Our Purpose

The Lifetime Support Authority (LSA) plans and funds person-centred treatment, care and support services to make a positive difference to Lifetime Support Scheme (LSS) Participants’ recovery and independence.

Our Vision

Making a difference in the lives of Lifetime Support Scheme Participants, who are at the centre of what we do.

Our Values

At the LSA, our values are brought to life each day by our committed and passionate staff:

People and Passion:

• Our dedicated team offer valuable skills and a like-minded community, always working to better the lives of others.
• Fuelled by passion, and with a true sense of purpose and solidarity, we work towards our shared long-term vision: together we’re committed to building authentic relationships with each other, participants, their families and carers.

Innovation and Growth

• Inspired by the courage and determination shown by participants and their families, we’re always searching for new ways to make a difference.
• With our innovative mindset and curious nature, we encourage growth by asking; if not, why not?
• We empower those around us with knowledge and resources to overcome obstacles and reach new goals, so together we can look to the future with enthusiasm and optimism.

Trust and Respect:

• At the LSA we are accountable and lead by example. We understand trust is earned when actions meet words, so our colleagues, participants and their families can always expect honest, open communication and a genuine sense of care.
• We build mutual respect by treating everyone with dignity and kindness.

Our functions, objectives and deliverables

The LSA’s key strategic themes for 2022–23 were:

1. Person-centred treatment, care and support for participants
2. Staff and systems which make a positive difference for participants.
3. A sustainable Scheme for current and future participants.
4. Strong and productive relationships with key stakeholders and service providers, to benefit participants and the Scheme.
5. Research, Education and Programs that ultimately aim to make a positive difference for participants and the Scheme.

The LSA’s key objectives for 2022–23 were as follows:

• Participant survey – experience
  Target: ≥ 80%
• Current MyPlan in place for active participants
  Target: 100%
• Staff engagement – Teamgage
  Target: ≥ 70%
• Performance measurement – bi-annual reviews completed
  Target: 100%
• Research, Education and Programs – delivery of contractual milestones
  Target: ≥ 80%
• Funding ratio
  Target: 80% to 120%
• Investment returns since inception
  Target: ≥ 6.25%
• Net expense ratio
  Target: ≤ 12.5%
• Costs managed against budget
  Target: Favourable variance

The chart below reflects the LSA’s organisational structure as at 30 June 2023.

Lifetime Support Authority Organisational Structure

The LSA is governed by the LSA Board with three subcommittees – the Audit Committee, the Rules & Organisational Performance Committee and the Finance & Investment Committee.

* The Applications & Rules Committee was renamed to Rules and Organisational Performance Committee during the year, and its remit was expanded to encompass responsibility and focus for matters related the LSA’s human resources, remuneration, organisational culture and performance in relation to people responsibilities.

During 2022–23, the Board members were:

• Melinda OLeary (Chair)
• George Potter
• Kenneth Williams (Chair of the Finance & Investment Committee)
• Kevin Cantley PSM (Chair of the Audit Committee)
• David Russell
• Linda Matthews (Chair of the Rules & Organisational Performance Committee, October 2022–present)
• Talia Begley (October 2022–present)
• Arabella Branson (Chair of the Applications & Rules Committee) (July–October 2022)

During 2022–23 there were no material changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.

The Hon Stephen Mullighan MP is the Treasurer in South Australia.

The Motor Vehicle Accidents (Lifetime Support Scheme) Act 2013 was committed to the Treasurer on 26 May 2022 (The South Australian Government Gazette, No 34, 2022).

As at 30 June 2023, Rick Howe is the Chief Executive, who leads the LSA.

Boris Petrovic is the Director Corporate, responsible for overseeing finance, procurement, legal, governance and risk, and information technology functions.

Gemma Cooper is the Director People and Partnerships, responsible for overseeing human resources, work health and safety, people systems, culture and capability, as well as communication and engagement functions and research, education and programs.

Kylie Smith is the Director Services, responsible for overseeing the LSA’s core operations that support LSS participants, including service planning, specialist technical services, as well as quality and safety.

Motor Vehicle Accidents (Lifetime Support Scheme) Act 2013

• Department of Treasury and Finance
• CTP (Compulsory Third Party) Insurance Regulator
• South Australian Government Finance Authority (SAFA)
• Super SA
• Funds SA

Since the Scheme commenced, 428 participants have been accepted into the Scheme as at 30 June 2023. There were 346 remaining in the Scheme as active participants as at 30 June 2023. Due to injuries no longer being eligible or death, 82 participants were no longer in the Scheme as at 30 June 2023.

