Issue 67 | 26 June 2006
By the time Case Based Funding is fully phased in on 1 July 2006, funding to the disability business services sector will be 15 per cent higher. The introduction of CBF will also rectify funding inequities across the sector and more closely match funding levels to support levels.
Business services that receive less government funding under the Case Based Funding model currently receive a special subsidy payment to make up any shortfall between their current funding and the Block Grant Funding they were receiving at July 2004. For example, if a service previously received $150,000 per annum in Block Grant Funding ($12,500 a month) and was currently receiving $8,000 a month under Case Based Funding, then a $4,500 monthly funding subsidy is paid to make up the difference.
From 1 July 2006, the funding subsidy will reduce to 75 per cent of the Block Grant Funding level that applied in July 2004. The same service would be guaranteed $9,375 a month in assistance, so if this service now receives $8,000 a month under Case Based Funding, they will also get $1,375 per month in Funding Subsidy.
Contact with business services suggests that affected business services already have plans to manage this transition. If you have any questions or would like to discuss the impact of this change further, please contact your local FaCSIA Contract Manager.[ top ]
If your service had workers who transitioned from Block Grant Funding to Case Based Funding you would recently have received the final Cash Flow Adjustment payment from FaCSIA. At each transition point to Case Based Funding FaCSIA has assisted business services to manage the change from ‘payment in advance’ to ‘payment in arrears’.
The value of the Cash Flow Adjustment payment is calculated as the equivalent of one month’s CBF maintenance fee for each client who transitioned to Case Based Funding at the 1 July 2006 transition point.
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You may have recently received a Disability Maintenance Instrument (DMI) reimbursement payment from FaCSIA. The DMI reimbursement payment has been made in respect of DMI assessments that you authorised between 1 March 2006 and 5 June 2006 for Block Grant Funded clients preparing to transition to Case Based Funding at the 1 July 2006 transition point. New clients who are funded under Case Based Funding are not eligible for the reimbursement. Only clients who are transitioning to Case Based Funding from Block Grant Funding are eligible.
Business Services are entitled to $160 for each DMI assessment authorised for Block Grant Funded clients transitioning to Case Based Funding. Please note: the DMI reimbursement is paid only once—subsequent DMI re-assessments do not attract the reimbursement.
As the transition from Block Grant Funding to Case Based Funding is now complete this is the final DMI reimbursement payment Business Services will receive. If you have any questions about your DMI reimbursement payment please contact your local State or Territory Office Contract Manager.[ top ]
Please note that the $500 Intake Fee and monthly Employment Assistance payments for new cases are not payable until an Intake Assessment has been completed and authorised on FOFMS. Case Based Funding payments do not begin until the Intake Assessment has been authorised. FaCSIA will not backdate Intake Assessments, or make back-payments. If you do not authorise the Intake Assessment your service risks a reduced funding flow for that client.
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Most Disability Employment Assistance payments are paid in arrears. The following information is provided to help clarify what these payments are for and when they are made.
Intake Fee – A one-off $500 fee paid when a Client’s Intake Assessment is completed and authorised on FOFMS. The Intake Fee is paid one month after the Intake Assessment is authorised. More information is in Paragraph 20 of the Disability Employment Assistance Services Programme Procedures.
Employment Assistance Fee (EA) – EA or Pre-DMI fees start one month after the Intake Assessment is authorised and are payable for up to twelve months. Payments are made on the anniversary date of when the Client’s Intake Assessment is authorised. For more information please see Paragraph 21 of the Programme Procedures.
Employment Maintenance Fee (Maintenance Payment) – The Employment Maintenance Fee, or Maintenance Payment, is paid one month after a DMI is authorised. Payments are made monthly thereafter on the Client’s anniversary date. For more information please refer to Paragraph 23 of the Programme Procedures.
DMI Reimbursement - This quarterly payment reimburses services $160 for each DMI completed during the previous 3-month period for block grant funded clients preparing to transition to CBF. The final DMI reimbursement payment was made in June 2006.
Work Based Personal Assistance - This payment is made when we receive a completed eligible claim and is for Work Based Personal Assistance services provided to a Client, either directly or purchased from another Service. For more information please refer to Paragraph 30 of the Programme Procedures.
New Apprenticeship - This payment is an incentive payment for Services who have placed a client in a New Apprenticeship and is made when we receive a completed claim form. For more information please see Paragraph 31 of the Programme Procedures.
Cash Flow Adjustment (CFA) Payment - This payment was made to Services who have transitioned clients from CBF to BGF at one of the transition points. The payment is made to help services adjust to being paid in advance under BGF to in arrears under CBF. It is paid every six months after clients have been transitioned and it will stop once the transition to CBF is complete. The final CFA payment was made in June 2006.
Business Service Funding Subsidy – This is paid to services to help them with the transition from BGF to CBF. This is an ‘in arrears’ payment made at the beginning of a month. For more information please see Paragraph 39 of the Programme Procedures.
Please allow up to three days from the time a payment is shown as being made on FOFMS for it to reach your bank account.
For any queries relating to DEA payments, please contact the CBF Helpdesk on 1800 034 887 or email Helpdesk.CBF@facsia.gov.au
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A Business Service located in regional NSW has upgraded its Computer Numerically Controlled (CNC) processing equipment for cutting and shaping timber/sheet metal/perspex components. It is planning to research further opportunities in Australia. A market research project is being planned.
Are there any other Business Services with similar equipment who would be interested in this research? Please contact Jim Willett, Waywick Management Services on 02 9719 2662 or by email to karari@bigpond.com[ top ]
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Your contributions to disAbility e-news are welcome. Do you want to let others know about your successes? Or how you engage with local businesses to create employment opportunities for people with disabilities? Email your story idea to disAbility e-news.
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