FAMILIES AND COMMUNITIES ORGANISATIONAL CAPABILITY

In reply to Ms CHAPMAN (Bragg) (30 June 2011).

The Hon. J.M. RANKINE (Wright—Minister for Families and Communities, Minister for Housing, Minister for Ageing, Minister for Disability): The budgeted increase in 'other expenses' for Program 6 (Organisational Capability) is primarily a reflection of an anticipated increase in provisions for workers compensation liabilities. This increase was due to an allowance for an expected increase in the workers compensation liability arising from the annual actuarial review.

The review takes into account factors such as the long-term government bond rate, cost escalation in salary and medical expenses and recent claim experience. This increased budget provision relates to the operations of the entire department and is held centrally within Program 6. This is the main factor driving the observed increase in 'other expenses' for Program 6.