Schedule
Subsection 3(1)
AN AGREEMENT made the day
of
One thousand nine hundred and eighty‑five
between—
the COMMONWEALTH OF AUSTRALIA
(in this Agreement called “the
Commonwealth”)
of the one part, and
the STATE OF
(in this Agreement called “the
State”)
of the other part.
WHEREAS—
(A) for many
years, the States, local governments and community organisations have been
providing and funding a range of home and community care services;
(B) the
Commonwealth has been providing financial assistance and subsidies in respect
of the provision of certain home and community care services pursuant to—
the
Home Nursing Subsidy Act 1956,
the
States Grants (Paramedical Services) Act 1969,
the
States Grants (Home Care) Act 1969, and
the
Delivered Meals Subsidy Act 1970
of
the Commonwealth Parliament;
(C) the
Commonwealth and the State wish—
(i) to
develop a comprehensive range of integrated home and community care services
for frail or at risk aged persons and younger disabled persons in order to
facilitate the maintenance of those persons in their own homes; and
(ii) to
provide moneys, on a co‑ordinated basis, to assist in the provision of
those services,
NOW IT IS
HEREBY AGREED as follows:
PART
I—OPERATION OF AGREEMENT
1. This
agreement shall be deemed to have come into force on 1 July 1985 and shall continue in force until terminated in accordance with clause 31.
2. Acts
or things consistent with the provisions of this agreement which have been done
by or on behalf of a party in anticipation of its coming into force shall be
regarded as having been done under this agreement and in accordance with its
provisions.
PART
II—INTERPRETATION
3. (1) In
this agreement—
“Commonwealth Minister” means the Minister of State of the
Commonwealth for the time being responsible for the administration of this
agreement for the Commonwealth; and
“State Minister” means the Minister of State of the State for the time
being responsible for the administration of this agreement for the State, or
when there is more than one such Minister, means the Minister having for the
time being responsibility for the matter or class of matters in respect of
which the relevant provision or provisions of this agreement is or are being applied.
(2) A
reference in this agreement to a Minister includes a Commonwealth Minister or
other member of the Federal Executive Council or Minister of the State, as the
case may require, for the time being acting for or on behalf of the Minister
referred to.
4. (1) In
this agreement, unless the contrary intention appears—
“approved project” means a project that is eligible for funding in
accordance with clause 8;
“base year” means the financial year that began on 1 July 1984;
“Commonwealth base” means the unadjusted amount referred to in
paragraph 13 (1) (a);
“community organisation” means—
(a) an organisation (other than an organisation conducted or
controlled by, or by persons appointed by, the Government of the Commonwealth
or of the State) that is carried on otherwise than for the purpose of profit or
gain to its individual members and is—
(i) a religious organisation;
(ii) an organisation the principal objects or purposes
of which are charitable or benevolent; or
(iii) any other organisation agreed upon by the
Commonwealth Minister and the State Minister for the purpose of this sub‑paragraph;
(b) the trustee or trustees for the time being under a trust
established by an organisation referred to in paragraph (a) or by a local
government;
(c) a corporation established by an organisation referred to in paragraph (a)
or by a local government;
(d) the trustee or trustees for the time being under a trust
established for charitable or benevolent purposes agreed upon by the
Commonwealth Minister and the State Minister for the purpose of this paragraph;
or
(e) such other organisation as is agreed upon by the Commonwealth
Minister and the State Minister;
“financial assistance” means financial assistance provided pursuant to
this agreement;
“financial year” means a period of 12 calendar months beginning on 1 July;
“first grant year” means the financial year commencing on 1 July 1985;
“former Commonwealth‑funded project” means a project that,
immediately prior to this agreement being signed, was approved for funding under
an Act referred to in recital (B);
“grant year” means—
(a) the first grant year;
(b) the second grant year;
(c) the third grant year; or
(d) the financial year commencing on 1 July 1988 or any subsequent financial year while this agreement remains in force;
“guidelines” means (other than in clause 10 and sub‑clauses 11
(2) and (3)) guidelines referred to in clauses 10 and 11;
“joint body” means any two or more of the following acting jointly—
(a) the State;
(b) a local government; and
(c) a community organisation;
“local government” means a local governing body established by or
under a law of the State;
“long term residential care” includes long term care provided in a
hospital or other institution, or through a residential care service within the
meaning of the Aged Care Act 1997;
“program” means the Home and Community Care Program established
pursuant to clause 5;
“second grant year” means the financial year commencing on 1 July 1986;
“State base” means the unadjusted amount referred to in paragraph 14
(a);
“target population” means the persons referred to in paragraph 6 (a);
and
“third grant year” means the financial year commencing on 1 July 1987.
(2) In
this agreement, unless a contrary intention appears—
(a) a reference (other than in this paragraph) to this agreement or
to a part or provision of this agreement includes, where the agreement is
varied, a reference to this agreement or that part or provision as varied;
(b) a reference to a clause is to the relevant clause of this
agreement;
(c) a reference to a sub‑clause is to the relevant sub‑clause
of the clause in which the reference appears;
(d) a reference to a paragraph, if no clause is specified, is to
the relevant paragraph of the clause in which the reference appears, and a
reference to a sub‑paragraph, if no paragraph is specified, is to the
relevant sub‑paragraph of the paragraph in which the reference appears;
(e) words in the singular include the plural and words in the
plural include the singular; and
(f) words importing a gender include every other gender.
