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The allocation of Specific Purpose Payments

Mrs Armitage (Launceston) to ask the Honourable the Leader of the Government -

(1) With reference to the Department of Treasury and Finance Revised Estimates Report 2014-2015 (including December Quarterly Report) page 19 -

“The increase in Specific Purpose Payments reflects an increase in National Health Reform funding of $4.1 million due to revised activity levels”

Can the Government explain where this funding has been allocated?

(2) With reference to the same Report at page 20 -

Other grants and subsidies is $7.9 million higher. The increase in other grants and subsidies includes an increase in Australian Government Funding relating to Commonwealth Own Purpose Expenditure (COPES) for the Department of Health and Human Services and the THOs -

Can the Government explain where this funding has been allocated?

Answer:

1)The Commonwealth provides funding under the National Health Reform payment, based on a number of factors, including estimated (and subsequently actual) hospital activity levels.

The 2014-15 Budget included preliminary estimates of hospital activity levels for 2014-15 prior to 2013-14 actual data being available. The funding increase in the 2014 15 Revised Estimates Report represents minor revisions to hospital activity estimates, as more accurate data was available, including the availability of 2013-14 actual data.

This funding has been applied across the THOs, based on the activity based funding model which is used to determine funding distribution across the THOs.

(2)The $7.9 million increase represents the total increase in grants and subsidies for the General Government Sector. A proportion, but not all of this increase, represents additional funding above the 2014-15 Budget estimates relating to COPEs and NPAs for DHHS and the THOs.

Key movements with regard to DHHS and the THOs include additional expenditure (offset by additional funding) under the Homelessness NPA ($2.4 million), Indigenous Early Childhood NPA ($416 000), and Home and Community Care ($1 million).

Answer provided May 27, 2015

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