CENTRELINK ANNUAL REPORT 2005-06
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© Commonwealth of Australia 2006
ISSN: 1441-4392
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Chapter 1
Report of the Chief Executive Officer
I look at the year 2005–06 as one in which Centrelink performed well, meeting our day-to-day
business expectations, contributing to the development of major new initiatives, and confi rming our
capability to react decisively in times of crisis.
These achievements occurred against a background of fundamental change for the organisation, as
Centrelink experienced its first full year of operation reporting to the Minister for Human Services.
The introduction of the Human Services Legislation Amendment Act on 1 October 2005 was a
significant step towards implementing the changes to governance recommended by John Uhrig AC,
in his report to the Government. From that date Centrelink’s Board of Management was abolished
and, as Chief Executive Officer (CEO), I became responsible to the Minister for all aspects of
Centrelink’s management and performance. I have established a framework of strategic committees
and senior executive accountabilities to support me in achieving these performance expectations.
Centrelink’s new governance arrangements were reinforced by the Minister who provided his
Statement of Expectations to me as the CEO. This document and my Statement of Intent in response
are available to the public through Centrelink’s and the Department of Human Services’ (DHS)
websites. They detail the Government’s expectations of Centrelink and our commitment to meeting
those expectations. As agreed in my Statement, I report to the Minister, through the Secretary of the
Department of Human Services.
Achievements over the year
The transition from the previous Board of Management to the new Centrelink governance
arrangements was completed and consolidated over the year. More Efficient and effective linkages
between DHS agencies are now occurring as a result of the involvement of DHS. Improving service
levels is one of the Minister’s highest expectations and we have approached this on several major
fronts.
The Government’s Welfare to Work agenda supports a significant investment in the Australian
community, targeted to lift workforce participation and reduce welfare dependency. Centrelink
prepared for this by ensuring that existing customers affected by the changes were informed well in
advance and encouraged to voluntarily participate in the workforce.
Between July 2005 and 30 June 2006, Centrelink contacted almost 600 000 Parenting Payment and
Disability Support Pension customers to offer Job Network referrals. More than 103 000 customers
took up that option and were registered and referred. A substantial proportion of over 52 000 job
placements for recipients of Disability Support Pension and Parenting Payment were made up from
Centrelink referrals from these groups. This has made a significant contribution to the strength of the
Australian labour market over the past year.
In partnership with Medicare Australia, we extended the availability of family assistance services
through Medicare offices. These services range from information and advice through to online
processing of benefi t payments. This has provided the Australian public with more choice about how
and where they can access family assistance payments and services. With the extra 190 Medicare
outlets, and the rest coming on line by December 2006, over 100 000 Australians have already
exercised this choice.
Centrelink customers have reacted positively to self service options since the self service channels
were established. From July 2005 to June 2006, more than 7.1 million transactions—that is, over 9
per cent of all Centrelink customer transactions—were undertaken via the internet or automated
telephone self service. This online activity is complemented by significant numbers of transactions
conducted by over 4500 business and community organisations on behalf of customers.
The value that Centrelink adds to the community rests not only on our day-to-day business
performance, but also on the extraordinary efforts of Centrelink staff in times of major crisis.
Unfortunately, we had to draw on this capability several times this year in response to emergencies.
Staff responses to the effects of Cyclone Larry in north Queensland were outstanding. Formal
recognition and thanks for the efforts of staff in assisting people affected in north Queensland were
received from Dr Peter Shergold, Secretary of the Department of the Prime Minister and Cabinet.
Over the past 12 months Centrelink staff were also involved in assisting in responses to:

The Bali bombings—family liaison services were provided to Australians affected by the second
bombing in Bali in October 2005, along with assistance with travel and related costs. Family
Liaison Officers were also sent to Bali to provide support to the Australian families who attended
the third anniversary of the 2002 bombing.

The London bombings—Family Liaison Officers were sent to London to provide support to the
Australians affected.

Cyclone Larry—over 1000 Centrelink staff were mobilised to provide support to the victims of
Cyclone Larry. During the peak of work, over 400 staff were directly involved on any day, with 120
staff operating within affected communities surrounding Innisfail. Over $160 million in payments
were processed and 41 000 phone calls received.

Cyclone Monica—Centrelink staff had to use long range helicopters to access affected towns
and properties in Cape York which were affected by floods. These staff made assessments,
provided advice back to Canberra, and arranged support payments to affected residents.

Katherine floods—this was a great example of an integrated response. The Northern Territory
Government and local non-government agencies all operated from the Katherine Centrelink office
to provide a ‘one-stop-shop’ for fl ood victims who were given emergency payments and support.

Beaconsfi eld mine disaster—Centrelink operated a support service in Beaconsfi eld for the
duration of the mine disaster.

East Timor medical evacuations—family liaison services were provided for non-Australians who
were evacuated from East Timor to Australia for medical treatment, following the civil and political
unrest that occurred in May 2006.
The importance of Centrelink’s role in responding to national emergencies has been recognised in the
latest Federal Budget in which the Government has provided funding for the establishment of a
National Emergency Call Centre (NECC). Centrelink will have the lead role in establishing,
maintaining and operating the NECC. As the first point of contact for public enquiries, the NECC will
enhance the Australian Government’s ability to respond rapidly to calls from the public and provide
information following a major emergency.
While these emergency management examples stand out as world class, they should not
overshadow the results achieved by people in Centrelink all over Australia on a daily basis.
Looking forward
While Centrelink prides itself on the ability to absorb change as shown by our performance in 2005–
06, the next year will test us with fundamental shifts in expectations. New directions in mutual
obligation associated with the Welfare to Work agenda will be the immediate challenge. I am confi
dent that staff recognise the longer term benefits of participation to customers, given the exceptional
labour demand in Australia associated with a strongly growing economy.
The proposed Australian Government health and social services access card is a major Government
initiative for 2008 and beyond. I am pleased to report that along with DHS and other Human Services
agencies, Centrelink played an important role in the research and preparation of the case for this
initiative. In preparing for the card’s introduction, significant development work will be required in
2007–08 and together with DHS and the Access Card Lead Adviser, Centrelink will be heavily
involved.
We will continue to strive to increase self service options for customers and to automate more and
more of our dealings with business. This is central to meeting customer expectations and to
improving effi ciency on behalf of the Government and its policy departments.
I would like to thank Centrelink staff for their contribution to our success over the 2005–06 year,
particularly given the pace of change associated with government policy, systems redevelopments
and internal business management arrangements. Staff should be particularly proud of the
contribution they made towards increasing participation rates and the impact that this has had on the
broader Australian economy. They should also be very proud of their response to a number of major
emergencies, especially their response to Cyclone Larry.
Chapter 2
Corporate Overview
Business Arrangements
Centrelink is a statutory agency under the umbrella of the Department of Human Services as
prescribed in the Administrative Arrangements Order. The Department of Human Services operates
within the Finance and Administration portfolio.
Legislation
Centrelink was established to provide Australian Government services in accordance with service
arrangements under the Commonwealth Services Delivery Agency Act 1997 (CSDA Act).
The CSDA Act was amended by the Human Services Legislation Amendment Act 2005 which
commenced on 1 October 2005.
The Financial Management and Accountability Act 1997 sets out the Chief Executive Officer’s
functions and responsibilities relating to Centrelink’s financial management.
Centrelink is an Australian Public Service organisation, and is staffed under the Public Service Act
1999. For more information on legislation affecting Centrelink see Appendix 3.
Funding arrangements
Centrelink’s revenue was provided through business partnership agreements or similar arrangements
with policy departments. Funds were appropriated to the policy departments and paid to Centrelink in
return for specified services.
Outcome and output
Centrelink had one government outcome: ‘Effective delivery of Australian Government services to
eligible customers’, which was achieved through one output: ‘Efficient delivery of Australian
Government services to eligible customers’.
Figure 1: Outcome and output structure
In 2005 Centrelink’s output and outcome were reviewed. Revised Output and Outcome Statements
were endorsed by the Minister for Human Services and the Minister for Finance and Administration,
and published in the Portfolio Budget Statements 2006–07. These revised statements will take effect
from 1 July 2006.
Centrelink’s functions
Centrelink contributes to the social and economic outcomes set by government by delivering services
on behalf of 25 policy departments and other organisations and agencies. Table 1 provides an
overview of Centrelink’s business at a glance. Table 2 provides an overview of the structure of the
Centrelink network. For a list of services that Centrelink provides, see Appendix 15, ‘Our services’ on
page 218.
Table 1: Our business at a glance
Our dimensions
2005-06
2004-05
Service delivery points
Over 1000 Australia-wide
Over 1000 Australia-wide
Number of employees
26 564
25 312
Number of policy departments
25(a)
25(a)
Payments on behalf of policy
departments
$63.5 billion
Approximately $63.09 billion
Mainframe online transactions
Approximately 5.2 billion
Approximately 5.2 billion
Mainframe web transactions
Approximately 1 billion
Multi-platform (web and
Interactive Voice Recognition
(IVR))
Approximately 500 million
Our customers
Number of customers
6.49 million
6.48 million
Number of individual
entitlements
9.89 million
9.98 million
Letters to customers
86.4 million
87.2 million
Home visit reviews
7712
6622
New claims granted
2.59 million
2.77 million
Successful phone calls
30.77 million(b)
32.68 million
Internet web page views
47.2 million
39.5 million
(a) State and territory housing authorities are counted as separate agencies. Centrelink also provides
services on behalf of a number of other organisations and agencies.
(b) This is down 1.91 million from 32.68 million calls in 2004–05. The drop in successful calls canbe
attributed to shifts between IVR and web self service transactions.
Table 2: Our network
Network Services
2005-06
2004-05
Customer Service Centres
316
316
Centrelink Agents
374
360
Rural Visiting Services In identified locations as required
Separate Specialist Service
Centres
30
30
Network Services
2005-06
2004-05
Call Centres
25(a)
26
Veteran Information Services
15
15
Access Points
189
178
Area Support Offices
15
15
National Support Offi ce
1
1
Remote Area Service Centres
7
7
(a) Operations in one small call centre (less than 10 staff) were absorbed back into existing
infrastructure with staff placed in Bunbury Call Centre and nearby.
Figure 2: Strategic planning and reporting framework
Strategic Framework
Strategic planning
Centrelink’s Strategic Directions set out the purpose, strategic themes, strategic priorities and core
business processes for 2005–06. The Strategic Directions are the foundation for organisational,
group, division and local area business planning, as shown in Figure 2.
Centrelink’s strategic priorities align the organisation’s activities and help achieve its purpose through
strategic themes and core business processes. Progress against strategic priorities and themes is
measured using Key Performance Indicators and reported through Centrelink’s balanced scorecard.
These measures are fundamental to Centrelink’s performance. The Strategic Directions have a threeyear outlook and a one-year focus. They are reviewed annually to reflect any changes resulting from
government, ministers’, or policy departments’ directions.
Our purpose
Serving Australia by assisting people to become self-suffi cient and supporting those in need.
Our strategic themes

Building confi dence in Centrelink

Strengthening our customer focus in line with government direction

Developing a networked organisation

Building capability for government

Demonstrating value for money.
Our strategic priorities

Re-prioritise our work and resource allocation in terms of Strategic Direction

Align accountability and responsibility with authority

Provide costing for all services

Develop united leadership throughout Centrelink

Develop and implement our service delivery model

Communicate the Strategic Directions

Deliver the ‘work first’ and ‘pathways to work’ agenda.
Our core business processes

Service delivery management

Governance

Relationship management

Change management

Information management

Staff capability.
Balanced scorecard
The balanced scorecard provides an overview of Centrelink’s business to the Centrelink Chief
Executive Officer, Centrelink Executive and the Department of Human Services.
It provides a regular ‘health’ check for business and forecasts scenarios. This allows for pre-emptive
action, minimising any adverse impacts on the organisation that may affect its ability to consistently
deliver high quality service. It is used as a performance reporting and management tool, and assists
with making Centrelink staff accountable for their performance.
Governance Framework
Governance changes—Human Services Legislation Amendment Act
2005
Centrelink’s governance framework changed on 1 October 2005 with the commencement of the
Human Services Legislation Amendment Act 2005 and the abolition of the Centrelink Board of
Management.
Since then, the Chief Executive Officer has been solely accountable to the Minister, through the
Secretary of the Department of Human Services, for Centrelink’s strategic, operational and financial
management, and for ensuring Centrelink achieves its purpose: ‘Serving Australia by assisting people
to become self-suffi cient and supporting those in need.’
Previously the Centrelink Board of Management was responsible for deciding Centrelink’s goals,
priorities, policies and strategies, and ensuring that Centrelink’s functions were properly, Efficient ly
and effectively performed. The Board was accountable to the Minister through the Chair. The Chief
Executive Officer was, in turn, accountable to the Chair for managing all strategic and functional
aspects of Centrelink’s operations.
Centrelink Executive
The Executive supports the Chief Executive Officer (CEO) with setting Centrelink’s Strategic
Directions and organisational priorities. The Executive comprises the CEO and seven of Centrelink’s
most senior managers who report directly to him. They are:

Deputy Chief Executive Stakeholder Relationships (DCEO SR), accountable for leadership of
relationships with key stakeholders, securing ongoing business for Centrelink, and meeting
agreed policy department outcomes.

Deputy Chief Executive Customer Service Delivery (DCEO CSD), accountable for leadership
of the consistent high quality delivery of customer services on behalf of policy departments.

Chief Information Officer (CIO), accountable for the successful operations of information
technology (IT) systems which meet immediate and future needs, including IT elements of the
Refresh Programme.

Chief Financial Officer (CFO), accountable for supporting the CEO in the discharge of financial
and resource management responsibilities, including the provision of high quality financial,
budgetary, environmental and property management, and for ensuring an effective and consistent
legal capability.

General Manager People and Planning (GM P&P), accountable for leading Centrelink’s people
capability, strategic planning, change management, and ministerial, parliamentary and executive
services.

General Manager Audit and Risk (GM A&R), accountable for supporting the CEO by managing
Centrelink’s internal audit and risk activities to meet legislative, corporate and stakeholder
requirements, and assuring the CEO that Centrelink operates with appropriate financial
management and internal controls.

General Manager Communication (GM C), accountable for managing Centrelink’s public
reputation, corporate style and image, for Centrelink’s internal and external communication, and
for the production and distribution of forms and publications, letter development and bulk mail.
Figure 3: The organisational structure as at 30 June 2006
Strategic Committee Framework
The Chief Executive Officer (CEO) chairs a regular meeting attended by members of the Executive
and three general managers on a four-monthly rotation. This meeting is the peak committee of
Centrelink’s Strategic Committee Framework.
There are eight other committees in Centrelink’s Strategic Committee Framework, each providing a
key forum for high level collaboration, advice and review. With the exception of the Audit and Risk
Committee (discussed below), members of the Executive chair each of the Strategic Committees, and
each chair is accountable for the decisions of the committee over which they preside. Figure 4 shows
the relationships between the committees, the Executive and the CEO.
Figure 4: Strategic Committee Framework
The Strategic Committees are:

Welfare to Work Committee, chaired by the Deputy Chief Executive Officer Stakeholder
Relationships, monitors the implementation of the 2005–06 Budget initiatives known as Welfare to
Work and promotes and facilitates collaboration towards that end.

People and Planning Committee, chaired by the General Manager People and Planning,
supports the Chair in managing Centrelink’s people capability, strategic/corporate planning and
reporting, change management activities, and ensuring all are aligned to current Strategic
Directions.

Investment and Major Programs Committee, chaired by the Deputy Chief Executive Officer
Customer Service Delivery, monitors and prioritises major programmes/projects, overseeing
delivery of programme/project benefits, and monitors the effectiveness of the project management
framework.

Information Technology Committee, chaired by the Chief Information Officer, oversees
Centrelink’s IT planning and operations, and ensures that frameworks and controls are in place to
assure the Executive of effective IT operation in support of Strategic Directions.

Service Delivery Performance Committee, chaired by the Deputy Chief Executive Officer
Stakeholder Relationships, monitors service delivery performance and oversees alignment
between policy department requirements and Centrelink’s service delivery.

Finance Committee, chaired by the Chief Financial Officer, oversees the development and
implementation of the Centrelink Financial Plan, ensuring it conforms to relevant financial policies
and procedures. The Finance Committee monitors Centrelink’s financial performance and
obligations for financial reporting.

