sector net debt is expected to increase from 17.4 per cent of GDP in 2014-15 to 18.1 per cent of GDP in 2016-17.

Commonwealth general government sector net debt as a proportion of GDP is expected to increase from 13.9 per cent in 2014-15 to 14.6 per cent of GDP in 2016-17. State net debt as a proportion of GDP is expected to peak at 4.2 per cent in 2014-15, before declining to 3.8 per cent of GDP in 2016-17. The local government sector is expected to continue to have negative net debt, that is, selected financial assets will exceed selected financial liabilities.

Commonwealth net debt is expected to continue to make up the bulk of consolidated net debt.

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Chart 4.4: Consolidated net debt by sector (as at end of financial year) (a)

-10

-5

-10

-5

2001-02 2004-05 2007-08 2010-11 2013-14 2016-17

Per cent of GDP Per cent of GDP

General Government PNFC NFPS

Estimates

(a) Data for the PNFC sector (and therefore the NFPS) are not available beyond 2014-15.

THE AUSTRALIAN LOAN COUNCIL

The Australian Loan Council (Loan Council) is a Commonwealth-State council that coordinates public sector borrowing. It consists of the Prime Minister of Australia and the Premier/Chief Minister of each State and Territory. In practice, each member is represented by a nominee, usually the Treasurer of that jurisdiction, with the Commonwealth Treasurer as Chair.

Current Loan Council arrangements operate on a voluntary basis and emphasise transparency of public sector financing rather than adherence to strict borrowing limits. These arrangements are designed to enhance financial market scrutiny of public sector borrowing and facilitate informed judgments about each government’s financial performance.

The Loan Council traditionally meets annually in March or April to consider jurisdictions’ nominated borrowings for the forthcoming year. As part of the agreed arrangements, the Loan Council considers these nominations, having regard to each jurisdiction’s fiscal position and the macroeconomic implications of the aggregate figure.

Outcome of the 2014 Loan Council meeting

The Loan Council met on 28 March 2014 to consider Loan Council Allocation nominations for 2014-15. The Loan Council approved each jurisdiction’s nominated

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allocation. In aggregate, the nominations represent a deficit of $60.9 billion (Table 4.1). The States nominated a deficit of $16.4 billion and the Commonwealth nominated a deficit of $44.5 billion.

Developments since the 2014 Loan Council meeting

As part of the Loan Council arrangements, all jurisdictions are required to update their Loan Council Allocation to reflect their Budget and to provide an explanation to the Loan Council if they are likely to exceed the tolerance limit.

2014-15 Loan Council Allocation budget updates will be available in the States’ 2014-15 Budgets.

The Commonwealth’s 2014-15 Loan Council Allocation budget update is available in Budget Paper No. 1, Budget Strategy and Outlook 2014-15, Statement 9: Budget Financial Statements, Appendix B.

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Part 4: Developments in the Consolidated Non

- Financial Public Sector

Table 4.1: Loan Council Allocation nominations for 2014-15 (a)

NSW VIC QLD WA SA TAS ACT NT C'wlth Total

$m $m $m $m $m $m $m $m $m $m

Nominated 2014-15 LCAs General government sector cash surplus(-)/deficit(+) 3,315 603 723 1,446 236 50 158 262 30,953

PNFC sector cash surplus(-)/deficit(+) 2,611 2,200 711 894 174 103 88 57 3,251

NFPS cash surplus(-)/deficit(+)(b) 5,926 2,741 1,434 2,340 410 153 246 319 34,204

plus Acquisitions under finance leases and similar arrangements 301 36 59 217 0 0 0 0 0

equals ABS GFS cash surplus(-)/deficit(+) 6,226 2,778 1,493 2,557 410 153 246 319 34,204

minus Net cash flows from investments in financial assets for policy purposes(c) -71 -1 0 0 -25 -6 2 17 -11,484

plus Memorandum items(d) 826 625 1,137 56 -559 62 -9 0 -1,171

Loan Council Allocations 7,123 3,404 2,630 2,612 -124 221 235 302 44,517 60,920

2014-15 tolerance limit(e) 1,607 1,125 1,195 942 342 168 105 117 7,806

(a) Loan Council Allocation (LCA) nominations for 2014-15 reflect best estimates of cash surpluses/deficits. Nominations have been provided on the basis of policies announced up to and included in jurisdictions’ mid-year financial reports. Each jurisdiction will publish an updated LCA estimate as part of its budget documentation. (b) The sum of the general government and PNFC sector balances may not equal the NFPS balance due to inter-sectoral transfers. (c) Net cash flows from investments in financial assets for policy purposes comprise net lending by governments with the aim of achieving government policy as well as

net equity sales and net lending to other sectors or jurisdictions. Such transactions involve the transfer or exchange of a financial asset and are not included within the cash deficit. However, these flows have implications for a government’s call on financial markets. Net cash flows from investments in financial assets for policy purposes are displayed with the same sign as reported in cash flow statements. (d) Memorandum items are used to adjust the NFPS surplus/deficit to include in LCAs certain transactions — such as operating leases — that have many of the characteristics of public sector borrowings but do not constitute formal borrowings. They are also used, where appropriate, to deduct from the NFPS surplus/deficit certain transactions that the Loan Council has agreed should not be included in LCAs, for example, the funding of more than employers’ emerging costs under public sector superannuation schemes, or borrowings by entities such as statutory marketing authorities. Where relevant, memorandum items include an amount for gross new borrowings of government home finance schemes. (e) Tolerance limits are designed, inter alia, to accommodate changes to LCAs resulting from changes in policy. Tolerance limits apply between jurisdictions’ LCA nominations and budget estimates, and again between budget estimates and outcomes. They are calculated as two per cent of NFPS cash receipts from operating activities in each jurisdiction.

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APPENDIX A: PARAMETERS AND FURTHER INFORMATION

This appendix provides information on the parameters used in producing this Budget Paper.

Budget Paper No. 1, Budget Strategy and Outlook 2014-15, Statement 2: Economic Outlook, provides information on the forecasting approach used in the 2014-15 Budget.

POPULATION

Population data are used to distribute funding between the States and in the calculation of annual growth factors.

Estimates of State populations

Table A.1 sets out the State population series used in this Budget Paper.

Table A.1: Population by State, at 31 December million NSW VIC QLD WA SA TAS ACT NT Total

2013 7.464 5.793 4.696 2.555 1.678 0.514 0.384 0.242 23.325

2014 7.567 5.899 4.789 2.639 1.694 0.515 0.391 0.246 23.740

2015 7.671 6.005 4.884 2.724 1.711 0.516 0.398 0.250 24.159

2016 7.776 6.113 4.979 2.812 1.727 0.517 0.405 0.255 24.585

2017 7.883 6.223 5.076 2.901 1.744 0.518 0.412 0.259 25.016

The State populations for 2013-14 to 2017-18 are Treasury estimates of the population of each State on 31 December in the respective year. They are constructed using the latest demographic data available from the Australian Bureau of Statistics (ABS) and Treasury assumptions. These assumptions are in respect of fertility, mortality, net overseas migration and interstate migration.

Fertility

For the 2013-14 Budget, the Treasury fertility assumption was that the Total Fertility Rate (TFR) would fall to 1.85 babies per woman by 2015 and then stay at that level for the remainder of the projection period. Since the 2013-14 Budget, the ABS have revised their historical TFR estimates upwards. The latest published ABS preliminary estimate of the TFR is 1.933 in the 2012 calendar year. For the 2014-15 Budget it is assumed that the TFR drops to 1.90 in 2013 and then remains stable for the remainder of the projection period.

