Download Supported Accommodation for People with a Disability

MEDIA RELEASE
5 August 2010
Our Ref: GOV19
RELEASE OF COSTING OF ELECTION
COMMITMENT
The Secretary to the Department of Finance and Deregulation today released the following
election commitment costing under the Charter of Budget Honesty Act 1998:
Supported Accommodation for People with a Disability as announced by the
Government.
This costing was completed consistent with the Charter of Budget Honesty: Costing
Election Commitments guidelines which are available on www.electioncostings.gov.au.
A copy of the completed costing is attached.
David Tune
Secretary
Department of Finance and Deregulation
Contact: Clive Hawkins
Telephone: 02 6215 3929
John Gorton Building, King Edward Terrace, Parkes ACT 2600  Telephone 02 6215 3445  Facsimile 02 6273 1925
Internet www.finance.gov.au
PUBLIC RELEASE OF 2010 ELECTION
COMMITMENT COSTING
Summary of costing:
Federal Labor will provide $60 million in
capital grants to community and other
organisations to construct up to 150 new
supported accommodation or respite
places for people with disability.
Person making the request:
Prime Minister
Date of request:
29 July 2010
Name of policy to be costed:
Supported Accommodation for people
with a disability
29 July 2010
Date of public release of policy:
Costing request provided by the
Prime Minister/Leader of the
Opposition:
Prime Minister
Additional information requested
(including date):
Not applicable.
Additional information received
(including date):
Not applicable.
Financial implications (outturn prices)(a)
Impact on
Underlying Cash
Balance ($m)
Fiscal Balance
($m)
2010-11
2011-12
2012-13
2013-14
-
-8.0
-26.0
-26.0
-
-8.0
-26.0
-26.0
(a) A positive number for the fiscal balance indicates an increase in revenue or a decrease in expenses or
net capital investment in accrual terms. A positive number for the underlying cash balance indicates an
increase in revenue or a decrease in expenses or net capital investment in cash terms.
Where relevant, state that the proposal has been costed as a defined or
specified amount.
This proposal is capped at the specified amount of $60 million. The funding would be
provided over three years, commencing on 1 July 2011.
Where relevant, include separate identification of revenue and expense
components.
Not applicable. Expense impact only.
Where appropriate, include a range for the costing or sensitivity analysis.
Not applicable.
Qualifications to the costing (including reasons for the costing not being
comprehensive).
Not applicable.
Where relevant, explain effects of departmental expenses.
The following departmental costs for FaHCSIA have been incorporated into the
proposal:
- 2011-12: $1.3 million
- 2012-13: $1.0 million
- 2013-14: $1.0 million.
Under this proposal, FaHCSIA would have ongoing responsibility for approving and
allocating funds to organisations, project and contract management; and negotiating
with state and territory governments.
Where relevant, explain the reason for any significant differences between
the assumptions specified in a party costing request and those used in a
Treasury or Finance costing.
Not applicable.
Other comments (including reasons for significant differences between the
estimated impact on the fiscal and underlying cash balances).
Not applicable.
Background information
Costing methodology used:

Costing techniques.
In the 2008 Capital Works Supported Accommodation Memorandum of
Understanding supported accommodation places were costed at an average
cost per place of $320,000.
Consistent with this agreement, supported accommodation places are assumed
to cost $320,000 in 2007-08 prices, adjusted for inflation.
Using updated prices it is expected that a $60 million investment over 3 years
would provide approximately 151 supported accommodation places.

Policy parameters.
Fewer projects will be funded in the first year as the tendering process for the
allocation of the capital grants is being set up. The majority of administered
funding will be provided in 2012-13 and 2013-14 once the tendering process
has been established.

Statistical data used.
Not applicable.
Behavioural assumptions used (as appropriate).
Not applicable.