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Legislative Assembly for the ACT: 2002 Week 13 Hansard (21 November) . . Page.. 4029 ..

(4) What is the reason for the indexation parameter for ACT Community Care increasing by around 600 per cent to $1.3 million between 2004-05 and 2005-06

Mr Quinlan: The answer to the member's question is as follows:

(1) Agency forward estimates appropriations generally include indexation at CPI for non-salary operating costs. Each budget appropriation is adjusted by any change in the estimated CPI rate (for example, CPI in the previous budget and forward estimates was 2.25% which was revised upwards to 2.5%). The indexation built into the budget for salaries is 1.3% and has not changed.

(2) The opening balance for the 2005-06 appropriation, in the appropriation reconciliation table in Budget Paper 4 (p152) is the same as the 2004-05 appropriation. The 400% increase in the revised indexation parameters for the Department in the final outyear (2005-06) represents a full indexation adjustment of 2.5% from 2004-05 for non salary operating costs and an indexation of 1.3% for salaries. The other outyear adjustments only represent an increase in non-salary

operating costs of 0.025% to account for the increase in CPI.

(3) The reason for the 600% increase in the indexation parameters in the final outyear for The Canberra Hospital is the same as the response to (2). However, the disparity between the percentage increases for indexation between 2004-05 and 2005-06 for the Department (400%) when compared to The Canberra Hospital (600%) is reflective of the different salary and non-salary split of operating costs.

(4) The reason for the 600% increase in the indexation parameters in the final outyear for ACT Community Care is the same as the response to (2). However, the disparity between the percentage increases for indexation between 2004-05 and 2005-06 for the Department (400%) when compared to ACT Community Care (600%) is reflective of the different salary and non-salary split of operating costs.

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