Mortality

The mortality assumptions are based on the medium assumptions used in the ABS Population Projections, 2012-2101 (cat. no. 3222.0). In these assumptions, a continuing decline in mortality rates across Australia, with state differentials persisting, is assumed. Overall, life expectancy is assumed to improve to the year 2017 at the rate observed over the period 1981 to 2011.

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Net overseas migration

For the 2014-15 Budget, the Net Overseas Migration assumption is based on the Department of Immigration and Border Protection’s (DIBP’s) December 2013 Outlook for Net Overseas Migration publication. The DIBP forecasts take into consideration government policy. This includes the decision announced in December 2013 to remove 4,000 Migration Programme places allocated to sponsored family of Illegal Maritime Arrivals. Currently, the migration programme is 203,750 places, 190,000 places under the permanent migration programme, and 13,750 places under the humanitarian migration programme.

Table A.2 shows the net overseas migration assumptions used in this Budget Paper.

Table A.2: Net overseas migration 2013 2014 2015 2016 2017

Net overseas migration, Australia 238,400 246,400 247,500 250,800 252,000

State shares of net overseas migration are estimated by using a weighted average of the three most recent observed years — 2011, 2012 and 2013 — with weights of 1, 2 and 4 respectively.

Interstate migration

Similar to State shares of net overseas migration, the Treasury’s estimates of net interstate migration are based on a weighted average of the three most recent observed years — 2011, 2012 and 2013 — with weights of 1, 2 and 4 respectively. Due to data lags, the 2013 observation includes an assumption for the December quarter based on weighted averages of arrivals and departures for December quarters 2010 to 2012.

Table A.3: Net interstate migration NSW VIC QLD WA SA TAS ACT NT Total

2014 -14,400 4,900 8,250 8,350 -3,350 -1,950 -200 -1,600 -

2015 -14,400 4,900 8,250 8,350 -3,350 -1,950 -200 -1,600 -

2016 -14,400 4,900 8,250 8,350 -3,350 -1,950 -200 -1,600 -

2017 -14,400 4,900 8,250 8,350 -3,350 -1,950 -200 -1,600 -

Appendix A: Parameters and Further Information

109

AGE/GENDER WEIGHTED POPULATIONS

The Treasury’s estimates of State population have been used to calculate the population weighted for hospital utilisation for different age/gender cohorts. The weighted hospital utilisation forms part of the growth factor for the former National Healthcare Specific Purpose Payment (upon which 2013-14 National Health Reform funding is based).

Table A.4: Age/gender weighted population million 2013 2014 2015 2016 2017

Weighted population, Australia(a) 23.562 na na na na

(a) These figures are relevant for National Health Reform funding until June 2014.

CROSS-BORDER ADJUSTMENTS FOR 2013-14 NATIONAL HEALTH REFORM FUNDING

State allocations of 2013-14 National Health Reform funding are published on a population basis, adjusted for cross-border patient flows. The adjustment is calculated by the Administrator of the National Health Funding Body reflecting State estimates of cross-border activity. Such activity occurs when a resident of one state receives hospital treatment in another state. The patient’s resident state compensates the state that treated the patient for the cost of that care via a ‘cross-border’ payment. Commonwealth funding flows under National Health Reform need to be adjusted accordingly.

Table A.5 shows estimated net cross-border adjustments for 2013-14.

Table A.5: Cross-border adjustments to Commonwealth funding flows $million NSW VIC QLD WA SA TAS ACT NT Total

2013-14 -80.2 25.2 15.6 0.3 10.7 -6.2 43.8 -9.2 -

SCHOOL ENROLMENTS

Student enrolment projections are based on a grade progression ratio model, which incorporates student movements between government and non-government sectors. These projections do not take into account future economic, migration or social policy changes. However, they do take into account the proposals by Queensland and Western Australia to transfer the Year 7 primary programme to their secondary programme, starting from 2015. These figures only include students funded by the Australian Government.

Table A.6: School enrolments million 2013 2014 2015 2016 2017

FTE enrolments, government schools(a) 2.351 na na na na

(a) From January 2014 the National Schools SPP was replaced by funding under the Students First programme.

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WAGE, PRICE AND COST INDICES

Table A.7 shows the wage, price and cost indices used in this Budget Paper, rounded to the nearest quarter of a per cent.

Table A.7: Wage, price and cost indices per cent 2013-14 2014-15 2015-16 2016-17 2017-18

Average government schools recurrent costs(a) 5 1/2 na na na na

Consumer Price Index(b) na na na na 2 1/2

Health specific price index(c) 2 na na na na

Health technology index(c) 1 1/4 na na na na

Wage cost index - 1 1 1/2 1 3/4 1 3/4 1 3/4 1 3/4

Wage cost index - 6 1 3/4 2 1/4 2 2 2

(a) This figure is relevant for the National Schools SPP until December 2013. (b) This figure is relevant for public hospitals funding from July 2017 and Students First funding from January 2018. (c) These figures are relevant for National Health Reform funding until June 2014.

DATA SOURCES

The information in Part 4, Appendix B and Appendix C of this Budget Paper is consistent with the ABS Government Finance Statistics reporting framework for the public sector.

Commonwealth data are sourced from the Commonwealth Government Final Budget Outcomes, ABS, and Commonwealth Government Consolidated Financial Statements. See Budget Paper No. 1, Budget Strategy and Outlook 2014-15, Statement 10: Historical Australian Government Data, for more information.

State data for 2013-14 onwards are sourced from States’ 2013-14 mid-year financial reports, with the exception of Victoria which is sourced from the 2014-15 Victorian Budget.

Commonwealth Government budget aggregates have been backcast to 2001-2002 (where applicable) for recent accounting clarification changes that require revisions to the historic series, ensuring that data are consistent across the period.

The 2014-15 Budget also includes revisions to Commonwealth Government budget aggregates that improve the accuracy and comparability of the data through time. See Budget Paper No. 1, Budget Strategy and Outlook 2014-15, Statement 10: Historical Australian Government Data, for more information on these revisions.

Appendix A: Parameters and Further Information

111

FURTHER INFORMATION

Several publications of the ABS also provide information that is relevant to analysing federal financial relations, including:

â¢ Australian Demographic Statistics (cat. no. 3101.0);

â¢ Population Projections, 2012-2101 (cat. no. 3222.0);

â¢ Taxation Revenue, Australia (cat. no. 5506.0);

â¢ Government Finance Statistics, Australia (cat. no. 5512. 0);

â¢ Australian System of Government Finance Statistics — Concepts, Sources and Methods (cat. no. 5514.0);

â¢ Information Paper: Developments in Government Finance Statistics (cat. no. 5516.0); and

â¢ Information Paper: Accruals Based Government Finance Statistics (cat. no. 5517.0).

Several publications by the Commonwealth Grants Commission can also provide information relevant to the analysis of federal financial relations relating to the distribution of GST revenue. In relation to the 2014-15 financial year, the relevant publication is Report on GST Revenue Sharing Relativities — 2014 Update.

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APPENDIX B: TOTAL PAYMENTS TO THE STATES BY GOVERNMENT FINANCE STATISTICS (GFS) FUNCTION

The tables in this Appendix provide information on key fiscal indicators at the Commonwealth, State and local levels, and together at the consolidated level.