Financial performance

The LSA funds treatment, care and support services for LSS participants. LSS Levies collected each year are intended to fully fund the estimated lifetime costs for new participants who have accidents in the relevant year and meet the eligibility criteria for acceptance into the Scheme.

LSS Levy collections during 2022–23 were $188.7 million (compared to $179.7 million in 2021–22). The higher collections were a result of an increase in the number of registered vehicles and the LSS Fund Levy rate increasing. The average annual levy paid by motor vehicle owners, $116.51, increased by 2.8% compared to 2021–22. Currently, only a small part of the LSS Levy is required to fund current year Scheme costs and LSA’s operating costs, with the balance required to meet the future liabilities associated with current participants. These unspent funds are invested in a diversified high growth investment portfolio until they are required.

The LSA invests with Funds SA, the South Australian Government owned corporation which invests and manages funds of approved authorities. Financial assets of the LSA have grown to $1,478.3 million as at 30 June 2023 primarily as a result of LSS Fund Levy contributions being invested. The nominal investment return for the LSA investment fund was 7.9%, resulting in a $104.1 million return on investments for the year ending 30 June 2023. LSA’s investment assets will be used to fund treatment, care and support for all current LSS participants over the next several decades.

The total payments for treatment, care, and support services in 2022–23 amounted to $40.5 million (compared to $32.9 million in 2021–22). The types of treatment, care and support funded are shown in the table below.

The LSS is growing, and it is expected that slightly over 50 new participants on average will enter the Scheme each year for the next several decades, offset by the number of participants exiting the Scheme due to injury improvement or death (currently approximately 10 per annum but expected to rise each year). As such, the increase in total costs compared to last year is expected and is within the amount modelled by the independent actuary.

In addition to the above expenses, a further $340.8 million has been added to the provisions in relation to future treatment, care and support costs compared to last year. The increase compared to last year is mostly related to new provisions for accidents which occurred during 2022–23, which added $263.3 million in new provisions along with changes to inflation assumptions which increased the expected cost for existing scheme participants by $132.4 million. This was offset by favourable changes to the risk-free discount rate assumptions, resulting in a $54.9 million reduction to the provision for future treatment, care and support costs.

Key Performance Indicators

The LSA sets Key Performance Indicators which are contained in the 2022–26 Strategic Plan. These are used for the purpose of reporting on LSA’s performance to the Board and the responsible Minister as required by LSA’s Charter, and we share here:

The LSA’s key corporate initiatives in 2022–23 included:

IT

• Continued implementation throughout the year of the LSA’s primary Customer Relationship Management (CRM) system, Salesforce. Readiness of the new solution is planned for the first half of 2023–24 and aims to modernise the LSA’s key business processes, while delivering the benefit of a cloud platform to provide flexibility, rapid deployment and easy operation.
• Implementation of a Helpdesk Ticketing System for the IT Support Team.
• Revitalisation of the LSA Intranet platform.
• Participation in a Cyber Security exercise run by the Cyber Security Office, Department of the Premier and Cabinet.

Human Resources

• ‘MyCareer’ Whole of Government HR System Implementation – Performance Management and Learning and Development modules completed.
• Establishment and implementation of a new Performance Development Framework.
• Development and rollout of a Positive Behaviour Support Program to improve key skills in this area across the industry.

Procurement

• Provider fee schedules established and implemented for Allied Health providers.

Legal and regulatory

• LSS Rules Implementation completed following LSS Rules review in 2022–23.

Service Delivery

• A formal business plan for Supported Accommodation was developed to understand the need and risk for the LSA and LSS participants and identify causes of, and possible options to address, the prioritised gaps. The plan is to be implemented over the next 3 years.
• A new Service Provider Capability Development Feasibility Study was completed.
• Actions to address improved early notification of motor vehicle accidents were completed.

Research, Education and Programs

• A new LSA Innovate Forum program was developed, which will commence in 2023–24.
• The 2022–23 grant round was completed successfully with 4 research, 1 education and 2 program grants allocated to commence in 2023–2024.

*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)

**before third party recovery

Data for previous years is available at www.lifetimesupport.sa.gov.au/about-us/governance/annual-report

The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.

The following is a brief summary of the overall financial position of the agency. Full audited financial statements for 2022–2023 are attached to this report.

