ACT TargetedAssistanceStrategy

December 2011

1.Background

TheACTGovernment’svisionfor Canberraisthat:

“Canberrawill berecognisedthroughouttheworldasatrulysustainableandcreativecity; asacommunitythatissociallyinclusive-acknowledgingandsupporting those whoare vulnerableand in needand enablingalltoreachtheirfullpotential:asacentreofeconomic growth and innovation;as theproudcapitalof thenation andhomeof itspre-eminent culturalinstitutions;asaplaceofgreatnaturalbeauty”(CanberraPlan;Towardsoursecond century).

TheCanberraPlan– TowardsOurSecond Centuryis thekeydocumentoutliningthe Government’scommitmentto theACTcommunityincludingtheuseofconcessionstoease financial pressureon lowincomehouseholdsandfosteran inclusive communitythat supportsvulnerablepeople.

Inresponseto thevisionof beingasocially inclusive,fairandequitablecommunity,the Governmenthasdevelopedarangeof planstosupportsocial inclusionacrossthe communityincluding:

  • ACTSocial Plan
  • ACT Children’sPlan
  • ACT YoungPeoplePlan
  • ACTWomen’sPlan
  • AffordableHousing ActionPlan
  • StrategicPlanforPositive Ageing
  • FutureDirections(ACTDisabilityPlan)
  • AccessiblePublicTransport ActionPlan
  • Primaryhealthcarestrategy

TheACTGovernmentrecognisesthat whilstwearein the maina well educatedandaffluent community,therearethose lesswelloffamongstuswhocannoteasily cope with evensmall changesin theireconomiccircumstances.Itiswith thesevulnerablemembersof our communityin mindthattheGovernmenthascontinuedtodevelopandexpand the Governmentconcessionsprogram.

TheACTGovernment’sConcessionsProgramaimstopromoteequityin thestandardof living andaccessto essentialservicesfor allmembersof theACTcommunity.Concessionsfosteraccesstoandaffordabilityofessentialservicesby providing discounts on feesand chargesfor services suchas transport,electricityandwateror are deliveredthroughrebates followingapurchaseof goodssuchasspectacles.

TheACTGovernmentundertookareviewof concessions in2008.Theresultingpolicy focused onsupporting lowincomehouseholds andindividualstoenhanceequityandaccess to essentialservices.TheACTConcessions Policy(2008)reflectstheprinciples ofequity, effectiveness,accessibilityand transparency.Thismeansthatthepolicyistargetedtothose with thegreatestneeds,supportsaccesstoessentialservices,andensuresconcessions informationisaccessibletoalllowincome individuals andhouseholds.The policyisavailableat:

Theinitiativescompletedsincethe Reviewinclude anonlineportal,policyframeworkand thecentralisingof mostconcessionpaymentsin SharedServices.

TheACTGovernmenthasregularlyamendedconcessionsincludingelectricity,gas, water andwastewater,tokeeppace withrising costs.

Thereareapproximately30 ACTGovernmentconcessions,the valueof which in 2011was

$34.7mandcoveredareassuchasgeneralrates,motorvehicleregistration,licencesand transport.Recentexamplesofchangestoconcessionsinclude thefollowing:

  • On1July 2010the ACTGovernmentincreasedthe energyrebateby$20.00and aligned the rebatetoCPIin theoutyears.
  • The2011-12ACTBudgetprovided$12.3million overfour yearstoincreasethe concessionsavailableto low-incomehouseholdstoassistwiththecostofenergyand water.Thisincreaseprovided25,000eligiblehouseholdswith upto$131perannum off theirutilitybills. Thiswasinaddition toexistingconcessionsavailable.

The capacityof theACTGovernmenttosustainsupportfor concessionsaswellasthewide rangeofservicestotheCanberracommunityisbasedonits abilitytoeffectivelyand efficiently manageitsavailableresources.TheACTGovernmentreceives37%of itsrevenue fromtheCommonwealthGovernmentin theformof grantsand programfundsandthe remainderhastoberaisedfromthe communityintheformoflocaltaxesandcharges.

Thefairness,levelandsustainabilityof ourACTtaxsystemisintegraltosupportingand servicingthe communityasweendeavourtomakeCanberraasustainableandcreativecity.

InAugust2010thenTreasurerKatyGallagherannounced thetermsofreferencefortheACT TaxationReviewwhichwas commissionedtoconsiderthe overallefficacyof thetaxsystem, currentrevenuestreams,and the sustainabilityof the taxbase.