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Table B.1: Total payments to the States by GFS function $'000 NSW VIC QLD WA SA TAS ACT NT Total(a)

2013-14 General public services 22,197 - 18,463 1,446 4,070 1,561 537 573 48,847

Public order and safety 69,645 49,723 128,461 21,704 16,897 6,256 13,242 45,820 351,748

Education 4,988,167 3,942,149 3,289,545 1,646,400 1,206,131 390,909 275,990 277,205 16,017,163

Health 4,953,073 3,944,494 3,185,772 1,742,601 1,159,562 372,821 305,039 191,887 15,855,248

Social security and welfare 575,509 812,240 371,688 356,872 136,093 43,116 33,056 83,431 2,412,005

Housing and community amenities 554,595 359,325 503,292 357,218 158,959 38,623 28,872 181,317 2,182,201

Recreation and culture - - 156,000 - - - 991 - 156,991

Fuel and energy 2,383 5,437 4,552 3,412 924 246 382 615 17,951

Agriculture, forestry and fishing 111,396 198,748 43,412 10,510 73,689 40,468 2,570 1,958 482,751

Mining, manufacturing and construction - - - - - - - - -

Transport and communication 2,138,516 2,960,462 1,080,358 347,197 123,963 84,214 64,879 91,846 6,891,435

Other economic affairs - 3,222 3,430 2,719 1,239 75 348 357 11,390

Other purposes 16,177,144 11,726,142 11,184,657 2,699,462 4,713,371 1,846,372 1,085,752 2,824,164 53,406,720

Total payments to the States 29,592,625 24,001,942 19,969,630 7,189,541 7,594,898 2,824,661 1,811,658 3,699,173 97,834,450 less payments 'through' the States 2,872,050 2,361,877 1,942,717 959,697 732,878 188,717 174,524 149,713 9,382,840

less financial assistance grants for local government 358,217 270,396 226,636 140,087 77,219 36,543 24,536 16,518 1,150,152

less payments direct 'to' local government 159,240 81,891 390,665 68,448 25,487 11,154 - 8,630 745,515

equals total payments 'to' the States for own-purpose expenses 26,203,118 21,287,778 17,409,612 6,021,309 6,759,314 2,588,247 1,612,598 3,524,312 86,555,943 (a) Total column may not equal sum of State totals. There is no basis on which to estimate State allocations for a number of payments, which are not reflected in State totals.

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Appendix B: Total Payments to the States by GFS Function

115

Table B.1: Total payments to the States by GFS function (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total(a)

2014-15 General public services - - 3,000 - - - - - 3,000

Public order and safety 71,308 50,958 110,916 22,171 17,240 6,379 9,494 40,620 334,086

Education 5,095,073 4,080,926 3,511,900 1,745,490 1,235,217 382,679 287,167 330,080 16,669,970

Health 5,044,631 4,054,648 3,375,216 1,853,500 1,143,739 381,963 283,322 283,366 16,420,385

Social security and welfare 466,285 786,398 311,754 356,780 106,140 33,101 28,276 48,183 2,139,992

Housing and community amenities 527,967 369,750 464,908 330,524 150,341 35,608 35,000 172,500 2,086,598

Recreation and culture - - - - - 1,500 - - 1,500

Fuel and energy - - - - - - - - -

Agriculture, forestry and fishing 144,962 237,387 50,463 2,319 109,495 26,853 4,778 826 577,083

Mining, manufacturing and construction - - - - - - - - -

Transport and communication 1,590,725 1,044,635 1,420,177 721,099 256,449 98,385 58,535 132,138 5,657,143

Other economic affairs - - - - - - - - 11,029

Other purposes 17,521,383 12,394,225 12,278,839 2,591,115 5,108,920 1,983,531 1,185,177 3,199,266 57,245,988

Total payments to the States 30,462,334 23,018,927 21,527,173 7,622,998 8,127,541 2,949,999 1,891,749 4,206,979 101,146,774 less payments 'through' the States 2,951,431 2,453,017 2,028,863 1,013,886 730,098 195,836 187,892 146,987 9,709,448

less financial assistance grants for local government 710,734 538,278 450,580 280,931 152,544 72,125 48,638 32,907 2,286,737

less payments direct 'to' local government 115,891 90,214 187,329 67,966 33,928 12,721 989 6,222 515,260

equals total payments 'to' the States for own-purpose expenses 26,684,278 19,937,418 18,860,401 6,260,215 7,210,971 2,669,317 1,654,230 4,020,863 88,635,329 (a) Total column may not equal sum of State totals. There is no basis on which to estimate State allocations for a number of payments, which are not reflected in State totals.

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116

Table B.1: Total payments to the States by GFS function (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total(a)

2015-16 General public services - - 7,000 - - - - - 7,000

Public order and safety 72,551 51,839 46,740 22,568 17,549 6,491 9,747 41,515 274,000

Education 5,330,093 4,285,976 3,788,471 1,876,440 1,273,247 402,676 295,476 345,675 17,599,531

Health 5,414,838 4,271,278 3,603,725 1,996,427 1,207,967 443,347 306,527 257,052 17,501,161

Social security and welfare 507,028 411,459 328,277 236,222 115,180 36,393 33,015 46,603 1,717,301

Housing and community amenities 454,965 347,643 422,674 277,158 129,675 32,205 23,195 159,580 1,847,095

Recreation and culture - - - - - - - - -

Fuel and energy - - - - - - - - -

Agriculture, forestry and fishing 172,709 284,888 53,526 671 117,373 19,982 3,647 306 653,102

Mining, manufacturing and construction - - - - - - - - -

Transport and communication 2,186,231 953,090 1,934,254 701,087 641,862 132,781 28,925 134,154 7,990,384

Other economic affairs - - - - - - - - 10,675

Other purposes 18,311,437 13,126,825 13,128,083 2,688,753 5,403,487 2,166,827 1,252,816 3,417,097 60,469,858

Total payments to the States 32,449,852 23,732,998 23,312,750 7,799,326 8,906,340 3,240,702 1,953,348 4,401,982 108,070,107 less payments 'through' the States 3,036,524 2,557,889 2,148,787 1,079,300 760,035 205,916 200,026 153,776 10,143,730 less financial assistance grants for local government 708,768 538,449 451,228 283,517 151,651 71,587 48,643 32,894 2,286,737

less payments direct 'to' local government 212,651 159,714 154,529 109,166 54,628 24,081 989 11,822 727,580

equals total payments 'to' the States for own-purpose expenses 28,491,909 20,476,946 20,558,206 6,327,343 7,940,026 2,939,118 1,703,690 4,203,490 94,912,060 (a) Total column may not equal sum of State totals. There is no basis on which to estimate State allocations for a number of payments, which are not reflected in State totals.

