Emerging Issues for the Western Australian Community
Welcome Irina Cattalini CEO of WACOSS
Our Intent An environmental scan of emerging issues and key priorities to assist and inform the strategic direction of community services in Western Australia. Information and analysis to assist with strategic planning and service design.
2011 – Emerging Issues 1. Demand Growth The age, skills, ability, diversity and size of the Western Australian population is changing in ways that the current service structures are not adequately planned, prepared for or capable of meeting the demand. This demand growth, is coupled with an increasing cost of living in WA, and complex mental health, drug and alcohol and criminal justice issues. 2. Service Needs Informal social supports and networks are less capable of responding, which is driving up the need for formal, systemic service responses.
2011 – Emerging Issues 3. Multi-Speed Economy Not everyone in WA – individuals or businesses are benefiting from economic growth, the wealth generated from the resources sector is not being equally shared across our community, but is also exacerbating financial hardship. 4. Social Dividend Our challenge is to influence and ensure a more equitable social return, through investment in social structures – labour market, housing, education, training, and other essential infrastructure which impacts on social well being.
2011 – Emerging Issues 5. State – Cost Recovery The State Government is pursuing a cost recovery and efficiency policy agenda in some key areas of government expenditure – and to counteract some of the negative impacts of this drive, they are also trying to identify potential structures to support the return of a social community dividend. The implementation of the Economic Audit has seen a new collaborative approach to policy development emerging. We also look to be moving to fixed term elections. 6. Commonwealth – Crackdown Approach Both sides of federal politics are pursuing what is being described as a ‘tough love’ approach to social policy. Is the community losing more ground on an ethical and evidence based approach to social policy? What are the implications given the increasing power and remit of the Commonwealth on social policy and social services?
2011 – Emerging Issues 7. Changing Regulatory Frameworks New structures are being developed to implement the Economic Audit which are leading to changing regulatory frameworks. These include the new Partnership Forum, not-for-profit procurement policy and service standards, as well as a changing industrial relations framework. New National NFP regulation is also emerging through the Commonwealth. 8. Contracting, Pricing and Grants The State Government is currently considering adopting a new policy framework that will change the processes of funding community service through not-for-profit organisations in WA. There will be new rules relating to contracts through grants and service agreements. The mix of State and Commonwealth funding will be critical.
2011 – Emerging Issues 9. Preventative Services The drive in demand for high-cost intensive and acute services, and the priority they receive in terms of financial investment, is leading to the neglect of preventative and early intervention strategies. With the economic position of WA, we should be investing in both. 10. Consumer-Driven Services The mission of community service organisations fundamentally comes down to supporting individual who use or need social services. We have an ongoing challenge to engage social service consumers in meaningful and effective ways, and to continue to improve the quality of services for consumer outcomes. Co- location, integration and personalisation strategies are all being pursued. This is also leading us to think differently about how we measure meaningful outcomes for consumers and the community about the services we provide eg Results Based Accountability.