Customer Service Strategy Committee, chaired by the Deputy Chief Executive Officer,
Customer Service Delivery, oversees key service delivery issues for Centrelink, including the
development and implementation of a service delivery model.
An Audit and Risk Committee sits to one side within the Strategic Committee Framework.
Established in accordance with the Financial Management and Accountability Act 1997, it provides
independent assurance and assistance to the CEO on Centrelink’s risk, control and compliance
framework, and its external accountability responsibilities. The Audit and Risk Committee differs from
the other Strategic Committees in that:

it is chaired by an external independent member

its members may vote on decisions before the committee

it supports the CEO directly.
Chapter 3
Our Accountability
Strategic theme: Building confidence in Centrelink
Highlights for 2005–06

Centrelink reported a payment correctness result to the end of March 20061 of 95.5 per cent (see
page 26)

110 fraud investigation, fi eld operations were undertaken during the year and $34.7 million in
savings and debts were identified (see page 28)

The Support the System that Supports You campaign resulted in more than 180 000 contacts
from customers to update their circumstances (see page 27)

Over 50 000 claims for assistance were received for a range of payments, including one-off exgratia payments (see page 34).
Description
In 2005–06, Centrelink administered $63.5 billion in programme payments or around 31 per cent of
government outlays.
Centrelink is accountable for its actions within the framework of ministerial responsibility to the
Government, the Parliament and the Australian public (Section 10(1) (e) of the Public Service Act
1999).
Centrelink’s accountability to the Australian Government is outlined in the Statement of Expectations
from the Minister for Human Services, the Hon Joe Hockey MP to Centrelink’s Chief Executive Officer
and prescribed under the Commonwealth Services Delivery Agency Act 1997 as amended by the
Human Services Legislation Amendment Act 2005. Business partnership agreements are also in
place with major policy departments—the Department of Employment and Workplace Relations; the
Department of Families, Community Services and Indigenous Affairs; and the Department of
Education, Science and Training.
The business partnership agreements detail joint outcomes, joint projects, and Key Performance
Indicators and describe the relationships and accountability parameters between policy departments
and Centrelink.
Business assurance arrangements are included in all key business agreements to provide assurance
on the integrity of outlays and to identify risks and the control frameworks that mitigate those risks.
1 Results for the full financial year were not available at the time of publication of this report.
Strategic objectives

Protect the integrity of outlays (see below)

Be valued by the Australian people (see page 32).
Protect the integrity of outlays
Business integrity
Centrelink worked with the major policy departments, for whom we deliver payments and services, to
identify changes to activities and processes that could assist customers, by preventing or reducing
the extent of incorrect payments and debt. The intention is to improve customer service and enhance
Centrelink’s ability to assure stakeholders that it is providing value for money in its administration of
programmes.
This includes:

working with policy departments to develop an integrated set of Key Performance Indicators that
recognise the prevention of incorrect payments as well as the detection and investigation of noncompliance

examining Centrelink’s interactions with customers to assess, on the basis of evidence, at what
point our efforts should be concentrated to have best effect on payment integrity.
Business assurance
Business assurance is the process by which Centrelink confi rms it is meeting the performance
expectations of government, policy departments, customers and other stakeholders. Through
business assurance arrangements, Centrelink gives stakeholders confi dence that risks are managed
for the successful delivery of payments and services, and that performance measures are accurate
and reliable.
The Business Assurance Framework encompasses quality control and quality assurance based on:

agreement on how outcomes are measured

alignment and consistency of defi nitions of what is to be measured

the independence of quality assurance mechanisms from programme and line management

the need to consider both existing and emerging risks.
During 2005–06, business assurance continued to be provided to the Department of Families,
Community Services and Indigenous Affairs under the terms of the Business Alliance Agreement
2004–08 and to the Department of Education, Science and Training (DEST), under the terms of the
DEST/Centrelink Business Partnership Agreement 2005–08. Business assurance was also provided
for the Department of Agriculture, Fisheries and Forestry.
In relation to the Department of Employment and Workplace Relations (DEWR), business assurance
arrangements involved negotiating specifi c requirements under the 2005–06 business partnership
agreement. Centrelink and DEWR reached an agreement on:

Key Performance Indicators and associated measurement methodologies

High level risks to DEWR programmes

The Assurance Expectations Matrices which detail the assurance requirements in relation to each
high level risk.
Evaluation
Evaluation is a fundamental component of Centrelink’s quality improvement processes, aimed at
timely identifi cation of strengths, weaknesses and opportunities for improving internal activities. An
evaluation programme is conducted during the financial year for the Centrelink Executive. Centrelink
managers may also request evaluations.
The Centrelink Evaluation Handbook provides guidance on and sets the standards for evaluations
undertaken within Centrelink by:

providing a clear consistent framework, focused on business and service objectives

ensuring evaluations in Centrelink are adapted to context and local circumstances, providing
pointers to methods, resources and other sources of assistance

encouraging use of all sources of performance information in evaluations

encouraging learning from other evaluations

ensuring that evaluation fi ndings are used to improve processes and to inform decision making
and strategic planning.
Signifacant evaluations during 2005–06 included:

Emergency management in Centrelink
The evaluation found that Centrelink effectively and successfully provided emergency responses,
and identified associated topics of interest with recommended improvements.

Senior Practitioners
the evaluation found considerable support in the Customer Service Delivery Network for the
Senior Practitioner role, and that the role assists customer service and correctness of decisions.
The evaluation recommended the continuation of the Senior Practitioner role.

Update Families Income Estimate Service
This service is the online system that families’ customers can use to estimate their annual income.
The evaluation found that most customers who used the Update Families Income Estimate
Service expressed high levels of satisfaction and there was no material difference in reconciliation
of outcomes between users and non-users of the service.
Internal audit
During 2005–06, the internal audit function delivered a range of audits. A number of audits had a
greater scope and resource requirement than previously attempted such as:

Family Tax Benefit

Youth Allowance service delivery.
Resources committed to these audits reduced the overall number of audits completed in comparison
to 2004–05.
The audits completed during 2005–06 covered:

Major human services’ initiatives, including Welfare to Work project assurance and Welfare to
Work information technology projects’ probity

Service delivery programmes

Business and service delivery performance

Financial management and compliance

Information technology applications and projects

Administrative processes

Human resource management and processes.
Figure 5 shows the comparison of audit effort undertaken by the internal audit staff in 2004–05
compared with 2005–06. The decrease in audit product was due to staff turnover, training and
mentoring of new staff.
Figure 5: Audit Activity Time Usage Comparison 2004–05 and 2005–06
Internal and external audit recommendations strengthen the quality and effectiveness of management
control and contribute to continuous improvement. Management action in relation to audit
recommendations is monitored and reported using the Centrelink Audit Monitoring System.
The internal audit function continued to support Centrelink management in its commitment to
assisting, reacting to, and resolving external audit recommendations undertaken by the Australian
National Audit Office (ANAO). The internal audit function reports management progress in resolving
internal and external audit recommendations and other audit related matters to the Audit and Risk
Committee.
The internal audit programme supports the broader assurance requirements of the Department of
Education, Science and Training, the Department of Employment and Workplace Relations, and the
Department of Families, Community Services and Indigenous Affairs. In April 2006, a joint agreement
with these agencies established a common audit protocol to be imbedded in the respective business
partnership agreements. The protocol supports cooperation in audit planning, reporting and other
information requirements.
Centrelink continues to support staff in completing professional auditing qualifi cations and certifi
cation, undergraduate and postgraduate studies at university, and courses provided by associated
professional organisations.
Major internal audit achievements in 2005–06 included:

Further integration of risk based planning into audit tasks in the 2005–06 Audit Work Programme

Development of an in-house internal audit and New Auditor Training Course

successful engagement of three graduate auditors and two Indigenous cadets into the internal
audit workforce

Improvement in the coordination of ANAO external audit activities within Centrelink.
Internal audit operational emphases during 2005–06 included:

Re-aligning to a financial year oriented Audit Work Programme

Continuing performance improvement across the internal audit function

Meeting policy department demands on the internal audit function.
Protective security
Physical security reviews 2005–06
Security reviews were conducted in relation to customer aggression trends across a number of offices
in Victoria and New South Wales.
As part of these reviews, the Protective Security Division of the Australian Federal Police examined
the typical security environment of Customer Service Centres (CSCs). The reviews focused on
identifying causal factors of both previous and possible future incidents of customer aggression at
CSCs, and determining the ability of Centrelink to address and appropriately manage these incidents.
The reviews also sought to identify issues that could reflect behavioural patterns of Centrelink
customers in other sites across Australia. The review strategies assist staff to meet and manage
security incidents that may occur as a result of changing trends.
Suspicious mail
The Protective Security Coordination Centre (part of Attorney-General’s Department) issued security
alert bulletins in June 2005 concerning suspicious packages and mail items. All agencies were asked
to ensure that they had appropriate measures in place to deal with suspect packages, including mailhandling procedures.
In July 2005, Centrelink purchased and deployed special equipment, designed to safely handle
suspicious items. The equipment was issued to high-risk sites such as mail hubs and records
management teams across Centrelink.
To reinforce to staff the need for vigilance and awareness when opening mail a poster titled ‘Handling
Suspicious Mail’ was produced and issued to all Centrelink offices. In addition, a short presentation
on suspicious mail was created with the assistance of Centrelink’s internal Business Television
service and broadcast on a repeat basis.
Risk management
Risk management continues to play an important role in supporting corporate governance in
Centrelink. Primarily, this involves providing assurance that risks to the achievement of organisational
objectives are being identified, reported and managed.
In 2005, the organisation had a strong focus on Enterprise-wide Risk Management (ERM), aiming to
improve the relationship between governance and management by drawing on risk assessment
processes at all business levels.
The ERM focus included redrafting Centrelink’s Risk Management Framework to combine the risk
management system with categorised organisational objectives. This focus enabled analysis and
reporting of risks, based on Centrelink’s structure and primary business model.
In Centrelink, ERM means:

a top down and bottom up approach to risk management

management of risk occurs through all business functions

risk management is systematically and consistently applied

reporting of risk is reliable.
Performance of Centrelink’s risk management system is indicated by the:

establishment of a Chief Executive Instruction on Risk Management in 2005

redrafting Centrelink’s Risk Management Policy in 2005

updating risk management guidelines and procedures based on Australian and New Zealand
Standard AS/NZS 4360

continuing improvements in business and project risk assessment

delivering accredited risk management training in both national and network environments

maintaining Centrelink’s benchmarked rating with Comcover.
While risk management continues to be further integrated into the business management systems
and processes of Centrelink, specifi c areas for improvement in 2006 are to:

maintain a consistent approach to risk assessment in business plans, business cases and project
plans

improve the integration of risk management into the Centrelink Governance Framework

increase the formal risk management accreditation issued by Centrelink

reinforce the relationships between risks and controls throughout the organisation

Support the accountability and authority vested in Centrelink’s managers.
Payment correctness
One of the high level risks agreed with each of the three largest policy departments (in terms of their
proportion of Centrelink’s business) was the integrity of social security outlays. A target for payment
correctness was set at 95 per cent in order to demonstrate management of risk to the integrity of
social security outlays. For the period to the end of March 2006 Centrelink reported a payment
correctness result of 95.5 per cent.
Centrelink measures payment correctness through random sample survey reviews. The term
payment correctness is defined as ‘the percentage of reviews without a dollar impact error based on
information provided by the customer’. It is a measure of the correctness of Centrelink’s decision
making and is determined by expressing the number of reviews with a Centrelink administrative error
with a dollar impact as a percentage of the total number of reviews completed, and subtracting that
number from 100. The payment correctness fi gure does not account for customer error or Centrelink
errors that do not impact on a customer’s payment. It reflects the impact of Centrelink error on
government outlays, rather than the proportion of customers correctly paid.
Fraud risk assessments
To confi rm that customers are receiving their correct entitlements, Centrelink’s compliance activities
are specifi cally aimed at the prevention, detection and deterrence of incorrect payments and fraud. In
accordance with the requirements of the Commonwealth Fraud Control Guidelines 2002, Centrelink
has a Fraud Control Plan for 2006–08 based on current risk assessments for all major payments
made on behalf of policy departments.
Compliance measures
The techniques Centrelink uses to detect incorrect payments and fraud include:

identity checks

data-matching with information held by Centrelink or obtained from other agencies/ organisations

tip-offs provided by the public

inter-agency compliance activities

data analysis

Selecting customers for review based on their circumstances, duration of payments, or a specifi c
event.
During 2005–06, Centrelink completed over four million reviews of eligibility and entitlement on behalf
of the Department of Employment and Workplace Relations, the Department of Families, Community
Services and Indigenous Affairs, and the Department of Education, Science and Training. As a result,
there were 556 355 payment reductions identified (including either a cancellation or a decrease in
payment). Savings to future outlays totalled $98.5 million a fortnight. As well, 486 254 debts were
raised for recovery action valued at $445.3 million as a result of this review activity. (See Table 3)
Table 3: Centrelink review activity
Reviews completed
Reduction in payment
Fortnight
savings
Debts
Number
Number
%
$
Number
$
556 355
13.9
98 536 848
486 254
445 277
273
Total
4 010 773
Source: Integrated Review System.
In 2005–06, Centrelink progressed numerous compliance and review initiatives including:

a project to improve service profi ling by re-evaluating risk predictors that are applied to the
implementation of current profi ling reviews

a number of initiatives related to expanding the scope and enhancing the effectiveness of datamatching

the Support the System that Supports You media campaign aimed at encouraging voluntary
compliance

implementation of random sample surveys for Family Tax Benefi t and Child Care Benefi t and the
New Apprenticeship Scheme, in addition to the existing random sample programmes

Enhancing the Integrated Review System to refi ne the way the results of review activity are
reported.
Data-matching initiatives
In 2005–06, Centrelink undertook data-matching in accordance with the data-matching legislation.
This included:

production of the annual report on the Data-matching Program

weekly transmission of data from the Department of Immigration and Multicultural Affairs

weekly transmission of data from state and territory departments of corrective services.
Support the System that Supports You campaign
The Support the System that Supports You campaign is a four-year, integrated marketing and
communication campaign targeting non-compliant income support recipients and those most at risk of
incurring a Centrelink debt. The aim of the campaign is to encourage income support recipients to
notify Centrelink of any changes in their circumstances that could affect their payments and to raise
awareness amongst taxpayers of the efforts being made on their behalf to ensure the integrity of the
social security system.
The campaign started in September 2005 and to 30 June 2006 had resulted in more than 180 000
contacts from customers, and over 43 000 members of the public providing tip-off information about
customers they suspect are not complying with their obligations. The campaign is funded to run until
July 2008.
Fraud investigation
During 2005–06, Centrelink consolidated its fraud investigation capabilities by moving down a path of
specialist end-to-end fraud investigation capability. Centrelink takes a ‘whole of government’
approach to fraud detection and investigation. In accordance with the Australian Government
Investigation Standards, Centrelink uses a range of measures to detect and investigate fraud.
Activities include traditional desk based reviews and fi eld reviews. The measures also include joint fi
eld operations involving the Australian Federal Police, the Australian Taxation Office, the Department
of Immigration and Multicultural Affairs, and other Australian Government and state and territory
government departments and agencies.
Typically, joint fi eld operations are used to pursue cash economy frauds. These include visiting
business premises. To this end, specialist Officers dedicated to coordinating cash economy activity
receive specialist operational training on legislative obligations and complex multi-agency operations.
In total, 110 cash economy investigations were undertaken during the year and $34.7 million in
savings and debts were identified.
Dealing with identity fraud
Identity fraud involves the use of fi ctitious, created or assumed names by a person to claim
payments to which they are not entitled. This frequently involves multiple fraudulent claims.
The methodologies used by fraudsters to evade Centrelink’s control measures are often sophisticated
and their detection requires specialist skills and tools. An expert identity fraud detection team uses
advanced computer investigation and detection techniques to combat this type of serious fraud.
Centrelink increased its focus on identity related fraud as a result of a 2003–04 Budget initiative on
fraud detection. Cases of identity fraud were detected through the improved use of internal and
external data and an increase in analyst and investigation resources in Area Fraud Investigation
Teams. Extra cases were detected by the identity fraud intelligence analysts and investigators
throughout the network. Where Centrelink obtained adequate evidence of serious fraud the cases
were referred for consideration of prosecution action by the Commonwealth Director of Public
Prosecutions.
Part of the Budget initiative also involved preventative programmes to increase staff awareness of the
risk of identity fraud, particularly at the new claim stage. The implementation of mechanisms meant
that Centrelink’s front line staff have direct access to identity fraud specialists. To minimise the risk of
fraudulent claims Centrelink conducts extensive checks and has stringent proof of identity
requirements.
Centrelink is a member of the OPAL Commonwealth Reference Group on Identity Crime chaired by
the Australian Federal Police. The group meets quarterly to focus on operational issues affecting
member agencies. It seeks to establish links and synergies between the operational works of the
member agencies.
Australian Federal Police
During 2005–06, the full complement of Australian Federal Police agents was in place in Centrelink
fraud investigation teams. The 10 agents provide a significant enhancement to Centrelink’s
investigative capabilities, sharing their expertise and increasing the professionalism, knowledge and
effectiveness of Centrelink’s fraud investigations.
Financial transaction reports
Following legislative change and advanced technical training, Centrelink’s Fraud
InvestigationbnTeams have had access to varying levels of financial transaction reports from the
Australian Transaction Reports and Analysis Centre. These include:

significant cash transaction reports

international currency transfer instructions

international funds transfer instructions

suspect transaction reports.
Fraud Tip-off Line
Centrelink assesses all information provided by the public (‘tip-offs’) as a way of identifying misuse of
the income support system.
From public tip-offs received in 2005–06, Centrelink conducted 59 781 reviews of customer
entitlements and 162 of child care organisations. This review activity resulted in 11 492 reduced
payments and identified $125.6 million in savings and debts. The Support the System that Supports
You campaign started on 4 September 2005 with progressive airing of television advertisements
across Australia. This campaign contributed to an increase of 24 per cent in tip-offs received in the
year. (For more information about the campaign see page 27.)
The investigation of tip-off information continues to build community confi dence in the integrity of the
social security system. The public can phone the Australian Government Services Fraud Tip-off Line
on 13 1524, visit or write to Centrelink with tip-off information, or access Centrelink’s Report a
Suspect Fraud website at www.centrelink.gov.au. Tip-offs received via the website account for
around 9 per cent of tip-offs received.
Prosecution referral activity
In 2005–06, Centrelink referred 3961 matters to the Commonwealth Director of Public Prosecutions
for consideration of prosecution action in relation to the Department of Employment and Workplace
Relations, the Department of Families, Community Services and Indigenous Affairs, and Department
of Education, Science and Training payments (see Table 4). During the same period, the
Commonwealth Director of Public Prosecutions prosecuted 2885 Centrelink cases for fraud with a
conviction rate of 98 per cent.
Table 4: Centrelink prosecution activity
Prosecuted
Dismissed
Convicted
Debt amount involved in
convictions ($)
Total
2885
54
2822
34336639
Six Nations fraud conference
Centrelink representatives participated in the Six Nations Conference on Benefi t Fraud from 26–29
September 2005 in New Zealand presenting a paper on Centrelink’s Business Integrity Strategy.
Other countries represented at the conference included the United States, Ireland, the United
Kingdom, New Zealand and Canada.
Foreign Pension Data Exchange project
The Detection and Prevention of Incorrect Payment Arising from Overseas Income, or Foreign
Pension Data Exchange project, was announced as part of the 2005–06 Budget. The project aims to
develop electronic data exchange processes with Centrelink’s agreement partners (excluding New
Zealand). The exchanges will enable foreign pension rate increases (where countries provide a
Consumer Price Index increase to their pensions either annually or six-monthly) to be automatically
applied to a customer’s record, resulting in a reassessment of their Centrelink entitlement.
Malta was the first country to undertake data exchange followed by the Netherlands.
Germany will exchange data later in 2006, and data exchanges with Italy, Austria and Ireland are
likely to occur in January 2007.
Debt management
Debt management is an integral part of Centrelink’s core business. Preventing, minimising and
recovering customers’ debts accurately and quickly, while being sensitive to the customers’
circumstances, is central to achieving policy department and customer service goals. Centrelink
places a strong emphasis on debt prevention as part of its service to customers and over the past
year, work has continued on improving debt raising and recovery.
The Australian National Audit Office Report No. 04/2004–05 on Centrelink’s Management of
Customer Debt included nine recommendations. All were agreed to by Centrelink, and were finalised.
The Joint Committee for Public Accounts and Audit (JCPAA) invited Centrelink’s Senior Executive to
discuss the audit report with the committee. A fi nal report was sent to the Chair of the JCPAA
addressing the committee’s recommendations.
The National Debt Prevention Project involves the analysis of debt data and the impact of policy on
specifi c customer groups, identifi cation of debt prevention opportunities and issues for specifi c
customer groups, and identifi cation of ‘best practice’ debt prevention processes and products for
specifi c customer groups. In 2006, the project will concentrate on reviewing strategies for customers
who are studying or training, and Indigenous customers.
Debt Management Officers work to prevent, minimise and manage debts, playing a vital role within
Centrelink and in the wider community. Critical to meeting Centrelink’s core business obligations,
Debt Management Officers’ duties are to:

