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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2024-10-15 Daily Xml
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Compulsory Third-Party Insurance

379 The Hon. H.M. GIROLAMO ().28 August 2024). Can the Treasurer advise—

1. How many clients does CTP insurance have? FY2022-23, FY2023-24 and expect for FY2024-25? How much revenue did CTP Regulator generate in FY2023-24?

2. What is the budgeted revenue for FY2024-25?

3. For CTP regulator why were general insurance and CTP premiums higher than expected?

4. How many consultants did CTP engage in FY2023-24? Who, when and $ actual payment, and why?

5. How many consultants will be engaged by CTP in FY2024-25? For what purpose?

6. How many contractors did CTP engage in FY2023-24? Who, when, $ actual payment, why?

7. How many contractors will be engaged in FY2024-25? For what purpose?

8. How does CTP support Lifetime Support Authority and ReturntoWorkSA to improve outcomes for injured people?

9. What is the head count (actual and FTE) for CTP Regulator?

10. What savings target did CTP get given for FY25?

11. How many fines did the Fine Enforcement and Recovery Unit collect in 2023-24? How many outstanding fines are there currently? What is the dollar amount?

12. How much civil debt did the Fine Enforcement and Recovery Unit collected in FY2023-24?

13. How much outstanding civil debt is there currently?

14. Regarding the replacement cloud-based telephony system in the Fine Enforcement and Recovery Unit, how much did this entire project cost?

15. What non-financial resolution opportunities for vulnerable clients were identified by the Fine Enforcement Recovery Unit? How many non-financial resolutions have occurred in FY2023-24? How many are expected in FY2024-25? Are you trying to increase nonfinancial resolutions?

16. What savings targets did the Fine Enforcement and Recovery Unit get given for the coming FY?

17. What advice has been provided to the Treasurer or Treasury relating to the National Disability Insurance Scheme and health reforms? What financial impact will the advice have? Will there be any significant cost that will arise from the advice should it be considered and implemented?

18. How has Lifetime Support Authority performed in this financial year compared to its KPI metrics? Broken down by KPI's.

19. What is the current number of participants in the Lifetime Support Authority? How does this compare to previous years? Forecast number of participants for future budgeted years?

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

1. The CTP Regulator does not have clients. The CTP Regulator regulates five private CTP insurers who manage claims for the CTP scheme.

The regulator collected $116.6 million in FY2023-24 made up of $70.7 million CTP premium 'administration fees' collections, $41.6 million stamp duties on CTP premiums (administered item), $2.1 million interest earnings and $2.1 million other cost recoveries.

2. The regulator's budgeted revenue for FY2024-25 is $114.2 million which consists of $70.7 million CTP premium 'administration fees' collections and $43.5 million stamp duties on CTP premiums (administered item).

3. The CTP Regulator does not regulate general insurance and cannot comment. For CTP premiums most policy holders (99.9 per cent of projected registered vehicles for 2024-25) were offered a lower premium from 1 July 2024 compared to 1 July 2023, including:

private passenger vehicles by $16.13 (6 per cent) metro and $9.31 (5 per cent) non-metro;

goods carrying light vehicles by $16.25 (5 per cent) metro and $10.77 (6 per cent) non-metro;

taxis metropolitan by $170.33 (6 per cent) and country by $18.00 (4 per cent); and

rideshare metropolitan by $77.08 (8 per cent) and country by $19.20 (4 per cent).

4. As required by the Department of the Premier and Cabinet Circular PC013—Annual Reporting Requirements for 2023-2024 information relating to expenditure on consultants and contractors including the vendor, total cost and nature of work undertaken, will be detailed in annual reports published by agencies.

5. Taylor Fry and Scyne Advisory have been contracted to provide scheme actuary and internal audit services in 2024-25 at this stage. The regulator's 2024-25 budget includes a provision for additional consultants should a business need arise.

6. As required by the Department of the Premier and Cabinet Circular PC013—Annual Reporting Requirements for 2023-2024 information relating to expenditure on consultants and contractors including the vendor, total cost and nature of work undertaken, will be detailed in annual reports published by agencies.

7. The regulator's 2024-25 budget provides for the continuation of services from the following contractors: Biz Hub Australia; Dr Beata M Byok, Haymakr, Healthcare Australia Pty Ltd and Dr Michael Epstein.

8. The CTP Regulator, Lifetime Support Authority and ReturntoWorkSA are separate statutory authorities with specific functions and powers defined under relevant legislation.