Agenda 1:00 Welcome Irina Cattalini 1:05 Environmental Scan Chris Twomey 1:25 Insecure work Alison Preston 1:50 Federal reforms Tessa Boyd-Cain 2:15 Tea Break 2:30 Policy collaboration Shawn Phillips 2:55 Emerging issues Chris & Irina 3:10 Group Discussion 3:35 Panel – Questions and Comments 4:00 Closing remarks Irina Cattalini
Environmental Scan Chris Twomey Director of Social Policy WACOSS
Environmental Scan Economic Social Sector Political Services
The Economic Landscape Multi-speed economy • Headline figures on the WA economy • The growing wealth gap • The growing cost of delivering services • Growth pressures vs. diminishing revenue base • The post-resource economy of the future? • Invest in community now to build future prosperity
Trends in income inequality in Australia Gini coefficient Annual Current Revised Working age 0.36 0.34 0.32 0.3 0.28 0.26 0.24 0.22 0.2 Peter Whiteford, Global trends in poverty and inequality . ACOSS Conference 2012
Level of inequality in OECD countries, 2007-08 0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 Peter Whiteford, Global trends in poverty and inequality . ACOSS Conference 2012
Changing inequality in OECD countries, 1995 - 2008 0.06 0.04 0.02 0 -0.02 -0.04 -0.06 -0.08 -0.1 Peter Whiteford, Global trends in poverty and inequality . ACOSS Conference 2012
Emerging Issues • Economic Restructuring • Fiscal Gap & Population Aging • Unemployment & Inadequate Allowances • Insecure Work & Productivity
General State Government Revenue Growth Forecast 2011-12 Government Mid-year Financial Projections Statement December 2011
Population Ageing 80 70 60 50 85 and over 65-84 40 15-64 0-14 30 20 10 0 1970 2010 2020 2030 2040 2050
Population Ageing
Proportion of the population aged 65+
Projected Fiscal Gap
Emerging Issues Fiscal Gap Economic Restructuring Aging Population Insecure Work Allowances
Cost of Living pressures • Unequal impact of essential goods and services • Housing affordability … the biggest challenge • Increasing utilities hardship • Transport & food
Cost of Living Pressures Generally discretionary items % change Essential items % change Alcohol & tobacco +13% Food +7% Clothing & footwear - 1% Rent +7% Household appliances - 5% Electricity +36% Motor vehicles - 1% Gas and other household fuels +31% Water and sewerage +17% Health +9% Public transport +6% Education +13% Insurance and financial services +9%
Residential Disconnections – Electricity & Gas Source: 2010/11 Annual Performance Report - Energy Retailers. Economic Regulation Authority.
Inter-State Comparison of Electricity Disconnections Source: 2010/11 Annual Performance Report - Energy Retailers. Economic Regulation Authority.
Key Issues – Housing and Utilities Housing Affordability • State Affordable Housing Strategy • Structural reforms to tax system Utilities Hardship • Expand and better target concessions • Expand efficiency programs • Principles to deliver equity and reductions
What a household in Perth can afford, December qtr 2011 $500,000 Median house price $450,000 Lower quartile house price $400,000 $350,000 $300,000 House price $250,000 $200,000 $150,000 $100,000 $50,000 $0 Gross household income $50,000 $82,100 $98,500 (median income) (120% of median) Source: Opening Doors: Affordable Housing Strategy 2010-2020 . Department of Housing. Presentation to 2012 ACOSS 2012 by Greg Cash
Source: Opening Doors: Affordable Housing Strategy 2010-2020 . Department of Housing. Presentation to 2012 ACOSS Conference by Greg Cash
Key Issues – Housing and Utilities Housing Affordability • State Affordable Housing Strategy (scale up) • Structural reforms to tax system (gradual) Utilities Hardship • Expand and better target concessions • Expand efficiency programs (HEP!) • Principles to deliver equity and outcomes • Opportunities to reward behaviour change
Emerging Issues Cost of Living Utilities Hardship Housing
The Social Landscape Demand Growth • Demographic change – population ageing • Migration, regional drift & urbanisation • Changing demand & supply of labour Complexity of need • Multiple barriers – entrenched disadvantage • Co-morbidity & fragmentary approaches • Prevention is cheaper and easier than cure • Target risk, intervene early & wrap-around
Key Issues Positive ageing Agewell campaign Early years coordination Children’s PAC Youth at risk WACOSS Forum Self-directed services & complex need?
Emerging Issues Early Years Youth at Risk Positive Aging Complex Need Self Direction
The Sector Sustainability Landscape Federal • ACNC – Australian Charities and Not-for-profit Commission • Tax reforms – Unrelated business activities, charitable exemptions • Occupational Health and Safety • Fair Work Australia – modern award & wage case State • DCSP – Delivering Community Services in Partnership Policy • Incorporated Associations Act – general purpose reporting • Issues for State Awards under DCSP Both • Social enterprise
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