PART
III—THE PROGRAM AND THE OBJECTIVE
5. (1) The
Commonwealth and the State shall jointly establish a Home and Community Care
Program which shall be administered in accordance with the provisions of this
agreement and within available resources and which shall have the following
principles and goals—
(a) to promote the provision of a comprehensive and integrated
range of home and community care designed to provide basic maintenance and
support services, both directly and through their carers, to persons within the
target population and thereby to assist them to enhance their independence in
the community and avoid their premature or inappropriate admission to long term
residential care;
(b) to expand and develop home and community care services through
the joint co‑operation of the Commonwealth, the State, local governments
and community organisations representing both service providers and users under
a single cost‑shared arrangement;
(c) to ensure access to home and community care among all groups
within the target population, including migrants, aboriginals, persons
suffering from brain failure and financially disadvantaged persons;
(d) to ensure that, within available resources, priority is
directed to persons within the target population most in need of home and
community care;
(e) to provide for persons within the target population an
effective and integrated means of assessment of the need for and referral to
home and community care services;
(f) to ensure that, within available resources, home and community
care services are provided equitably between regions and are responsive to
regional differences;
(g) to ensure that home and community care services are delivered
in a manner that is cost‑effective, achieves integration, promotes independence
and avoids duplication;
(h) to enable the testing and evaluation of new and differing
approaches to planning, co‑ordination and service delivery;
(i) to enable regular and systematic client focussed monitoring of
the effectiveness and efficiency of the program and the assessment of
priorities;
(j) to promote an integrated and co‑ordinated approach
between the delivery of home and community care and related health and welfare
programs, including programs providing residential or institutional care;
(k) to facilitate the involvement of community organisations
representing both service providers and users in the provision of advice to the
Commonwealth Minister and the State Minister on needs and priorities under the
program;
(l) to develop a home and community care information system
suitable for agency use that will facilitate planning and evaluation of the
program at national, State and regional levels; and
(m) to ensure that effective planning and co‑ordination
arrangements are established that enable the above principles and goals to be
achieved in a co‑operative manner.
(2) The
objective of this agreement is the provision of moneys by the Commonwealth and
the State—
(a) to assist the State, local governments and community
organisations to develop, through the rationalisation and expansion of existing
services and the development of new services, a comprehensive range of
integrated home and community care for persons within the target population
where possible and appropriate; and
(b) to facilitate the maintenance of those persons in their own
homes, and avoid their premature or inappropriate admission to long term
residential care and thereby improve their quality of life.
6. The
program shall be directed towards assisting—
(a) persons living in the community who, in the absence of basic
maintenance and support services provided or to be provided within the scope of
the program, are at risk of premature or inappropriate long term residential
care, including—
(i) frail or at‑risk aged persons, being elderly
persons with moderate or severe disabilities;
(ii) younger disabled persons, being persons with
moderate or severe disabilities; and
(iii) such other classes of persons as are agreed upon by
the Commonwealth Minister and the State Minister; and
(b) the carers of those persons.
7. (1) Subject
to sub‑clauses (3) and (4), a service is within the scope of the program
if it provides or will provide basic maintenance and support to persons within
the target population, being a service that provides or will provide one or
more of the following—
(a) home help or personal care (or both);
(b) home maintenance or modification (or both);
(c) food;
(d) community respite care;
(e) transport;
(f) a community paramedical service;
(g) community nursing;
(h) assessment or referral (or both);
(i) education or training for service providers and users (or
both);
(j) information;
(k) co‑ordination; or
(l) such other service as is agreed upon by the Commonwealth
Minister and the State Minister.
(2) A
capital facility is within the scope of the program if it is used or to be used
for or in connection with the provision of any service within the scope of the
program pursuant to sub‑clause (1).
(3) A
service of the following kind shall be outside the scope of the program—
(a) the provision of accommodation (including rehousing and
supported accommodation) or a related support service; or
(b) the provision of an aid or appliance.
(4) A
service of the following kind shall be within the scope of the program but only
to the extent and for the period that it is eligible for funding by virtue of
sub‑clause 8 (2)—
(a) a rehabilitative service directed primarily towards increasing
a person’s level of functioning;
(b) a service providing direct treatment for acute illness
(including a convalescent or post‑acute care service);
(c) a service designed specifically for persons with the same
disability other than a service provided to persons within the target
population suffering from brain failure;
(d) a service primarily for families in crisis; or
(e) a palliative care service.
PART
IV—PROJECTS
8. (1) Subject
to sub‑clause (2), a project shall be eligible for funding pursuant to
this agreement if it is—
(a) a service or capital facility that is—
(i) within the scope of the program;
(ii) provided or to be provided by or on behalf of the
State, a local government, a community organisation or a joint body;
(iii) provided or to be provided to persons within the
target population; and
(iv) approved for funding pursuant to clause 9; or
(b) a former Commonwealth‑funded project.
(2) A
project referred to in sub‑clause 7 (4), being a former Commonwealth‑funded
project, shall be eligible for funding pursuant to this agreement but only—
(a) to the extent that is necessary in order to maintain the
project at the activity level at which it was provided prior to this agreement
coming into force; and
(b) while no alternative arrangements for the funding of the
project have been made pursuant to sub‑clause (3).
(3) By
the end of the third grant year, the Commonwealth Minister and the State
Minister shall jointly review the continued funding under this agreement of all
projects to which sub‑clause (2) applies and, if they think fit, make
alternative arrangements for funding. If no such alternative arrangements are
made for their funding, those projects shall continue to be eligible for
funding to the extent referred to in sub‑clause (2).
