Detailed Report: Community Services Sector Overview and Analysis

This report provides a comprehensive overview of the community services sector, encompassing aged care, services for people with disability, and child protection and youth justice services. It begins with an introduction to the sector, outlining its policy context, scope, and the roles of various governmental and non-governmental entities. The report then delves into sector performance indicators, including funding and expenditure, highlighting the significant roles of Australian, State, and Territory governments, as well as the non-profit and for-profit sectors. It examines cross-cutting issues and future directions in performance reporting, emphasizing improvements in reporting methodologies. Detailed profiles of individual service types, including funding and expenditure, are also provided. The report also includes a breakdown of community services expenditure, analyzing spending by governments, non-government organizations, and individual households. The report's structure includes an introduction, sector performance indicator framework, cross-cutting issues, and future directions. Attachment tables are referenced throughout the overview and available on the Review website. This analysis provides valuable insights into the sector's structure, funding, and future outlook.

COMMUNITY
SERVICES SECTOR
OVERVIEW
F.1
F Community services sector overview
CONTENTS
F.1 Introduction F.1
F.2 Sector performance indicator framework F.13
F.3 Cross-cutting and interface issues F.37
F.4 Future directions in performance reporting F.41
F.5 List of attachment tables F.42
F.6 References F.43
Attachment tables
Attachment tables are identified in references throughout this sector overview by a ‘FA’
prefix (for example, table FA.1). A full list of attachment tables is provided at the end of
this sector overview, and the attachment tables are available from the Review website
at www.pc.gov.au/gsp.
F.1 Introduction
This sector overview provides an introduction to the Aged care services
(chapter 13), Services for people with disability (chapter 14) and Child protection
and youth justice services (chapter 15) chapters of this Report. It provides an
overview of the community services sector, presenting both contextual information
and high level performance information.
Major improvements in reporting on community services this year are identified in
each of the service-specific community services chapters.

F.2 REPORT ON
GOVERNMENT
SERVICES 2013
Policy context
Families are the principal providers of care for children, older people and people
with disability (ABS 2010; Australian Government 2008). Community services aim
to:
• support families to fulfil their caring roles
• provide care when families are unable to
• provide interventions when a person’s needs are not able to be met within the
community without special intervention.
Community services provide support to sustain and nurture the functioning of
individuals, families and groups, to maximise their potential and to enhance
community wellbeing (Australian Council of Social Service 2009). Although
community services generally target individuals, they can be delivered at an
institutional level. Services are typically provided by government and the
not-for-profit sector, but the for-profit sector also has an important role (for
example, as owners of aged care facilities). Community services also contribute to
the development of community infrastructure to service needs (AIHW 2005).
Sector scope
Although there is a broad understanding of the nature of community services, the
sector is complex, and consistent aggregate reporting across the community services
sector is not possible at this time.
Definitions of the sector vary in their scope and can change over time. Community
service activities typically include activities that support individual and family
functioning. They can include financial assistance and relief to people in crisis but
exclude acute health care services and long term housing assistance. Some of these
interventions are included elsewhere in this Report; for example, Public hospitals
(chapter 10), Mental health management (chapter 12), Housing (chapter 16), and
Homelessness services (chapter 17).
The definition of community services activities in this sector overview is based on
the National Classification of Community Services developed by the Australian
Institute of Health and Welfare (AIHW 2003) (box F.1). The scope of the sector
overview is therefore somewhat broader than the three service-specific chapters in
this section of the Report (Aged care services, Services for people with disability,
and Child protection and youth justice services).