TheTermsof Referencefor the Reviewwereasfollows:

  1. TheReviewwillproviderecommendationsand findingson theoverall efficacyof thetax systemincluding:
  2. whetherthemix of taxescurrentlyleviedisappropriate;
  3. whetherthecurrentACTtaxbaseisequitablyand effectivelydistributed;
  4. onoptionstoensure revenuecertaintyandsustainabilityofthetaxbase;
  5. whetherreformsarerequiredtoimproveefficiencyandequityof thetaxbase; and
  6. completingasocial impact assessmentofany proposedreforms.
  7. Thisreviewisintendedtocomplementand build on therecentlycompletedCommonwealthreviewoftaxation.Itshould makespecificrecommendations:
  8. having regardtotheTerritory’sexpenditureonservices;
  9. on theimpact ofsignificant changesto Commonwealthtaxationsettingsin thenear tomediumterm;and
  10. identifyingopportunitiestoengage,bothresponsivelyand proactively,with potentialreformstoarise fromthisprocess.
  11. Stateandlocalgovernmentsare limited in thenumberof taxestheyareabletoapply.
  12. Thereviewshould:
  13. belimited totaxesleviedby theACTGovernment;
  14. consideroptionstoensurerevenuecertainty;
  15. providesufficientrevenuetoensurethatimportantcommunityservicescontinueto beprovided;and
  16. haveregardtotheunique economic,legislativeand policy contextof theACT includingitsleasehold landsystem,economiccompositionand theroleofthe Commonwealth.

Thereviewisduetoreport in November2011.

TheGovernmentisalsocommittedtodevelopingand deliveringpoliciesandservices,based ona fullassessmentof impacts,includingeconomic,social andenvironmentalimpacts.

Tosupportthiscommitment,in June2011theACTGovernmentreleaseda discussionpaper on thedevelopmentofanacross-governmenttriplebottomlineassessmentframework.

Theassessmentframeworkaimsto embedsustainabilitywithindecision-makingprocessesbyfacilitatingbroadanalysis of theimpacts ofGovernmentdecisions.Thisassessment frameworkwill complementtriplebottomlinereportingalreadyembedded inannual reports.

2.Current Context

Thecurrentsafetynet largelycomprisesCommonwealthincomesupportpaymentsand state-basedconcessions.TheCommonwealthGovernmenthasincreasedarangeof income supportpaymentsin 2011.TheACTGovernmentin2010increasedtheenergyrebateand in2011increasedconcessionstoassist withwaterand energybills.

TheACTGovernmentcontinuestopay closeattentiontoassistancemeasuresfor low income and vulnerable households.

ACTEmergencyFinancialand MaterialAssistance(EFMA),previouslycalled‘emergency relief’,assistspeople in temporaryfinancial crisisthroughshorttermassistance,and referral tootherprogramstoaddress thecausesof financial crisis and anyunderlyinglongterm issues.

In 2011-12theACTGovernmentisproviding$1.101millionperannuminrecurrentfunding for EFMAtopeopleexperiencingdisadvantage. FundsareprovidedtoStVincentdePaul Society,theSalvation Armyand UnitingCareKippaxtoassistpeoplein financial crisis.

TheACTEmergencyFinancial and MaterialAssistanceprovidersreported7,674occasionsof assistanceprovidedbetweenJanuaryand June2011.

Anecdotalfeedbackfromprovidersisthatdemandforthis programcontinuestogrowand thattheyare seeingnewindividuals/families thathaveneveraccessedtheservicebefore.

Oneof thechallengesfortheACTGovernmentintargetinggovernmentassistanceisthefactthatmuchof theACT data collectedandreportedon nationallyindicates above-average salarieswhich canmaskunderlyingareasof disadvantageandneed.

3.ACT TargetedAssistanceStrategy

TheACTGovernmenthascommissionedanACTTargetedAssistanceStrategytobe developedbylocal expertsin thefieldsofcommunityservice,ACTGovernmentand financial services.

On1September2011theChief Minister,KatyGallagher,and theMinisterfor Community Services,Joy Burch,heldaCommunityRoundtable to consult communityorganisations funded bytheACTGovernmentaboutdevelopingnewapproachestofamilies facing financial stress–notonlyincomesupportrecipients,butalso tolow incomehouseholds who currentlysitjustabove thesafetynetand are notinreceiptofdirectgovernment financial assistance.