9. (1) The
Commonwealth Minister and the State Minister shall jointly from time to time,
but at least annually, consider which projects (if any), that are not already
approved projects should be approved for funding in accordance with this
agreement and, subject to the availability of funds for the purpose, they may
jointly approve such projects for the purposes of sub‑paragraph 8 (1) (a)
(iv) and for such period as is specified in the approval.
(2) The
State Minister shall, in consultation with the Commonwealth Minister, review
the operation and level of funding of—
(a) approved projects eligible for funding pursuant to paragraph 8
(1) (a) during the period for which approval under sub‑clause (1) has
been given; and
(b) approved projects eligible for funding pursuant to paragraph 8
(1) (b) annually.
(3) The
Commonwealth Minister and the State Minister may at any time jointly revoke or
vary an approval given under sub‑clause (1), and may at any time jointly
agree that an approved project eligible for funding pursuant to paragraph 8 (1)
(b) is no longer eligible for funding or that the approved project as varied is
eligible for funding for the purpose of this agreement.
(4) In
taking action under sub‑clause (1), (2) or (3), the Commonwealth Minister
and the State Minister respectively shall have regard to—
(a) the objective and the principles and goals set out in clause 5
and any guidelines; and
(b) the views of local governments, community organisations and
service users on needs and priorities under the program.
(5) The
Commonwealth Minister and the State Minister shall, unless they otherwise
agree, jointly announce action taken pursuant to sub‑clause (1) and may
jointly announce action taken by them pursuant to sub‑clauses (2) or (3).
10. The
Commonwealth Minister from time to time may, after consulation with the State
Minister and, where appropriate, local governments and community organisations
and service users, give national program guidelines by notice published in the
Commonwealth Gazette including guidelines relating to the scope and setting
standards and the level of provision of services within the scope of the
program. The Commonwealth Minister and the State Minister will agree on the
application of the guidelines in the State.
11. (1) Subject
to this agreement, the State will be responsible for the management of the
program, in accordance with the guidelines and any administrative arrangements
approved pursuant to sub‑clause (2).
(2) The
Commonwealth Minister and the State Minister shall jointly approve and may from
time to time vary—
(a) arrangements for the planning and administrative machinery
necessary for the effective management of the program, such machinery to allow
for participation of representatives of both the Commonwealth and the State;
(b) arrangements for consultative processes whereby local
governments, community organisations and service users are consulted on needs
and priorities under the program; and
(c) priorities and sub‑program guidelines.
(3) Until
such time as the Commonwealth Minister and the State Minister jointly approve
sub‑program guidelines pursuant to sub‑clause (2), the provisions
of an Act referred to in recital (B) shall, in relation to a service or
facility provided for under this agreement similar in kind to a service or
facility to which that Act applied, be sub‑program guidelines.
(4) As
soon as practicable after this agreement is signed the Commonwealth Minister
and the State Minister shall make arrangements for the transfer to the State
during the first 3 grant years of the Commonwealth’s responsibilities in
relation to former Commonwealth‑funded projects and such arrangements may
include the provision of assistance to the State as a means of facilitating the
transfer of responsibility.
PART V—FUNDING—COMMONWEALTH
FINANCIAL ASSISTANCE AND STATE EXPENDITURE
12. In
order to assist the State in the achievement of the objective of this agreement,
the Commonwealth will, upon and subject to the provisions of this agreement and
to the appropriation by the Commonwealth Parliament of funds for the purpose,
provide to the State in respect of each grant year financial assistance to meet
or reimburse expenditure incurred for any purpose related to the provision of
approved projects, by way of interest free non‑repayable grant.
13. (1) Subject
to clauses 15 and 19, the Commonwealth will provide base financial
assistance to the State in respect of the first and second grant years of an
amount equal to the sum of—
(a) the amount expended by the Commonwealth in the State in respect
of the base year, by way of financial assistance or subsidy, in relation to the
provision of—
(i) former Commonwealth‑funded projects; and
(ii) other projects that, by the commencement of the
grant year, become approved projects,
adjusted in accordance with clause 17; and
(b) such other amounts expended by the Commonwealth in the State in
respect of that first or second grant year (as the case may be) as the
Commonwealth Minister and the State Minister agree should be taken into account
for the purpose of this paragraph.
(2) In
addition to the amount payable under sub‑clause (1), the Commonwealth
will provide in respect of the first grant year an amount equal to the balance
(if any) remaining unexpended at 30 June 1985 of the amount allocated to
the State of $10 million of the amount appropriated for payments under the Home
and Community Care Program by the Appropriation Act (No. 2) 1984‑85
of the Commonwealth Parliament.
14. Subject
to clauses 15 and 19, the State will provide from its own resources and
apply, or cause local governments and community organisations to provide from
their own resources and to apply, for expenditure in relation to approved
projects in respect of the first and second grant years an amount equal to the
sum of—
(a) amounts expended in respect of the base year—
(i) by the State, local governments and community
organisations in relation to the provision of former Commonwealth‑funded
projects; and
(ii) by the State and, to the extent determined by the
State, local governments and community organisations in relation to the
provision of other projects that, by the commencement of that first or second
grant year (as the case may be), become approved projects,
adjusted in accordance with clause 17; and
(b) such other amounts expended by the State, local governments and
community organisations in respect of that first or second grant year (as the
case may be) as the Commonwealth Minister and the State Minister agree should
be taken into account for the purposes of this paragraph.