COMMUNITY
SERVICES SECTOR
OVERVIEW
F.3
Box F.1 Community services activities
Community services activities include:
Personal and social support — activities that provide support for personal or social
functioning in daily life. Such activities promote the development of personal skills for
successful functioning as individuals, family members and members of the wider
community. Personal and social support activities include: the provision of information,
advice and referral; personal, social and systemic advocacy; counselling; domestic
assistance; provision of services that enable people to remain in their homes; disability
services and other personal assistance services. The purpose of such support is to
enable individuals to live and function in their own homes or normal places of
residence.
Support for children, families and carers — activities that seek to promote child and
family welfare by supporting families and protecting children from abuse and neglect or
harm through statutory intervention.
Training, vocational rehabilitation and employment — activities that assist people
who are disadvantaged in the labour market by providing training, job search skills,
help in finding work, placement and support in open employment or, where
appropriate, supported employment.
Financial and material assistance — activities that enhance personal functioning and
facilitate access to community services, through the provision of emergency or
immediate financial assistance and material goods.
Residential care and supported accommodation — activities that are provided in
special purpose residential facilities, including accommodation in conjunction with other
types of support, such as assistance with necessary day-to-day living tasks and
intensive forms of care such as nursing care.
Corrective services — activities in relation to young people and people with
intellectual and psychiatric disabilities on court orders that involve correctional and
rehabilitative supervision and the protection of public safety, through corrective
arrangements and advice to courts and releasing authorities.a
Service and community development and support — activities that provide support
aimed at articulating and promoting improved social policies; promoting greater public
awareness of social issues; developing and supporting community based activities,
special interest and cultural groups; and developing and facilitating the delivery of
quality community services. Activities include the development of public policy
submissions, social planning and social action, the provision of expert advice,
coordination, training, staff and volunteer development, and management support to
service providers.
a This Report uses the term ‘youth justice’ to refer to detention and community-based
supervision services for young people who have committed or allegedly committed an offence
while considered by law to be a juvenile (chapter 15).
Source: AIHW (2003); State and Territory governments (unpublished).

F.4 REPORT ON
GOVERNMENT
SERVICES 2013
Other definitions of community services have even broader scope. The National
Community Services Information Agreement, managed by the National Community
Services Information Management Group (NCSIMG), includes income support and
concessions in its definition (NCSIMG 2008). Other definitions include activities
such as advocacy, public transport, community safety and emotional support.
Profile of the community services sector
This section examines the size and scope of the community services sector and the
role of government in providing community services. Detailed profiles for the
services within the community services sector are reported in chapters 13, 14 and
15, and cover:
• size and scope of the individual service types
• funding and expenditure.
Roles and responsibilities
The Australian, State and Territory governments have major roles in the provision
of community services. These roles are based on mandates to ensure basic rights
and an acceptable standard of living, and a requirement to protect and support
vulnerable people in society.
Local governments are also funders and providers of community services
(AIHW 2005). However, community services funded solely by local government
are not included in this Report.
Roles and responsibilities for the health sector were confirmed by COAG under the
National Health Reform Agreement during 2011. Under that Agreement, changes in
roles and responsibilities for the Home and Community Care (HACC) program
across the aged care and disability services’ sectors also came into effect on
1 July 2011 (for more detail see section F.3, box 13.1 and box 14.5).
Government involvement in community services includes:
• providing services directly to clients
• funding non-government community service providers (which then provide
services to clients)
• legislating for, and regulating, government and non-government providers
• undertaking strategic planning, policy development and administration
• undertaking monitoring and evaluation of community services programs.

COMMUNITY
SERVICES SECTOR
OVERVIEW
F.5
The roles and funding arrangements for community services vary across service
areas and programs:
• statutory child protection, out-of-home care services, intensive family support
services and youth justice services are funded and delivered primarily by State
and Territory governments, with some non-government sector involvement,
particularly in the delivery of out-of-home care services. Family support and
early intervention (assessment and referral) services are funded by State and
Territory governments and services are delivered primarily by non-government
organisations
• specialist disability services, excluding employment services, are funded
primarily by State and Territory governments (with some Australian
Government contribution) and are delivered primarily by State and Territory
governments and the non-government sector. Employment services are funded
and provided primarily by the Australian Government
• residential aged care is funded primarily by the Australian Government and
services are delivered primarily by the non-government sector
• the funding and program responsibilities for HACC services across states and
territories (except in Victoria and WA) are split ― the Australian Government
funds services for older people and State and Territory governments fund
services for younger people. HACC services for older people and younger
people are jointly funded by the Australian and Victorian governments in
Victoria and the Australian and WA governments in WA. Services are delivered
by a combination of local government, non-government community
organisations, religious or charitable bodies, State and Territory government
agencies, and private (for profit) organisations.
Effective regulation of non-government agencies (through licensing, accreditation
and quality assurance) enables agencies to provide services within a framework of
agreed standards. Examples include the accreditation of residential aged care
services and the new Community Care Common Standards that came into effect on
1 March 2011. The Community Care Common Standards apply for the HACC
program, Community Aged Care Packages (CACP), Extended Aged Care at Home
(EACH), EACH-Dementia (EACH-D) and National Respite for Carers Program
(NRCP).

