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.
The DCAF Act gives effect to the following:
- Establishment of Government bodies: National Disability Insurance Agency (NDIA);
- NDIA is an independent statutory agency, with the purpose of implementing the National Disability Insurance Scheme.
- 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. From 1 July 2014, credits to the DCAF will consist of the Medical levy increase of half a percentage point, from 1.5 to 2 per cent. For information on the credits, refer to the Investment Performance and Financials webpage.
- 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.
The responsible Ministers provided the Future Fund Board of Guardians (Future Fund Board) with strategic investment guidance through a written direction in respect to the DCAF. This is a legislative instrument that is not subject to disallowance.
The DisabilityCare Australia Fund Investment Mandate Directions 2014 came into effect from 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.
Investment Performance and Financials
The Future Fund Board of Guardians (Future Fund Board) publicly discloses investment returns in its quarterly portfolio updates.
Financials since inception to 30 September 2019
|(Equals) Cash Balance||16,623|
|(Plus) Net Actual Earnings2||915|
|(Equals) Total Credits and Earnings||19,491|
|(Less) Debits (Payments)3||2,868|
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, for the reimbursement of the Commonwealth, and State and Territory governments for expenditure incurred in relation to the National Disability Insurance Scheme.
Quarterly performance result to 30 September 2019
For the quarter ending on 31 March 2019
|One year return to date||2.1||2.0|
1.The quoted benchmark rate of return follows the relevant investment mandate direction.
Annual performance results
Total Balance of Fund as at 30 June
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 DisabilityCare Australia Fund
Total credits to the DCAF amounts to $18,576 million as at 30 September 2019.
Payments (Debits) from the DisabilityCare Australia Fund
Total debits from the DCAF amounts to $2,868 million as at 30 September 2019.