15. (1) Where
a former Commonwealth‑funded project ceases to be provided in the first
or second grant year, the State may reduce the State base in that grant year
and, if that grant year is the first grant year, in the second grant year by an
amount not exceeding the amount of expenditure in relation to the project
included in the State base that was incurred otherwise than by the State.
(2) Where,
pursuant to sub‑clause (1) the State reduces the State base, the
Commonwealth may reduce the Commonwealth base by an amount not exceeding the
amount of any matching funds provided by the Commonwealth in respect of the
expenditure referred to in sub‑clause (1).
(3) Where,
pursuant to sub‑paragraph 14 (a) (ii) the State elects to include
expenditure incurred by local governments and community organisations in
relation to a particular project then the expenditure for the purpose of that
sub‑paragraph in relation to that project shall be the amounts expended
in respect of that project in respect of the base year by the State, local
governments and community organisations adjusted in accordance with clause 17.
16. (1) The
Commonwealth will provide, in addition to base financial assistance pursuant to
clause 13, the following financial assistance—
(a) in respect of the first grant year—$3 for every $1 of eligible
State expenditure incurred by the State in respect of the grant year, up to the
maximum amount specified in relation to the State for that grant year in the
Schedule or such other amount as may be paid by virtue of the operation of
paragraph 3 (b); or
(b) in respect of the second grant year—
(i) $2 for every $1 of eligible State expenditure
incurred by the State in respect of the grant year, up to the maximum amount
specified in relation to the State for that grant year in the Schedule or such
other amount as may be paid by virtue of the operation of paragraph 3 (b); and
(ii) an amount that may be paid in respect of that
grant year by virtue of the operation of paragraph 3 (a).
(2) A
reference in sub‑clause (1) to the eligible State expenditure incurred by
the State in respect of a grant year shall be read as a reference to an amount
equal to the sum of—
(a) the amount expended in respect of the grant year by—
(i) the State from its resources in relation to the
provision of approved projects;
(ii) local governments and community organisations from
their own resources in relation to the provision of former Commonwealth‑funded
projects; and
(iii) local governments and community organisations in
relation to the provision of approved projects referred to in sub‑paragraph
14 (a) (ii) where the State elects to include such expenditure pursuant to that
sub‑paragraph,
in excess of the amount that is so expended pursuant to clause 14;
and
(b) such other amounts, including additional administrative
expenses incurred by the State, as are agreed upon for the purposes of this
paragraph by the Commonwealth Minister and the State Minister.
(3) In
the event that—
(a) the eligible State expenditure incurred by the State in respect
of the first grant year is less than the amount that would be required to be
expended in order to attract the maximum amount of financial assistance payable
in respect of that grant year pursuant to paragraph (1)(a), then, if the
Commonwealth Minister is satisfied that the State has a firm program in place
for the expenditure and that the cause of the short‑fall in expenditure
lies generally outside the State’s control, the Commonwealth may provide
additional financial assistance in respect of the second grant year of an
amount not exceeding the unexpended balance of the maximum amount, upon the
same terms as to matching as apply in respect of the first grant year; or
(b) the whole amount specified in the Schedule as the maximum
amount of additional financial assistance that may be paid by the Commonwealth
in respect of the first or second grant year to another State or the Northern
Territory does not become payable to that State or the Northern Territory,
whether pursuant to an agreement made by the Commonwealth with that State or
the Northern Territory in terms similar to this agreement or where there is no
such agreement, the Commonwealth Minister may, by agreement between the
Commonwealth Minister and the State Minister, increase the maximum amount
payable to the State in respect of that grant year pursuant to sub‑clause
(1) by the amount determined by the Commonwealth Minister to be the State’s share
of the unexpended balance of the amount specified in relation to that other
State or the Northern Territory.
17. (1) In
this clause—
“Commonwealth grant” means the Commonwealth grant referred to in sub‑clause
(5);
“provisional Commonwealth grant” means the provisional Commonwealth
grant referred to in sub‑clause (6);
“provisional State expenditure” means the provisional State
expenditure referred to in sub‑clause (6);
“State expenditure” means the State expenditure referred to in sub‑clause
(5);
“agreed index in respect of the provisional Commonwealth grant” and
“agreed index in respect of the provisional State expenditure” means for the
first or second grant year the figure ascertained in accordance with the
formula—
where—
(a) 
is the estimate agreed
between the Commonwealth Minister and the State Minister of the movement
between the month of March of the grant year and the month of March of the
preceding financial year in the index of weekly award rates of pay for adult
wage and salary earners for all industries in Australia; and
(b) 
is the estimate agreed
between the Commonwealth Minister and the State Minister of the movement
between the March quarter of the grant year and the March quarter of the
preceding financial year in the All Groups Consumer Price Index for the
weighted average of 8 capital cities;
“agreed index in respect of the Commonwealth grant” and “agreed index
in respect of the State expenditure” means for the first or second grant year,
the figure ascertained in accordance with the formula—
where—
(a) 
is
the movement between the month of March of the grant year and the month of
March of the preceding financial year in the index of hourly award rates of pay
for adult wage earners for the Community Services Industry in the State as
provided by the Australian Statistician in relation to the series entitled
“Award Rates of Pay Indexes, Australia”; and
(b) 
is
the movement between the March quarter of the grant year and the March quarter
of the preceding financial year in the All Groups Consumer Price Index
Excluding Hospital and Medical Services for the State Capital City as provided
by the Australian Statistician in relation to the series entitled “Consumer
Price Index”.