117

Appendix B: Total Payments to the States by GFS Function

117

Table B.1: Total payments to the States by GFS function (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total(a)

2016-17 General public services - - - - - - - - -

Public order and safety 73,883 52,783 47,625 22,990 17,879 6,612 10,009 40,655 277,436

Education 5,811,135 4,597,945 4,176,533 2,048,138 1,350,927 433,573 310,154 365,740 19,095,674

Health 5,849,826 4,493,890 3,933,659 2,207,960 1,305,320 401,340 337,527 234,279 18,763,801

Social security and welfare 561,298 467,175 384,463 216,860 129,324 40,230 42,256 46,109 1,890,889

Housing and community amenities 458,161 349,195 415,033 255,224 119,802 32,439 23,589 234,338 1,887,781

Recreation and culture - - - - - - - - -

Fuel and energy - - - - - - - - -

Agriculture, forestry and fishing 121,816 198,534 51,620 - 83,647 10,002 27,327 - 492,946

Mining, manufacturing and construction - - - - - - - - -

Transport and communication 2,957,412 1,044,784 2,161,153 1,058,745 352,666 123,725 12,397 89,507 9,085,389

Other economic affairs - - - - - - - - 10,675

Other purposes 18,966,196 13,795,260 14,384,216 2,779,685 5,849,302 2,220,683 1,303,331 3,603,896 63,884,346

Total payments to the States 34,799,727 24,999,566 25,554,302 8,589,602 9,208,867 3,268,604 2,066,590 4,614,524 115,388,937 less payments 'through' the States 3,239,325 2,759,492 2,322,247 1,179,432 802,232 223,576 207,139 159,721 10,894,693 less financial assistance grants for local government 706,823 538,606 451,866 286,081 150,776 71,059 48,645 32,881 2,286,737

less payments direct 'to' local government 115,851 86,114 83,329 57,966 28,388 12,681 989 6,222 391,540

equals total payments 'to' the States for own-purpose expenses 30,737,728 21,615,354 22,696,860 7,066,123 8,227,471 2,961,288 1,809,817 4,415,700 101,815,967 (a) Total column may not equal sum of State totals. There is no basis on which to estimate State allocations for a number of payments, which are not reflected in State totals.

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Table B.1: Total payments to the States by GFS function (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total(a)

2017-18 General public services - - - - - - - - -

Public order and safety 72,558 51,390 47,927 23,060 18,112 6,723 10,269 41,552 271,591

Education 5,939,242 4,656,763 4,355,937 2,235,794 1,382,767 440,064 325,037 365,260 19,702,420

Health 6,148,326 4,848,895 3,964,087 2,265,780 1,362,030 405,006 321,345 216,546 19,532,015

Social security and welfare 692,248 498,517 406,831 234,932 136,383 42,328 44,559 38,748 2,097,774

Housing and community amenities 453,239 344,822 417,810 265,813 111,635 31,276 22,684 246,307 1,893,586

Recreation and culture - - - - - - - - -

Fuel and energy - - - - - - - - -

Agriculture, forestry and fishing 65,521 64,623 19,059 - 26,486 10,253 30,327 - 216,269

Mining, manufacturing and construction - - - - - - - - -

Transport and communication 1,981,296 252,324 1,405,589 653,861 258,043 78,106 9,717 30,517 5,676,453

Other economic affairs - - - - - - - - 10,675

Other purposes 20,018,807 14,742,529 15,132,332 3,066,382 6,077,690 2,276,517 1,360,221 3,692,025 67,294,705

Total payments to the States 35,371,237 25,459,863 25,749,572 8,745,622 9,373,146 3,290,273 2,124,159 4,630,955 116,695,488 less payments 'through' the States 3,390,041 2,915,706 2,471,749 1,259,822 839,325 234,591 213,198 166,817 11,492,805 less financial assistance grants for local government 735,278 561,972 471,986 301,076 156,379 73,578 50,742 34,284 2,385,295

less payments direct 'to' local government 115,851 86,114 83,329 57,966 28,388 12,681 989 6,222 391,540

equals total payments 'to' the States for own-purpose expenses 31,130,067 21,896,071 22,722,508 7,126,758 8,349,054 2,969,423 1,859,230 4,423,632 102,425,848 (a) Total column may not equal sum of State totals. There is no basis on which to estimate State allocations for a number of payments, which are not reflected in State totals.

119

APPENDIX C: SUPPLEMENTARY TABLES

The tables in this Appendix provide information on key fiscal indicators at the Commonwealth, State and local levels, and together at the consolidated level. Due to inter-sectoral transfers, non-financial public sector does not always equal the sum of the general government and public non-financial corporations sectors.

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Table C.1: General government sector cash balance by level of government as a percentage of GDP Commonwealth(a) State/local Consolidated(b)

Receipts Payments Cash balance(c) Receipts Payments Cash balance Receipts Payments Cash balance(c)

2001-02 24.9 25.0 -0.1 16.5 15.9 0.6 34.9 34.5 0.4

2002-03 25.5 24.6 0.9 16.6 16.0 0.6 35.9 34.5 1.4

2003-04 25.3 24.3 0.9 16.8 15.9 0.9 36.1 34.3 1.8

2004-05 25.6 24.1 1.5 16.8 16.0 0.9 36.4 34.1 2.3

2005-06 25.6 24.1 1.6 17.0 16.1 1.0 36.6 34.1 2.5

2006-07 25.1 23.3 1.6 16.5 16.8 -0.3 35.9 34.5 1.2

2007-08 25.0 23.1 1.7 16.1 16.4 -0.3 35.3 33.7 1.4

2008-09 23.2 25.1 -2.1 16.2 16.8 -0.6 33.4 36.0 -2.8

2009-10 22.0 26.0 -4.2 17.5 18.5 -1.0 32.4 37.7 -5.5

2010-11 21.5 24.6 -3.4 16.5 17.4 -0.9 31.7 35.8 -4.3

2011-12 22.2 25.0 -2.9 16.6 17.6 -1.0 32.6 36.8 -4.3

2012-13 23.1 24.1 -1.2 15.8 17.2 -1.4 33.4 36.1 -2.9

2013-14(e) 23.0 25.9 -3.1 16.1 17.3 -1.1 33.6 37.9 -4.5

2014-15(e) 23.6 25.3 -1.8 16.4 16.9 -0.5 34.5 36.8 -2.6

2015-16(e) 24.0 24.8 -1.0 16.3 16.6 -0.3 34.6 36.0 -1.5

2016-17(p) 24.4 24.7 -0.6 16.0 16.1 -0.1 34.6 35.4 -0.9

(a) Commonwealth data have been revised in the 2014-15 Budget to improve accuracy and comparability through time. See Budget Paper No.1, Statement 10. (b) The consolidated level comprises the Australian, State, Territory and Local governments. (c) The cash balance is equal to the ABS GFS cash surplus/deficit less net Future Fund earnings. Net Future Fund earnings are not shown in the table. (e) Estimates. (p) Projections.

