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Introduction to the income support program

The Australian income support system provides financial assistance to a variety of groups, including families, job seekers, the aged, people with a disability, carers, mature age people, students and Indigenous Australians. Almost two-thirds of Australian families with children or dependants benefit from family assistance and 4.4 million individuals are direct beneficiaries of the FaCS portfolio’s income support payments. Recent and ongoing reforms to the income support system in Australia aim to improve social and economic participation, while retaining a strong and effective safety net for people unable to support themselves.

The main income support payments provided by the Commonwealth for the financial years 1998-99 to 2001-02 are listed in table 7.7. Details of the payments in effect in the 2001-02 financial year, together with associated statistics, are presented in this chapter.

Most allowance types are adjusted once or twice a year in line with movements in the consumer price index (CPI) to maintain purchasing power. Pension payments are adjusted in line with the CPI and male total average weekly earnings (MTAWE), ensuring the single pension rate does not fall below 25% of MTAWE. Many income support payments are subject to income, assets and activity tests, to ensure that benefits are targeted to those in greatest need. Details of the rates in effect at 30 June 2002 are listed in table 7.8.

Since September 1997, Centrelink has delivered most income support payments on behalf of FaCS. Centrelink is a statutory agency established to deliver a range of Commonwealth services to the Australian community. It operates under the Commonwealth Services Delivery Agency Act 1997 (Cwlth). Centrelink provides advice about payment entitlements, provides referrals to Centrelink specialist staff for additional assistance, and may refer customers to other departments, agencies or community organisations where appropriate. The Department of Veterans' Affairs delivers the Service Pension to eligible veterans and their families.

Numbers of income support customers referred to in this chapter generally relate to June of the reference year. These numbers are taken from extracts of administrative data as close to 30 June as possible. However, the dates of extracts can vary between payment types. All financial data refer to the full financial year.

7.7 INCOME SUPPORT PAYMENTS(a)
		1998-99	1999-2000	2000-01	2001-02
		$’000	$’000	$’000	$’000
Family assistance
	Family Allowance(b)	6,391,490	6,573,857	-39,532	-37,291
	Family Tax Payment(b)	546,217	531,927	-2,286	-3,348
	Family Tax Benefit(b)	. .	. .	10,076,463	10,927,703
	Maternity Allowance(c)	167,085	195,809	217,899	216,887
	Double Orphan Pension	1,725	1,779	1,977	1,976
Youth and student support
	Youth Allowance	1,843,498	2,002,830	2,101,915	2,213,719
	Austudy	287,173	253,870	249,258	280,794
	Student Financial Supplement	259,745	290,681	161,510	500,967
	Fares Allowance	690	569	644	525
Child care support
	Child Care Benefit(d)	. .	. .	1,037,137	1,315,912
	Child Care Cash Rebate(d)	117,000	164,447	-14,597	63
	Child Care for eligible parents undergoing training(e)	4,599	11,050	7,301	11,067
Labour market assistance
	Newstart Allowance	5,370,669	4,954,450	4,918,349	5,078,220
	Parenting Payment	5,402,944	5,494,230	5,325,681	5,571,718
	Mature Age Allowance	401,698	367,250	352,596	364,210
	Partner Allowance	590,185	646,460	728,679	817,599
	Widow Allowance	227,289	270,825	324,919	389,550
	Bereavement Allowance	734	782	719	813
	Pensioner Education Supplement	44,601	49,571	58,248	65,784
	Special Benefits	99,585	98,704	114,778	119,811
Support for people with a disability
	Disability Support Pension	4,920,223	5,253,241	5,849,799	6,404,351
	Mobility Allowance	46,137	52,096	59,367	67,852
	Wife Pension (DSP)	534,069	479,205	446,564	401,969
	Sickness Allowance	93,043	83,881	95,554	93,724
Support for carers
	Carer Payment	307,506	369,723	480,944	595,810
	Carer Allowance(f)	. .	412,334	533,247	645,722
Support for the aged
	Age Pension	13,569,056	14,037,940	15,616,477	16,665,653
	Aged Persons Savings Bonus	. .	. .	1,581,231	23,723
	One-off Payment to Seniors	. .	. .	536,581	(e)10,454
	Self Funded Retirees' Supplementary Bonus	. .	. .	582,828	28,519
	Widow Class B Pension	105,694	89,849	84,296	59,787
	Wife Pension (age)	243,433	240,751	233,080	216,160
Total Special Appropriations(g)		41,825,371	42,926,761	51,753,433	53,118,246
(a) Outlays on Pensions, Allowances and Family Tax Benefits include expenditure on Rent Assistance. Details of Rent Assistance are included in 'Chapter 8, Housing'. (b) Family tax benefit replaced Family Allowance and Family Tax Payment on 1 July 2000. (c) Maternity Allowance includes Maternity Immunisation Allowance. (d) Child Care Benefit commenced on 1 July 2000 and incorporated the Child Care Cash Rebate. (e) Not included in the Special Appropriations total as they are Other Administered Expenses. (f) Carer allowance was introduced on 1 July 1999. It combined Child Disability Allowance with Domiciliary Nursing Care Benefit, which was the responsibility of the Department of Health and Ageing. (g) Components do not add to total as some minor allowances and appropriation adjustments are excluded. Payments under the 'State Grants Housing Act 1971' (Cwlth) are included in the total.
Source: Department of Family and Community Services.