(2) If
the reference base for the Consumer Price Index, weekly award rates of pay or
hourly award rates of pay is changed, then, for the purpose of applying a
formula referred to in this clause after the change is made, regard shall be
had only to the index number provided in terms of the new reference base.
(3) Where
the figure in respect of the first or second grant year, as ascertained in
accordance with the definitions of “agreed index in respect of the Commonwealth
grant” and “agreed index in respect of the State expenditure” in sub‑clause
(1), would, but for the operation of this sub‑clause, be less than one,
that figure shall be taken to be one.
(4) For
the purposes of any formula specified in this clause—
(a) agreed index in respect of the provisional Commonwealth grant
and the provisional State expenditure shall be denoted by—
(i) in relation to the first grant year—a1;
or
(ii) in relation to the second grant year—a2;
and
(b) agreed index in respect of the Commonwealth grant and the State
expenditure shall be denoted by—
(i) in relation to the first grant year—b1;
or
(ii) in relation to the second grant year—b2.
(5) There
shall in respect of the first and second grant years be determined, in
accordance with the provisions of this agreement, figures which shall be agreed
upon in writing between the Commonwealth Minister and the State Minister, to be
known respectively as the Commonwealth grant and the State expenditure.
(6) There
shall be calculated as soon as practicable in relation to the first and second
grant years, figures which shall be agreed upon in writing between the
Commonwealth Minister and the State Minister to be known, with respect to that
grant year, as the provisional Commonwealth grant and the provisional State
expenditure respectively, being estimates of the Commonwealth grant and the
State expenditure respectively.
(7) The
Commonwealth Minister and the State Minister may adjust the provisional
Commonwealth grant and the provisional State expenditure at any time prior to
their becoming a Commonwealth grant and the State expenditure respectively to
accord with variations in estimates or with the terms of any relevant agreement
between the Commonwealth Minister and the State Minister.
(8) When
the agreed index in respect of the Commonwealth grant and in respect of the
State expenditure may be calculated in respect of the first or second grant
year, the provisional Commonwealth grant and the provisional State expenditure
shall be considered by the Commonwealth Minister and the State Minister for the
purposes of them agreeing, as required by sub‑clause (5), upon the
Commonwealth grant and the State expenditure in respect of that grant year.
(9) Any
financial adjustment arising from differences between the provisional
Commonwealth grant and the Commonwealth grant, and between the provisional
State expenditure and the State expenditure for the first or second grant year
shall, except where otherwise agreed between the Commonwealth Minister and the
State Minister, be effected in the following grant year.
(10) For
the purposes of determining the Commonwealth grant and the State expenditure in
respect of the second grant year there shall be taken into account any
adjustments agreed by the Commonwealth Minister and the State Minister in
respect of the preceding grant year.
(11) The
provisional Commonwealth grant and the provisional State expenditure shall
comprise—
(i) in respect of the first grant year—an amount ascertained in
accordance with the formula (x1a1) + y1 + z1;
or
(ii) in respect of the second grant year—an amount ascertained in
accordance with the formula [(x2b1) a2] + y2
+ z2,
where—
(a) x1 and x2 are the
Commonwealth bases or the State bases (as the case may be) in respect of the
first and second grant years, respectively;
(b) y1 and y2 are the amounts (if
any) referred to in paragraph 13 (1) (b) or 14 (b) (as the case may be) in
respect of the first and second grant years, respectively; and
(c) z1 and z2 are the amounts of
any additional Commonwealth financial assistance or eligible State expenditure
referred to in clause 16 (as the case may be) in respect of the first and
second grant years, respectively.
(12) The
Commonwealth grant and the State expenditure shall comprise—
(i) in respect of the first grant year—an amount ascertained in
accordance with the formula (x1b1) + y1 + z1;
or
(ii) in respect of the second grant year—an amount ascertained in
accordance with the formula [(x2b1) b2] + y2
+ z2,
where—
(a) x1 and x2 are the Commonwealth bases or
the State bases (as the case may be) in respect of the first and second grant
years, respectively;
(b) y1 and y2 are the amounts (if any)
referred to in paragraph 13 (1) (b) or 14 (b) (as the case may be) in respect
of the first and second grant years, respectively; and
(c) z1 and z2 are the amounts of any
additional Commonwealth financial assistance or eligible State expenditure
referred to in clause 16 (as the case may be) in respect of the first and
second grant years, respectively.
18. (1) Subject
to sub‑clause (4), the Commonwealth will provide financial assistance to
the State in respect of each grant year following the second grant year of an
amount equal to the sum of—
(a) the amount that is the product of the indexation factor and the
amount of financial assistance paid to the State in the immediately preceding
grant year; and
(b) such other amounts as are agreed upon for the purposes of this
paragraph by the Commonwealth Minister and the State Minister.
(2) Subject
to sub‑clause (4), the State will provide from its own resources and
apply, or cause local governments and community organisations to provide from
their own resources and apply, for expenditure in relation to approved projects
in respect of each grant year following the second grant year of an amount
equal to the sum of—
(a) the amount that is the product of the indexation factor and the
amount expended by the State, local governments and community organisations in
relation to approved projects in the immediately preceding grant year; and
(b) such other amounts as are agreed upon for the purposes of this
paragraph by the Commonwealth Minister and the State Minister.