F.6 REPORT ON
GOVERNMENT
SERVICES 2013
Expenditure
Community services expenditure
Estimates of community services expenditure are influenced by the scope of the
services to be included. The following broad estimates of community services
expenditure provide context for material included in the relevant chapters of this
Report.
Australia’s welfare 2011 (AIHW 2011) analyses community services expenditure
incurred by governments, non-government organisations and individual households
in providing services to assist members of the community with special needs
(families and children, older people, people with disability and other disadvantaged
groups). It estimates that:
• welfare expenditure broadly comprises spending on welfare services and cash
payments. In 2008–09, welfare expenditure was estimated to be $136.6 billion,
$94.4 billion of this was for cash payments while $42.2 billion was for welfare
services (AIHW 2011)
• expenditure on welfare services, excluding welfare payments ($42.2 billion) in
2008–09 represented 3.4 per cent of Gross Domestic Product (GDP). The
amount spent on welfare services between 1998–99 and 2008-09 increased on
average each year by 4.9 per cent, much higher than GDP growth of 3.2 per cent
(AIHW 2011)
• governments were the source of 73.0 per cent ($30.9 billion) of all funding of
welfare services in 2008–09, with the non-government sector providing the
remaining 27.0 per cent ($11.2 billion) (AIHW 2011).
Community Services Australia, 2008-09 (ABS 2010) provides data on community
services expenditure incurred by governments and non-government organisations
(for-profit and not-for-profit) in providing services to assist members of the
community with special needs, including personal and social support, residential
care and other social assistance services. These data apply to organisations engaged
in providing a wide variety of social support services directly to clients, including
(but not limited to), welfare services, disabilities assistance and the operation of
adult day care centres.
Community Services Australia estimates that, during 2008-09, $25.2 billion was
spent on direct community services activities and a further $4.0 billion on
non-direct and related community services activities. The majority of services were
provided by the not-for-profit sector, which received most of its funding from
government. Total expenditure on direct activities comprised $13.8 billion by

COMMUNITY
SERVICES SECTOR
OVERVIEW
F.7
not-for-profit organisations, $6.7 billion by for-profit organisations, $3.8 billion by
Australian, State and Territory governments and $0.9 billion by local government.
In addition, Australian, State and Territory governments provided funding of
$9.5 billion to other private organisations and self-employed contractors for the
direct provision of community services:
• Personal and social support comprises activities relating to information, advice
and referral, individual and family support, independent and community living
support, and support in the home. During 2008–09, total expenditure on personal
and social support was $5.9 billion, which accounted for 24 per cent of all direct
community services expenditure. Not-for-profit organisations received the
majority of this ($4.3 billion). The main components of personal and social
support expenditure were $1.6 billion for individual and family support,
$1.5 billion for support in the home, and $1.5 billion for other personal and
social support.
• Direct expenditure on residential care across the community services sector was
$12.6 billion in 2008–09. Not-for-profit organisations had the largest allocation
with $7.2 billion, followed by for-profit organisations with $3.3 billion, and
government organisations with $2.0 billion. Aged and disability care was the
most significant activity within residential care, accounting for $10.3 billion of
total expenditure. The main components of this were high level care ($6.8 billion
or 66 per cent), and low level care ($3.5 billion or 34 per cent). Not-for-profit
organisations accounted for $3.3 billion (48 per cent) of the high level care
expenditure and $2.5 billion (73 per cent) of the low level care expenditure.
Community services expenditure included in this Report
The following analysis relates only to expenditure on programs reported in the
community services chapters of this Report (box F.2).

F.8 REPORT ON
GOVERNMENT
SERVICES 2013
Box F.2 Major programs included in community services expenditure
in the Report
The major programs reported on include:
• aged care services — aged care assessment, residential care and community care,
including HACC services
• services for people with disability — services as outlined in the National Disability
Agreement
• child protection and youth justice services — child protection, out-of-home care,
family support services and intensive family support services, and youth justice
services, including community and detention-based supervision and group
conferencing.
Each chapter includes more detailed analysis of expenditure items reported.
Recurrent expenditure included in the Report
Total Australian, State and Territory government recurrent expenditure on
community services covered by this Report was estimated to be $24.2 billion in
2011-12 (table F.1). This was equivalent to 1.7 per cent of GDP in that year, and
9.3 per cent of total government outlays (table F.1 and ABS 2012).
Between 2007-08 and 2011-12, real government recurrent expenditure on these
services increased by $5.9 billion or 32.1 per cent. The largest proportional increase
in real expenditure was on child protection and youth justice services, which
increased by 87.3 per cent between 2007-08 and 2011-12. However, in part this
increase is explained by the addition in 2011-12 of expenditure data for two new
services: family support services and youth justice services. The largest absolute
dollar increase for a particular service between 2007-08 and 2011-12 was
$2.3 billion for aged care services (table F.1).