identify and initiate work practices aimed specifi cally at preventing or minimising debts

seek to continually improve customer awareness of their notifi cation obligations

coordinate information and outreach programmes within the community, with employers, and
within Centrelink by publicising and marketing the benefits of debt prevention

implement or support implementation of targeted national debt prevention projects aimed at the
major causes of preventable debt

monitor and report on local debt management performance such as debt raising and waiver
activity, to ensure adherence to national guidelines

ensure all debt support tools and guidelines are available and used effectively

Develop and implement strategies to address the special requirements of employment associated
with the 2006 Commonwealth Games in Melbourne.
Debt raising
In 2005–06 Centrelink met its targeted percentage of debts raised as a proportion of the
undetermined debt base. Table 5 shows debts raised during 2005–06.
Table 5: Debts raised during 2005–06
Types of debts
Number of debts
Amount raised ($
million)
Total debts raised including Family
Assistance Office debts
2 255 418
1684
Debt recovery
In 2005–06, Centrelink met its target for debt recovery and recovered $1221 million incustomer debts
compared with $1165 million in 2004–05.
Centrelink offers customers a range of repayment options through Australia Post outlets, by phone,
mail, over the internet or by direct debit.
When a customer is unable to pay a debt in full, Centrelink negotiates a repayment agreement that
will recover the debt as quickly as possible without placing the customer in financial hardship. In
certain circumstances, Centrelink may use the services of a contracted mercantile agent to contact a
person and manage the debt.
Centrelink accepted the recommendation of the Australian National Audit Office Audit Report No.
04/2004–05 that debt recovery be conducted through specialised teams. Debt recovery staffs are
trained in appropriate recovery methods.
Be valued by the Australian people
Throughout the year Centrelink strengthened its partnerships with community organisations and their
members by taking part in events and activities as outlined below. Centrelink’s involvement in these
activities is received well by the community and the media.
Carers Week
From 16–22 October 2005, Centrelink worked with Carers Australia to promote Carers Week through
the Centrelink network, acknowledging the important role carers play in the community and raising
awareness of carer needs.
Community Budget broadcast
The 2006–07 Budget meant a number of changes for Centrelink. Together with the Department of
Employment and Workplace Relations and the Department of Families, Community Services and
Indigenous Affairs, Centrelink provided an opportunity for local community organisations to hear
about Budget changes by hosting a live and interactive broadcast.
On behalf of the Department of Human Services, Centrelink invited representatives from over 1305
community organisations to participate through 76 Centrelink Customer Service Centres across
Australia. Over 500 community representatives took part in the interactive broadcast.
The panel included the Minister for Human Services, the Hon Joe Hockey MP, the Minister for
Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP, and the Minister for
Workforce Participation, the Hon Dr Sharman Stone MP who answered phone and fax questions from
community organisations around Australia.
A transcript of the broadcast, together with a summary of questions and answers relating to the
Budget broadcast, were posted to the Centrelink website at www.centrelink.gov.au
Emergency management
Centrelink’s Business Continuity and Emergency Management Framework provide a corporate
governance structure, along with supporting processes and tools.
The framework helps Centrelink to prepare, respond promptly and assist in a community emergency
or to manage an incident that threatens service delivery both in Australia and overseas.
Centrelink plays a key role in situations like this, and is one of a number of agencies committed to
responding to the needs of people and communities devastated by natural disasters. A national
strategy ensures that in emergencies or disasters, Centrelink can continue to provide its normal
services to the community as well as extra assistance to the people most affected.
Policy departments continue to use and acknowledge Centrelink’s ability to respond quickly and
effectively to emergencies. Centrelink brings together phone, counselling and processing capabilities,
as well as liaising with local, state/territory and Australian Government departments and agencies.
Centrelink’s contribution of ‘on site’ or ‘on phone’ services are highly regarded, particularly following
responses in recent years to corporate collapses and natural or community disasters.
Asian tsunami tragedy
Centrelink continued to deliver the Australian Government’s Tsunami Assistance Package, extending
it to cover travel to the first anniversary of the disaster. Centrelink Social Workers provided personal
support to those travelling to Thailand for the anniversary.
In addition to this, the Social Work Service continues to provide family liaison support to those
families still in need of assistance. There are currently 41 Centrelink Family Liaison Officers
throughout Australia who are working with 99 family members affected by the tsunami.
Bali 2005
A number of bombs exploded on the evening of 1 October 2005 in Jimbaran Bay and Kuta Square in
Bali. Centrelink played a key role administering the assistance package, and working with state and
territory offi cials to provide assistance on request through arrangements at airports.
Centrelink provided assistance to Australians directly affected by bombings, and their family and
friends. Centrelink delivered the Australian Government’s Bali Assistance Package via a processing
team who administered the financial aspects of the government package.
In addition, Centrelink Social Workers provided personal support to those in Bali and to those injured
and transported to Singapore. For several weeks after the initial disaster the Social Workers provided
a targeted ‘meet and greet service’ for families returning from Bali and Singapore.
The Social Work Service continues to provide family liaison support for the families affected by this
tragedy. There are currently 16 Family Liaison Officers working nationally with 70 family members.
Newcastle in New South Wales was particularly affected by this disaster and Social Workers are
working closely with the community to support the families residing in the area.
Bali 2002 third anniversary
The Centrelink Social Work Service continues to work with families affected by the Bali 2002
bombings. There are currently 19 Family Liaison Officers nationally, working with 22 family members.
The Bali hotline number is still available and occasional calls are still received by the hotline Social
Worker.
Centrelink Social Workers were once again in Bali to support families who were attending the third
anniversary commemorations.
Cyclone Larry
On 20 March 2006, Centrelink’s service delivery capacity to assist in emergency situations was vital
in the wake of Cyclone Larry’s devastation of north Queensland. Centrelink played a key role in
administering the assistance package announced by the Prime Minister, the Hon John Howard MP.
Over 50 000 claims for assistance were received for a range of payments including one-off ex-gratia
payments, grants to support businesses and farmers, income support for business owners and
farmers and fuel excise relief. Centrelink provided hotline services via the Call Centre network and
processing centres were set up in Cairns, Brisbane and Maryborough to administer the financial
aspects of the government package. Centrelink Social Workers provided personal support to people
affected.
Katherine floods
In April 2006, Centrelink delivered emergency payments to households affected by the floods in
Katherine, on behalf of the Northern Territory Department of Health and Community Services.
Centrelink deployed extra staff, including Social Workers, to the Katherine
Centrelink Customer Service Centre, and were joined by Northern Territory Government and
community organisations to support people affected by the floods.
London bombings
Centrelink played a key role in assisting Australians and their families and friends, who were directly,
affected by the July 2005 London bombings. Centrelink delivered the Australian Government’s
London assistance package via a processing team who administered the financial aspects of the
package.
In addition, Centrelink operated the ‘London Assist’ hotline (including a free call from London), and
Centrelink Social Workers provided personal support to those in London for several weeks after the
initial disaster. A targeted ‘meet and greet’ service for families returning from London was also
provided by Centrelink Social Workers.
The Social Work Service continues to provide a family liaison support service for the families still
requiring this assistance. There are currently six Family Liaison Officers nationally, who are working
with 10 family members.
Harmony Day
On 21 March each year Centrelink supports Harmony Day. This year Centrelink focused on
organised activities encouraging community and joint Department of Human Services agency
involvement. Harmony Day is an Australian Government initiative that provides an opportunity to
celebrate cultural diversity and say ‘no’ to racism.
International Day of People with a DisAbility
In 2005–06, Centrelink celebrated International Day of People with a DisAbility by holding events in
communities around the country. The day is seen as a significant event within the disability
community and an opportunity to celebrate and recognise the achievements of people with
disabilities.
NAIDOC Week
From 7–14 July 2005, as part of its ongoing support and commitment to Australian Indigenous
people, Centrelink joined in the NAIDOC (National Aboriginal and Islanders’ Day Observance
Committee) Week celebrations. Centrelink staff around the country took part in a range of community
events such as fl ag raising and cultural performances. For many Australian Indigenous people, this is
one of the most important weeks during the year, providing an opportunity for Indigenous people to
join together in celebration of the survival and continuation of their culture.
National Families Week
From 14–20 May 2006, Centrelink again supported National Families Week through its national
network by promoting the week to local community organisations and coordinating or participating in
local events. National Families Week is an annual celebration highlighting the critical role of families
in Australian society. The theme for National Families Week 2006 was children aged 12 to 18 years
and the important role of parenting.
National Child Protection Week
Local Centrelink Customer Service Centres supported National Child Protection Week from 4–10
September 2005 by participating with local communities and organisations in events aimed at
preventing child abuse and neglect.
Reconciliation Week
From 27 May to 3 June 2006, Centrelink celebrated Reconciliation Week. The theme for 2006 was
‘Take The Next Step’. Centrelink celebrated with an event, which included the Minister for Human
Services, Reconciliation Australia, and senior executives from other Department of Human Services
agencies. At the event Centrelink’s Statement of Commitment to Reconciliation was updated and resigned.
Media coverage
Centrelink worked closely with the media around the nation to raise awareness and educate the
community about services, support, assistance and payments in every state and territory during
2005–06.
Initiatives to receive media attention included drought relief support, online services, Centrelink’s
graduate recruitment programme, multicultural services, and the working credit scheme.
The media took particular interest in Centrelink’s payment review and fraud detection activities that
complemented the Australian Government’s Support the System that Supports You campaign.
Centrelink’s involvement in emergency relief efforts including Cyclone Larry (Queensland), floods
(Northern Territory and South Australia), bushfi res (New South Wales and Victoria), and terrorist
bombings (London and Bali) also received prominent attention.
Chapter 4
Our business andcommnity relationships
Strategic themes: Developing a networked organisation
Highlights for 2005–06

The number of customers using Centrepay increased to 253 826 (see page 46)

Centrelink now has agreements in place in all states and territories for assisting adult offenders in
detention (see page 49)

During the 2006 Commonwealth Games, Centrelink worked closely with business and their
representative bodies to reduce the need for Centrelink to contact them to verify the income of
their employees (see page 52).
Description
Developing a networked organisation is about strengthening our ability to work with government and
non-government organisations to achieve integrated outcomes for the Australian community. The aim
is to Efficiently deliver services that require a long-term strategic focus and to be fl exible in meeting
community needs and conditions.
Centrelink recognises the vital role of cooperation with other government and human services
agencies, non-government organisations, service partners, and the community and business sectors
in fi nding new ways to achieve the best possible assistance for customers.
Strategic objectives

Connect with service partners and human services agencies so customers receive the right help
(see page 41)

Make it easy for business and the community sector to do business with Centrelink (see page 50).
Connect with service partners and human services agencies
so customer receibve the right help
Australian Government health and social services access card
Centrelink is participating with the Department of Human Services in the development of the
Australian Government health and social services access card.
The Government is developing a health and social services access card to improve customer service
delivery across participating government agencies. The introduction of the card will streamline upfront
access to services and entitlements, making the system more Efficient , easier to use and less
vulnerable to fraud. The introduction of the card will reduce the number of cards required by
customers to access a range of government services.
Centrelink Academic Reassessment Transformation project
The Centrelink Academic Reassessment Transformation (CART) project conducted a proof of
concept trial, which began in August 2004. Using information technology, the project trialled the
exchange of electronic data from educational institutions to Centrelink. The data exchange was sent
either weekly or daily, and related to changes in student study loads that may affect the benefits
students are eligible to receive. The data received allowed Centrelink to take actions earlier to reduce
the risk of student debts and to ensure higher levels of participation.
Building on the success of the trial, the project was expanded to provide progressive coverage for all
tertiary institutions. Universities and Technical and Further Education (TAFE) colleges were contacted
and supplied with information on the CART process. From these contacts it is estimated that take up
by educational institutions will see approximately 180 000 students in scope of CART by mid-June
2007.
The main drivers for the CART project are to reduce the risk of debt for student customers and
support retention in study. Centrelink is able to have timely contact with students and provide advice
and alternatives, which limits their debt risk and assists their completion of study.
CART has been fully endorsed by the Department of Education, Science and Training and the
Australian Vice-Chancellors’ Committee, and is currently being rolled out to universities and TAFEs
across Australia.
Community feedback
Centrelink has a strong focus on connecting with service partners and human services agencies so
that customers receive the right help. Centrelink uses several mechanisms to gain feedback from the
community sector. One mechanism is through a Community Sector Satisfaction Survey detailing how
satisfied providers are with their working relationships with their local Centrelink Customer Service
Centre.
The 2005–06 survey’s focus and timing was to receive preliminary feedback from the specifi c parts
of the community sector important to Centrelink’s implementation of Welfare to Work prior to the July
2006 implementation. The first of a series of rolling surveys was conducted with the Job Network and
Disability Employment Network, followed by organisations dealing with sole parents, then
organisations dealing with customers with a disability, and emergency relief organisations.
Another mechanism is a national framework, which means local Officers can report and escalate
community views.
Community reference groups
Centrelink has established a number of community reference groups nationally to gather input on and
feedback about Centrelink’s service delivery. These community reference groups primarily comprise
representatives from peak community and service delivery bodies.
Carers Service Delivery Reference Group
In 2005–06, the Carers Service Delivery Reference Group provided valuable feedback on the
production of Centrelink carer forms and publications. The aim of the group is to influence
improvement in service delivery for carer customers and assist Centrelink in improving its
communication to carers. This group includes representation from various carer organisations
throughout Australia and also includes carer organisations representing multicultural, Indigenous,
mental health and young carers. The group has met four times since its inaugural meeting in
November 2003.
DisAbility Customer Service Reference Group
The role of the DisAbility Customer Service Reference Group is to provide advice on all aspects of
Centrelink’s service delivery to customers who have an illness, injury or disability, including how to
improve the practices and quality of service provided by Centrelink staff.
Members represent various peak disability organisations including Women with Disabilities Australia,
the National Indigenous Disability Network, the National Association of People Living with HIV/AIDS,
the National Council on Intellectual Disability, the Australian Association of the Deaf, Welfare Rights,
and Blind Citizens Australia. Generally, meetings are held twice a year, with a focus in 2006 on
changes associated with Welfare to Work.
National Multicultural Reference Group
In 2005–06, the National Multicultural Reference Group held its ninth meeting. Issues raised included
the changes to employment policies and their effects on multicultural customers, as well as new
compliance and case management processes, and settlement and employment issues for refugee
arrivals from African countries.
The aim of the National Multicultural Reference Group is to enable Centrelink to consult with
communities from diverse cultural and linguistic backgrounds. The group’s role is to provide advice
and feedback to Centrelink on all aspects of service delivery to its multicultural customers. Significant
issues are raised nationally with senior staff of Australian Government departments and agencies.
Older People’s Reference Group
Meetings of the Older People’s Reference Group are held regularly and provide Centrelink with the
opportunity to discuss key messages and focus on strategic issues relating to service delivery. Policy
concerns are referred to the relevant policy department to address. Some of the main topics covered
in 2006 included Centrelink customers transferring to Age Pension, Centrelink’s communication
strategy for seniors, and implications of the Welfare to Work initiatives for Age Pension customers.
Centrelink established the Older People’s Reference Group in March 2002 to facilitate communication
with peak bodies and customer groups and to improve Centrelink’s services to its senior customers.
Participation Community Reference Group
The role of the Participation Community Reference Group is to provide advice to Centrelink on its
service delivery as well as supporting arrangements for Welfare to Work. Representatives include
Families Australia, National Welfare Rights, the National Council for Single Mothers and their
Children, the Australian Federation of Disability Organisations, and the Mental Health Council of
Australia. In the lead up to the Welfare to Work implementation, the group met approximately every
six to eight weeks.
Multicultural Advisory Committees
Centrelink consults quarterly with multicultural communities at both state and local level through its
Multicultural Advisory Committees, which are operational in most states, territories, and regions with a
high multicultural population. During the year, members of the committees have shown particular
interest in employment issues and extra services for families. Federal Budget initiatives also
generated considerable interest and requests for information.
Department of Human Services Cross Agency Multicultural Group
During 2005–06, Centrelink initiated discussions between the six Department of Human Services
agencies to share expertise in delivering multicultural services and explore the possibility of joint
work. The group agreed to look at the feasibility of a common multicultural customer charter for which
each agency can commit, and is exploring ways to share resources.
Implementing the Charter of Public Service in a Culturally Diverse Society
The Department of Immigration and Multicultural Affairs Access and Equity Annual Report 2005
relates to progress in implementing the Charter of Public Service in a Culturally Diverse Society.
Centrelink remains a leading agency in terms of its multicultural programmes and achievements
against the Key Performance Indicators of the Access and Equity reporting framework, scoring a 100
per cent of relevant performance indicators both 'met' and 'met well'.
National Welfare Rights Network
The National Welfare Rights Network has played an important role in providing feedback and
valuable input on improving Centrelink’s service delivery, particularly for the most vulnerable
customers.
Centrelink and the National Welfare Rights Network have developed an ongoing and productive
relationship, working closely in a formal and informal basis at local and national levels. The National
Welfare Rights Network also contributes to Centrelink’s Participation Community Reference Group,
DisAbility Customer Service Reference Group, and Multicultural Reference Group.
Lifting Remote Area Exemptions
The Department of Employment and Workplace Relations (DEWR), the Office of Indigenous Policy
Coordination (OIPC) and Centrelink have worked with community and other government stakeholders
to lift Remote Area Exemptions through a phased approach.
Oversight for this process is through a Group on Indigenous Participation incorporating representation
at the Deputy Secretary or equivalent level from DEWR, OIPC, the Department of Families,
Community Services and Indigenous Affairs, and Centrelink. Remote Area Exemptions are being
progressively removed as agreed by deputy secretaries.
Remote Area Exemptions are not applicable to activity tested income support recipients living in
remote locations if they have access to a local labour market, or a vocational training course, or a
labour market programme, or alternative arrangements for participation. In such circumstances,
recipients will be subject to participation requirements.
Online channel for approved child care services
An online channel for approved child care services to transmit data required to calculate family
entitlement to Child Care Benefi t became available in September 2005. The progressive rollout of the
online service offers all approved child care services a more streamlined and secure option to
transmit customer data to the Family Assistance Office.
Odyssey House model partnerships
Odyssey House Victoria is a residential rehabilitation programme for people with life controlling issues
(such as drug, alcohol and gambling addictions). Over 500 Centrelink customers receive service from
Odyssey House, and these customers can nominate this organisation to act on their behalf. As a
nominee, Odyssey House can access Centrelink services on behalf of their clients, and this process
is often part of creating a new life for people with life controlling issues.
In 2005, Odyssey House and Centrelink signed a ground breaking partnership agreement to enable
the electronic exchange of data. This capability has made access to services more convenient and
reliable for both organisations and, most importantly, for our shared customers.
Following the success of the Odyssey House model, Centrelink has been working to enhance this
capability to enable a wider range of nominee third party organisations to conduct transactions on
behalf of customers in need.
YP4—Assisting homeless job seekers
YP4 is a trial service delivery approach designed to assist young homeless job seekers. The trial,
supported by the Australian Government (through the Department of Families, Community Services
and Indigenous Affairs and Centrelink) and the Victorian Government, aims to determine whether
streamlining a range of services and programmes can result in better housing and employment
outcomes for unemployed young people who do not have a suitable home.
The trial involves four community organisations:

Hanover Welfare Services (auspice agency)

The Brotherhood of St Laurence

Melbourne City Mission

Loddon Mallee Housing Services.
Centrelink Victoria is supporting YP4 by acting as a ‘gateway’ to the programme through sites at
Frontyard, Cheltenham, Frankston and Bendigo. The role of the staff at these sites involves:

identifying potential participants

checking the eligibility of potential participants and ensuring consent forms are signed

providing relevant information to participants and the YP4 organisation

Assigning participants to appropriate groups within the programme.
Centrelink Social Workers are also working with participants to assist in the evaluation of the trial.
Centrepay
The number of current Centrepay participating organisations increased from 12 714 in 2004–05 to 13
870 in 2005–06. Of these, 4579 business and community based organisations receive their payment
information and undertake their financial reconciliation electronically with the rollout of the Centrepay
electronic data transfer facility.
The number of customers using Centrepay increased from 202 952 in 2004–05, to 253 826 in 2005–
06.
During 2005–06, changes to Centrepay arrangements meant that customers could use Centrelink’s
self service web facilities to arrange new deductions and vary or cancel existing ones. Customers can
still do their deductions via Call Centres or by submitting a deduction form to Centrelink or their
service provider.
Future directions for Centrepay include promoting it as a means to achieve financial stability,
including supporting people on their pathway to work.
Centrepay is a direct, bill paying service offered to customers receiving payments from Centrelink.
Customers continue to use Centrepay as a way to manage their fi nances better by having regular
amounts deducted from their Centrelink payments.
Deductions are paid directly to participating organisations to cover living expenses such as private
rent, electricity, gas, phone and education, and to repay no-interest loans from community
organisations.
Centrepay for Indigenous communities
Centrepay continues to deliver a number of innovative solutions in several Indigenous communities,
developed through partnerships with parents, community organisations, state and territory
governments, and the Department of Education, Science and Training.
One of the successful outcomes of 2006 is the use of Centrepay to support local nutrition
programmes. These programmes were set up in more than 40 schools to ensure students have
adequate nutrition. Parents are able to use Centrepay to ensure their children can access food at
school through the programme. This Centrepay option will continue into 2006–07 while customer
demand for this service exists.
Centrelink Confi rmation eServices
The Centrelink Confi rmation eServices (CCeS) are internet based facilities used by government
agencies, businesses and community organisations that require online validation of customer details.
The process offers the customer greater convenience when applying for concessions and services.
As at 30 June 2006, 678 contracted organisations were using CCeS and carried out
17 123 748 transactions compared with 30 June 2005, an increase of 64 per cent.
Transaction fees were abolished from 1 July 2005 to encourage organisations to take up the service.
The effect of this incentive is to maximise the potential effectiveness and effi ciencies in providing
information used to assist mutual customers achieve better outcomes. Associated benefits include
reduced queue numbers and average wait times, as well as speedier access to other benefits from
service providers. CCeS supports the protection of government outlays, up to date information to third
parties, and accurate assessment of customer eligibility to concessions and housing.
In October 2005, Centrelink added a new online Income Confi rmation service, used to transfer
customers’ income and payment details directly to registered organisations. This service forms part of
the integrated CCeS suite of products, which includes:

Customer Confirmation of a Centrelink or Department of Veterans’ Affairs customer’s entitlement
status to receive a concession

Income Confirmation for Centrelink customer

Superannuation Confirmation to assist in determining the early release of a customer’s
superannuation.
Future directions for CCeS include:

enabling customers to obtain their own online confi rmation statement via Centrelink’s self service
web facility (Customer Portal)

Working with Australian Government and state and territory government departments and
agencies to offer a whole of government approach to concessional data through online services.
Community Development Employment
Centrelink administers the Community Development Employment Program (CDEP) on behalf of the
Department of Employment and Workplace Relations (DEWR) and the Torres Strait Regional
Authority (TSRA).
Approximately 35 000 DEWR and 1800 TSRA CDEP placements were available in 2005–06.
Centrelink continues to work closely with DEWR to implement new CDEP guidelines for 2006–07,
including lifting of the Remote Area Exemption and compulsory registration and referral to the Job
Network.
Drought assistance
Drought Relief Counsellors
Centrelink Drought Relief Counsellors were established in 2005–06 as an initiative of the Department
of Agriculture, Fisheries and Forestry (DAFF). Ten full-time positions were created to assist farm
families with information relating to:

the Australian Government’s Drought Assistance payments and services

the completion of the associated forms

The links to other government programmes and services such as Farm Help and the Financial
Counselling Service.
Drought Relief Counsellors provide assistance with existing drought relief measures, and also work in
partnership with DAFF’s Rural Financial Counsellors to extend the Government’s assistance
packages. An important by-product of the work of the Drought Relief Counsellors has been the links
created between local community organisations and the subsequent support networks established
beyond Australian Government financial assistance.
Drought Relief Counsellors cover areas identified as ‘high need’ across south western Queensland,
most of New South Wales, and significant parts of Victoria and South Australia. Appointed by
Centrelink, the Drought Relief Counsellors have proved a valuable, and in many cases a vital
connection between the Australian Government and Australia’s farming families. Drought Relief
Counsellors were supported by Centrelink Psychology Services who developed and delivered a
mental health awareness and skill building workshop in March 2006.
Exceptional Circumstances certifi cates
In response to the Australian National Audit Office Drought Assistance Audit tabled in June 2005,
Centrelink worked with DAFF to meet audit recommendations regarding the administrative
procedures for issuing Exceptional Circumstances (EC) certifi cates. From 1 October 2005, Centrelink
issued ECs for all new and existing declarations. This work was previously completed by state rural
adjustment authorities.
As the drought continued in many parts of Australia, Centrelink also continued to provide extensive
assistance to drought affected farmers. In 2005–06, the Australian Government announced
extensions to approximately 20 existing EC declared areas. In addition, one new prima facie area
was declared.
The key challenge for 2006–07 will be to assist DAFF in drought recovery efforts, as farmers and
rural communities rebuild after prolonged drought.
Social Work response
In areas described as having ECs, the Department of Families, Community Services and Indigenous
Affairs has provided funding for Centrelink Social Workers to offer counselling, support and referral to
individuals and families affected by the drought. Centrelink Social Workers have also assisted with
community capacity building activities in these areas.
Services for prisoners
With the signing of a protocol agreement in South Australia in July 2005, Centrelink now has
agreements in place in all states and territories to deliver services to adult offenders in detention.
The first review of an existing protocol agreement was conducted in New South Wales, with the
revised agreement signed in April 2006. The main enhancement to the agreement was the inclusion
of arrangements for delivering services to offenders on legal orders in the community (that is,
probation and parole).
A national training module was developed for staff who visit prisons to assist offenders who will
become Centrelink customers on their release. The training focuses on occupational health and
safety issues and appropriate measures to remain safe and well while working in the prison
environment.
Centrelink Psychologists have provided outreach services to some prisons. This service includes
assessment immediately prior to release, to facilitate a smooth transition to participation and/or
referral to appropriate participation assistance.
Rent Deduction Scheme
The Rent Deduction Scheme allows Centrelink customers living in public housing to have their
housing related payments such as rent, loans and arrears deducted from their Centrelink payments
and sent directly to the relevant housing authority.
The scheme is voluntary and provides customers with an easy way to manage their government
housing payments, while helping to prevent rental arrears, debts and evictions. All state and territory
housing authorities use the deduction scheme and the number of customers using this service
continues to increase. In 2005–06, 279 209 customers used the scheme, an increase of 4.2 per cent
from 2004–05.
In 2006, the scheme was extended to assist tenants in Aboriginal housing, managed by state and
territory housing authorities, to receive their Rent Assistance entitlements.
Make it easy for business and the community sector to do
business with Centrelink
Business Gateway
Centrelink’s Business Gateway was established in December 2004, bringing together a number of
major Centrelink services for business and Centrelink staff trained to understand business needs.
Centrelink’s Business Hotline
The Centrelink Business Hotline is a national contact centre dedicated to making it easier for
employers to do business with Centrelink. The hotline is operated by skilled staff from diverse
industry backgrounds who understand the needs of business. The hotline staff provide advice and
information about Centrelink and how it can assist employers. Each month hotline staff handle up to
12 000 incoming calls and more than 6000 incoming faxes.
The hotline also provides an Information Reporting Helpdesk to assist third party organisations, as
well as Centrelink staff, involved with a number of electronic information reporting initiatives. The
helpdesk assists with the registration of organisations, password management and electronic fi le
transfers. It is the first point of contact if an organisation experiences any diffi culty participating in the
arrangements. Currently the helpdesk provides support to 16 initiatives involving more than 1000
external organisations, for example:

Centrepay—a service that allows Centrelink customers to pay bills through regular and
manageable deductions from their Centrelink payments (see page 46)

Rent Deduction Scheme—a service that allows customers in government housing to have their
housing payments deducted automatically from their Centrelink payment and sent directly to the
relevant authority (see page 49)

Customer Confi rmation Services—services that allow businesses to receive confi rmation of a
Centrelink customer’s entitlement to concessions. Many businesses and authorities use eligibility
for a Centrelink concession card, such as the Pensioner Concession Card, as a main way of
establishing eligibility for their concessions (see page 47)

Income Confi rmation Services—services that enable organisations to receive customer payments
and income and assets details, so that eligibility for government programmes and subsidies can
be determined (see page 47)

Superannuation Confi rmation Services—services that allow superannuation providers to confi rm
online with Centrelink a customer’s eligibility for early release of their superannuation payments
(see page 47)

Tasmanian Assistance Services—services that deliver the Tasmanian Freight Equalisation
Scheme, the Bass Strait Passenger Vehicle Equalisation Scheme, and the recently reinstated
Tasmanian Wheat Freight Scheme, on behalf of the Department of Transport and Regional
Services (see page 96).
Census 2006
With the census due to be conducted by the Australian Bureau of Statistics (ABS) in August 2006,
and around 40 000 people expected to be employed to conduct the census, Centrelink worked
closely with the ABS to reduce the amount of paperwork required to verify the earnings of customers
employed specifi cally for the census.
Centrelink established processes to ensure the ABS is only sent an employment verifi cation request
in special circumstances. The ABS was provided with around 40 000 payslip envelopes and ‘How to
Avoid a Debt’ brochures to include in their recruitment pack, which will be given to all prospective
census employees. This will ensure that those people employed as census collectors and
supervisors, who are also receiving a Centrelink payment, are aware of their obligations to report their
income, and are provided with a place to keep payslips for Centrelink.
Listening to feedback from the business sector
Centrelink continues to conduct regular business sector research, which highlights suggestions for
improvement to the forms and letters sent by Centrelink to businesses. The research also aims to
understand the attitudes of businesses towards Centrelink requests and the time taken to complete
these requests.
The research showed that:

businesses are highly satisfi ed with the contact they have with Centrelink through the Centrelink
Business Hotline and that there was a strong interest in conducting business with Centrelink
electronically

there was an overall reduction in the time taken to complete some Centrelink forms as a result of
changes made in the first half of 2005

businesses are particularly interested in fi nding out more about what Centrelink has to offer
businesses and the type of assistance available to them

accessing legislative information and forms online was popular

Interest in e-business remained strong, and businesses generally acknowledged the benefits of
improved effi ciency with the provision of online information.
Voluntary work
Centrelink plays a role in approving organisations for voluntary work, as well as encouraging
customers to contribute to their communities by becoming involved in volunteering. Centrelink works
in conjunction with Volunteering Australia, which is contracted by the Department of Employment and
Workplace Relations to provide people with volunteering opportunities.
Working with business during the 2006 Commonwealth Games
With the Melbourne 2006 Commonwealth Games employing over 30 000 people and using 20 000
volunteers, Centrelink worked closely with business and their representative bodies to reduce the
need for Centrelink to contact them to verify the income of their employees.
Centrelink provided employers with payslip envelopes for new staff, or staff who worked extra hours
during the games. Employers were encouraged to distribute payslip envelopes and other debt
prevention products to employees, to ensure that customers were aware of their obligations to report
their income to Centrelink.
Centrelink also promoted the Business Hotline’s phone, fax and email services to support employers
with Centrelink paperwork during the games and provided employers with access to the Employment
Separation Certifi cate as an online form.
Through industry representative bodies, such as the Victorian Employers’ Chamber of Commerce
and Industry, Centrelink was able to include articles in industry based newsletters to promote the
‘Less Paper Work for Employers’ campaign to member businesses and employers.
Chapter 5
Our Customer
Strategic theme: Strengthening our customer focus in line with
government direction
Top level result
Table 6: Customer satisfaction with Centrelink services
Target
Customer satisfaction with Centrelink services of 87 per cent (that is, 87
per cent of ‘Family and Child Care’; ‘Seniors, Carers and Rural’; and
‘Working Age Participation’ customers surveyed) who rate the overall
quality of service received on their last visit to a Centrelink Customer
Service Centre or phone call to a Call Centre as either ‘very good’ or
‘good’
Result for 2005–06
(%)
87.1
Figure 6: Overall customer satisfaction with last contact with Centrelink, 2003–04 to 2005–06
This figure depicts the percentage of customers who rated the overall quality of people, services and
information as either ‘very good’ or ‘good’ on their last visit to a Customer Service Centre or phone
call to a Call Centre for the specified financial year. In 2005–06 changes were made to the index for
calculating overall customer satisfaction. In previous years the index focused on channels of service
delivery. However, in 2005–06 this index changed to focus on Centrelink’s Business Lines. Due to
these changes, the 2005–06 result should not be directly compared to previous fi nancial year results.
Appendix 6 contains additional information.
Source: Customer Service Centre Satisfaction Survey and Call Centre Satisfaction Survey, DBM
Consultants.
Highlights for 2005–06

RapidConnect launched in September 2005 to connect eligible job seekers to the Job Network
within two days (see page 60)

A Work for the Dole Pilot was conducted between March and October 2005 (see page 60)

During 2005 Centrelink’s Self Service Strategy was developed and implemented (see page 63)

Preparation for the launch of Welfare to Work on 1 July 2006 (see page 58).
Description
Centrelink’s customers are the 6.49 million people who, through Centrelink, access government
products and/or services designed to assist them in building and sustaining their independence. In
2005, after a review of our operations and the service delivery network, a business line model was
introduced and staff and customer service delivery is categorised as:

Working Age Participation

Families and Child Care

Seniors, Carers and Rural

Business Integrity.
The aim of the business line model is to enhance consistency and improve performance of service
delivery. (For more information about the business line model see page 80)
Whether those seeking assistance from Centrelink face particular barriers such as speaking a
language other than English as their first language, living in a remote community, being in a crisis
situation, dealing with substance addiction, or supporting someone with an illness or injury, Centrelink
seeks to offer solutions that reduce the complexity of accessing government services. It is the role of
Centrelink staff to work with and understand customers’ circumstances and to connect customers
with the right programme, or combination of programmes that respond to their needs.
Centrelink continues to focus on service delivery arrangements that are tailored to customer needs,
expectations and preferences. Centrelink recognises that these can typically be characterised as:

Just let me do it—when it is more convenient for the customer, and there is minimal risk to
government outlays, customers should be able to use self service (for example, the internet,
natural language speech recognition)

Help me—when a customer may be able to conduct their business partially using self service, but
also requires personal assistance to achieve a positive outcome

Relate to me—when there is a need for a service approach that provides a ‘personfocused
solution’ based on a good understanding of the customer’s circumstances and needs at the time
(for example, customers requiring intensive assistance to achieve workforce participation).
Strategic objectives

Deliver the Welfare to Work agenda (see page 58)

