Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

Can I thank Senator Boyce for the privilege of taking her last question in this place, and acknowledge not only her incredible service in the community affairs committee, but also the contribution she will continue to make in social policy in the future. Today I have announced that I have taken the decision to cease the Dementia and Severe Behaviour Supplement. As I recently explained at budget estimates, the supplement was introduced by the previous government and was designed to provide additional resources for providers who give care to people with severe behavioural and psychological symptoms of dementia. Unfortunately the supplement has not operated as anticipated, having gone well beyond the budget allocated to it by the previous administration. The previous government estimated that 2,000 people in residential care would be eligible for the supplement but, as at March 2014, more than 25,000 people were receiving it. This represents a twelvefold blowout in the eligibility estimates of the previous government. The supplement was budgeted at $11.7 million for this financial year; instead, it is anticipated that the cost in 2013 will not be $11 million dollars, but will be $110 million. Based on these figures there will be an almost tenfold blowout in expenditure and, according to projections from the Department of Social Services, if current claiming patterns continue, the $16 a day supplement will cost the government $780 million over four years from 2014-15, rather than the budgeted $52 million. Over 10 years it is likely to be in excess of $1.5 billion. It is clear to this government that the legacy of our predecessors is poor policy implementation leading to unintended consequences, and this supplement is emblematic of that. (Time expired)