The Australian Government is introducing a new, flexible way to fund many of the nation’s health priorities, better reflecting the more responsive, connected health system it is creating as part of its reform agenda.

Funds overview

As part of this process, 159 existing health and ageing programs will be consolidated within 18 larger, flexible Funds with a further six programs transferred from the department to the portfolio agencies of Cancer Australia and the National Health and Medical Research Council. This will reduce red tape, increase flexibility and more efficiently provide evidence based funding for the delivery of better health outcomes in the community.

A number of the flexible Funds are comprised of predominantly grant-based programs and these Funds have been designed to continue to support health priorities through the provision of grants, but in a more streamlined and flexible manner. This will reduce the administrative burden for grant recipients, leaving them more time to focus on their core business.

A number of non-grant related Funds will also be established, such as incentives for general practice (the Practice Incentives for General Practice Fund), medical indemnity support (the Indemnity Insurance Fund) and health protection priorities (the Health Protection Fund), among others. These Funds have been established to improve administrative arrangements, and to provide greater policy flexibility over time.

New funds

Chronic Disease Prevention and Service Improvement Fund
Communicable Disease Prevention and Service Improvement Grants Fund
Substance Misuse Prevention and Service Improvement Grants Fund
Substance Misuse Service Delivery Grants Fund
Health Social Surveys Fund
Aged Care Workforce Fund
Aged Care Service Improvement and Healthy Ageing Grants Fund
Single Point of Contact for Health Information, Advice and Counselling Fund
Regionally tailored primary care initiatives through Medicare Locals Fund
Practice Incentives for General Practices Fund
Rural Health Outreach Fund
Aboriginal and Torres Strait Islander Chronic Disease Fund
Health System Capacity Development Fund
Health Surveillance Fund
Quality Use of Diagnostics, Therapeutics and Pathology Fund
Health Workforce Fund
Indemnity Insurance Fund
Health Protection Fund

Implementation and Consultation

Following the Budget announcement in May 2011 on the establishment of Flexible Funds, stakeholders were advised that they would be given an opportunity to contribute to the development of new Fund Guidelines. Flexible Fund Discussion Papers have been developed for this purpose. Further information on which Funds are currently undertaking consultations can be found on the Consultations page.

Grant related Funds
From 1 July 2011, funding recipients receiving grants for ongoing services will continue to be funded under existing agreements until at least 30 June 2012, or until their funding agreements expire, whichever is later. This lead time will enable the department to work closely with grant funding recipients and other key stakeholders on implementation arrangements, including the establishment of guidelines and timelines for new grant rounds.

All relevant grant funding recipients will be contacted as a priority with details about the new arrangements and what it means for them.

Non-grant Funds
These Funds consolidate a range of programs to achieve streamlined administration and provide greater policy flexibility over time. Stakeholders will be consulted as part of the ongoing management of the Funds, in keeping with the department’s usual practice of working closely with its stakeholders in the design, implementation and management of programs.

Grants rounds
The Department of Health and Ageing launched the first grant rounds under the flexible Fund arrangements in November 2011. From 1 July 2011, 18 flexible Funds were established, consolidating 159 funding programs.

The funding rounds released covered a broad range of activities targeted at building the capacity of the health and ageing sectors to deliver improved health and ageing outcomes.

Applications for funding under the first grant rounds have now closed. The Department expects that an announcement regarding successful funding recipients will be made by the end of March 2012.
Details of each of the funding rounds can be found at: www.health.gov.au/internet/main/publishing.nsf/Content/Listing+of+Tenders+and+Grants-1

FAQs

New flexible funds – program consolidation frequently asked questions

Resources

Budget link
Portfolio Budget Statement link