Respond to customers' needs and expectations consistent with government policy (see page 61).
Deliver the Welfare to work agenda
Welfare to Work
The Welfare to Work measures, announced in the 2004–05 Budget, meant significant change to the
work of Centrelink. These changes related to policies and programmes being implemented from 1
July 2006. The programmes are administered mainly by the Department of Employment and
Workplace Relations (DEWR), but also by the Department of Families, Community Services and
Indigenous Affairs (FaCSIA), the Department of Education, Science and Training (DEST) and the
Department of Human Services (DHS). The changes represent an investment of over $600 million in
Centrelink over four years, affect 43 per cent of current Centrelink information technology (IT)
systems and involve adjustments to current processes as well as new business.
A Centrelink taskforce was set up to oversee and coordinate the range of required Welfare to Work
activities within the organisation. Work involving IT was overseen separately by the Welfare to Work
IT Programme Office. The Taskforce worked with relevant Centrelink business teams and their policy
department counterparts to clarify policy details and systems requirements for individual measures.
The Welfare to Work Taskforce supported Centrelink’s involvement in a robust whole of government
governance process led by DEWR.
The initiative required a significant level of new interactions between the IT environments of
Centrelink, DEWR, FaCSIA, DEST and the Department of Immigration and Multicultural Affairs. To
facilitate the key interaction between DEWR and Centrelink systems, a governance model for
interdepartmental collaboration was implemented to ensure risk was effectively handled and that IT
capabilities underpinning the initiative were delivered in an integrated and effective manner. A
programme of joint systems development and testing between DEWR and Centrelink was instituted
to ensure successful inter-agency delivery of IT capability.
Internal Centrelink governance for Welfare to Work included an Executive Committee, chaired by the
Deputy Chief Executive Officer, Stakeholder Relationships, and a National Key Stakeholders
Committee meeting held monthly, that served as an important information exchange forum. A strong
risk assessment strategy and project assurance framework underpinned management of the
programme. The Taskforce’s fortnightly newsletter and intranet site kept staff up to date with progress
and issues.
Given the scope of changes, the training programme was significant and delivered in the following
four stages over seven months:

change management training

core skills training

policy training

Technical training.
All effort was made to train staff that have face-to-face contact with working age customers by 1 July
2006. Training will continue on an ongoing basis throughout 2006. Staff assisting non-working age
customers also received overview sessions.
A targeted mailout from March 2006 to approximately two million working age customers, explained
the impact of the changes and updated customers on other existing products.
Recognising that many Centrelink customers may contact community groups to seek clarifi cation
about the reforms, a community pack was developed with information about the changes, including
support services, scenarios, an explanation of terms, and questions and answers. Centrelink’s Call
Centres also supported enquiries arising from DEWR’s media campaign.
A new compliance framework will start on 1 July 2006 replacing the current breaching regime. To
support this new framework, centralised work units in each Centrelink area were established. A
feature of these units is a closer working relationship with employment service providers at the local
level.
The provision of the new Job Capacity Assessments is a new area of business for Centrelink. Extra
specialists, such as Psychologists, Social Workers, Occupational Therapists and Physiotherapists
were recruited to support the delivery of over 50 per cent of the total expected assessments in 2006–
07. These staff will also supply appropriate pre-vocational interventions under the new Job Capacity
Account.
Consultations with the community sector on Welfare to Work
Centrelink undertook a series of consultations about various aspects of Welfare to Work service
delivery design and implementation. The consultations with representative groups from the
community sector occurred via community reference group meetings conducted by Centrelink, as well
as through some specifi c consultations. Participants responded positively about their ability to
contribute to shaping the design and content of Centrelink processes and products.
The various reference groups provided input and feedback about the proposed processes and workfl
ows, how they might affect customers, issues relating to training of staff, and the language used in
communicating the new initiatives to customers and the community.
Further consultation also provided Centrelink with valuable input about improvements to letters and
relevant factsheets and the proposed content of staff training packages.
Some of the community sector representatives involved included:

National Council for Single Mothers and their Children

Mental Health Council of Australia

Brain Injury Australia

National Ethnic Disability Alliance

National Association of People Living with HIV/AIDS

Australian Federation of Disability Organisations

National Welfare Rights

Sole Parents Union

Federation of Ethnic Communities Australia

Council on the Ageing.
Parents and Employment Guide
Version three of the Parents and Employment Guide was released in October 2005. The guide
supports Centrelink’s Customer Service Advisers in the promotion of participation and Welfare to
Work. It includes information on:

recent changes to Parenting Payment

the full range of services provided by Centrelink

‘Looking for work’ and other community resources available to parents.
From 1 July 2006, a range of Welfare to Work communication products will supersede this guide.
Work for the Dole Pilot
The Work for the Dole Pilot is a joint DEWR and Centrelink initiative for Parenting Payment
customers. The pilot was conducted between March and October 2005 in seven Centrelink Areas to
trial two Work for the Dole referral processes—the current referral process via the Job Network and
direct referral to Community Work Coordinators. The pilot’s aim was to develop local area strategies
and understand how best to engage and retain Parenting Payment recipients in Work for the Dole
activities. This included identifi cation of best practice in relation to referral techniques and service
delivery, and the most suitable activities for this customer group.
RapidConnect
Customers are assessed through Centrelink’s First Contact Service Offer. Those customers who are
job seekers may then move to the RapidConnect category.
RapidConnect was launched in September 2005 to connect eligible job seekers to the Job Network
within two days. It was further advanced with the passage of legislation in December 2005, formally
requiring activity tested job seekers to link with the Job Network before they would be eligible for
income support. These customers must attend an interview with a Job Network member before they
can access income support.
Since the introduction of RapidConnect, monthly average referrals of job seekers to employment
service providers, including the Job Network, within two working days of their first contact with
Centrelink have ranged from 85 per cent to 90 per cent. Data shows that making an initial
appointment with a Job Network provider within two days of the initial contact with Centrelink greatly
improves the attendance rate of job seekers at that appointment. This allows the job seeker to access
employment assistance faster and reduces non-attendance issues for Job Network members.
Rapid Connection
During 2005–06, Centrelink increased focus on promoting the benefits of working to working age
customers, in preparing for the implementation of Welfare to Work. Emphasis was placed on offering
Parenting Payment and Disability Support Pension customer’s voluntary referrals to employment
assistance when appropriate.
From 1 July 2005 to 30 June 2006, Centrelink had almost 600 000 successful contacts with Parenting
Payment and Disability Support customers to offer a voluntary referral, and from these, made over
103 000 successful registrations and referrals to the Job Network.
Rapid Connection strategies include offering Parenting Payment and Disability Support Pension
customers a voluntary referral to employment assistance at all appropriate face-to-face contacts and
through Call Centres. In 2005–06, Centrelink also conducted several Parenting Payment expos to
provide customers with an opportunity to discuss their personal circumstances, with the aim of linking
them with the most appropriate employment service providers and educational institutions.
A significant number of the 52 500 successful job placements for Disability Support Pension and
Parenting Payment recipients between July 2005 and May 2006, as reported by the Department of
Employment and Workplace Relations, were made up from Centrelink referrals for these customer
groups.
Respond to customer’s’ needs and expectation consistenet
with government policy
Call Centres
Centrelink Call comprises 25 Call Centres within the Call Centre network that deliver a range of
government services and payments to Centrelink customers. Centrelink Call also provides specifi c
services for customers in remote and regional Australia, for Indigenous customers, and for customers
whose first language is other than English. Centrelink Call Canberra provides operational, financial,
human resources and technical support.
Call Centre access
In 2005–06, Centrelink Call Centres successfully handled around 30.77 million calls. Around 23.07
million callers spoke with a Customer Service Adviser, with an overall customer satisfaction rating of
87 per cent for 2005–06. The remainder of the calls were handled through self service applications.
Figure 7: Call Centre successful calls
During the year, the average length of calls remained consistent at around 492 seconds, an increase
of 1 per cent on the 2004–05 figures.
Figure 8: Call Centre average length of calls
In 2005–06, the average speed of answer was 160 seconds, a 16 per cent decrease from 2004–05.
The 2005–06 result is within Centrelink’s target of 210 seconds.
Figure 9: Call Centre average speed of answer
Correspondence
In 2005–06 Centrelink handled 3147 items of ministerial and priority correspondence on behalf of the
Minister and Centrelink’s Chief Executive Officer.
In March 2005, a new agreed performance standard was set by the Department of Human Services,
with all responses for the Minister’s signature needing to be fi nalised within 12 calendar days.
Customer Service Charter
The Customer Service Charter is Centrelink’s commitment to quality service. It details the service
standards customers can expect and how customers can provide feedback to Centrelink. The new
Customer Service Charter was developed after an extensive consultation process to gather views of
customer groups (including Indigenous and multicultural customers and those customers who are
disadvantaged or at risk of disadvantage), community agencies, peak community bodies, Centrelink
staff, and government agencies (including the Department of Human Services, policy departments,
and the Commonwealth Ombudsman’s Offi ce).
The Australian National Audit Offi ce, in its 2005 Audit Report on Centrelink’s Customer Service
Charter, recommended that Centrelink review its existing Service Charter to include measurable
service standards to better inform customers of the level of service to expect; and to provide an
improved basis for measuring, monitoring and reporting its performance against those standards.
Centrelink agreed with the recommendations and reviewed the Service Charter accordingly.
Centrelink will report internally and externally against the new service charter standards.
Centrelink self service
Centrelink self service has acted as a catalyst for change, having had a significant impact on the way
Centrelink approaches service delivery. During 2005, Centrelink’s Self Service Strategy was
developed and commenced. The strategy was designed to map out a way to optimise the benefits
that can be delivered to Centrelink customers through self service. It outlines Centrelink’s approach to
increasing activity in the self service channel, through technological and product improvements,
targeted marketing strategies, customer awareness, and staff training.
Implementation of the Self Service Strategy accelerated a range of key business initiatives that
included:

an expansion of the range of self service options, to provide customer convenience and ease of
use. This is achieved by enhancing security measures and implementing new online options that
allow customers to conduct more business through self service online and over the phone, for
example: online claims for families, increased automated telephone options, and facilities for
customers to view and update some of their details online without the need to speak to a
Customer Service Adviser.

increasing self service awareness and take up through targeted marketing and promotion
initiatives involving customers and the broader community

development of clear evaluation and performance criteria to improve current services and
complement Centrelink’s existing service delivery channels

exploring opportunities to collaborate with intermediaries, to raise awareness of Centrelink
services

integrating and enhancing training and business support for Centrelink staff, to increase
awareness of self service and the broader online government environment

Exploring alternative options for on site facilities to access self service in Centrelink and third party
organisations.
Self service and the 2006 Commonwealth Games
The promotion of Centrelink self service was a key priority during the 2006 Commonwealth Games.
Centrelink used this opportunity to raise awareness about the range of services and service delivery
options available to customers, community and business.
In conjunction with various initiatives associated with the Queen’s Baton Relay and Job Expo series
conducted during the 2006 Commonwealth Games, Centrelink established an online services
showcase in Melbourne during March. The showcase featured an interactive display of Centrelink
online services and broader Department of Human Services’ agency information. The showcase also
featured a series of Go Online Workshops for more than 220 representatives from third party
organisations and intermediaries. The showcase was launched by the Minister for Human Services,
the Hon Joe Hockey MP, on 24 February 2006.
Self service and students
Centrelink has concentrated efforts on managing peak demand periods. Traditionally, Centrelink’s
workload increases considerably from November through to April each year, due to demand for
processing of student claims for Austudy payment and Youth Allowance. During this period more than
43 per cent of all student claims for the year are lodged by customers for processing.
A significant number of strategies were implemented to promote the online channel for youth and
student customers. These strategies were underpinned by ‘Student Online’ undertaken in conjunction
with the Department of Human Services. Further activities included:

Centrelink website enhancements

extra marketing and communication activities involving a national radio and print media focus

enhanced staff awareness and training

Collaboration with educational institutions to promote self service.
Self service promotions
In March 2006 Centrelink commenced a project to promote the use of self service channels
(Interactive Voice Recognition (IVR) and web) to all customers. The project placed Self Service
Advisers in offices and provides personal computers and IVR phones to targeted offices, as well as
helpdesk facilities.
The Self Service Adviser role is designed exclusively to promote self service, assist customers in the
registration process, and demonstrate the use of IVR and web services. There are approximately 160
Self Service Advisers across the Centrelink network. The project will continue until 30 June 2007.
Early results show that there has been a increase in the number of customers registered for self
service, as well as the number of transactions completed.
Centrelink Agents
Centrelink has a network of over 560 Agents and Access Points in rural, regional and remote
Australia, which provide customers in and around communities with access to phone and fax
services, free of charge, to conduct their Centrelink business.
The 563 sites comprise:

183 Community Agent sites in remote areas (including 50 new sites which were part of the Agents
Expansion Project)

eight Indigenous Access Points in remote areas

191 operational Agent sites in rural locations—an increase of one site in the past year

181 Access Point sites in rural locations, an increase of 15 sites in the past year.
Centrelink is continuing to rollout broadband internet capability to its network of Agents Australia
wide. To complement the introduction of this high speed access that may encourage the take up of
Centrelink self service options, new computers were rolled out to the Agent network.
Family assistance
As of the end of March 2006, Centrelink successfully delivered:

Family Tax Benefi t Part A annual supplement payment of up to $613.20 per child to
approximately 1.75 million families

Family Tax Benefi t Part B annual supplement payment of up to $300 per eligible family to
approximately 1.4 million families

a special one-off payment of up to $600 per child to approximately 260 000 families.
Family assistance and Medicare shortened claim form
From 31 March 2006, a shortened four-page customer claim form became available to cover a range
of family assistance payments and Medicare related assistance. The new form replaces a 32-page
family assistance form and Medicare form and includes:

Maternity Payment

Maternity Immunisation Allowance

Family Tax Benefi t

Medicare Newborn Child Enrolment

Medicare Safety Net registration

Medicare Child Immunisation registration with the Australian Immunisation Register.
Assisting families to reduce the risk of overpayment
During 2005–06 Centrelink introduced a number of strategies to assist families reduce the risk of
being overpaid:

20 000 families considered at high risk of overpayment of Family Tax Benefi t were contacted to
provide assistance with estimating income, information about how the family assistance
programme works, and their choices regarding reporting of income estimates

Since 1 January 2006, family assistance debt recovery has been improved. Faster repayment of
debts has been negotiated with families owing more than $3000 in Family Assistance for more
than 12 months. Recovery rates for family assistance reconciliation debts will also increase from 1
July 2006, with an increase from $20 and $40 per fortnight to $30 and $60 per fortnight
respectively

Approximately 1.4 million families received a letter during May 2006 giving them the choice to
provide their own income estimate or, alternatively to adopt one that is calculated for them by the
Family Assistance Office.
Homelessness
Centrelink’s response to homelessness ensures an integrated service approach to customers who
are homeless, or are at risk of homelessness. Centrelink is involved in a diverse range of activities to
improve service delivery to people who are homeless, recognising the unique needs of this customer
group. A variety of programmes and initiatives are in place to assist customers access income
support, which will enable them to stabilise their accommodation and enhance their opportunities to
participate in work, education and social aspects of life.
Centrelink Community Officers
There are approximately 100 Centrelink Community Officers (CCOs) who provide services to people
who are homeless. CCOs assist customers who have diffi culties in accessing mainstream Centrelink
services and require alternative approaches. The key element in the CCO approach is to provide outservices, for example at rehabilitation centres, psychiatric hospitals, prisons, hostels, refuges, drop in
centres and organised meeting places.
Centrelink Homelessness Contact Officers
Centrelink Homelessness Contact Officers, located in Centrelink Customer Service Centres, Call
Centres and Customer Service Support Centres, have a special interest in and a level of knowledge
and expertise on issues of homelessness. They possess a thorough understanding of social issues
that may impact on individuals and families. In the local setting, they provide support and information
to other staff when dealing with customers who are homeless.
Household Organisational Management Expenses (HOME) Advice Program
The HOME Advice Program is a partnership between Centrelink Social Work Services, the
Department of Families, Community Services and Indigenous Affairs, and designated community
agencies. The programme uses an early intervention approach in the prevention of family
homelessness. It operates in eight Centrelink Customer Service Centres, one in each state and
territory. The aim of the programme is to provide early intervention and prevention services by
engaging families who face diffi culties in maintaining their accommodation, due to a range of
personal, family and/or financial circumstances.
Designated Centrelink Social Workers work with community agencies to provide support to families in
maintaining secure, appropriate and safe accommodation. The community organisations assist in
resolving accommodation issues, assisting with budgeting and financial matters, providing support
and counselling to families, developing pathways to training and employment, and providing
information and facilitating referrals to other services.
Improving service delivery
Centrelink is committed to improving the quality and consistency of its service and providing more
service delivery choices for the Australian public. This mirrors the expectations of the Australian
Government and the Department of Human Services and supports one of the objectives of IT
Refresh, to provide a platform for improved online delivery of services and an infrastructure that can
be used by other government agencies.
The principles guiding Centrelink’s approach to service delivery strategy are convenience, integration,
access, equity and value for money. To achieve these objectives, Centrelink has:

analysed and managed customer demand across all Centrelink’s service delivery channels,
expanding what is already a well developed capability in the call network

optimised the use of the self service channel, to manage times of peak customer demand

applied a dynamic costing model, to improve the evidence base for channel costs, which can
guide decision making

improved the quality and accessibility of business intelligence about customers, to inform our
business decisions

developed the standard service delivery model, to describe the service offers available in each
service delivery channel

