Garnaut Fitzgerald Review of Commonwealth-State Funding

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Chapter 5: Specific Purpose Payments and Overall Payments to the States The Australian National Training Authority Act 1992 requires States to provide the Australian National Training Authority with an annual audit report, which must specify funds spent over the year and certify that amounts were spent according to the purposes for which the Authority allocated them. In addition the States are required to contribute to the annual national report on vocational education and training. Commonwealth–State Housing Agreement The Commonwealth-State Housing Agreement covers housing assistance for people whose needs for appropriate housing, in the judgement of the parties, cannot be met by the private market. The agreement covers public and community housing, home purchase assistance and private rental assistance. About 80 per cent of the funding is provided as base funding, while the remaining 20 per cent consists of identified programs for Indigenous housing, community housing and crisis accommodation. Base funding is distributed between States on a per capita basis and is subject to a 1 per cent efficiency dividend each year. It is also contingent on States matching 50 per cent of the Commonwealth’s contribution from their own sources, with restrictions on how States can meet this requirement. Funds from the sale of assets created from previous agreement funding cannot be used for matching. The identified programs are distributed among the States by the Commonwealth. Commonwealth–State Housing bilateral agreements include performance measures that States must report against. Where requirements have not been met, the Commonwealth may withhold a portion of financial assistance until it is satisfied that obligations have been met. Supported Accommodation Assistance Program The Supported Accommodation Assistance Program involves the Commonwealth contributing to the funding of transitional accommodation and a range of related support services for the homeless. The current program runs from 2000–05. In conjunction with the States, the Commonwealth is responsible for developing a national strategic plan, evaluation, data, research and reporting. The States manage the program and its day-to-day administration. The Commonwealth contributes 60 per cent and the States contribute 40 per cent of the base funding. This is maintained in real terms via annual indexation of Commonwealth funding and is contingent on States meeting the accountability and reporting requirements in the agreement. Unlike previous agreements, the current program includes growth funds that the Commonwealth does not require the States to match. The program is underpinned by a memorandum of understanding that requires the program to focus on the achievement of outcomes and be managed and evaluated on the basis of results. Outcomes and performance indicators now form part of the reporting framework in bilateral agreements between the Commonwealth and each State. Under previous agreements, reporting was tied to financial accountability and included detailed reporting on individual services and activities. FINAL REPORT [68]
Chapter 5: Specific Purpose Payments and Overall Payments to the States Home and Community Care The Home and Community Care SPP funds community care services for the frail aged and younger people with disabilities, and their carers. The program aims to support people who live at home and avoid premature or inappropriate admission to residential care. Agreements are made between the Commonwealth Department of Health and Aged Care and each State health department. This is one of the more complex SPP arrangements, even after simplification by removing the need for Commonwealth approval of individual projects. The Commonwealth provides approximately 60 per cent and the States approximately 40 per cent of funding, with all money going into one pool and being subject to the same conditions. Funding levels are determined annually through a system of Commonwealth offers and State replies. The Home and Community Care SPP has extensive administrative arrangements. • A National Triennial Plan (jointly agreed to by Commonwealth and State Ministers) sets out priorities, strategic directions and estimated funding for the next three years. • National Program Guidelines have been developed over time that set outline parameters for the national program and guide the setting and monitoring of program standards, accountability, assessment and fees. The Commonwealth and State Ministers jointly agree on the application of the guidelines in each State. • A jointly approved Program Management Manual. • Advisory and consultative mechanisms at national, State and regional levels. • Each State must agree with the Commonwealth on an annual plan, which sets out priorities (determined via community consultation) and proposed funding and outputs. States may vary actual regional outputs and funding slightly for each region. • States can approve individual projects within regions, as long as they advise the Commonwealth of approvals within fourteen days. Unless otherwise agreed, Commonwealth and State Ministers announce project approvals and funding allocations jointly. • At the end of each financial year, the States report to the Commonwealth whether planned outputs were achieved and whether funding was allocated as planned. Reports must include data collected by service providers on the client characteristics, and the number, type and quality of services provided. • States are required to enter agreements with service providers, that set out the services to be provided (in measurable outputs) the quality of standards to be achieved and the means of monitoring and measuring the standards. • Comprehensive quarterly data collection requirements. If the Commonwealth has reasonable grounds (e.g. service outputs not being attained), it may revert to the previous arrangement where the Commonwealth and State approved individual projects jointly. It can withdraw funding in the following year if States do not meet the conditions of the agreement. FINAL REPORT [69]
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Review of Commonwealth-State Fundin
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Review of Commonwealth-State Fundin
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TABLE OF CONTENTS CHAPTER 9: Equity
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THE REVIEW COMMITTEE FINAL REPORT [
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EXECUTIVE SUMMARY Overall assessmen
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EXECUTIVE SUMMARY Each State would
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CHAPTER 1: Overview and Summary of
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Page 58 and 59: CHAPTER 4: Allocation of General Pu
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Page 118 and 119: CHAPTER 7: Other Federations FINAL
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CHAPTER 8: Federal Policy Effects o
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CHAPTER 9: Equity Chapter 1 notes t
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CHAPTER 9: Equity Both SPPs and gen
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CHAPTER 9: Equity Table 9.3 shows t
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CHAPTER 9: Equity 9.3 Horizontal di
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CHAPTER 9: Equity Many ways to rais
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CHAPTER 10: Efficiency and Economic
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CHAPTER 11: Simplicity, Transparenc
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CHAPTER 12: Overall Assessment and
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CHAPTER 13: Commonwealth-State Fina
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APPENDIX A: National Health and Age
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APPENDIX A: National Health and Age
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APPENDIX B: National Education and
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APPENDIX C: National Indigenous Com
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APPENDIX C: National Indigenous Com
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APPENDIX D: Minimum Cost of Governm
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APPENDIX E: Consultation • Local
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APPENDIX E: Consultation • VICRoa
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GLOSSARY Efficiency: allocative eff
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GLOSSARY merit goods (health, educa
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FINAL REPORT [234] GLOSSARY
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BIBLIOGRAPHY Buchanan, JM 2001, Fis
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BIBLIOGRAPHY Government of Victoria
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BIBLIOGRAPHY Watts, RL 1999, Compar
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INDEX E economic activity / growth
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INDEX O other Federations Canada ·
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Garnaut Fitzgerald Review of Commonwealth-State Funding

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