NDIA Accountability Project

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Social, Community, Home Care and Disability Services Industry Award 2010 Review

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Disclosure Log

Document 11 - FOR OFFICIAL USE ONLY

Pricing Reference Group | Item X.X

Prepared By: David Cullen Chief Economist

Social, Community, Home Care And Disability Services Industry Award 2010 Review
Purpose:

To provide an update on PRG regarding current review SCHADS award.

Recommendations

That PRG NOTE information provided this paper about reviewing SCADHS Awards.

Background

  1. New provisions Fair Work Act enable parties put forward claims modify clauses at any point rather than needing four-yearly reviews conducted Modern Awards will lead submissions more frequent from union industry representatives amendments may not be consistent with emerging needs sector; In April FWC commenced reviewing claims amend SCADDS awards Key Claims include:(a) Allowing workers paid overtime for those worked over eight hours(b) Accruing time in lieu overtime rate Monday Friday excursions where accrual agreed payment(c) Variation prohibit rosters altered avoid public holiday entitlements(d) Insert new allowance use community language skills(e) Payment registration attendance costs employees require first aid certificate(f) Variations pay casual loading additional Saturday Sunday penalty rates also to public holidays(g) Variations receive their casual loadings addition overtime rates(h) Payments allow or penalties working broken shifts

DISCLOSURE LOG

FOR OFFICIAL USE ONLY

Pricing Reference Group Date: 30 July 2019 Item number:
i Limiting the number of broken shifts to a maximum of two
j Payment of travel time between homes of clients
k Remuneration where permanent staff are required to work additional hours at short notice
l Imposing penalties on employers for employer-proposed changes to rosters
m Minimum shift lengths of four-hours for all rostered shifts
(n) Payment of shift allowances when employees work afternoon or night shifts regardless
of day.

Decision timeline

A decision is expected in early 2020 regarding some claims (sub points from ‘a’ through ‘g’), with remaining reviews scheduled late that year (‘h’, …, ‘n’). Decisions covering up to thirty-two cases will be made around this same timeframe as well.’

Disclosure Log

FOR OFFICIAL USE ONLY

Pricing Reference Group - July 30th, 2019 Item: xx

  • This would compensate workers for time spent working but more accurate travel times must also reflect in a revised Price Guide. c(c Changing The Cancellation Policy) i Unions have requested stronger penalties against employer-made changes on rosters while industry representatives seek greater flexibility allowing employers reschedule cancelled shifts without penalty ii Both union & industry requests stem from higher cancellation rates due to consumer-driven models.

Tensions Associated With Transitioning From Block-Funded To Fee-for-service Model

The submissions highlight tensions between unions/industry regarding disability services transitioning away from block-funded systems towards fee-based ones with providers bound within regulated prices. NDIS market growth is expected alongside other major human service sectors like aged care and childcare as per analysis estimates indicating an additional requirement up-to-an extra 90 thousand full-time equivalent (FTE) staff members until year two-thirteen Disability Service Providers report concerns about potential worker transfers into less physically demanding areas such as Aged Care Sector which offers potentially better pay conditions. It’s possible that policy adjustments can balance improving work environments versus reducing costs faced by operators during this transition phase. Department supports actions aimed at easing some cost pressures so they could offer favorable terms to employees. The extent of Award modifications leading increased provider expenses may necessitate these increases reflected accordingly under the current market-setting model. a Other measures include fostering e-market tools for reduced transactional costs, aiming offsetting certain financial burdens.

Sensitivities:

n The NDIS price controls along Price Guide will need monitoring considering SCHADS Awards decisions over next six months twelve years stakeholder feedback provided department’s Workforce Analysis project 2019 Social Community HomeCare & Disability Services Industry Award Review Page: xx3

Disclosure Log

Pricing Reference Group Minutes of the Meeting of August 14th , 2019

Members present:

  • Liz (Chair)
  • Jim PSM Independent Member
  • David Cullen
  • Graeme AM independent member
  • Sarah Louise proxy Vicki
  • Victor Melissa Apologies:
  • James Michael’s representative.