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Appendix C: Supplementary

T ables

Table C.2: Public non-financial corporations sector cash balance by level of government as a percentage of GDP Commonwealth(a) State/local Consolidated(b)

Receipts Payments Cash balance Receipts Payments Cash balance Receipts Payments Cash balance

2001-02 na na 0.2 5.1 5.3 -0.1 na na 0.0

2002-03 3.4 3.3 0.2 4.9 5.2 -0.3 8.4 8.5 -0.1

2003-04 3.2 3.0 0.2 4.9 5.0 -0.2 8.2 8.1 0.0

2004-05 3.2 3.0 0.2 4.7 5.1 -0.4 8.0 8.2 -0.2

2005-06 3.1 3.2 -0.1 4.8 5.4 -0.6 8.0 8.7 -0.7

2006-07 1.6 1.7 -0.2 4.8 5.5 -0.7 6.4 7.3 -0.9

2007-08 0.7 0.7 0.0 4.7 5.7 -1.0 5.5 6.5 -1.0

2008-09 0.6 0.7 -0.1 4.7 6.1 -1.4 5.5 6.9 -1.5

2009-10 0.6 0.7 -0.1 5.4 6.4 -0.9 6.2 7.2 -1.0

2010-11 0.6 0.7 -0.1 5.0 6.0 -1.0 5.7 6.8 -1.1

2011-12 0.6 0.7 -0.1 4.8 5.4 -0.6 5.5 6.3 -0.8

2012-13 0.6 0.9 -0.3 4.9 5.8 -0.9 5.5 6.7 -1.2

2013-14(e) 0.7 0.9 -0.2 4.7 5.5 -0.7 5.4 6.3 -1.0

2014-15(e) 0.7 1.0 -0.3 4.7 5.1 -0.4 5.3 6.0 -0.7

2015-16(e) na na na 5.0 4.9 0.1 na na na

2016-17(p) na na na 4.5 4.8 -0.3 na na na

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Table C.3: Non-financial public sector cash balance by level of government as a percentage of GDP Commonwealth(a) State/local Consolidated(b)

Receipts Payments Cash balance(c) Receipts Payments Cash balance Receipts Payments Cash balance(c)

2001-02 na na 0.0 20.0 19.5 0.5 na na 0.5

2002-03 na na 1.1 20.0 19.6 0.4 na na 1.3

2003-04 27.6 26.5 1.1 20.2 19.4 0.8 41.8 39.9 1.9

2004-05 28.0 26.3 1.6 20.0 19.5 0.5 41.9 39.8 2.1

2005-06 27.9 26.4 1.5 20.2 19.8 0.4 42.0 40.2 1.8

2006-07 26.2 24.6 1.4 19.7 20.7 -1.0 40.2 39.7 0.3

2007-08 25.5 23.6 1.6 19.3 20.6 -1.3 39.1 38.4 0.4

2008-09 23.6 25.6 -2.2 19.3 21.3 -2.0 37.0 41.0 -4.3

2009-10 22.4 26.5 -4.3 21.0 22.9 -1.9 36.4 42.7 -6.5

2010-11 21.9 25.1 -3.5 19.9 21.8 -1.9 35.6 40.7 -5.3

2011-12 22.6 25.5 -3.1 19.7 21.4 -1.7 36.1 41.1 -5.2

2012-13 23.5 24.9 -1.5 19.1 21.4 -2.4 37.1 41.0 -4.1

2013-14(e) 23.5 26.7 -3.4 19.2 21.1 -1.9 37.1 42.4 -5.5

2014-15(e) 24.2 26.2 -2.1 19.5 20.4 -1.0 38.1 41.2 -3.3

2015-16(e) na na na 19.7 20.0 -0.3 na na na

2016-17(p) na na na 19.0 19.5 -0.4 na na na

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T ables

Table C.4: General government sector fiscal balance by level of government as a percentage of GDP Commonwealth(a) State/local Consolidated(b)

2002-03 25.8 25.1 0.7 16.2 15.5 0.2 35.7 34.4 0.8

2003-04 25.8 25.0 0.7 16.3 15.4 0.5 36.1 34.4 1.1

2004-05 26.3 24.8 1.3 16.2 15.3 0.4 36.4 34.2 1.5

2005-06 26.2 24.3 1.6 16.3 15.2 0.4 36.5 33.5 1.9

2006-07 25.6 23.8 1.5 16.2 15.1 0.2 36.0 33.2 1.6

2007-08 25.8 23.8 1.8 15.7 15.0 -0.3 35.6 32.9 1.4

2008-09 23.8 25.8 -2.4 15.9 15.4 -0.8 33.4 35.2 -3.4

2009-10 22.6 26.2 -4.2 17.0 16.4 -1.2 32.5 35.6 -5.6

2010-11 22.0 25.3 -3.7 16.2 15.7 -1.1 31.9 34.6 -4.7

2011-12 22.8 25.4 -3.0 16.1 15.6 -0.8 32.6 35.1 -4.2

2012-13 23.6 25.1 -1.5 15.4 15.6 -1.3 33.6 35.3 -3.0

2013-14(e) 23.6 26.2 -2.8 15.8 15.9 -1.2 33.9 36.7 -4.3

2014-15(e) 24.0 25.4 -1.6 16.2 15.8 -0.5 34.5 35.7 -2.4

2015-16(e) 24.5 25.2 -0.7 16.1 15.4 -0.4 34.9 35.0 -1.3

2016-17(p) 25.1 25.3 -0.4 15.9 15.2 -0.2 35.1 34.8 -0.8

(a) Commonwealth data have been revised in the 2014-15 Budget to improve accuracy and comparability through time. See Budget Paper No.1, Statement 10. (b) The consolidated level comprises the Australian, State, Territory and Local governments. (c) The fiscal balance is equal to revenue less expenditure less net capital investment; net capital investment is not shown in this table. (e) Estimates. (p) Projections.

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Table C.5: Public non-financial corporations sector fiscal balance by level of government as a percentage of GDP Commonwealth(a) State/local Consolidated(b)

2002-03 3.0 2.9 0.2 4.5 4.4 -0.3 7.6 7.3 -0.1

2003-04 3.0 2.7 0.2 4.4 4.3 -0.3 7.5 7.1 0.0

2004-05 2.9 2.7 0.2 4.3 4.1 -0.4 7.3 6.9 -0.3

2005-06 2.8 3.0 -0.2 4.3 4.2 -0.7 7.2 7.3 -1.0

2006-07 1.4 1.5 -0.2 4.5 4.1 -0.6 6.0 5.7 -0.8

2007-08 0.6 0.6 0.0 4.2 4.0 -1.1 4.8 4.7 -1.1

2008-09 0.6 0.6 -0.1 4.3 4.2 -1.5 4.9 4.9 -1.6

2009-10 0.6 0.6 -0.1 4.9 4.7 -1.1 5.6 5.3 -1.2

2010-11 0.5 0.6 -0.1 4.7 4.7 -0.9 5.4 5.5 -1.1

2011-12 0.5 0.6 -0.1 4.5 4.5 -0.7 5.1 5.1 -0.9

2012-13 0.6 0.6 -0.3 4.5 4.2 -0.7 5.2 4.9 -0.9

2013-14(e) 0.6 0.7 -0.2 4.6 4.4 -0.5 5.2 5.1 -0.7

2014-15(e) 0.6 0.7 -0.3 4.5 4.3 -0.3 5.2 5.1 -0.6

2015-16(e) na na na 4.4 4.2 0.2 na na na

2016-17(p) na na na 4.3 4.1 -0.1 na na na

(a) Commonwealth data have been revised in the 2014-15 Budget to improve accuracy and comparability through time. See Budget Paper No.1, Statement 10. (b) The consolidated level comprises the Australian, State, Territory and Local governments. (c) The fiscal balance is equal to revenue less expenses less net capital investment; net capital investment is not shown in this table. (e) Estimates. (p) Projections. na Comparable data are not available.