(3) For
the purposes of paragraphs (1) (a) and (2) (a), the indexation factor is—
(a) in respect of the third grant year—a number not exceeding 1.2
agreed upon in writing between the Commonwealth Minister and the State Minister
in the second grant year or within such longer period as is agreed upon by the
Commonwealth Minister and the State Minister; or
(b) in respect of a grant year following the third grant year—the
number 1.2 unless the Commonwealth Minister and the State Minister agree in
writing in the immediately preceding grant year upon a different number.
(3A) Where
a different number is agreed upon in accordance with paragraph (3) (b),
that number shall, for the purposes of the operation of paragraphs (1) (a)
and (2) (a), be substituted for the number 1.2 in respect of the first‑mentioned
grant year.
(4) In
the event that the parties fail to agree on the continued operation of this
agreement consequent upon a review conducted in the third or any subsequent
grant year (in this sub‑clause referred to as the “relevant grant year”)
pursuant to clause 31 then, in respect of each of the following 2 grant
years—
(a) the Commonwealth will provide financial assistance of an amount
equal to the sum of—
(i) the amount that is—
(A) where the grant year is the first succeeding grant
year after the relevant grant year—the product of the adjustment factor and the
amount of financial assistance paid to the State in the relevant grant year; or
(B) where the grant year is the second succeeding grant
year after the relevant grant year—the product of the adjustment factor and the
amount calculated in accordance with sub‑sub‑paragraph (4) (a)
(i) (A); and
(ii) such other amounts as are agreed upon for the
purposes of this sub‑paragraph by the Commonwealth Minister and the State
Minister; and
(b) the State will provide from its own resources and apply, or
cause local governments and community organisations to provide from their own
resources and apply, for expenditure in relation to approved projects in an
amount equal to the sum of—
(i) the amount that is—
(A) where the grant year is the first succeeding grant
year after the relevant grant year—the product of the adjustment factor and the
amount expended by the State, local governments and community organisations in
relation to the provision of approved projects in the relevant grant year; or
(B) where the grant year is the second succeeding grant
year after the relevant grant year—the product of the adjustment factor and the
amount calculated in accordance with sub‑sub‑paragraph (4) (b)
(i) (A); and
(ii) such other amounts as are agreed upon for the
purposes of this sub‑paragraph by the Commonwealth Minister and the State
Minister.
(5) For
the purposes of sub‑paragraphs (4) (a) (i) and (4) (b) (i), the
adjustment factor in respect of each of the 2 grant years following the grant
year during which the parties fail to agree is a number calculated in accordance
with the formula—
where—
(a) is
the movement between the month of March of the first preceding grant year and
the month of March of the second preceding grant year in the index of hourly
award rates of pay for adult wage earners for the Community Services Industry
in the State as provided by the Australian Statistician in relation to the
series entitled “Award Rates of Pay Indexes, Australia”; and
(b) is
the movement between the March quarter of the first preceding grant year and
the March quarter of the second preceding grant year in the All Groups Consumer
Price Index Excluding Hospital and Medical Services for the State Capital City
as provided by the Australian Statistician in relation to the series entitled
“Consumer Price Index”.
(6) Where
the adjustment factor, as ascertained in accordance with sub‑clause (5),
would, but for the operation of this sub‑clause, be less than one, that
factor shall be taken to be one.
(7) If
the reference base for the Consumer Price Index or hourly award rates of pay
index is changed, then, for the purpose of applying the formula referred to in
sub‑clause (5) after the change is made, regard shall be had only to the
index number provided in terms of the new reference base.
19. (1) In
calculating expenditure incurred by the State, local governments and community
organisations for the purposes of clauses 14, 16 and 18—
(a) allocations by the State from the following sources may be
included—
(i) loan funds;
(ii) trust funds and other special accounts in the
public account of the State to the extent that those funds have been financed
from State resources, including deposits with the State Treasury;
(iii) borrowing by instrumentalities of the State under
the terms of the Commonwealth‑State arrangements associated with the
Financial Agreement and known as the Gentlemen’s Agreement;
(iv) appropriations from surpluses of authorities and
instrumentalities of the State; and
(v) other sources at any time agreed upon by the
Commonwealth Minister and the State Minister; and
(b) the following amounts may not be included—
(i) amounts of expenditure that have been used to match
or attract financial assistance provided by the Commonwealth otherwise than
under this agreement;
(ii) amounts expended that are recovered or recoverable
by means of user charges, service related donations or a payment by way of
compensation; and
(iii) amounts expended in providing a home or community
care service to a person who is eligible to receive a payment by way of
compensation in respect of a disability that gives rise to the need for such a
service.
(2) A
reference in sub‑clause (1) to a payment by way of compensation shall be
read as a reference to—
(i) a payment by way of damages;
(ii) a payment under a scheme of insurance or compensation provided
for by a law of the State, including payment under a contract entered into in
pursuance of such a scheme;
(iii) a payment, whether with or without admission of liability, in
settlement of a claim for damages or of a claim under a scheme referred to in
sub‑paragraph (ii); or
(iv) any other payment that, in the opinion of the Commonwealth
Minister, is a payment in the nature of compensation or damages, other than a
payment for which the person who is eligible to receive the payment has made
contributions.
