Income Contingent Loans for Paid Parental Leave

In early 2008 the federal government instructed the Productivity Commission (PC) to enquire into the social and economic policy issue of paid parental leave (PPL). In their draft report, the PC (2008) has called for a taxpayer funded scheme of 18 weeks duration, despite Australian governments having so far resisted the introduction of a broad grants-based system. A case for government subsidy of PPL can be made on the basis that the social benefits exceed the advantages accruing directly to families. However, as there are also indisputable private benefits accruing to the parents taking leave, there is a case for private contributions. We identify a market failure in that commercial banks will not provide funds in the absence of collateral due to repayment uncertainty during parental leave, a situation quite similar to the market failure inherent with respect to the financing of tuition for higher education (Gans, 2008). To address this financing impasse, we consider how an income contingent loan (ICL) could be used as an optional supplement to a taxpayer funded PPL scheme. Moral hazard and adverse selection are critical policy issues and these are addressed in the scheme design by: restricting loan duration and size; restricting eligibility to parents with workforce attachment; reducing minimum repayment thresholds to below those of HECS; imposing a loan surcharge, and; making the debt an obligation of both parents. We explain and present simulations of debt, repayment and subsidies for different households. The results show that an optional top-up ICL would not require major contributions from taxpayers, yet would introduce flexibility and choice, and provide consumption-smoothing and lifetime income distribution advantages over possible alternatives.paid parental leave; income contingent loans; public policy; industrial relations

Submission to the Productivity Commission on Disability Care and Support 11 May 2011

The authors of this submission welcome the Productivity Commission (PC) Draft Report and many of the key features of the proposed NDIS including: • the proposal for a scheme to provide long term care and support on an entitlement basis, • many of the accompanying features of the approach outlined, including the no fault basis of provision, the inclusion of aids and equipment, and the recognition of the need to include the full range of support services, • the acknowledgment of unmet demand and the need for significant new funding. Our comments on the draft report are made in the spirit that we endorse the main directions of the proposed scheme, which would be of great benefit to the Australian people, most especially people with disabilities and their families. We sincerely hope that governments will respond positively and promptly to the vision laid out in the Draft Report. We offer constructive criticism to maximise the chances of the scheme’s success, in terms of enabling people to access the supports they need, on an equitable basis. In this submission we focus on 5 areas: 1. Eligibility and assessment 2. Assessment Tools 3. Overcoming access and equity barriers for Aboriginal communities 4. Research and Data 5. GovernanceCentre for Disability Research and Polic

Timeline of Australian climate change policy

This paper presents a record of Australian climate change policies, including key international developments to provide global context.IntroductionClimate change is a long-term, global problem. Long-term problems generally require stable but flexible policy implementation over time. However, Australia’s commitment to climate action over the past three decades could be seen as inconsistent and lacking in direction. At times Australia has been an early adopter, establishing the world’s first government agency dedicated to reducing greenhouse gas emissions; signing on to global climate treaties the same day they are created; establishing the world’s first emissions trading scheme (ETS) (albeit at a state level); and pioneering an innovative land-based carbon offset scheme. But at other times, and for many reasons, Australia has erratically altered course: disbanding the climate change government agency, creating a new one then disbanding that; refusing to ratify global treaties until the dying minute; and introducing legislation to repeal the national ETS

A visual history of demographic projections in Australia

This fact sheet compares historic demographic patterns and central projections from the Australian Bureau of Statistics and the Australian Treasury. It looks at trends relating to the total population, population ageing, fertility, life expectancy and migration. Treasury figures are of particular interest since they form the basis for the Intergenerational Report, an analysis of fiscal sustainability of existing policy. Both the ABS and Treasury emphasise that in describing Australia’s future demography (as well as the related long term fiscal impacts) their figures should be seen as projections, not forecasts. But the two are commonly conflated in public and political discourse and the projections have an impact on policy decisions. So the reasonableness of official projections should be subject to scrutiny, evaluated against actual experience and compared to each other. Any differences and inaccuracies can serve as a guide to users of the data.  Transparency is all the more necessary given that the Treasury sets its own demographic assumptions for long-term fiscal reporting rather than using those produced by an independent national statistics office – the usual approach among OECD countries. The fact sheet shows how outcomes can differ based on different assumptions and how it is not uncommon for projections and assumptions to stray from reality

