The JCA Review
The Australian Government made a commitment to review Job Capacity Assessment (JCA) processes in response to issues raised by stakeholders, principally relating to efficacy. The Government’s Social Inclusion Agenda states that:
There have been many concerns raised about the efficacy of (the Job Capacity Assessment) process, including the appropriateness of the qualifications required of Job Capacity assessors and the guidelines for Job Capacity Assessments, which among other weaknesses, are believed by advocates to discourage referrals to appropriate specialists. Given that this is the tool that determines a person’s level of income support and level of assistance, Labor believes it is essential that this assessment process is reviewed and its flaws remedied.
The JCA Review (the Review) has been led by the Minister for Human Services, Senator the Hon Joe Ludwig, with the support of the Department of Human Services (DHS) and extensive input from other agencies, including the Department of Education, Employment and Workplace Relations (DEEWR) and Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).
The Review has taken into account responses received from over fifty stakeholder organisations, as well as submissions to the Employment Service Review and the National Mental Health and Disability Employment Strategy, and discussions with key stakeholder groups. Senator Ludwig’s letter to stakeholders of 12 February inviting their views is provided at Attachment A, while a list of stakeholder organisations which agreed to publish their responses on the DHS website is provided at Attachment B.
Findings
The review found that the current JCA arrangements are soundly based on Australian and international best practice, generally well supported by stakeholders and have many positive features.
The Organisation for Economic Co-operation and Development (OECD) commends Australia’s approach to work capacity assessment to other countries. In its 2007 report on Sickness, Disability and Work: Breaking the Barriers: Australia, Luxembourg, Spain and the United Kingdom, volume 2 it states that:
the new comprehensive JCA is a promising step as an integrated assessment aimed at earlier intervention, and the last step in a shift from a medical to a functional view of disability.
…JCAs, which were introduced in 2006, focus on identifying people’s capacity to work and any barriers or impediments that prevent them from getting a job. This is a more comprehensive approach than in the other countries.
Stakeholder views are extensively quoted throughout this summary paper. In general, stakeholders consider that, while current JCA arrangements are soundly based, there are a range of practical issues, mostly relating to complexity and inflexibility of current policy and program settings. These relate both to the JCA and Job Capacity Account programs themselves, and to the broader income support and employment services arrangements which they support.
DHS is currently working with stakeholders and other agencies on these issues, including reviewing training, guidelines, systems and processes. As a result of this work, new quality assurance and performance measurement frameworks were introduced from 1 July 2008.
The paper also contains extensive analysis of the appropriateness, effectiveness and efficiency of current arrangements, and finds that both contracted JCA service providers and the JCA and Job Capacity Account programs are generally performing well against current Key Performance Indicators and measures of quality and effectiveness.
Key Facts
The Job Capacity Assessment (JCA) and Job Capacity Account Programs are run by the Department of Human Services.
Assessments are conducted by allied health professionals employed by Centrelink, CRS Australia, HSA Group and 15 non-government providers.
Contracts commenced in July 2006 and have been extended to 30 June 2009.
People with barriers to work are referred for JCAs by Centrelink and employment service providers. The Jobseeker Classification Instrument is used by Centrelink to identify barriers to work.
Job Capacity Assessors refer people to employment services (around 83 per cent of assessments).
Around 50 per cent of JCAs are undertaken to support a Centrelink decision relating to income support, such as for Disability Support Pension or activity test exemptions. The Job Capacity Assessor assesses work capacity and, for Disability Support Pension, completes the Impairment Tables set out in the Social Security Act 1991.
Job Capacity Assessors are bound by income support and employment services policy settings, such as eligibility requirements, set by the Department of Education, Employment and Workplace Relations (and now the Department of Families, Housing Community Services and Indigenous Affairs for Disability Support Pension).
In 2006-07, 375,296 JCAs were conducted, with 23,603 Job Capacity Account referrals: total expenditure $104 million including Job Capacity Account.
In 2007-08, over 447,000 JCAs were completed, with over 33,000 Job Capacity Account referrals.
Total expenditure in 2007-08 was just under $150 million, including around $17 million for Job Capacity Account services. |