COMMUNITY
SERVICES SECTOR
OVERVIEW
F.9
Table F.1 Real government recurrent expenditure on community services
(2011-12 dollars)a, b, c, d, e
Unit Aged care
services
Services for people
with disability
Child protection
and youth justice
Total
2007-08 $m 10 562.3 5 408.9 2 391.1 18 362.3
2008-09 $m 10 967.7 5 710.3 2 705.5 19 383.4
2009-10 $m 11 868.1 6 193.7 3 044.2 21 106.0
2010-11 $m 12 371.2 6 301.9 3 172.1 21 845.2
2011-12 $m 12 861.3 6 914.2 4 479.0 24 254.5
Increase 2007-08
to 2011-12 % 21.8 27.8 87.3 32.1
a Data for 2007-08 to 2010-11 have been adjusted to 2011-12 dollars using the gross domestic product (GDP)
price deflator in table AA.51 of appendix A. b Totals may not add as a result of rounding. c See box F.2 for the
major programs included in expenditure for each service. d Total expenditure includes a transfer of
$131 million from NSW to the Australian Government for the notional support costs for younger people
receiving residential and packaged aged care, as required under the National Partnership Agreement on
Transitioning Responsibilities for Aged Care and Disability Services. This expenditure is included in both the
Aged Care expenditure and Services for people with disability expenditure. e More detailed expenditure data
can be found in the relevant chapters of the Report.
Source: Australian, State and Territory governments (unpublished); tables 13A.6, 14A.4, 15A.1, 15A.179 and
AA.51.
Expenditure available for reporting at a State and Territory level
Table F.2 identifies expenditure on community services included in this Report by
State and Territory governments and the Australian Government, available for
reporting by State and Territory for 2011-12.

F.10 REPORT ON
GOVERNMENT
SERVICES 2013
Table F.2 Government recurrent expenditure on community services,
2011-12a, b, c, d, e, f, g
Unit NSW Vic Qld WA SA Tas ACT NT Aust
Recurrent expenditure on community services
ACS $m 4 176.0 3 251.8 2 436.8 1 146.8 1 214.0 345.3 146.4 72.2 12 861.3
SPWD $m 2 065.2 1 504.8 990.7 655.4 433.1 151.3 90.6 64.0 6 914.2
CPYJS $m 1 774.9 823.3 920.8 471.9 235.3 89.8 49.4 113.6 4 479.0
Total $m 8 016.1 5 579.9 4 348.3 2 274.0 1 882.4 586.4 286.4 249.8 24 254.5
Proportion of recurrent expenditure by service
ACS % 52.1 58.3 56.0 50.4 64.5 58.9 51.1 28.9 53.0
SPWD % 25.8 27.0 22.8 28.8 23.0 25.8 31.6 25.6 28.5
CPYJS % 22.1 14.8 21.2 20.8 12.5 15.3 17.2 45.5 18.5
Total % 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Recurrent expenditure on community services per person in the population f
ACS $ 576.2 583.3 540.0 480.4 738.0 674.8 394.9 310.7 572.0
SPWD $ 285.0 269.9 219.5 274.5 263.3 295.7 244.5 275.4 307.5
CPYJS $ 244.9 147.7 204.0 197.7 143.0 175.5 133.3 488.9 199.2
Total $ 1 106.0 1 001.0 963.5 952.6 1 144.3 1 145.9 772.7 1 075.0 1 078.7
ACS = Aged care services. SPWD = Services for people with disability. CPYJS = Child protection and youth
justice services.
a For aged care services and services for people with disability, Australian Government expenditure not
allocated to a State or Territory is included in the totals ($72.1 million in aged care services and $959.9 million
in services for people with disability). b Collection and reporting methods may vary across jurisdictions and
services, therefore, these data should be interpreted with care. c See box F.2 for the major programs included
in expenditure for each service. More detailed expenditure data can be found in the relevant chapters of the
Report. d Totals may not sum due to rounding. e Expenditure for aged care does not include capital
expenditure. f Population at 31 December 2011. g Total expenditure includes a transfer of $131 million from
NSW to the Australian Government for the notional support costs for younger people receiving residential and
packaged aged care, as required under the National Partnership Agreement on Transitioning Responsibilities
for Aged Care and Disability Services. This expenditure is included in both the Aged Care expenditure and
Services for people with disability expenditure.
Source: Australian, State and Territory governments (unpublished); tables 13A.5, 14A.4, and 15A.1
Size and scope
Current data on the size and scope of the community services sector are limited. The
ABS survey of community services collected data on the number of organisations
that provided community services in 2009. Almost 11 000 organisations were
providing community services. These included 5 809 not-for-profit organisations,
4 638 for-profit organisations and 520 government organisations (ABS 2010).
Social and economic factors affecting demand for services
In general, relatively disadvantaged members of the community live shorter lives
and have higher rates of illness and disability than those whose circumstances are
advantageous. For example, higher levels of education and income are associated

