The DisabilityCare Australia Fund (DCAF) was established on 1 July 2014 by the DisabilityCare Australia Fund Act 2013 (DCAF Act). Its purpose is to enhance the Commonwealth's ability to reimburse State and Territory, and Commonwealth Governments for expenditure incurred in relation to the National Disability Insurance Scheme.
For information on the National Disability Insurance Scheme, refer to either the Department of Social Services or the National Disability Insurance Agency .
Legislation
The DCAF Act gives effect to the following:
- Investment Mandate: the responsible Ministers are required to issue an Investment Mandate (detailed below).
- Crediting amounts to the DCAF: the Treasurer will determine amounts to credit the DCAF. Credits to the DCAF are funded from the Medicare Levy increase of half a percentage point, from 1.5 to 2 per cent which took effect from 1 July 2014. For information on the credits, refer to the Investment Performance and Financials.
- Debiting amounts from the DCAF: the Finance Minister can debit from the DCAF for the purposes of reimbursing State and Territory, and Commonwealth Governments for expenditure incurred in relation to the National Disability Insurance Scheme.
Investment Mandate
The responsible Ministers issued the DisabilityCare Australia Fund Investment Mandate Directions 2014 to the Future Fund Board of Guardians (Future Fund Board) on 1 July 2014. It requires the Future Fund Board to adopt a benchmark return "equal to the Australian three-month bank bill swap rate +0.3 per cent per annum calculated on a rolling 12-month basis (net of fees)". It also directs the Future Fund Board to invest in such a way as to minimise the probability of capital losses over a 12-month horizon. The investment mandate direction is a legislative instrument that is not subject to disallowance.
Investment Performance and Financials
The Future Fund Board publicly discloses investment returns in its quarterly portfolio updates .
Financials since inception to 31 December 2022
| $ 'millions1 | |
|---|---|
|
Total Credits |
32,920 |
|
(Plus) Net Actual Earnings2 |
1,299 |
|
(Equals) Total Credits and Earnings |
34,219 |
|
(Less) Debits (Payments)3 |
19,177 |
|
(Equals) Balance |
15,043 |
Notes:
1. Data may not sum due to rounding.
2. Earnings are net of investment and administration fees incurred by the Future Fund Board.
3. This amount represents payments made under the DisabilityCare Australia Fund Act 2013, to reimburse the Commonwealth, and State and Territory governments for expenditure incurred in relation to the National Disability Insurance Scheme.
Quarterly performance result to 31 December 2022
|
|
Nominal Return |
Benchmark Rate1 |
|---|---|---|
|
1 Year |
1.2 |
1.6 |
Notes:
1. The quoted benchmark rate of return follows the relevant investment mandate direction.
2. Inception was 1 July 2014.
Annual performance results
|
Year |
Nominal Returns |
Benchmark Rate1 |
Total Balance of Fund as at 30 June |
|---|---|---|---|
|
2014-152 |
1.6 |
1.7 |
2,515 |
|
2015-16 |
2.6 |
2.5 |
6,084 |
|
2016-17 |
2.4 |
2.1 |
10,399 |
|
2017-18 |
2.1 |
2.1 |
14,680 |
|
2018-19 |
2.2 |
2.3 |
17,205 |
|
2019-20 |
1.3 |
1.1 |
16,507 |
|
2020-21 |
0.4 |
0.4 |
15,479 |
|
2021-22 |
-0.4 |
0.4 |
15,297 |
Notes:
1. The quoted benchmark rate of return follows the relevant investment mandate direction.
2. DCAF investment commenced from 26 November 2014.
3. Closing balances are sourced from Finance's annual financial statements.
Transfers (Credits) to the Disability Care Australia Fund
Total credits to the DCAF amounts to $32,920 million as at 31 December 2022.
Annual Payments (Debits) from the Disability Care Australia Fund
| Financial Year 1 | Debit ($m) |
|---|---|
|
2014-15 |
0 |
|
2015-16 |
0 |
|
2016-17 |
0 |
|
2017-18 |
130 |
|
2018-19 |
2,088 |
|
2019-20 |
5,551 |
|
2020-21 |
5,689 |
|
2021-22 |
5,232 |
|
2022-232 |
487 |
Notes:
1. Includes $4 billion Commonwealth payment from 2019-20 for each financial year.
2. As at 31 December 2022.