Establishing and maintaining productive relationships is important to improve outcomes for injured people, regardless of which scheme they are receiving support through. Sharing scheme experience, learnings, and trends within the personal injury industry in South Australia helps to identify opportunities for collaboration to address barriers to recovery injured people may face and improve health outcomes.

In some circumstances an injured person may find themselves having to navigate multiple schemes at the same time or transition from one scheme to another. This is where collaboration between the schemes serves to support streamlined processes, where possible, so that the injured person can focus on their recovery.

9. The FTE count for each agency at 30 June 2024 will be published in the Office of the Commissioner for Public Sector Employment's Workforce Information Report later in 2024.

10. The regulator is not subject to savings targets as its function is funded from the CTP scheme collections.

11. As at 30 June 2024, the Fines Enforcement and Recovery Unit collected a total of $117.6 million court-imposed fines and expiations during FY2023-24.

While this amount collected was allocated across approximately 285k fines, it is problematic to provide figures of actual 'outstanding' fines as at that date.

A court-imposed pecuniary sum can have a number of components to the fine, including expiations attached to one court matter, but also because clients enter into affordable payment arrangements to resolve fines debts, so not all fines are paid off during a financial year period.

As at 30 June 2024, the Fines Enforcement and Recovery Unit had over 96,000 payment arrangements in place with over $225 million subject to payment arrangements for outstanding fines (pecuniary sums, victims of crime and expiations), of which an average of 700 payment arrangements are established or varied each day.

12. As at 30 June 2024, the Fines Enforcement and Recovery Unit collected a total of $6.4 million in civil debts during the FY2023-24, which was returned to the agencies to which the debt was owed.

13. As at 30 June 2024, a total of $106.5m of civil debts has been referred to the Fines Enforcement and Recovery Unit for recovery and collection.

14. The Fines Enforcement and Recovery Unit implemented a cloud-based telephony system 'CXOne' in March 2024 to replace its outdated and unsupported on-premise telephony system.

Total project implementation costs for CXOne including training was $114k (exc GST). CXOne provides enhanced functionality including workforce planning efficiencies, increased reporting functionality and additional benefits.

15. The Fines Enforcement and Recovery Unit has a number of non-financial resolution options available to clients with eligible fines debt which includes community service arrangements (CSA's), approved treatment programs (ATP's) and other arrangements approved by the chief recovery officer, that are available to eligible clients.

As at 30 June 2024, a total of 942 clients voluntarily participated in either CSA's, ATP's or other approved arrangements resulting in a total reduction of eligible fines debt of over $5.9m in the FY2023-24.

An ATP steering committee meets quarterly and is currently assessing the expansion of ATP's to include problem gambling through a pilot program with the Department of Human Service's, Office for Problem Gambling (OPG). The ATP steering committee will review the qualitative and quantitative outcomes of the pilot as well as assess any key risks to ensure that any expansion of ATP's is delivering evidence-based treatments appropriate for clients experiencing gambling harm. Because participation is voluntary and clients may not complete or substantially complete the non-financial arrangement, anticipated numbers of clients participating in any CSA, ATP or other approved arrangement is not available.

16. The Fines Enforcement and Recovery Unit were not subject to additional savings targets in the FY2024-25 period.

17. The regulator has not provided any advice to the Treasurer or Treasury relating to the National Disability Insurance Scheme and health reforms.

The LSA has previously briefed the Treasurer in relation to the pricing decisions made by the National Disability Insurance Agency and their impact on the LSA's process of setting the rates payable to providers of attendant care services to LSS participants.

18. The LSA currently has nine KPIs under its 2022-26 Strategic Plan. Of these nine KPIs, seven were met or exceeded in 2023-24. The two which were not met related to budgeted costs, which were adversely impacted by the retrospective reallocation of project expenditure from capital to operational expenses. Without this adjustment, both KPIs were met.

KPI Target Actual 2023-24 Comment
Participant survey – experience ≥ 80% 82% Met
Current MyPlan in place for active participants 100% 100% Met
Staff engagement – Teamgage ≥ 70% 71% Met
Performance measurement – bi-annual reviews 100% 100% Met
Research Education and Programs – delivery of contractual milestones ≥ 80% 95% Met
Funding ratio 80% to 120% 89%* Met
Investment returns since inception ≥6.25% 7.2%* Met
Net expense ratio ≤ 12.5% 14.2%* Not met
Costs managed against budget Favourablevariance -$3.6m* Not met

* Financial KPI's are subject to the end of financial year audit by the Audit Office of SA.


19. As at 30 June 2024 the LSA had 371 active participants. This compares to 346 participants at 30 June 2023 and 300 participants as at 30 June 2022. Expectations regarding new participants are reported annually in each published annual report.

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