PART VI—FINANCIAL ASSISTANCE
ARRANGEMENTS AND
CONDITIONS
20. Within
3 months of the date this agreement is signed or within such longer period as
is agreed upon by the Commonwealth Minister and the State Minister—
(a) the State shall furnish to the Commonwealth—
(i) particulars of expenditure incurred by the State,
local governments and community organisations in relation to the provision of
former Commonwealth‑funded projects in respect of the base year, showing
separately in respect of each of those projects the amounts so expended by the
State, local governments and community organisations; and
(ii) details of the projects, other than former
Commonwealth‑funded projects, in relation to which the State, local
governments and community organisations incurred expenditure in respect of the
base year and in respect of which the State proposes to seek approval under sub‑clause 9
(1), showing separately in respect of each of those projects the amounts so
expended by the State, local governments and community organisations; and
(b) the Commonwealth shall furnish to the State—
(i) particulars of expenditure incurred by the
Commonwealth in relation to the provision of former Commonwealth‑funded
projects; and
(ii) details of projects, other than former
Commonwealth‑funded projects, in relation to which the Commonwealth
incurred expenditure in respect of the financial year beginning on 1 July
1984 and in respect of which the Commonwealth proposes to seek approval under
sub‑clause 9 (1).
21. Within
3 months of the date this agreement is signed (in respect of the first grant
year) and by 1 March preceding the beginning of each succeeding grant year
(other than the 2 grant years following a failure to agree as provided in
clause 31), the State shall inform the Commonwealth, in a form agreed upon
by the Commonwealth Minister and the State Minister, of the amounts of
financial assistance that the State wishes the Commonwealth to provide to it in
respect of the next 3 succeeding grant years and at the same time provide
estimates of financial performance and planned programs for those grant years
and revised estimates of that performance and those programs for the then
current grant year.
22. (1) Subject
to sub‑clauses (2) and (3), the Commonwealth Minister and the State
Minister shall, in respect of each grant year, jointly approve, in accordance
with the objective, principles and goals set out in clause 5, the
allocation among approved projects of the total amount of financial assistance
to be provided by the Commonwealth and the total amount of expenditure to be
incurred by the State in respect of that grant year.
(2) The
Commonwealth Minister and the State Minister may, in accordance with the
objective, principles and goals set out in clause 5, jointly approve the
allocation to an approved project of financial assistance to be provided by the
Commonwealth and of expenditure to be incurred by the State in respect of two
or more grant years.
(3) The
State Minister may approve non‑significant increases or decreases in the
allocation of funds in respect of an approved project during the period in
respect of which an allocation has been approved.
23. Financial
assistance in respect of a grant year is to be provided by regular quarterly
instalments unless otherwise agreed between the Commonwealth Minister and the
State Minister, such instalments to be calculated in respect of the first and
second grant years on the basis of the provisional Commonwealth grant in
respect of the grant year, ascertained in accordance with clause 17.
24. (1) Subject
to sub‑clause (2), the Commonwealth Minister may, at such times and in
such amounts as the Commonwealth Minister thinks fit, make advances on account
of financial assistance that may become payable to the State under this
agreement.
(2) Where
in respect of a grant year the State makes advances from its own resources for
the purpose of meeting or reimbursing expenditure for approved projects, the
Commonwealth will make advances of the same amounts as to matching as would
apply if the advances by the State were expenditure by the State from its own
resources pursuant to clauses 14 and 16 or clause 18 (as the case may
be) and the advances by the Commonwealth were financial assistance pursuant to
clauses 13 and 16 or clause 18 (as the case may be) in respect of
that grant year.
(3) The
amount or part of the amount of an advance made by the Commonwealth may be
deducted from a payment of financial assistance that subsequently becomes
payable.
(4) The
State shall ensure that an advance made by the Commonwealth is not used or
applied except for the purpose of meeting or reimbursing, as the case may be,
the expenditure to which the advance relates.
25. During
the first 3 grant years the Commonwealth Minister and the State Minister shall
jointly develop standard terms and conditions to be attached by the State to
payments made pursuant to this agreement to local governments and community
organisations, which terms and conditions shall include the manner in which the
approved project is to be provided, so as to ensure that the approved project
meets its objective.
26. (1) Financial
assistance is granted upon the condition that the State will—
(a) apply the financial assistance provided to it for the purpose
of meeting or reimbursing expenditure incurred by the State in relation to the
provision of approved projects in accordance with this agreement;
(b) subject to paragraph (c), without undue delay pay to the
local government or community organisation that is providing or sponsoring an
approved project an amount equal to the amount of financial assistance provided
to the State for expenditure in respect of that approved project;
(c) not pay an amount to a local government or a community
organisation unless the local government or community organisation accepts the
amount upon the terms and conditions developed pursuant to clause 25 or
(if no terms and conditions have been developed) upon the terms and conditions
attached to the provision of financial assistance under this agreement;
(d) expend or cause to be expended, in respect of each grant year,
not less than the amount calculated in accordance with clause 14 or clause 18
(as the case may be);
(e) not permit its expenditure under this agreement, vis‑a‑vis
local governments and community organisations, to diminish unless otherwise
agreed by the Commonwealth Minister and the State Minister; and
(f) pay to the Commonwealth an amount that becomes payable pursuant
to sub‑clause (2).
(2) In
the event that property of a non‑expendable nature that was acquired by
the State, a local government or a community organisation wholly or partly with
financial assistance provided in respect of an approved project—
(a) is disposed of;
(b) ceases to be used in relation to the approved project or
another approved project; or
(c) is destroyed,
the State shall pay to the Commonwealth the Commonwealth’s share of the
value of the property at the date of the happening of the event unless the
Commonwealth Minister and the State Minister otherwise agree or unless, in the
case where the property was acquired by a local government or community
organisation, the State is unable to recover that share from the local
government or community organisation.