Australian climate change policy: a chronology

This paper presents a record of Australian climate change policies. Key international developments are also included to provide global context. Introduction Climate change is a long-term, global problem. Long-term problems generally require stable but flexible policy implementation over time. However, Australia’s commitment to climate action over the past three decades could be seen as inconsistent and lacking in direction. At times Australia has been an early adopter, establishing the world’s first government agency dedicated to reducing greenhouse gas emissions; signing on to global climate treaties the same day they are created; establishing the world’s first emissions trading scheme (ETS) (albeit at a state level); and pioneering an innovative land-based carbon offset scheme. But at other times, and for many reasons, Australia has erratically altered course: disbanding the climate change government agency, creating a new one then disbanding that; refusing to ratify global treaties until the dying minute; and introducing legislation to repeal the national ETS

Implications of the National Disability Insurance Scheme for health service delivery

Executive summary The National Disability Insurance Scheme (NDIS) is not a health scheme. The NDIS funds disability support and a range of related services designed to maximise the independence of a person with a disability. Health care is a specific exclusion. The NDIS is organisationally separate from both the health system and the aged care sector. At the national level, the NDIS is the responsibility of the Minister for Social Services (and not the Minister for Health) and is being administered by the National Disability Insurance Agency (NDIA), which is an independent statutory agency. While the NDIS is not a health scheme, and health care is a specific exclusion, it will intersect with the health system on a number of levels. To ensure the NDIS does not lead to fragmented care for participants, the Department of Health, the Department of Social Services and the NDIA will need to work closely to monitor and resolve any issues that arise during the implementation phase. This will require active, joint collaboration to develop appropriate policy responses.   Recommendations for action 1. Establish formal Department of Health, Department of Social Service and National Disability Insurance Agency tripartite working group with the following roles and responsibilities: Education and information for key targeted audiences regarding eligibility requirement and other key implications of the NDIS and the National Injury Insurance Scheme (NIIS) Workforce implications monitored and addressed in a coordinated manner Patient inequity issues monitored and coordinated policy responses undertaken Permanent and fluctuating impairment required coordinated care and active policy responses Mental health implications need to be better understood and coordinate actions to be taken to overcome barriers Service prevision boundary disputes between health and disability sectors require a resolution mechanism through negotiation rather than determined solely by the NDIA Timely access issues monitored and a fast track system for hospital referrals to/from the NDIS developed Inconsistency with the 2011 National Health Reform Agreement monitored and addressed as appropriate 2. While it is the responsibility of the Department of Social Services and the NDIA to work toward a nationally consistent approach as the scheme moves to full roll-out, the Department of Health should monitor roll-out to ensure health services are not negatively impacted. 3. Review the NDIS evaluation in order to inform the health system with applicable lessons. At the system level, the NDIS presents opportunities to learn more about individualised service planning and funding, and better ways to measure need and outcomes

Regulating Ports: competition in South Australian port services for grain

Certain port services, called Essential Maritime Services, are subject to price regulation in South Australia. The need for this regulation is now under review, involving a series of assessments of market structures and market power in port services. This paper proposes a framework for assessing market power in port services, to determine whether there is a prima facie case for regulation. Elements of the framework are applied to the grain industry, which is one of the major users of port services in South Australia.ports, market power, grain, Crop Production/Industries, Production Economics,

Political actor or policy instrument? Governance challenges in Australian local government

This article examines the governance challenges facing Australian local government, which include lack of constitutional standing, intergovernmental dependencies, financial constraints and weak democratic standing. The historical context has shaped the nature and place of local government in the Australian federal polity and has contributed to the tensions created by an expansion of the roles and responsibilities of local government, especially in the provision of services, which is not matched by concomitant increases in financial capacity and local autonomy. These governance challenges are discussed with a view to establishing local government’s capacity for autonomous self-governance in the face of intergovernmental and fiscal dependencies, and the implications of this for local government reform trajectories. Author: Dr Nicola Brackertz, Swinburne University of Technolog