Item - Conflicts Of Interest: The PRG noted that Graeme was a member Board Life Without Barriers Summer Foundation Joblife Employment Attitude Foundation and s47F personal privacy irrelevant material .

Specialist Disability Accommodation SDA Limited Cost Assumption Review

The draft final report from review sets out matters considered by it. That PRG agreed to recommend NDIA BOARD following proposed adjustments Price Guide Location factors increases location factors in accordance with recommended outcomes Base assumptions An increase construction cost assumption Fully Accessible design category across all build types resulting price limits between % depending on type;

DISCLOSURE LOG

FOR OFFICIAL USE ONLY National Disability Insurance Agency – Pricing Reference Group Minutes of the Meeting of 14 August 2019

  • An increase in the construction cost assumptions for the Robust design category by 14.0.% across all build types, noting that this will result in an increase in the price limits of Fully Accessible design of between 9.% and 1%. depending on the build type.

THAT PRG NOTED:

The estimated long-run impact of these combined changes is to increase annual expenditure on SDA by ,, with peak liability (in ) increasing from $758*. milli

Disclosure Log

Pricing Reference Group Minutes of the Meeting of September 19th , 2019

Members present:

  • Melissa [redacted] - Chair A/g CFO
  • Jim [redacted]- PSM Independent Member
  • David Cullen
  • Graeme [redacted] AM-Independent member
  • Sarah [redacted]
  • James [redacted](proxy Michael)
  • Louise [redacted](Proxy Vicki)

Apologies:

  • Liz [redacted] (Chair,A/G Head MPSD) and Victor [redacted]A/G CRO
Secretariat Scott [redacted]

**Item **

  1. The PRG noted that Graeme [redacted]: a member Board Life Without Barriers; b) a member Summer Foundation c) Joblife Employment d) Attitude Foundation e) s47F personal privacy, s22(1)(a)(ii)-irrelevant material

2.The PRG endorsed minutes meetings PRG-PRG- Item B). 3.The PRG had preliminary discussion its Terms reference membership view detailed next meeting engagement strategy with more detailed next meeting efficient cost model for Disability Support Workers The PRG agreed recommend to board paper describing Efficient Cost Model used by PRG determine price limits should published facilitate ongoing consultation sector improve transparency

Disclosure Log

FOR OFFICIAL USE ONLY National Disability Insurance Agency – Pricing Reference Group Minutes of the Meeting of 19 September 2019

Item 3.1 - Annual Price Review Terms of Reference and Timeline

  • 6: The PRG had a preliminary discussion of the terms of reference, timeline and engagement strategy for the Annual Price Review with a view to a more detailed discussion at its next meeting.

Item 3.2 - Publication of Review Reports

  • 7: The PRG NOTED the public release of the Western Australia Market Review (PRG-20190919 - Item 3.2-A) and Review of Therapy Pricing Arrangements (PRG-20190919 - Item 3.2-B).
Item 4.1 - Disability-Related Health Supports
  • 8: The PRG AGREED TO RECOMMEND TO THE BOARD the price limits set out in PRG-20190919 - Item 4.1 -A for the Disability-Related Health Supports that the NDIS will become responsible for from October 1st, from is likely meant instead of October
  • 9: The PRG NOTED that the costing of disability-related health conditions prepared earlier by Scheme Actuary did not encompass entire list present Agency should monitor expenditure on supports ongoing basis.
Implications of SCHADS Award Review
  • 10.: The PRG AGREED TO RECOMMEND TO THE BOARD increase Saturday Sunday support prices respectively December recognition FWCFB impact services.
  • **11.*:***The PRG AGREED TO RECOMMEND TO THE BOARD existing plans increased result change limit plan utilisation rates monitored ensure participants high levels weekend usage disadvantaged.
  • **12:*:***The PRG AGREED TO RECOMMEND TO THE BOARD service bookings amended as a result this change price limits reflect agreements providers and participants only changed express agreement both parties.