7.8 MAXIMUM RATES FOR INCOME SUPPORT PAYMENTS AND BENEFITS - As at 30 June 2002
			$
Age Pension(a)
	Single		421.80
	Couple(b)		352.10
Age Pension Savings Bonus			variable
Austudy(a)
	Single or partnered, no children		301.70
	Single, with children		395.30
	Partnered, with children		331.30
Bereavement Allowance(c)			421.80
Carer Allowance(a)			85.30
Child Care Benefit
	Approved care(d)
		Non-school age child	2.58
		School age child	2.19
	Registered care(d)
		Non-school age child	0.43
		School age child	0.37
Disability Support Pension(a)
	Single		421.80
	Couple(b)		352.10
Double Orphan Pension(a)			42.80
Education Entry Payment(e)			208.00
Family Tax Benefit Part A(a)
	For each dependent child
		Aged under 13 years	122.92
		Aged 13-15 years	155.82
		Aged 16-17 years	39.48
		Aged 18-24 years	53.06
Family Tax Benefit Part B(a)
	Age of youngest child
		Aged under 5 years	105.56
		Aged 5-15 years	73.64
		Aged 16-18 years and full-time students	73.64
Maternity Allowance One-off lump sum, per birth			798.72
Maternity Immunisation Allowance One-off lump sum			208.00
Mobility Allowance			64.40
Newstart Allowance(a)
	Single
		Aged 21 or over, no children	369.00
		Aged 21 or over, with children	399.00
		Aged 60 or over, after 9 months	399.00
	Partnered(b)		332.80
Parenting Payment(a)
	Sole parents		421.80
	Partnered parents		332.80
Partner Allowance(a)			332.80
Pensioner Education Supplement(a)
	At least 50% study load		62.40
	At least 25% study load		31.20
Student Financial Supplement Scheme
	Maximum loan, per year		7,000.00
Youth Allowance(a)
	Single, no children
		Aged under 18 years, at home	165.10
		Aged 18 years and over, at home	198.60
		Away from home	301.70
	Single with children		395.30
	Partnered with no children		301.70
	Partnered with children		331.30
(a) Per fortnight. (b) Each. (c) Per fortnight for a maximum of seven fortnights. (d) Per hour. (e) One-off. Note: For Carer Payment, Widow Class B Pension, Wife Pension (Age) and Wife Pension (DSP) see Age Pension. For Mature Age Allowance, Sickness Allowance, Widow Allowance see Newstart Allowance and for Special Payment Generally as for Newstart/Youth Allowance.
Source: Centrelink.