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Appendix C: Supplementary

T ables

Table C.6: Non-financial public sector fiscal balance by level of government as a percentage of GDP Commonwealth(a) State/local Consolidated(b)

2002-03 28.2 27.3 0.9 19.1 18.3 -0.1 41.0 39.5 0.7

2003-04 28.1 27.0 1.0 19.1 18.0 0.3 41.1 39.0 1.1

2004-05 28.6 26.9 1.5 19.0 17.9 -0.1 41.4 38.8 1.3

2005-06 28.3 26.6 1.4 18.9 17.8 -0.4 41.3 38.3 1.0

2006-07 26.7 25.0 1.4 19.0 17.6 -0.5 39.9 36.9 0.8

2007-08 26.2 24.2 1.7 18.3 17.5 -1.4 38.7 35.8 0.3

2008-09 24.1 26.2 -2.5 18.5 18.0 -2.3 36.5 38.2 -5.0

2009-10 23.0 26.7 -4.2 20.1 19.2 -2.3 36.0 38.9 -6.7

2010-11 22.4 25.8 -3.8 19.3 18.9 -2.1 35.4 38.2 -5.8

2011-12 23.2 25.9 -3.2 19.0 18.5 -1.6 36.0 38.4 -5.1

2012-13 24.1 25.6 -1.8 18.2 18.3 -2.2 36.9 38.6 -4.2

2013-14(e) 24.1 26.8 -3.1 18.6 18.8 -1.9 37.2 40.2 -5.2

2014-15(e) 24.5 26.1 -1.9 18.9 18.5 -1.1 37.9 39.2 -3.3

2015-16(e) na na na 18.8 18.2 -0.4 na na na

2016-17(p) na na na 18.6 18.0 -0.5 na na na

(a) Commonwealth data have been revised in the 2014-15 Budget to improve accuracy and comparability through time. See Budget Paper No.1, Statement 10. (b) The consolidated level comprises the Australian, State, Territory and Local governments. (c) The fiscal balance is equal to revenue less expenses less net capital investment; net capital investment is not shown in this table. (e) Estimates. (p) Projections. na Comparable data are not available.

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Budget Paper No.

Table C.7: Gross fixed capital formation by sector General Government PNFCs NFPS

Commonwealth State(a) Commonwealth State(a) Commonwealth State(a)

Per cent Per cent Per cent Per cent Per cent Per cent

$m of GDP $m of GDP $m of GDP $m of GDP $m of GDP $m of GDP

2001-02 3,832 0.5 8,671 1.2 3,015 0.4 6,808 0.9 6,846 0.9 15,479 2.1

2002-03 5,224 0.7 8,073 1.0 2,530 0.3 7,936 1.0 7,755 1.0 16,018 2.0

2003-04 4,144 0.5 8,152 0.9 2,941 0.3 8,764 1.0 7,086 0.8 16,507 1.9

2004-05 5,085 0.6 9,078 1.0 3,658 0.4 10,009 1.1 8,743 0.9 19,042 2.1

2005-06 6,440 0.6 10,691 1.1 4,411 0.4 12,894 1.3 10,851 1.1 23,357 2.3

2006-07 6,879 0.6 13,173 1.2 2,774 0.3 16,056 1.5 9,654 0.9 29,175 2.7

2007-08 7,040 0.6 15,069 1.3 1,011 0.1 19,775 1.7 8,051 0.7 34,607 2.9

2008-09 8,956 0.7 18,421 1.5 1,298 0.1 25,076 2.0 10,254 0.8 43,448 3.5

2009-10 10,080 0.8 25,659 2.0 1,460 0.1 24,797 1.9 11,539 0.9 50,393 3.9

2010-11 9,154 0.7 25,930 1.8 1,563 0.1 20,618 1.5 10,716 0.8 46,938 3.3

2011-12 9,402 0.6 23,424 1.6 2,403 0.2 19,539 1.3 11,804 0.8 43,657 2.9

2012-13 6,317 0.4 21,413 1.4 3,678 0.2 17,327 1.1 9,994 0.7 38,560 2.5

2013-14(e) 9,966 0.6 25,219 1.6 2,708 0.2 16,687 1.1 12,674 0.8 41,777 2.6

2014-15(e) 8,309 0.5 24,789 1.5 3,781 0.2 15,312 0.9 12,090 0.7 40,102 2.5

2015-16(e) 7,448 0.4 24,067 1.4 na na 8,280 0.5 na na 32,167 1.9

2016-17(p) 9,411 0.5 21,961 1.2 na na 13,350 0.7 na na 35,430 2.0

(a) This table excludes Local government gross fixed capital formation. (e) Estimates. (p) Projections. na Comparable data are not available.

127

Append

ix C: Supplementary T

ables

Table C.8: Net debt by sector (as at end of financial year) General Government PNFCs NFPS

Commonwealth(a) State/local Consolidated(b) Consolidated(b) Consolidated(b)

Per cent Per cent Per cent Per cent Per cent

$m of GDP $m of GDP $m of GDP $m of GDP $m of GDP

2001-02 38,180 5.1 -4,990 -0.7 29,100 3.9 43,195 5.7 72,294 9.6

2002-03 29,047 3.6 -10,295 -1.3 14,051 1.8 44,099 5.5 58,150 7.3

2003-04 22,639 2.6 -17,444 -2.0 -1,658 -0.2 44,244 5.1 42,587 4.9

2004-05 10,741 1.2 -24,905 -2.7 -20,364 -2.2 47,308 5.1 26,945 2.9

2005-06 -4,531 -0.5 -35,867 -3.6 -52,896 -5.3 49,952 5.0 -2,944 -0.3

2006-07 -29,150 -2.7 -31,968 -2.9 -78,163 -7.2 45,517 4.2 -32,646 -3.0

2007-08 -44,820 -3.8 -26,507 -2.2 -86,221 -7.3 52,110 4.4 -34,110 -2.9

2008-09 -16,148 -1.3 -18,188 -1.4 -44,484 -3.5 72,051 5.7 27,567 2.2

2009-10 42,283 3.3 -5,246 -0.4 29,522 2.3 82,755 6.4 112,276 8.7

2010-11 84,551 6.0 827 0.1 77,250 5.5 86,427 6.1 163,677 11.6

2011-12 147,334 9.9 16,197 1.1 157,642 10.6 93,645 6.3 251,287 16.9

2012-13 152,982 10.0 35,897 2.4 182,700 12.0 104,335 6.9 287,031 18.8

2013-14(e) 197,851 12.5 52,916 3.3 245,438 15.5 113,997 7.2 359,433 22.7

2014-15(e) 226,388 13.9 62,220 3.8 284,154 17.4 120,308 7.4 404,458 24.8

2015-16(e) 246,362 14.4 63,384 3.7 306,208 17.9 na na na na

2016-17(p) 261,280 14.6 65,332 3.6 324,036 18.1 na na na na

Budget Paper No.3

128

Table C.9: General government sector net financial worth by level of government (as at end of financial year) Commonwealth(a) State/local Consolidated(b)

Per cent Per cent Per cent

$b of GDP $b of GDP $b of GDP

2001-02 -78.0 -10.4 61.1 8.1 -16.0 -2.1

2002-03 -82.9 -10.4 78.2 9.8 -3.7 -0.5

2003-04 -72.4 -8.4 96.8 11.2 25.9 3.0

2004-05 -58.9 -6.4 111.0 12.0 53.8 5.8

2005-06 -59.8 -6.0 110.1 11.0 51.9 5.2

2006-07 -35.7 -3.3 130.1 12.0 96.8 8.9

2007-08 -14.7 -1.2 132.7 11.3 120.8 10.2

2008-09 -71.5 -5.7 124.6 9.9 54.4 4.3

2009-10 -144.5 -11.1 115.3 8.9 -25.3 -2.0

2010-11 -198.8 -14.1 128.2 9.1 -66.4 -4.7

2011-12 -355.8 -23.9 57.3 3.9 -295.2 -19.9

2012-13 -312.7 -20.5 74.5 4.9 -234.8 -15.4

2013-14(e) -299.6 -18.9 79.5 5.0 -216.7 -13.7

2014-15(e) -329.2 -20.2 91.0 5.6 -234.6 -14.4

2015-16(e) -342.4 -20.0 103.5 6.1 -235.1 -13.8

2016-17(p) -351.0 -19.6 114.6 6.4 -232.4 -13.0

Table C.10: General government sector net worth by level of government (as at end of financial year) Commonwealth(a) State/local Consolidated(b)