COMMUNITY
SERVICES SECTOR
OVERVIEW
F.11
with a lower prevalence of health risk factors such as smoking and obesity, and
better health outcomes generally (AIHW 2010).
Disadvantage also limits the extent to which individuals and families can participate
in society. Economic participation conveys financial, health and social benefits to
individuals, households and families and is central to population welfare. Economic
participation can be described as a person’s engagement in education and
employment, and access to economic resources including income and wealth. The
various aspects of economic participation are inter-related, and are also associated
with positive social and health outcomes (AIHW 2011).
Child protection and youth justice services
No single factor can predict whether a child will require child protection services.
Factors commonly associated with child protection involvement include: early child
bearing, parental alcohol and drug use, family violence, adult mental illness, social
isolation, children with health, disability or behavioural problems, and families
under financial stress (families who are reliant on pensions and benefits are
overrepresented in the child protection system) (Bromfield and Holzer 2008; Allen
Consulting Group 2003).
Similarly, no single factor can predict which children will come into contact with
the justice system or be subject to youth justice supervision. A range of factors are
associated with youth justice system involvement, including a young person’s lack
of maturity, his or her propensity to take risks and susceptibility to peer influence,
intellectual disability, and mental illness (Richards 2011).
Disability services
The Productivity Commission report (PC 2011a) into the disability care and support
sector describes the sector as underfunded, unfair, fragmented, and inefficient,
which gives people with disability little choice and no certainty of access to
appropriate supports. The disability sector reflects social barriers such as prejudice,
out-of-date practices, and poorly designed infrastructure. On 13 February 2011,
COAG formally endorsed the National Disability Strategy 2010-2020. The Strategy
outlines a ten-year national policy framework to improve the lives of people with
disability, promote participation, and create a more inclusive society. It guides
public policy across governments and aims to bring about change in all mainstream
and specialist services and programs, as well as community infrastructure, to ensure
they are accessible and responsive to the needs of people with disability. This
change is important to ensuring that people with disability have the same

F.12 REPORT ON
GOVERNMENT
SERVICES 2013
opportunities as other Australians – a quality education, health care, a job where
possible and access to buildings, transport and social activities.
Aged care services
The National Health and Hospitals Reform Commission noted a number of
challenges facing the aged care sector including significant shifts in the type of care
demanded, due to reduced access to carers and family support caused by changes in
social and economic circumstances (NHHRC 2009). The Productivity Commission
report (PC 2011b) into caring for older Australians highlighted the increasing
numbers of older people who are likely to require care (by 2050 it is estimated the
3.5 million Australians will use aged care services), along with their increasing
expectations of care and the relative fall in the number of informal carers. The
Australian Government’s Living Longer, Living Better aged care reform package,
announced during 2012, includes a focus on increased consumer choice and control;
more affordable and easier access to a full range of services; improved and
expanded home care, support and residential care; better information; and more
sustainable financing arrangements.
Service-sector objectives
The overarching service sector objectives in box F.3 draw together the objectives
from each of the specific services detailed in this Report. More detailed objectives
can be found in chapters 13 (Aged care services), 14 (Services for people with
disability) and 15 (Child protection and youth justice services).