DiscussionattheRoundtable identifiedarangeof ideasandoptions. Somecanbeactioned now; somerequirefurtheranalysistoconsidercostsandimplementationstrategies.

Theseoptionsincluded:

  • developingflexible paymentoptionsforfees andchargesforthose Canberransstrugglingtomeettheireverydaycoststohelpmanagetheir household bills by smoothingout thepeaks.Thisincludesextendingthe periodof timeinwhichfines have tobepaid byupto6monthstoensure unexpectedcostsdon’tpreventpeoplefrompaying for essentials;
  • includingaccesstosociallyresponsiblebankingproductssuchaslow-interest loansaspartof theACTGovernmentBankingcontract;
  • developingarrangementstoextendthebenefitsofGovernmentpurchasing powertoassist non-governmentorganisations;
  • developingoptionstoenhance currentfood bankarrangementsandaccessin theACT;
  • establishingacommunitysupportwebsitethatprovidesinformationon the widerangeofsupportsandconcessionscurrentlyavailable;
  • workingwith our communitysectorpartnerstostreamlineservicepurchasing arrangementsandreduceoverheads;
  • continuedaccessto emergencyfinancialassistance;
  • continuingtoprovideenergyefficiencyinitiativestoreducehouseholdcosts;
  • encouragingdevelopmentof employmentpathwaysand job readiness programs;
  • consideringnewcommunitytransportmodels;
  • earlyinterventionwithpublichousingtenantstobettermanagedebt;and
  • reviewingeligibilityforconcessions.

Furthertothis, theExpertPanelwilldevelopan evidence-basedTargetedAssistance StrategythatincludesoptionsforACTGovernmentaswellascommunity,market,business andindividualresponses.

TheworkwillalsoneedtotakeintoaccountpolicyleversavailabletotheACTGovernment torespondto costof living pressures,acknowledgingthe roleof theCommonwealth Governmentinsettingpaymentlevelsforpensions andallowances,taxationratesand rebatessuchaschildcareand Medicare.

TheExpertPanel willconsiderthecurrentrange ofACTprogramsdesignedtoassistlower incomeCanberranssuchas ourConcessionsProgramwhichprovidesdiscountson feesand chargesfor services suchas transport,electricityandwater,or rebatesfollowingthe purchaseofgoods such asspectacles.

Thisstrategywillbuild ontheworktheGovernmenthasalreadydoneandlookforwaysthe community,marketandindividualscanrespondto financialpressuresand support the Government’sefforts.Itshouldbeinformedby existing governmentplansand strategies and theoptionsdevelopedattheSeptemberCommunityRoundtable.

TheExpertPanel willalsoexamine thefindingsoftherecentlyreleasedTasmanian costof living strategycommissionedbytheTasmanian Government.

ThePanel will providethe ACTGovernmentwitha finalACTTargetedAssistance Strategyby theendof March2012.

4.TermsofReference

  • Examinethecurrentrange of ACTGovernmentprogramsand policies designedtoassistlowerincome Canberrans.Thesemeasureswould include concessions,communityserviceobligations, regulationsandlegislation as wellascontractednon-governmentorganisationprovidedservicesandin- kindassistance.
  • Incorporate intotheanalysis,theinitiativestocome outof theSeptember2011Community Roundtable.
  • Assesstheeffectivenessofcurrent responsesforlowerincomeCanberrans usingrelevantdataon householdtypes,incomeand population groups as wellas economic,income,housingandothercost oflivingdata.
  • Take noteof factors outsidethecontrolof theACTGovernment,suchasthe CommonwealthGovernment’srolein determiningtaxationrates,pensions andallowancesand otherincomeandlabour marketpoliciesand fiscal strategy.
  • Develop an evidence-basedACTTargetedAssistanceStrategythatincludes policyoptions fortheGovernmentaswellascommunity,marketand individualresponses.

5.Reporting Requirements and Governance

TheExpertPanelwillreportdirectlyto theChiefMinister.TheChairwillreportback by31March2012.

6.Consultation

TheExpertPanel,supportedbythesecretariatwithin theChiefMinister andCabinet Directoratewill,aspartofitswork,outlinea consultationplan toengagewith variousstakeholders.

7.Relatedwork

The workof theExpertPanelwilltake into consideration:

  • TheACTTaxationReview
  • Worktodate on thereviewofconcessions
  • Theoutcomesof thecommunityroundtable