The 2022–23 comprehensive result of a $128.5 million loss is $105.8 million worse than the budgeted loss of $22.7 million.

This is as a result of the $131.3 higher than expected actuarial valuation of outstanding provisions for treatment, care and support, which is primarily due to changes in long-term actuarial inflation assumptions, offset by positive performance in other key budget lines.

The LSA's reported solvency ratio (based on risk free discount rate assumptions) at the end of the 2022–23 financial year is 87%, which is down from the 93% reported 12 months ago. This remains within the LSA Board of Director’s solvency target range of 80–120%.

Notwithstanding the above, it is important to note that the Economic Funding Ratio (based on long term expected investment return discount rate assumptions) reduced to 116% in 2022–23 from 120% reported in 2021–22, thus continuing a recent downward trend for this indicator from a peak of 175% reported in 2020–21. This trend is primarily related to lower than expected investment returns in 2021–22 (which reduced growth in the asset base) and the scheme actuary’s changes to long term inflation and mortality assumptions since December 2021 in recognition of scheme experience and environmental factors (which increased the liabilities).

The following is a summary of external consultants that have been engaged by the LSA to undertake work for the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.

Consultants engaged by the LSA on behalf of participants to deliver their treatment, care and support entitlements are excluded from this listing, as they benefit the participant, not the LSA.

Consultancies with a contract value below $10,000 each

Consultancies with a contract value above $10,000 each

Data for previous years is available at: https://www.lifetimesupport.sa.gov.au/about-us/governance/annual-report.

See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.

The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.

Contractors engaged by the LSA on behalf of participants to deliver their treatment, care and support entitlements are excluded from this listing, as they benefit the participant, not the LSA.

Contractors with a contract value below $10,000

Contractors with a contract value above $10,000 each

Data for previous years is available at: https://www.lifetimesupport.sa.gov.au/about-us/governance/annual-report

The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.

The website also provides details of across government contracts.

Under s43(5) of the Motor Vehicle Accidents (Lifetime Support Scheme) Act 2013, if the responsible Minister, in acting under subsection (4), makes a determination that is inconsistent with the determination embodied in the Authority's report under subsection (3), the Authority must include a report on the matter in its annual report.

In May 2022 the responsible Minister (the Minister for Health and Wellbeing) made a determination that the LSS Fund Levy for 2022–23 would increase by 2.8% from 1 July 2022, compared to LSA’s recommendation of a 5.4% increase. The impact of this decision is reflected in the agency’s results for 2022–23.

It is also noted that in April 2023 the responsible Minister (the Treasurer) made a determination that the LSS Fund Levy for 2023–24 would increase by 8.6% from 1 July 2023, compared to LSA’s recommendation of a 9.6% increase. Whilst this decision does not impact the agency’s results for 2022–23, it will be reflected in the agency’s results for 2023–24 and is included in this report in the interest of timely disclosure in line with the LSA’s obligations under the Act.

The LSA, as an independent statutory authority, has appropriate internal control and risk management frameworks in place. The LSA’s Audit Committee is a sub-committee of the Board and meets four times a year to provide assistance to the Board on the operation and effectiveness of the LSA’s accounting, control, risk management, internal and external auditing. The LSA has internal compliance, review and process assessments, monitored by the LSA Board and/or Board Committees where appropriate. The LSA management of its internal control framework is incorporated into the LSA Governance Framework. The LSA’s Internal Auditor is PricewaterhouseCoopers (PwC).

No incidents of fraud or suspected fraud were reported during 2022–23.

The LSA has a Fraud and Corruption Control Policy, Framework and Reporting Procedure, and maintains a Fraud Incident Register. The Policy incorporates the obligations under the following:

• Code of Ethics for South Australian Public Sector
• South Australian Public Sector Fraud and Corruption Policy
• Independent Commission Against Corruption (ICAC) Act 2012
• Public Interest Disclosure Act 2018
• Treasurer’s Instructions
• Public Sector (Honesty and Accountability) Act 1995
• the LSA Code of Conduct and Participant Service Charter
• OPI and Ombudsman Directions and Guidelines.

The LSA Chief Executive reviewed Executive Declarations on a quarterly basis, confirming that risk controls, including fraud controls, were in place in their respective areas. Allegations of fraud, misconduct and maladministration were reported as soon as practical to the Audit Committee and Board Chairs. Quarterly updates were provided to the Audit Committee and the LSA provided an annual updated summary of all matters and their status.

Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:

• 0 (nil)

Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.