Per cent Per cent Per cent

$b of GDP $b of GDP $b of GDP

2001-02 -11.7 -1.5 428.2 56.8 437.7 58.1

2002-03 -15.3 -1.9 470.2 58.7 476.9 59.5

2003-04 -1.2 -0.1 515.3 59.8 537.6 62.4

2004-05 14.6 1.6 572.9 62.1 612.6 66.4

2005-06 18.0 1.8 609.1 61.0 653.4 65.4

2006-07 46.4 4.3 678.5 62.4 754.1 69.3

2007-08 70.9 6.0 785.7 66.6 888.5 75.4

2008-09 19.4 1.5 878.3 69.8 930.4 73.9

2009-10 -45.9 -3.5 938.5 72.4 928.5 71.6

2010-11 -95.4 -6.8 966.9 68.7 909.8 64.7

2011-12 -247.2 -16.6 935.3 62.9 727.4 48.9

2012-13 -202.7 -13.3 987.3 64.8 824.9 54.2

2013-14(e) -186.4 -11.8 1,025.4 64.8 880.8 55.6

2014-15(e) -212.0 -13.0 1,066.9 65.4 898.1 55.0

2015-16(e) -222.5 -13.0 1,113.7 65.2 936.5 54.8

2016-17(p) -229.0 -12.8 1,158.6 64.6 977.0 54.5

Appendix C: Supplementary Tables

129

Table C.11: General government sector net interest payments by level of government Commonwealth(a) State/local Consolidated(b)

Per cent Per cent Per cent

$m of GDP $m of GDP $m of GDP

2001-02 5,352 0.7 1,369 0.2 6,508 0.9

2002-03 3,758 0.5 582 0.1 4,184 0.5

2003-04 3,040 0.4 -2,364 -0.3 521 0.1

2004-05 2,502 0.3 -3,069 -0.3 -773 -0.1

2005-06 2,303 0.2 -3,822 -0.4 -1,730 -0.2

2006-07 228 0.0 -4,198 -0.4 -4,209 -0.4

2007-08 -1,015 -0.1 1,047 0.1 -174 0.0

2008-09 -1,196 -0.1 -719 -0.1 -2,134 -0.2

2009-10 2,386 0.2 -479 0.0 1,732 0.1

2010-11 4,608 0.3 -363 0.0 4,026 0.3

2011-12 6,609 0.4 393 0.0 6,775 0.5

2012-13 8,285 0.5 na na na na

2013-14(e) 10,725 0.7 na na na na

2014-15(e) 10,517 0.6 na na na na

2015-16(e) 11,549 0.7 na na na na

2016-17(p) 12,210 0.7 na na na na

131

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S ENSITIVE

: C ABINET

APPENDIX D: DEBT TRANSACTIONS

The Commonwealth holds a stock of around $2.8 billion in loans advanced to the States. The States make interest payments and repayments to the Commonwealth in respect of these loans.

The Commonwealth advances the States loans under a range of agreements. These advances have often been over very long repayment periods (some in excess of 50 years), although the terms of each agreement vary considerably.

Most of the interest payments and repayments relate to housing and infrastructure. Payments are also made against loans under agreements for natural disasters and other purposes administered by various Commonwealth agencies.

Total advances, interest and repayments from the States to the Commonwealth are shown in Table D.1.

132

Budget Paper No. 3

Table D.1: Summary of advances, interest and repayments, by year and State $'000 NSW VIC QLD WA SA TAS ACT NT Total

Outstanding loans as at 30 June 2013 Contingent Liabilities Loan to NSW to assist beneficiaries of the Asbestos Injuries Compensation Fund 14,850 - - - - - - - 14,850

Natural disaster relief 118 - 30,203 - - - - - 30,321

Environment Northern Territory - water and sewerage assistance - - - - - - - 9,427 9,427

Housing Commonwealth-State Housing Agreement loans 670,442 - 192,073 180,415 48,324 93,839 - 27,217 1,212,310

Housing for service personnel 44,801 - 25,139 4,723 2,001 - - - 76,664

Other housing - - - - - - 162,493 55,886 218,379

Infrastructure Railway projects - - - 1,601 - - - - 1,601

Sewerage 14,857 - 3,982 - 3,418 - - - 22,257

Other purposes Australian Capital Territory debt repayments - - - - - - 5,543 - 5,543

Loan Council - housing nominations 411,128 - 147,677 252,271 178,475 109,002 - 143,764 1,242,317

133

Appendix D: Debt Transactions

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2013-14 Advances Contingent Liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund 37,800 - - - - - - - 37,800

Natural disaster relief 33,118 - 72,427 - - - - - 105,545

Repayments Contingent liabilities Natural disaster relief -145 - -8,234 - - - - - -8,379

Environment Northern Territory - water and sewerage assistance - - - - - - - -136 -136

Housing Commonwealth-State Housing Agreement loans -36,710 - -9,790 -9,294 -2,338 -4,945 - -758 -63,835

Housing for service personnel -1,413 - -874 -238 -47 - - - -2,572

Other housing - - - - - - -7,619 -2,572 -10,191

Infrastructure Railway projects - - - -350 - - - - -350

Sewerage -7,004 - -1,746 - -1,165 - - - -9,915

Other purposes Australian Capital Territory debt repayments - - - - - - -554 - -554

Loan Council - housing nominations -8,211 - -3,021 -5,237 -3,435 -2,202 - -2,733 -24,839

134

Budget Paper No. 3

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2013-14 Interest Contingent liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund -1,777 - - - - - - - -1,777

Natural disaster relief -42 - -866 - - - - - -908

Environment Northern Territory - water and sewerage assistance - - - - - - - -440 -440

Housing Commonwealth-State Housing Agreement loans -35,608 - -10,118 -9,540 -2,715 -4,961 - -1,414 -64,356

Housing for service personnel -2,010 - -1,125 -211 -90 - - - -3,436

Other housing - - - - - - -7,312 -3,170 -10,482

Infrastructure Railway projects - - - -96 - - - - -96

Sewerage -1,404 - -416 - -326 - - - -2,146

Other purposes Australian Capital Territory debt repayments - - - - - - -697 - -697

Loan Council - housing nominations -21,054 - -7,532 -12,879 -9,071 -5,555 - -7,301 -63,392

Net Financial Flow -44,460 - 28,705 -37,845 -19,187 -17,663 -16,182 -18,524 -125,156

135

Appendix D: Debt Transactions

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2014-15 Advances Contingent Liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund 50,000 - - - - - - - 50,000

Natural disaster relief 1,722 - 23,832 - - - - - 25,554

Repayments Contingent liabilities Natural disaster relief -402 - -10,567 - - - - - -10,969

Environment Northern Territory - water and sewerage assistance - - - - - - - -136 -136

Housing Commonwealth-State Housing Agreement loans -37,096 - -9,920 -9,424 -2,463 -5,028 - -792 -64,723