Introduced Business Line management, to provide a consistent service offer to all customers.
Application of the service delivery strategy and associated service delivery framework and model will
ensure continued Efficient and effective service delivery of Centrelink services across Australia.
Indigenous Servicing Strategy
Centrelink’s Indigenous Servicing Strategy underpins its Statement of Commitment to Reconciliation
and guides its Indigenous operations. The strategy was developed in 2000 to provide a framework to
identify issues arising in the external and internal environment for the benefi t of Indigenous
Centrelink customers. It also provides a focus on strengthening partnerships with key stakeholders,
Indigenous communities and policy departments and reviewing access and delivery of Indigenous
services. Some noteworthy achievements over the past fi ve years include:

implementation and expansion of the Remote Area Service Centres

further expansion of Centrelink’s Indigenous Community Agents and Access Points

a National Indigenous Employees Plan, designed to improve the employment circumstances and
future prospects of Centrelink’s Aboriginal and Torres Strait Islander peoples

implementation of Centrelink’s Indigenous Scholarship Programme, to assist ongoing Indigenous
employees gain qualifi cations that will develop their potential and increase their career prospects

achievement of identified priority goals.
An updated Indigenous Servicing Strategy has been developed for 2006–09, to build further on past
achievements and reflect the organisation’s current Strategic Directions.
Indigenous services
Centrelink, policy departments and other agencies work in practical ways with Indigenous people and
their communities to achieve integrated services to improve economic and social participation for
Indigenous Australians.
Indigenous Customer Service Advisers work directly with Indigenous customers to access Centrelink
services. They deliver appropriate participation outcomes and a full range of services in a way that
meets their needs. They are able to negotiate and facilitate service options and improve the number
and quality of services delivered. By working with customer service staff, businesses, communities,
and government agencies it is possible to identify the barriers to participation.
Indigenous Service Officers (ISOs) lead teams to facilitate appropriate participation and income
support outcomes for Indigenous customers. ISOs work within Centrelink, and with businesses,
community providers and government, to facilitate appropriate participation and income support
outcomes for Indigenous customers. They work with Centrelink staff to develop strategies to resolve
and improve customer outcomes, and provide advice and assistance to Centrelink staff on strategies
that are sensitive and culturally appropriate. They ensure effective communication with Indigenous
customers and communities, encourage access, and promote self service and channel choice for
services offered by Centrelink and other agencies. When strategies are developed for the delivery of
new business to customers, ISOs ensure that Centrelink staff understand the local geographical and
cultural diversities and their impact on Indigenous people.
Remote Visiting Teams travel to remote areas throughout Australia to service those customers who
do not have direct access to Centrelink programmes and services due to their location.
National Indigenous Coalition
The National Indigenous Coalition is the key advisory group for Centrelink operations relating to
Indigenous issues. It is the internal governance mechanism responsible for identifying Indigenous
service delivery issues and developing strategies and initiatives to enhance service delivery.
The National Indigenous Coalition meets three times a year to discuss strategic issues of importance
to Indigenous Australians and provides input to Centrelink’s management and business directions.
In 2005–06, National Indigenous Coalition members participated in the first Indigenous cross agency
meeting involving Department of Human Services agencies and provided extensive input from an
Indigenous perspective to the Welfare to Work Taskforce.
Remote Area Service Centres
Centrelink has seven Remote Area Service Centres in the following locations:

Queensland (Qld)—Yarrabah, Western Cape (Weipa), and northern peninsula area (Bamaga)

Western Australia (WA)—Laverton, Halls Creek and Newman

Northern Territory (NT)—Tiwi.
Three further sites are being progressively implemented in Meekatharra (WA), Fitzroy Crossing (WA),
and Yuendumu (NT).
The main aim of the centres is to improve the delivery of Australian Government services to remote
communities, particularly indigenous customers. The centres provide an important face-to-face
delivery point, and assist to improve customer awareness of income support requirements, reduce
debt levels, and motivate recipients to participate in education, training and employment.
Statement of Commitment to Reconciliation
To mark the fi fth anniversary of the Statement of Commitment to Reconciliation, Centrelink held a
ceremony celebrating the achievements of the past fi ve years. Among the first of its kind for
Australian Government departments, the statement outlines Centrelink’s commitment to working in
practical ways with Aboriginal and Torres Strait Islander peoples and their communities, policy
departments and other agencies, to achieve integrated services to improve economic and social
outcomes for Indigenous Australians. The ceremony included a representative from Reconciliation
Australia.
One highlight of the ceremony was the presentation of a plaque to the Chief Executive Officer of
Centrelink, Jeff Whalan, by the National Manager of the Indigenous Services Branch. The plaque
recognised the traditional owners of the land and was distributed to each Area Offi ce, Customer
Service Centres and Call Centres.
An updated Statement of Commitment to Reconciliation was signed in May 2006 during
Reconciliation Week. Represented at the ceremony was the Minister for Human Services,
departmental and agency senior executives, the Department of Human Services Indigenou
Ambassador and local community groups. Each agency signed their own Statement of Commitment
to Reconciliation.
Department of Human Services’ Cross Agency Indigenous Taskforce
In September 2005, the Minister for Human Services, the Hon Joe Hockey MP; Secretary of the
Department of Human Services (DHS), Patricia Scott; and Centrelink’s Chief Executive Officer, Jeff
Whalan travelled to north Queensland and the Northern Territory to observe service delivery
arrangements for Indigenous customers in remote Australia. Following the visit, a taskforce was
formed with representatives from each Human Services agency. The taskforce was directed to work
on a number of service delivery initiatives designed to improve access to health and welfare services
for Indigenous customers, particularly in remote Australia. Centrelink coordinates the taskforce on
behalf of DHS.
Cross DHS agency service delivery measures started in December 2005 when Centrelink’s
Indigenous Call Centre in Palmerston (Northern Territory) began providing basic information about
Medicare Australia, Australian Hearing, CRS Australia and the Child Support Agency to customers
calling from within the Northern Territory. A ‘warm transfer’ arrangement was initiated, providing
customers with direct phone access to these four agencies at the customer’s or Centrelink Customer
Service Adviser’s request. A warm transfer involves the Centrelink Customer Service Adviser (CSA)
connecting with another DHS agency while thecustomer is still on the line.
Another feature established as a result of cross DHS agency cooperation is the ability for the CSAs
from the Indigenous Call Centre to remain on the phone with the customer and the receiving agency.
In this way, the CSA can assist with any language or communication barriers the customer may have.
From April 2006, the cross DHS agency service offer through the Indigenous Call Centre network was
expanded to include customers calling from Western Australia and Queensland, ensuring customers
across northern Australia receive improved access to DHS agencies.
During 2005–06, the Indigenous Call Centre offered approximately 800 customers a warm transfer to
Medicare Australia, Australian Hearing, CRS Australia and the Child Support Agency.
To improve the cross DHS agency face-to-face service channel, Centrelink Customer Service
Centres (CSCs) and Remote Area Service Centres (RASCs) in Queensland, the Northern Territory
and Western Australia now provide services to customers on behalf of Medicare Australia and
Australian Hearing. These services were progressively rolled out from
December 2005 and include:

assistance to customers, on behalf of Medicare Australia, to complete enrolments, change of
name and address, requests for new or replacement cards, and general information
Assistance to customers, on behalf of Australian Hearing, to replace hearing aid batteries, provides a
return and collection service for faulty hearing aid equipment, and provide general information.
In 2005–06, 18 CSCs and RASCs in Queensland, the Northern Territory and Western Australia
provided Australian Hearing services and 13 of those offices also provided access to Medicare
Australia services. In addition, visiting services to remote Indigenous communities were coordinated
at the local level through DHS cross agency working groups.
Agencies worked and travelled together wherever possible, providing a new level of holistic service
for customers living in remote Australia.
Future directions for Centrelink include continued collaboration with DHS agencies and communities
across remote Australia to build on further opportunities for cross DHS agency cooperation and
community collaboration.
DHS Indigenous Ambassadors Programme
The Department of Human Services (DHS) Indigenous Ambassadors Programme was initiated by the
Minister for Human Services, the Hon Joe Hockey MP, in September 2005.
At present there are two Indigenous Ambassadors—Rugby League legend, Arthur Beetson and
Olympic athlete, Kyle Vander-Kuyp. More Ambassadors will be joining the programme in the future.
The role of the Ambassadors is to visit and talk face-to-face with Aboriginal and Torres Strait Islander
peoples around Australia. Their visits help build awareness of Australian Government services and
provide valuable insight into how these services are accessed at the ground level. For more
information, visit Centrelink’s website at www.centrelink.gov.au and look under ‘Indigenous
Programmes’ from the ‘Indigenous Australians’ section.
Telstra Message Box
In 2005–06, the Telstra Message Box was rolled out throughout the Centrelink network. The Telstra
Message Box is a service available to homeless or transient people living in Australia. A voicemail
box is allocated to enable individuals to contact family and friends. Message box holders are able to
retrieve their messages free of charge. Access to this service is available on request by individuals at
their local Customer Service Centre.
Multicultural services
Multilingual Call—‘we speak your language’
The Multilingual Call Centre currently receives and handles an average of 41 452 calls a month, with
an average waiting time of around 154 seconds. During 2005–06 call traffi cincreased by about 16
per cent on the previous year.
Centrelink Multilingual Call was created to provide a phone service for multicultural customers. The
service has nearly 180 bilingual Customer Service Advisers who assist customers conduct their
business in their own language over the phone.
Centrelink Multilingual Call is an integral part of Centrelink’s strategy to deliver quality services to
customers who require language assistance. Working with contracted interpreters, Centrelink
provides a ‘gateway’ to services for customers and potential customers who speak over 200 different
languages.
The Multilingual Call Router Interactive Voice Recognition (IVR) application is a speech enabled IVR
service for customers contacting the Call Centre. It allows Centrelink’s multicultural customers to
‘speak’ the language service they require through the use of phonetically identified language selection
using Australian English grammar. The caller is then routed to the appropriate language skilled
Customer Service Adviser for assistance.
This application has improved service to Centrelink’s multicultural customers, who are able to indicate
the language service required at the beginning of their interaction with Centrelink without contacting a
staffed reception point. It also identifi es English language callers, notifi es them that this is a
‘language’ service only, and prompts them to call the 13 number applicable to their benefi t. This
facility within the Multilingual Call Router application has reduced customer wait times, as ‘language’
customers are not competing with callers in the queue who have called Centrelink Multilingual Call
inappropriately.
In 2005–06, the Centrelink Multilingual Call Centre hosted a range of visitors from both Australian
and overseas organisations interested in exploring ways of improving their service delivery to
customers who require language assistance—refer to Appendix 11.
Breaking down language barriers
Centrelink has developed a range of communication strategies to meet the information needs of
multicultural customers:

more than 100 translated publications

six printed booklets available in up to 34 languages, which provide an overview of information for
newly arrived migrants and refugees, people who are looking for work, families, retirees, young
people and students, people who have an illness or disability, and carers

online printable translated factsheets on a range of topics

News for Seniors, a quarterly publication, translated into 16 languages and available online

fortnightly SBS radio broadcasts with national coverage in excess of 95 per cent of mainland
Australia, and distributed to 114 community radio stations covering more than 570 radio
programmes

weekly editorials syndicated to 44 national multicultural newspapers in 28 languages

the journey, a quarterly newsletter distributed to over 1300 community agencies across Australia,
providing valuable and timely information on Australian Government programmes affecting
multicultural customers

Welcome to Centrelink CD-ROM, an introductory audiovisual presentation of payments and
services available in nine new and emerging languages

free interpreting services

Centrelink Multilingual Call, which enables customers to speak to a Centrelink Officer in their
preferred language.
Language services
Centrelink manages a national panel of 2400 contract interpreters who assist staff to communicate
effectively with customers.
During 2005–06, Centrelink provided the following language services:

55 775 pre-booked on site interpreter appointments

24 894 pre-booked phone appointments

27 932 ‘on demand’ phone interpreter requests

Translation of 4192 customers’ personal documents.
Sessional interpreter services, sourced through a contract provider, are currently provided in 34
languages for an average of 2442 hours per week in 64 Centrelink Customer Service Centres where
demand for language assistance is high.
Working with multicultural customers and communities
Over the past year, Centrelink has collaborated widely with many communities, government and nongovernment agencies to improve service delivery and outcomes for customers from diverse cultural
and linguistic backgrounds.
Service delivery was enhanced with a number of initiatives including:

a profi le of rural customers, to identify the need for increased targeting of multicultural service
delivery strategies

an Interactive Voice Recognition system established by Centrelink Multilingual Call, to reduce
customer waiting times and increase capacity to respond to smaller language groups

regular meetings with the Department of Immigration and Multicultural Affairs to collaborate in
solutions to settlement related issues

timely online access to Tax File Numbers, in collaboration with the Australian Taxation Office, to
ensure refugee families receive family assistance in a timely manner

a review of the refugee servicing model to accommodate changes related to Welfare to Work

a range of profi les of refugee communities to assist with better service delivery

an African Liaison Unit to assist with service delivery to refugees and their families and to develop
close links with African refugees and their advocates to improve dealings with Centrelink

a project to investigate family breakdown in African communities in central north Queensland, and
service delivery issues for African communities in South Australia

The development of communication and training products.
Psychology services
The Centrelink Psychology Service is a network of over 380 Psychologists (234.7 full-time equivalent)
across the national Centrelink network of over 400 offices.
Approximately 7 per cent of Psychologists employed by Centrelink have a minimum of six years
academic training and hold a Masters or PhD in Psychology. All are registered with their state/territory
health professional registration board.
In 2005–06, Centrelink Psychologists provided professional clinical assessments for 150 000
customers (an average of 636 assessments for each full-time staff, representing a productivity
standard of over 70 per cent).
Centrelink Psychology Services assist Centrelink’s most vulnerable and ‘at risk’ customers.
A Centrelink Psychologist may be able to:

assist a customer identify or clarify what they need to do to improve their ability to gain and keep
employment, to increase their level of participation, and to improve their personal situation in
general

Refer customers to relevant programmes, Centrelink services and/or other resources in the
community to gain assistance.
Psychologists have expertise in assisting customers with mental health disorders, substance abuse
disorders, multiple and severe barriers to participation and behavioural problems, and intellectual,
cognitive or learning disorders. In preparation for Welfare to Work implementation, Centrelink
Psychology Services developed and delivered professional training to the Centrelink Job Capacity
Assessors. This incorporated the professional principles and framework of professional practice,
along with supervision guidelines and quality assurance.
From 1 July 2006, Centrelink Psychologists, Social Workers, Occupational Therapists and
Physiotherapists will deliver Job Capacity Assessments.
Social Work services
The Centrelink Social Work Service has approximately 450 Social Workers working in over 300
locations around Australia—in Centrelink Customer Service and Call Centres, in both metropolitan
and rural areas. The Social Workers provide high quality professional counselling, support and
referral services to customers in crisis, and/or to customers with complex problems, many of which
can be longstanding.
311 244 referrals were made to Centrelink Social Workers this year. They assisted, for example:

young people without adequate family support

people affected by family breakdown or domestic violence

people who were homeless or at risk of homelessness

customers in crisis

people who were out of the workforce for a long time, and who required extra assistance in
meeting participation requirements

People with complex issues, including substance abuse, mental health issues, and/or diffi culties
with family or other relationships.
In addition to their professional assessment and intervention with customers, Social Workers also
contributed to staff training, provided case consultancy and guidance to staff on customer issues, and
responded to requests for assistance in disaster recovery. For examples of social work involvement in
disaster recovery, see ‘Emergency management’ on page 32. To ensure that Centrelink has a ready,
responsive group of Social Workers (particularly for off shore work), selected Social Workers
participated in specifi c training to enhance their knowledge and skills in disaster recovery.
The Social Work Service also improved its service delivery approach, in response to the Welfare to
Work changes (from 1 July 2006). This model is designed to ensure the most vulnerable customers
who are at risk of not meeting their participation requirements have ready access to a Social Worker.
In addition, the Social Work Service has been active in providing suicide awareness training, in
working with people affected by the drought, contributing to social work education (for example, by
providing fi eldwork placements for social work students), and undertaking specifi c project work with
at risk young people.
Student Financial Supplement Scheme
In the 2005–06 Budget, the Australian Government announced a change to administration
arrangements for the repayments of outstanding student loans under the now closed Student
Financial Supplement Scheme. Contractual arrangements between the Australian Government and
the Commonwealth Bank of Australia ceased on 1 December 2005. At this time, the Australian
Government bought back all outstanding Student Financial Supplement Scheme loans held by the
bank.
From 1 December 2005, people who want to make voluntary repayments or discuss their loan details
do so through Centrelink. The new arrangements have not altered the terms of the existing contracts,
but have relocated responsibility for loan administration.
Student Online Claims
Student Online Claims enable customers to lodge claims for student payments online.
Implemented in April 2005, Student Online Claims allows students to access Centrelink’s secure
website and provide details via a web application to claim Youth Allowance and Austudy. In June
2005, Student Online Claims were extended to allow New Apprentices access to these claims.
The overall capability draws on work undertaken by IT Refresh and was expanded during 2005–06 to
offer online claims for payments to families.
Claims submitted online result in a significant reduction in the number of contacts between Centrelink
and the customer during the claiming process. This assists the Centrelink service delivery network to
better manage heavy workloads during the peak new claim processing period for students, which
runs from November to April each year and provide better quality assistance to customers with more
diffi cult/complex issues.
Customer Account Online
As part of Centrelink’s Self Service Strategy, Customer Account Online provides a facility where
customers are able to view and update a range of their data via the internet. By opening up access to
a broader range of services through the online channel, Centrelink customers are given more choices
and convenience.
Customer feedback
Centrelink receives customer feedback, both solicited and unsolicited, through many sources
including Centrelink’s Customer Relations Units, Customer Service Advisers, customer satisfaction
surveys, community groups and peak bodies, the business sector, external review bodies such as the
Social Security Appeals Tribunal and the Ombudsman’s Offi ce, and customer advocacy groups such
as Welfare Rights.
Customer feedback received through these sources is used to:

identify and resolve service delivery problems

improve the customer’s experience in dealing with Centrelink

contribute to Centrelink business planning and performance reporting

inform future customer service design

Inform policy development.
Centrelink conducted a complaints culture survey (in conjunction with the Society of Consumer Affairs
Professionals and TMI Services P/L) to assess the level of Centrelink staff satisfaction with
Centrelink’s complaints handling system. Results from this survey, including comparisons with results
from best practice organisations, are being used to develop a strategy to enhance Centrelink’s
service complaints management.
Audit of Centrelink’s customer feedback systems
In 2005–06, work continued in response to recommendations from the Australian National Audit
Office’s performance audits of Centrelink’s customer feedback systems.
Five audit reports, containing a total of 44 recommendations, were tabled in Parliament in March
2005. The response to these recommendations was a major programme of work in the later part of
2004–05 and throughout 2005–06. A body of work is continuing in relation to the 44
recommendations. For example, Centrelink undertook a full review of customer feedback systems
from September 2005 to January 2006. This review considered how customer feedback is gathered,
reported and used, and made a series of recommendations on how the programme could be further
improved to provide better information to support both service recovery and service delivery design
and improvement.
Once implemented, these recommendations will deliver:

improved coordination of, and clearer accountability for, customer research

better alignment of Centrelink’s internal and external reporting and information structures

an integrated customer feedback recording and reporting system

improved capacity to gather and analyse feedback on Centrelink’s self service facilities