(3) For
the purpose of sub‑clause (2)—
“the value of the property” means the amount agreed upon by the
Commonwealth and the State or, in the absence of agreement the amount
determined by a qualified valuer nominated by the Commonwealth Minister, as the
value of the property; and
“the Commonwealth’s share” means the amount that bears to the value of
the property the same proportion as the amount expended in relation to the
acquisition of the property attributable to financial assistance bears to the
total cost of acquiring the property.
27. By
the thirtieth day of November next occurring after the end of each grant year
the State Minister will furnish to the Commonwealth Minister in respect of that
grant year, in a form agreed upon by the Commonwealth Minister and the State
Minister—
(a) a statement giving particulars of the expenditure of financial
assistance and of expenditure incurred by the State, local governments and
community organisations, accompanied by a certificate of a person authorised by
the State Minister and agreed upon by the Commonwealth Minister, certifying
that—
(i) in relation to expenditure incurred by the State,
the authorised person is of the opinion that the amounts shown as expended by
the State were expended in accordance with this agreement;
(ii) in relation to expenditure incurred by local
governments and community organisations, the authorised person has received a
certificate from a qualified accountant stating that the qualified accountant
is of the opinion that amounts shown as expended by a local government or
community organisation were expended by it in accordance with this agreement;
(b) a statement specifying—
(i) the operation of this agreement;
(ii) the provision of approved projects; and
(iii) the manner in which financial assistance and State
expenditure has been applied.
28. If,
following consultation with the State Minister, the Commonwealth Minister, in
writing under the Commonwealth Minister’s hand, informs the State Minister that
the Commonwealth Minister is satisfied that the State has failed to ensure that
an amount of financial assistance provided to the State has been applied for
the purposes and in the manner provided for by this agreement with respect to
that financial assistance, the State will repay the amount or such part of that
amount as the Commonwealth Minister thinks reasonable to the Commonwealth.
29. If,
following consultation with the State Minister, the Commonwealth Minister is of
the opinion that it is appropriate to do so, the Commonwealth Minister may
withhold payment in whole or in part of financial assistance to the State where
the State fails to comply with any of the conditions attached to the grant of
financial assistance until the State remedies that failure.
PART VII—SUPPLY OF INFORMATION
30. (1) As
soon as practicable after this agreement enters into force, the Commonwealth
Minister and the State Minister shall make arrangements for the development
during the first 3 grant years of a home and community care information system
(including the development of standard definitions of services and collection
methods) for the purpose of effective planning and management of the program
which can meet operating agency requirements.
(2) Having
regard to clauses 10 and 11, the State shall collect and provide such
information as the Commonwealth Minister and the State Minister agree is
necessary for the operation of the information system.
(3) Pending
the establishment of the information system, each party shall furnish to the
other party such available information as the other party from time to time
requires for the purposes of monitoring and reviewing the operation of the
program.
(4) The
Commonwealth Minister may make arrangements with the State Minister for the
Commonwealth to provide assistance to the State in the collection and provision
of information.
(5) In
specifying the Commonwealth requirements for data collection and the
development of an information system, the Commonwealth Minister shall have
regard to the administrative practices and procedures of the State and shall
ensure that collection requirements and provision of data by the State are kept
to a minimum.
(6) In
developing an information system pursuant to sub‑clause (1) and in
arranging for the collection and provision of information pursuant to sub‑clause
(2), the Commonwealth Minister and the State Minister shall have regard to the
views of local governments and community organisations involved in service
delivery and users in the design and implementation of the system and ensure
that, where appropriate, information so collected is made available to those
bodies.
PART VIII—REVIEW AND VARIATION
31. The
operation of this agreement may be reviewed at any time (other than during the
first 2 grant years) agreed upon by the Commonwealth Minister and the State
Minister but, in any event, it shall be reviewed during every third grant year.
If, upon undertaking a review, the parties agree to vary the operation of the
agreement, then the agreement may be varied in the manner provided in clause 32,
but should the parties fail to agree on the continued operation of this
agreement then this agreement shall terminate at the end of the second
succeeding grant year.
32. (1) The
provisions of this agreement may be varied at any time by a further agreement
in writing.
(2) A
copy of an agreement or copies of the documents which constitute an agreement
under sub‑clause (1) shall be tabled in the Parliament of the
Commonwealth within 15 sitting days from the date upon which the agreement is
made.
PART IX—REPRESENTATION AND COMMUNICATIONS
33. (1) The
Commonwealth shall, subject to sub‑clause (2), be represented for the
purposes of this agreement by the Department of Community Services and the
Commonwealth Minister shall notify the State Minister of the address of that
Department and of any change at any time of that address.
(2) In
the event that the administration of this agreement for the Commonwealth is
allocated to a Minister other than the Minister for Community Services, the
Commonwealth shall be represented by the Department administered by that other
Minister and that other Minister shall notify the State Minister of the address
of that Department.
34. The
State shall be represented for the purposes of this agreement by the Department
nominated by the State Minister and the State Minister shall notify the
Commonwealth Minister of the address of that Department and of any change at
any time of the Department or of the address.
35. (1) A
notice or other communication under or in connection with this agreement shall
be duly given if it is in writing signed by or on behalf of, or attributed to,
the head or other authorised officer of the Department by which it is given and
addressed to or delivered at the address of the Department to which it is
directed.
(2) For
the purposes of this clause writing includes a teleprinter or facsimile message
and the address for such a message shall be the teleprinter or facsimile
address of the receiving Department.
(3) A
notice or other communication shall be given under this clause when it is
received in the appropriate form by the Department to which it is directed.