Senate Community Affairs Legislation Committee, , 5:50:35 to 5:58:09
Discussion on the $3.6 billion in unspent funds and the new rules allowing participants to carry over 10% or $1,000 of their package.
Topics: Social services, Government spending
Speakers: Senator The Hon Anne Ruston, Mr Blair Comley, Mr Greg Pugh, Unknown Speaker, Ms Jasmine Snow
Um thank you. Um just wondering um at uh the last estimates um I asked about how the total amount of unspent funds that have been returned to government since the first of November. You took it on notice and then came back and said that the information hadn't been validated, so you couldn't provide that answer. I'm just wondering whether that answer is available yet.
Can I just clarify? Are you referring to the four billion dollars roughly under home care packages before the commencement of a support at home?
Well, in a sense, yes. I'm not actually referring to the four billion dollars, I'm referring to the amount of money that's been returned. Like you can only carry it over a certain amount over from now on. So what is the um amount of the money that is currently being unspent that is being returned to government? Since the first of November. But yes, Secretary in Z.
30 of June 2026, uh the combination of both the home care account balances and the provider held Commonwealth unspent funds was $3.6 billion.
$3.6 billion. So could you break that down? So as of the 30th of June. You said there was no no. Could you just repeat that to me, please? That's what the $3.6 billion. That's $3.6? Yeah. Okay. So sorry, it's gone from four to three point six. Okay. So yeah, okay. Um don't confuse me. I have a line of questioning here. It would be great if you could stick to answering it. Okay. So there was four billion dollars or thereabouts has often been tatted, and the Secretary just raised it about unspent funds prior to the introduction of the new home care. Oh, so supported home programme. You're saying of the amount, Ms. Snow just quoted to me, $3.6 billion on the 30th of June was uh the amount that is accrued in relation to unspent funds. How much of that? So that does that reflect a $400 million reduction in the amount of unspent funds? Explain to me the how the $3.6 has occurred from the $4 billion. Is it related to the $4 billion? Is it new? And how much has actually been unspent between the 1st of November and the 30th of June?
If the question that you're asking is how much unspent funds has been accrued in the support at home program since the 1st of November 2025, that's a different question.
Well, my first question actually was that. Very clearly was that. Um I mean I'm I'm assuming we're we're talking in this instance about assistive technology and and home modification funding in the sense of the unspent funds, because obviously the underutilisation of packages is a separate figure again. Um let's start with what is the amount of money that has not been spent between the 1st of November and the 30th of June 2026 from the assistive technology and home modification pool.
So just to explain it. They're allocated against individuals.
Yes.
We hold that money on the basis they're still entitled to draw down that money. Many people are not drawing down the money. And when we are certain that they won't draw down the money, they they move to some other system or in some cases they they pass away. We therefore reduce the amount of liability that's held against those packages, and that's what's driven the $400 million reduction from $4 billion to $3.6.
Okay. So let me unpack that then. So what are the circumstances since the 1st of November 2025 by which somebody is able to carry over the various components of their supported home package? So in terms of the clinical care component, what is their opportunity to carry that through from one period to the next?
Okay, so that that is a we're happy to answer the question, but that is a that is a very that is completely different issue. The the 4 billion to 3.6 billion is was a home care package issue. The question of what you can carry over from period to period is design of support at home.
So I'll ask them. I'm trying to understand the difference between what was happening when the $4 billion was in the field. And I understand that $4 billion obviously is going to deal with itself through the processes of change that have been put into place. But I'm also keen to understand the package utilisation and the packet expackage expenditure post the 1st of November 2025.
So I'll ask the officers to explain what you can and can't carry over from one period to the next.
Yeah.
So each quarter participant can carry over $1,000 in unspent funds, or 10% of their total package, whichever is greater.
10%. And does that um $1,000 or 10% relate to is it different in terms of what you can carry over depending on which part of the package we're talking about? Because obviously it's in sort of three separate sections.
That's the ongoing budget. So that that rule, the $1,000 or $10% relates to your ongoing funding. So your quarterly budget for your ongoing funding.
But your quarterly budget could deal with your clinical care needs,
it could deal with so it's the total volume of funding and then older people can choose, obviously, as you can. Okay.
So if you've got a well, a hundred thousand dollar package, you can keep ten thousand dollars, or if you've got a ten thousand dollar package, you can keep a thousand dollars. Okay, so it's okay.
Or if there is a higher amount than if you've got a hundred thousand dollars package and you've got ten per cent, which is higher than the thousand dollars, if that makes sense, you can actually keep ten per cent of your package. So it's a thousand dollars or ten per cent, whichever figure is greater.
Okay, so it's somewhere between 1,000 and $7,800 or thereabouts. Okay, thank you. Okay. It's fine. So let's then move to the overall unspent funds. Um I mean there are two issues in the sense of that people used to be able to carry over their um the entirety of their package. That's where your four billion dollars came from because you were holding funds for people who could continue to get access to those funds.