Housing for service personnel -1,503 - -915 -248 -52 - - - -2,718

Other housing - - - - - - -7,755 -2,703 -10,458

Infrastructure Railway projects - - - -324 - - - - -324

Sewerage -7,703 - -1,919 - -1,037 - - - -10,659

Other purposes Australian Capital Territory debt repayments - - - - - - -555 - -555

Loan Council - housing nominations -8,581 - -3,157 -5,473 -3,590 -2,301 - -2,856 -25,958

136

Budget Paper No. 3

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2014-15 Interest Contingent liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund -4,433 - - - - - - - -4,433

Natural disaster relief -593 - -1,896 - - - - - -2,489

Environment Northern Territory - water and sewerage assistance - - - - - - - -555 -555

Housing Commonwealth-State Housing Agreement loans -33,794 - -9,643 -9,084 -2,588 -4,720 - -1,381 -61,210

Housing for service personnel -1,947 - -1,087 -200 -88 - - - -3,322

Other housing - - - - - - -6,969 -2,918 -9,887

Infrastructure Railway projects - - - -76 - - - - -76

Sewerage -705 - -242 - -189 - - - -1,136

Other purposes Australian Capital Territory debt repayments - - - - - - -627 - -627

Loan Council - housing nominations -20,720 - -7,407 -12,661 -8,931 -5,464 - -7,189 -62,372

Net Financial Flow -65,755 - -22,921 -37,490 -18,938 -17,513 -15,906 -18,530 -197,053

137

Appendix D: Debt Transactions

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2015-16 Advances Contingent Liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund 25,000 - - - - - - - 25,000

Natural disaster relief - - - - - - - - -

Repayments Contingent liabilities Natural disaster relief -4,461 - -10,567 - - - - - -15,028

Environment Northern Territory - water and sewerage assistance - - - - - - - -136 -136

Housing Commonwealth-State Housing Agreement loans -37,130 - -9,955 -9,543 -2,596 -5,052 - -828 -65,104

Housing for service personnel -1,595 - -976 -263 -57 - - - -2,891

Other housing - - - - - - -7,854 -2,839 -10,693

Infrastructure Railway projects - - - -287 - - - - -287

Sewerage -1,342 - -964 - -648 - - - -2,954

Other purposes Australian Capital Territory debt repayments - - - - - - -555 - -555

Loan Council - housing nominations -8,967 - -3,299 -5,719 -3,751 -2,404 - -2,985 -27,125

138

Budget Paper No. 3

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2015-16 Interest Contingent liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund -6,738 - - - - - - - -6,738

Natural disaster relief -617 - -2,118 - - - - - -2,735

Environment Northern Territory - water and sewerage assistance - - - - - - - -548 -548

Housing Commonwealth-State Housing Agreement loans -31,943 - -9,156 -8,618 -2,452 -4,472 - -1,345 -57,986

Housing for service personnel -1,881 - -1,047 -189 -86 - - - -3,203

Other housing - - - - - - -6,620 -2,781 -9,401

Infrastructure Railway projects - - - -58 - - - - -58

Sewerage -104 - -71 - -91 - - - -266

Other purposes Australian Capital Territory debt repayments - - - - - - -558 - -558

Loan Council - housing nominations -20,366 - -7,273 -12,429 -8,781 -5,366 - -7,072 -61,287

Net Financial Flow -90,144 - -45,426 -37,106 -18,462 -17,294 -15,587 -18,534 -242,553

139

Appendix D: Debt Transactions

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2016-17 Advances Contingent Liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund - - - - - - - - -

Natural disaster relief - - - - - - - - -

Repayments Contingent liabilities Natural disaster relief -4,655 - -13,731 - - - - - -18,386

Environment Northern Territory - water and sewerage assistance - - - - - - - -136 -136

Housing Commonwealth-State Housing Agreement loans -37,268 - -10,033 -9,596 -2,736 -5,105 - -865 -65,603

Housing for service personnel -1,697 - -1,037 -277 -63 - - - -3,074

Other housing - - - - - - -7,972 -2,983 -10,955

Infrastructure Railway projects - - - -224 - - - - -224

Sewerage - - -52 - -340 - - - -392

Other purposes Australian Capital Territory debt repayments - - - - - - -555 - -555

Loan Council - housing nominations -9,370 - -3,447 -5,976 -3,920 -2,512 - -3,119 -28,344

140

Budget Paper No. 3

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2016-17 Interest Contingent liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund -7,242 - - - - - - - -7,242

Natural disaster relief -543 - -1,790 - - - - - -2,333

Environment Northern Territory - water and sewerage assistance - - - - - - - -542 -542

Housing Commonwealth-State Housing Agreement loans -30,078 - -8,665 -8,142 -2,309 -4,222 - -1,307 -54,723

Housing for service personnel -1,810 - -1,004 -178 -83 - - - -3,075

Other housing - - - - - - -6,267 -2,637 -8,904

Infrastructure Railway projects - - - -42 - - - - -42

Sewerage - - - - -38 - - - -38

Other purposes Australian Capital Territory debt repayments - - - - - - -488 - -488

Loan Council - housing nominations -19,992 - -7,133 -12,184 -8,623 -5,264 - -6,946 -60,142

Net Financial Flow -112,655 - -46,892 -36,619 -18,112 -17,103 -15,282 -18,535 -265,198

141

Appendix D: Debt Transactions

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2017-18 Advances Contingent Liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund - - - - - - - - -

Natural disaster relief - - - - - - - - -

Repayments Contingent liabilities Natural disaster relief -4,655 - -16,710 - - - - - -21,365

Environment Northern Territory - water and sewerage assistance - - - - - - - -136 -136

Housing Commonwealth-State Housing Agreement loans -37,531 - -10,109 -9,737 -2,883 -5,151 - -904 -66,315

Housing for service personnel -1,813 - -1,089 -287 -69 - - - -3,258

Other housing - - - - - - -8,131 -3,135 -11,266

Infrastructure Railway projects - - - -161 - - - - -161

Sewerage - - - - -168 - - - -168

Other purposes Australian Capital Territory debt repayments - - - - - - -555 - -555

Loan Council - housing nominations -9,792 - -3,602 -6,246 -4,096 -2,626 - -3,260 -29,622

142

Budget Paper No. 3

Table D.1: Summary of advances, interest and repayments, by year and State (continued) $'000 NSW VIC QLD WA SA TAS ACT NT Total

2017-18 Interest Contingent liabilities Loan to NSW to assist beneficiaries of the

Asbestos Injuries Compensation Fund -7,612 - - - - - - - -7,612

Natural disaster relief -465 - -1,511 - - - - - -1,976

Environment Northern Territory - water and sewerage assistance - - - - - - - -535 -535

Housing Commonwealth-State Housing Agreement loans -28,189 - -8,166 -7,660 -2,158 -3,966 - -1,268 -51,407

Housing for service personnel -1,735 - -958 -166 -80 - - - -2,939

Other housing - - - - - - -5,908 -2,486 -8,394

Infrastructure Railway projects - - - -29 - - - - -29

Sewerage - - - - -14 - - - -14

Other purposes Australian Capital Territory debt repayments - - - - - - -418 - -418

Loan Council - housing nominations -19,595 - -6,984 -11,925 -8,456 -5,156 - -6,813 -58,929

Net Financial Flow -111,387 - -49,129 -36,211 -17,924 -16,899 -15,012 -18,537 -265,099

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