The ability to use Centrelink’s major rolling survey programme to explore a greater range of
service delivery issues to support major change and ongoing service delivery improvement.
Customer Relations Units
Centrelink’s network of Customer Relations Units (CRUs) is a key element in its service recovery
arrangements. CRUs provide a point of contact through which customers can give feedback to
Centrelink, including complaints, compliments, suggestions and requests for general information.
Customers can provide this feedback through several channels:

by phone on the Freecall™1800 050 004 Customer Relations Line

online through the Centrelink website

through Tell Us What You Think customer comment cards

By personal contact with Centrelink staff.
In 2005–06, Centrelink CRUs recorded 208 807 customer contacts, compared with 211 327 in 2004–
05. This is a decrease of approximately 1.2 per cent. Of these contacts:

133 365 were general enquiries

38 175 were complaints and there were a further 29 971 Call Centre busy contacts (out of
approximately 31 million calls handled each year)

5034 were compliments

1303 were tip-offs

231 were Intent to Claim contacts

728 were suggestions.
General enquiries made up 63.87 per cent of contacts received by CRUs. These enquiries covered
many aspects of Centrelink business (for example, opening hours, service availability, Office
addresses and phone numbers), as well as matters relating to other government departments,
businesses and community organisations.
Complaints (including Call Centre busy contacts) made up 32.64 per cent of all contacts received
through CRUs in 2005–06. Depending on the nature of the complaint, remedies provided to
customers extended from an apology, correction to a customer’s record or a review of a customer’s
claim, through to arrangements for an interview or specialist follow up support in more complex
cases.
As a proportion of total complaints in 2005–06, Centrelink received more service related complaints
(about the quality of service in areas such as a delay in payment) than meritbased complaints
(relating to the correctness or reasonableness of decisions in relation to, for example, payment
eligibility).
The top five complaint categories by volume of complaints were:

unacceptable service

disagreement with legislation/policy

Centrelink advice misleading/incorrect

delay in new claim

Customer record incorrect.
Data from customer feedback, including complaints, are regularly provided to Business Lines in
Centrelink to inform planning and service improvement strategies. Centrelink uses the data to identify
feedback trends that might signal systemic issues requiring a service delivery and/or policy response.
For example, feedback from customers through the Customer Relations line is used to identify
opportunities to improve processes to notify customers of changes to their payment arrangements,
and to improve communication processes to inform customers of their entitlements.
Based on the complexity a three tier scale is used to classify contacts, with 90 per cent of complaints
having to be resolved within the specifi ed time standard. Tier 1 contacts must be resolved in one
working day, Tier 2 within three working days, and Tier 3 within fi ve working days (see Table 7). In
2005–06, Centrelink’s overall performance against the three tiers was 90.76 per cent of complaints
resolved within standard. Timeliness of complaints handling met performance targets for resolution of
Tier 1 and 2 complaints. However, resolution of Tier 3 complaints fell 8.6 per cent below the 90 per
cent timeliness target due to an increase in more complex complaints requiring extra time for
resolution.
Table 7: Customer and community complaint outcomes
Key Performance Indicators—internal
measures
2005-06
2004-05
Target
Result
Target
Result
(%)
(%)
(%)
(%)
Proportion of Tier 1 complaints finalised
within one working day
90
99.88
90
90.90
Proportion of Tier 2 complaints finalised
within three working days
90
91.01
90
93.16
Proportion of Tier 3 complaints finalised
within five working days
90
81.40
90
94.52
Key Performance Indicator
Customer surveys
Centrelink continues to monitor the quality of service delivery through a suite of regular surveys.
These surveys not only help to ensure a continuing focus on improving customer service, but also
identify emerging customer needs and preferences. Over the year, these surveys captured the views
of around 79 600 customers. See Appendix 6 for information to assist with interpretation of the
customer survey programme data outlined in this chapter.
The Community Attitudes Survey assesses the Australian community’s perceptions about Centrelink,
including both customers and non-customers, 18 years and over. This survey gathers data on overall
familiarity with Centrelink and its services and how it is perceived in the general community. This
information is utilised for multiple purposes, including understanding of what infl uences community
perceptions of Centrelink and further understanding customer satisfaction data.
Centrelink’s national customer survey is conducted annually and focuses on customers’ global
evaluation of Centrelink. The key objectives of this survey include:

examining customer perceptions of Centrelink’s corporate image and reputation, as key drivers of
customer satisfaction with the organisation as a whole

monitoring the overall quality of Centrelink’s service deliveryfi ve

Gauging customers’ views on key and emerging issues (for example, service delivery options).
Two extra surveys focus on the overall quality of service offered by the two main service delivery
channels. These surveys examine customer perceptions of the quality of service provided the last
time they phoned a Centrelink Call Centre or visited a Centrelink Customer Service Centre. Results,
published internally each month, are used to monitor performance at the local level.
When necessary, extra research is commissioned to monitor the quality of service delivery. This
typically occurs when a greater level of detail is needed in relation to service delivery issues
highlighted in the suite of regular surveys. Two extra surveys focus on the overall quality of service
offered by the two main service delivery channels. These surveys examine customer perceptions of
the quality of service provided the last time they phoned a Centrelink Call Centre or visited a
Centrelink Customer Service Centre. Results, published internally each month, are used to monitor
performance at the local level.
When necessary, extra research is commissioned to monitor the quality of service delivery. This
typically occurs when a greater level of detail is needed in relation to service delivery issues
highlighted in the suite of regular surveys.
Community attitudes
Centrelink’s community attitudes survey indicates that favourability towards Centrelink has increased
marginally with 54 per cent of those surveyed in June 2006 reporting their overall opinion of
Centrelink was either ‘very favourable’ or ‘mainly favourable’. The biggest difference in the latest
survey is an increase in favourability of opinion among Centrelink customers, from 67 per cent in
December 2004 to 72 per cent in June 2006.
The major infl uences on people’s impression of Centrelink remained consistent over the last two
surveys, and included direct contact with Centrelink as a customer (61 per cent), family and friends
(41 per cent), and stories or interviews on television (37 per cent). Of the four in 10 people who
recalled stories or interviews in the media about Centrelink (41 per cent), just over a quarter (25 per
cent) indicated their overall opinion of Centrelink had become more favourable as a result.
There was a very high level of awareness that Centrelink provides assistance during life changes.
This was true whether the assistance described was for those who had a baby, became separated or
widowed (90 per cent), became seriously ill or disabled (89 per cent), or were studying or training (84
per cent). A considerable number were also aware that Centrelink provides a wide range of
government services in one place (79 per cent), and that Centrelink refers people in crisis to
community groups (75 per cent). There was a significant increase in awareness that Centrelink is
responsive to events in the local community such
as natural disasters, closure of major sources of employment, or other crisis situations. This
awareness increased to 51 per cent in 2006, up from just 34 per cent in 2004.
The incidence of having internet access is higher among non-Centrelink customers (80 per cent) than
Centrelink customers (59 per cent). Close to six in 10 (58 per cent) of all respondents had used the
internet and around 74 per cent had used an automated phone service to conduct business in the
past.
Customers’ global evaluation of Centrelink
In the December 2005 annual survey, 82 per cent rated the overall quality of Centrelink’s people,
services and information as either ‘very good’ or ‘good’. The result has remained stable since 2003.
Figure 10: Overall quality of Centrelink service(a)
(a) The percentage of customers who rated Centrelink’s overall quality of service as ‘very good’ or
‘good’.
Source: Centrelink national customer satisfaction survey, Millward Brown and DBM Consultants.
Customer satisfaction by targeted business line
Ratings for the overall quality of service during a customer’s last contact are not evenly distributed
between business lines and some key demographics. Table 8 highlights the variation in ‘very good’
and ‘good’ ratings for a customer’s last visit to Centrelink or contacted a Call Centre during 2005–06.
Table 8: Customer satisfaction by targeted business line and key demographic
Business line
Result %
Family and Child Care
86.0
Seniors, Carers and Rural
90.7
Working Age Participation
84.6
Demographic
Indigenous
81.2
Diverse cultural and linguistic background
83.3
(a) The percentage of surveyed customers who rate the overall quality of service at their last contact
as either ‘very good’ or ‘good’. Note: The results for Indigenous and Diverse Cultural and Linguistic
Background (DCALB) customers are based on a relatively small sample of customers. 4634
Indigenous customers participated in the Customer Service Centre and Call Centre surveys. 8408
DCALB customers participated in the Customer Service Centre and Call Centre surveys. The
published results reflect the views of surveyed Indigenous and DCALB customers who rated the
overall quality of service at their last visit to a Customer Service Centre or phone call to a Call Centre
as ‘very good’ and ‘good’.
Centrelink will continue to focus on improving the service experience for all business lines and key
demographics with a particular focus on areas below 86 per cent.
Eight key areas of focus
Analysis of data reported by customers in Centrelink’s customer survey programme over a number of
years has shown that there are eight areas in which our customers have told us we need to improve.
1. Staff capability—attitude and knowledge
2. Promptness and consistency of service delivery
3. On-paper communication
4. Management of mistakes
5. Aligning future service delivery arrangements with customer expectations and preferences
6. Access to and integration of services
7. The Centrelink Customer Service Centre environment
8. Working with our customers and the broader community to achieve positive outcomes.
For recent survey results against each of these eight key areas of focus, see Appendix 9. While a
number of these results are extremely positive, improvements still need to be made in a number of
areas.
In 2005–06 Centrelink undertook a number of initiatives to improve performance in relation to the
eight areas:

Implementing business lines—in early 2005 Centrelink undertook a review of its internal
operations, including an examination of arrangements in the service delivery network. As a result,
a business line model was implemented, defi ning customer groups as Working Age Participation;
Families and Child Care; and Seniors, Carers and Rural. Staffi ng and customer service delivery is
arranged along these business lines and a fourth business line, Business Integrity. This model
enables Centrelink to deliver services consistently

Implementing a Standard Service Delivery Model—this model aims to enhance the consistency of
service delivery across the Centrelink network by prescribing the range of services available to
customers in each channel of service delivery

Improving demand forecasting—Centrelink will analyse and manage customer demand across all
service delivery channels, expanding on the well developed capability in the Call Centre network

Focusing on workforce capability—Centrelink recognises that our leaders are a driving force in the
successful delivery of the Government’s Welfare to Work measures. In addition to the
comprehensive training package received by customer-facing staff, a tool kit has been developed
to support leaders to engage employees, support them through Job Transition, and foster an
environment that delivers Welfare to Work

Developing improved staff tools—Centrelink is implementing the single user workspace for staff.
The aim of this initiative is to make available customer information and information technology
tools via a single access point, thus gaining effi ciencies.
Research partnership with Novell Pty Ltd and the University of Melbourne
An example of extra customer research conducted in 2005–06 was the Centrelink Customers of the
Future research partnership between the University of Melbourne, Novell Pty Ltd and Centrelink. This
partnership was established to explore how emerging concepts in interaction design could be used to
make online contacts with Centrelink more engaging, informative and convenient. In addition,
Centrelink used this opportunity to explore whether the interactive possibilities of the internet could
assist customers to understand Centrelink services and the options available to assist them from
welfare to work.
The project focused on development and testing of a web based prototype, which uses a ‘scenario
planning’ approach to make online interactions more interactive and engaging for users. Designed to
assist customers of working age to understand their workforce
participation options, the project was tested at the university’s IDEA laboratory by Centrelink
customers aged over 55 years who were looking for work and had limited experience of using the
internet. Positive feedback was received about the prototype, with customers seeing it as a useful tool
for planning their return to work.
The partnership capitalised on the benefits achieved for government through research collaborations
with the academic and private sectors.
Having validated the applicability and potential benefits of this approach, Centrelink plans to refi ne
the prototype based on customer feedback, and to explore the possibilities of using this approach as
the basis for building Centrelink’s ability to use the internet as a more effective channel of
communication with its customers.
Freedom of information
Access
Section 8 of the Freedom of Information Act 1982 (FOI Act) requires an Australian
Government agency to publish information about:

the way it is organised, its functions, decision making, and other powers it has that affect the
public

arrangements for public participation in the agency’s work

The document categories that are held by the agency and how the public can access documents.
Personal documents
Centrelink can release documents outside the formal FOI process and can give advice on how to
lodge a formal FOI request. Customer Service Advisers receive training on consulting with individuals
about requests and providing access to documents. It is Centrelink policy that when a Centrelink
customer requests information about their record, the FOI charge is not applied.
Requests from individuals for more detailed documents or those involving third party information are
still handled through the formal FOI processes.
Statistics
During 2005–06, 13 817 requests were received, a 5.6 per cent increase over the previous year.
Taking into account cases pending from the previous year, 14 028 cases were fi nalised with the
following outcomes:

applicants withdrew 322 requests before decisions on access were made

full access was granted in 10 498 cases

part access was allowed in 1931 cases

access was refused in 1277 cases

No cases were transferred to other agencies.
Privacy of customer records
Privacy protection
To conduct its business, Centrelink collects a large amount of personal information about its
customers. To protect this information, Centrelink has a strong privacy culture, which enables the
community to have confi dence that personal information is safe.
The foundation of Centrelink’s privacy culture is the legal obligation to comply with the Privacy Act
1988 and the confi dentiality provisions in other legislation that Centrelink administers, for example,
the Social Security (Administration) Act 1999.
Centrelink’s commitment to maintaining the privacy and security of all personal information it holds
ensures that its data are protected from unauthorised access, use or disclosure.
Privacy investigations
Centrelink Privacy Officers examine all matters that may result in a privacy breach and investigate all
privacy incidents, including mailout errors and alleged privacy breaches. Incidents were reported by
Centrelink management, staff, customers, the Commonwealth Ombudsman, Members of Parliament
or Senators, or the Office of the Federal Privacy Commissioner.
Centrelink also audits employee access to customers’ computer records to detect any unauthorised
entry, and continues to enhance this capability by using advanced data matching and analysis
techniques. In 2005–06, Centrelink Privacy Officers finalised 1267 investigations of 1267 reported
incidents (see Table 9).
Of the enquiries fi nalised in 2005–06, 426 incidents (see Tables 9 and 10) were substantiated as
breaches of privacy/confi dentiality. Eighteen per cent related to employees entering into a confl ict of
interest situation in breach of the Australian Public Service Code of Conduct.
Table 9: Reported incidents
Year
Incident
reported
Investigations
finalised
Number proven
% Proven
2005—06
1267
1267
426
34
2004-05
1333
1297
422
32
Table 10: Privacy breaches
Privacy incidents proven by breach type
2005-06
2004-05
Misdirected mail
162
123
Mail house
6
3
100
165
14
21
5
2
Information Privacy Principle (IPP) 4 Storage and
security (including self service options)
30
34
Conflict of interest
75
4
Other
2
28
IPPs 9–11 Disclosure (due to breakdown in
procedures)
22
29
IPPs 5–8 Access and accuracy
8
6
Soliciting
1
2
IPPs 1–3 Collection
1
3
Total
426
422
Browsing:



access
disclosure
use
Untrue representations
There were 162 substantiated mail errors attributed to administrative error, which was a slight
increase from 2004–05. There were also six substantiated mail house errors involving a technical
error in production.
Office of the Privacy Commissioner
Centrelink has a close working relationship with the Office of the Privacy Commissioner, enabling
complaints to be quickly referred for investigation and response, resulting in a better service for the
complainant.
In 2005–06, four open cases carried over from the previous financial year. Another two new cases
were opened with the office, bringing the total to six cases for the year. Centrelink finalised three
cases and, as at 30 June 2006, three cases were still open.
The Office of the Privacy Commissioner may issue a report or declaration under sections 30 and 52
of the Privacy Act 1988 regarding Centrelink. These statutory reports and determinations enable the
Privacy Commissioner to report directly to a minister and to make a decision either to dismiss or to
substantiate a complaint. During 2005–06, the Privacy Commissioner did not issue any reports or
determinations under these sections.
Merit reviews
Centrelink provides information about seeking a review or an appeal of decisions made under the
Freedom of Information (FOI) Act at Centrelink and on the website at www.centrelink.gov.au
Applicants can use the, I want to ask for a review form to request an internal review of a decision or to
appeal against a Centrelink decision concerning access to documents. The form includes a leafl et
that explains the FOI process and customer rights.
During 2005–06, 102 requests were received for an internal review. Of the reviews completed at the
end of the year, 42 requests resulted in grant of access or part access, and 52 resulted in affi rmation
of the original decision to deny access. Two cases were withdrawn and eight cases are pending.
The Administrative Appeals Tribunal received 29 new applications for review and had 15 cases
pending from the previous year. Case status for 2005–06 is:

six cases—original decision affi rmed

three cases—set aside by consent

one case—heard and set aside

one case—varied

10 cases— dismissed

one case–no jurisdiction

five cases–original decision withdrawn

17 cases—pending.
Centrelink Authorised Review Officers (AROs) undertake merit reviews of decisions on entitlements.
Centrelink also responds to applications for review by the Social Security Appeals Tribunal (SSAT)
and the Administrative Appeals Tribunal (AAT) (see Table 11).
Table 11: Merit reviews applications
Review type
2005-06
2004-05
AROs
37 780
35 262
SSAT
7 945
7 865
AAT
1 802(a)
1 640(b)
(a) 1542 lodged by customers, 260 by the Secretaries of policy departments.
(b) 1541 lodged by customers, 99 by the Secretaries of policy departments.
Timeliness performance targets for AROs are:

75 per cent of all reviews to be completed within 28 days

95 per cent of reviews where a customer has no income to be completed within 14 days.
Response requirements for SSAT applications for review are:

applications lodged at Centrelink must be sent to the SSAT within seven days

A statement of the fi ndings of fact, referring to the evidence, and reasons for the decision under
review, together with every relevant document, must be sent to the SSAT within 28 days.
Similarly, Centrelink must lodge a statement of the fi ndings of fact referring to the evidence and
reasons for the decision under review, together with a copy of every relevant document, with the AAT
within 28 days. Centrelink aims to lodge these documents on or before the 21st day.
Table 12: Merit reviews timeliness
Key Performance Indicators—
internal measures
Target (%)
2005-06(%)
2004-05(%)
ARO all reviews within 28 days
75
68
75
ARO ‘no income’ reviews within
14 days
95
94
94
SSAT applications sent within 7
days
100
84
80
SSAT documents sent within 28
days
100
99
99
AAT documents lodged within
28 days
100
95
96
Table 13: Merit reviews outcomes
Review type
AROs
SSAT
AAT—Customer applications
AAT—Secretary applications
Unchanged decisions
Changed decision
2005-06
2004-05
2005-06
2004-05
68%
68%
32%
32%
(25 601)
(23 637)
(11 781)
(11 018)
69%
68%
31%
32%
(5 225)
(5 161
(2 300)
(2 464)
81%
83%
19%
17%
(1 123)
(1 344)
(260)
(282)
51%
49%
49%
51%
(52)
(52)
(49)
(55)
The decisions most commonly challenged at all stages of merits reviews are:

recovery of debts, including Family Tax Benefi t reconciliation debts

refusal of Disability Support Pension as the customer is not medically eligible

date of commencement and increases in payments

Refusal of payments during compensation preclusion periods.
Commonwealth Ombudsman
A valuable measure of the satisfaction of Centrelink’s customers with the service they receive is the
number and type of complaints they make to the Commonwealth Ombudsman’s Office.
In 2005–06, the Commonwealth Ombudsman’s Office received 73331 complaints from Centrelink
customers. This is a decrease on the number of complaints received, which last year was 7699.
There were 7378 cases fi nalised during the course of the year and the Ombudsman’s Office
investigated 2021 cases.
Customer compensation
During 2005–06, Centrelink received 2659 claims for customer compensation under Legal Liability
and Compensation for Detriment Caused by Defective Administration schemes. In total, 1272
successful or partially successful claims were approved during the year.
In 2005–06, Centrelink continued in an advisory capacity to the Department of Finance and
Administration in relation to Act of Grace claims. In 2005–06, 76 Act of Grace claims were received.
The Department of Finance and Administration approved 38 claims during 2005–06.
1 Figure provided was the latest available from the Ombudsman’s Offi ce at time of production of this
report.
Chapter 6
Our people and capability
Strategic theme: Building capability for Government
Highlights for 2005–06

Introduction of a new performance management system (see page 101)

Certifi cation of a new workplace agreement—Centrelink Agreement 2006–2009 (see page 101)

Continued improvement in employee availability (see page 103)

Job redesign and training in preparation for Welfare to Work (see page 100)

Launching of Centrelink’s Alumni Program on 9 December 2005 (see page 110).
Description
A major factor affecting employee performance and retention is the level of engagement of
employees. Engaged employees are those who identify with and act to promote their organisation’s
objectives. In November 2005 the Centrelink's Staff Poll measured staff engagement through
questions relating to:

overall satisfaction with Centrelink

motivation for the work

commitment to Centrelink

Willingness to advocate Centrelink as a place to work.
This year’s result for staff satisfaction (66 per cent) is in line with 2004–05 results (67 per cent). It is
within the 5 per cent variation from target advised as statistically acceptable.
Continued polling on employee engagement will help managers to focus their strategies and actions
on providing a workplace that supports business directions and employees.
Having the infrastructure, technologies and resources in place gives Centrelink the capability to
deliver existing services and respond to emergencies.
Strategic objectives

Responding to government direction (see page 91)

Creating an environment that enables staff to work safely and productively (see page 100)

Building a culture that values leadership, collaboration and development (see page 103).
Responding to government direction
Business arrangements with policy departments
Australian Electoral Commission
In May 2006, the Australian Electoral Commission and Centrelink collaborated to trial an electoral
information and registration service for Indigenous Australians. Two remote communities (Lajamanu
and Galiwinku) were selected to participate in the trial, which was designed to take advantage of
Centrelink’s remote services capability in delivering whole of government service outcomes.
The trial will operate for three months and may lead to further or expanded collaborative initiatives
involving Indigenous Australians.
Department of Agriculture, Fisheries and Forestry
Centrelink and the Department of Agriculture, Fisheries and Forestry operate under a Business
Partnership Agreement. The agreement aims to ensure that desired outcomes are achieved for
government, farmers and rural and regional communities with respect to programmes that Centrelink
delivers on the department’s behalf.
During 2005–06, Centrelink continued to deliver the Farm Help—Supporting Families through
Change Programme; Drought Assistance Package including Exceptional Circumstances Relief
Payment and Prima Facie Interim Income Support; Dairy Type Grants; the Environmental
Management Systems Incentive Programme; the Sugar Industry Reform Programme; and the Citrus
Canker Assistance Package.
Centrelink and the Department of Agriculture, Fisheries and Forestry (DAFF) implemented a
Business Partnership Agreement (BPA) in June 2005 for the delivery of DAFF programmes. The BPA
includes four Key Performance Indicators (KPIs).
These KPIs include requirements that:

payments are made in a timely manner

products and services are delivered with high levels of correctness

management information is provided in a timely manner

Customers are satisfi ed with the quality of Centrelink’s people, services and information.
Table 14: Department of Agriculture, Fisheries and Forestry revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
16 507
4
100
Department of Education, Science and Training
Centrelink’s strong and productive relationship with the Department of Education, Science and
Training (DEST) continued during 2005–06, through the DEST–Centrelink 2005–08 Business
Partnership Agreement (BPA). Centrelink continued to work with DEST and the Department of
Employment and Workplace Relations, ensuring opportunities to promote education pathways to
work under the Welfare to Work legislation.
Centrelink achieved all Key Performance Indicators (KPIs) described in the BPA. KPIs were amended
by DEST, in consultation with Centrelink, to reflect new portfolio responsibilities arising from the 2004
Machinery of Government changes including Youth Allowance and Austudy payments. Centrelink
continued to exceed the targets set for the number of referrals to departmental programmes such as
the Language, Literacy and Numeracy Programme and the New Apprenticeships Access
Programme.
Table 15: Department of Education, Science and Training revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
115 226
16
100
Department of Employment and Workplace Relations
Centrelink and the Department of Employment and Workplace Relations (DEWR) implemented a
transitional Business Partnership Arrangement (BPA) for the period 2005–06 to implement the 2004
Machinery of Government changes, which substantially increased the amount of business that
Centrelink delivers on behalf of DEWR.
In recognition of major changes scheduled for 1 July 2006 in relation to the implementation of the
Government’s Welfare to Work initiatives, Centrelink and DEWR agreed on an ‘interim’ BPA for
2005–06.
Of the 14 KPIs Centrelink achieved all but two of them. They were KPI 2.1: Timeliness of New and
Continuation of Claims for Income Support and KPI 4.2: Accuracy of Referrals to Job Network. In
regard to KPI 2.1, Centrelink achieved all but one component, falling short of the Parenting Payment
(Single) timeliness standard by 1 per cent. In regard to KPI 4.2, Centrelink missed achieving the
target by only 1 per cent. Significant improvement was demonstrated in the second six months.
A feature of the 2005–06 BPA was its emphasis on the cultural change required to implement the
Welfare to Work initiatives. This involved joint site visits by DEWR and Centrelink to Centrelink
Customer Service Centres and Call Centres to assess the delivery of programmes. A partnership
programme between DEWR, Centrelink and the Job Network also enhanced effective
communications during the preparation for Welfare to Work. Key performance indicators in the BPA
were focused to reflect Centrelink’s contribution to the achievement of ‘Efficient and effective labour
market assistance’ and ‘increased workforce participation’, through:

the accurate, timely and Efficient assessment for initial and ongoing income support

the accurate, timely and Efficient assessment for referral to appropriate service

the rapid and accurate connection and reconnection to appropriate services

Compliance with income support and service requirements.
In 2005–06, Centrelink and DEWR also negotiated a three-year BPA to start on 1 July 2006.
Table 16: Department of Employment and Workplace Relations revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
896 555
14
86
Department of Families, Community Services and Indigenous Affairs
In 2006, discussions began in relation to renewing the Business Partnership Agreement between
Centrelink and the Department of Families, Community Services and Indigenous Affairs (FaCSIA) to
reflect more fully the Administrative Arrangement Orders of 2004 and 2006 changes in the Machinery
of Government. This agreement will be signed in October 2006.
Centrelink and FaCSIA continue to work collaboratively to deliver successful government outcomes
on a broad range of issues affecting Australian society and the living standards of communities,
families and individuals.
Centrelink delivers a range of programmes and services on behalf of FaCSIA. The measure of the
success of these programmes and services reflects the reporting requirements of government
through outcomes and outputs. Prescribed indicators for each output group and outcome are:

accuracy of programme outlays

effective customer servicing and support, and

Customer and community knowledge of FaCSIA programmes and Centrelink services.
Table 17: Department of Families, Community Services and Indigenous Affairs revenue and
performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
1 192 294
3
100
Department of Foreign Affairs and Trade
The Australian Passport Information Call Centre started operations within Centrelink on 1 July 2000.
Centrelink administers the Call Centre on behalf of the Department of Foreign Affairs and Trade
(DFAT). The centre provides information on passport related matters to members of the public over
the phone and via the department’s website. The Centre operates seven days a week, Monday to
Friday between 8.00 a.m. and 8.00 p.m., and weekends and public holidays between 8.30 a.m. and
5.00 p.m. The contract for the provision of the Call Centre services was put out to tender in October
2005. Centrelink has re-tendered as service provider and is currently negotiating a new Memorandum
of Understanding to cover a three-year period from July 2006 with the option for an extra two years.
In the year 2005–06, the Call Centre handled 1.28 million calls, replied to 83 000 emails and issued
229 000 forms. The nine service standards were consistently achieved each month.
The Call Centre successfully implemented the Passport Act changes in July 2005, the busiest time of
year for passport enquiries, while continuing to meet service standards for all other business. The
changes applied greater security provisions to the application and renewal of passports and
lengthened the duration of most enquiries. The Call Centre also played a role in the introduction of
the biometric passport in October 2005 and from May 2006 was involved in the trial of an
appointment system for passport offices.
Table 18: Department of Foreign Affairs and Trade revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
2839
9
100
Department of Health and Ageing
From 1 June 2005, as part of the Government’s Fairer Assets Testing initiative, Centrelink conducted
asset testing on behalf of the Department of Health and Ageing (DoHA) for people who intend
entering residential aged care.
Under the new arrangements, Centrelink determines the value of a customer’s assets and assesses
whether they are eligible for government assistance with their residential aged care accommodation
costs (as a concessional or assisted resident).
During 2005–06, Centrelink continued processing income assessments for aged care residents on
behalf of DoHA, to assist them to determine residential care fees. The Business Partnership
Agreement between Centrelink and DoHA includes the following performance indicators:

automatic matching of resident data against social security pension records

manual matching of resident details against social security pension records

obtaining and providing assessed income information for self-funded retiree residents

from January 2006, obtaining and providing assessed asset information for prospective residents.
Centrelink met the manual matching and self-funded retiree targets. In relation to the automatic
matching target, performance met the target for 11 months. For the month of April 2006 where the
performance target was not met, system issues were experienced with host department services that
affected Centrelink’s ability to achieve performance targets.
Table 19: Department of Health and Ageing revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
13 479
3
97.2
Department of Human Services
Child Support Agency
In May 2006, Centrelink and the Child Support Agency (CSA) completed a staggered national rollout
of an initiative allowing mutual customers to enquire about both child support and Family Tax Benefi t
with just one phone call. This was implemented after a successful trial and evaluation of this joint
CSA/Centrelink initiative.
Medicare Australia
From 1 July 2005, a phased rollout began to extend Family Assistance Office (FAO) processing to
Medicare Australia sites. This project has already increased FAO service delivery by the Medicare
Australia network, providing customers with a broader range of service access points and choice.
Initially, the rollout included an evaluation period of three months to assist in the decision making
process for the longer term strategy. Rollout to remaining sites began in October 2005 and will be
completed by December 2006. Centrelink provided training during the project, and provides ongoing
support and quality assurance checking assistance to Medicare Australia staff.
Department of Industry, Tourism and Resources
Centrelink and the Department of Industry, Tourism and Resources operate under a Memorandum of
Understanding.
During the later part of 2005–06, Centrelink started to deliver the Cyclone Larry Business Assistance
Fund. The fund was set up to support businesses, including farmers. The Cyclone Larry Business
Assistance Fund provides urgent financial assistance by way of tax free grant funding to small and
home based businesses, including farmers and tourism operators, who were adversely impacted by
Cyclone Larry in north Queensland in March 2006. The Cyclone Larry Business Assistance Fund
assists small and home based business people and farmers with expenses associated with, for
example, re-stocking, replanting, re-establishment and clean up assistance.
Table 20: Department of Industry, Tourism and Resources revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
704
Not applicable
Not applicable
Department of Transport and Regional Services
On behalf of the Department of Transport and Regional Services (DoTARS), Centrelink provided a
Call Centre service to support the Maritime Security Identifi cation Card initiative. As one of a number
of security reforms to Australia’s maritime security capability, the card will become compulsory for all
maritime industry employees from 1 January 2007.
The Call Centre service received 437 enquiries about the issue of the Maritime Security Identifi cation
Card as a direct response to several education campaigns initiated by the department. The service
operated between October 2005 and February 2006.
On behalf of DoTARS Centrelink administers the Tasmanian Freight Equalisation Scheme,
Tasmanian Wheat Freight Equalisation Scheme, and the Bass Straight Passenger Vehicle
Equalisation Scheme.
Tasmanian Freight Equalisation Scheme
Total assistance paid for 2005–06 was $91.94 million.
The Tasmanian Freight Equalisation Scheme was introduced on 1 July 1976 to address the freight
cost disadvantage experienced by Tasmanian industries due to the state’s separation by sea from the
other mainland states. The scheme provides assistance to shippers of eligible goods that are
transported by sea between Tasmania and the Australian mainland.
Tasmanian Wheat Freight Scheme
For 2005–06, funding for the Tasmanian Wheat Freight Scheme(TWFS) was capped at $1.05 million,
and assistance was payable at the rate of $20.65 per tonne. The rebate is paid to bulk wheat
shippers who have paid the sea freight costs. Assistance payments may not exceed the shipper’s
total freight costs per tonne.
During 2005–06 financial years no claims for TWFS assistance for shipments were received. (Claims
must be lodged within 90 days of shipment.)
The TWFS was established to subsidise the cost of bulk wheat transported from the Australian
mainland to Tasmania by sea. The scheme operates by paying a rebate against the sea freight costs
of eligible bulk wheat shipments.
Bass Strait Passenger Vehicle Equalisation Scheme
Total assistance paid during 2005–06 was $31.090 million.
The Bass Strait Passenger Vehicle Equalisation Scheme was introduced on 1 September 1996 to
reduce the cost of transporting passenger vehicles across Bass Strait. The scheme provides a rebate
against the fare charged by a ferry operator for an accompanied passenger vehicle or caravan
travelling by sea across Bass Strait. Ferry operators claim reimbursement of the rebate from
Centrelink on a monthly basis.
The agreement includes KPIs measuring performance in relation to timeliness of claims, efficiency of
processes, service delivery standards, accuracy of assessments and customer compliance.
Table 21: Department of Transport and Regional Services revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
918
6
100
Department of Veterans’ Affairs
Centrelink and the Department of Veterans’ Affairs (DVA) successfully implemented the measure—
Improve Integrity of Age Pension/Service Pension Identity Registers. The new procedures prevent
any dual payments and issue of concessions cards between Centrelink and DVA. The measure
prevents debts from occurring and ensures payments are correctly recorded and up to date.
Centrelink continued to support the delivery of the Veterans’ Information Service under the
Memorandum of Understanding. The services are offered in eight regional Centrelink Customer
Service Centres in New South Wales, six Centrelink Customer Service Centres in Queensland, and
at Mt Gambier in South Australia.
Three Veteran Agent services were successfully implemented at the District Council of York
Peninsula, the Southern York Peninsula Community Centre, and at Naracoorte Work Options.
In a joint initiative, Centrelink continues to provide Customer Confi rmation that allows organisations,
such as utility companies and local councils who give concessions to certain DVA customers to use
the internet to confi rm a customer’s concessional status.
Table 22: Department of Veterans’ Affairs revenue and performance summary
Revenue($’000)
Number of KPIs
KPIs met (%)
551
Not applicable
Not applicable
Technologies
IT Refresh is a fi ve year programme aimed at improving government service delivery by providing
technology to support self service options.
Information technology (IT) security and IT Refresh capability
The IT Refresh Programme is working to:

provide a platform for improved online delivery of services

reduce the risk of service compromise due to the ageing of the systems

ensure that doing business with government is made easier and less costly for organisations in
the public, private and community sectors

provide an infrastructure that can be used by other government agencies

Deliver departmental and administrative savings.
The IT Refresh capability has been used in a number of Centrelink projects.
For external users
Centrelink’s fl exible IT system allows customers to register for self service either directly via the
internet, at a Centrelink Customer Service Centre, or over the phone.
To improve security as well as enhance privacy, an evaluation of speaker verifi cation technology was
completed in November 2005. A trial of this technology began in June 2006.
Centrelink has also worked with the Australian Taxation Office (ATO) in a business authentication trial
for organisations that access online services. The trial allows organisations, which are joint customers
of the two agencies to use the ATO digital certifi cate to access both Centrelink and ATO online
services.
For internal users
Centrelink is upgrading its internal security services that support staff access and authentication by:

progressively replacing its ageing Security Access Management System application and
supporting IT platform with a new enterprise-wide provisioning system for the management of
access and authentication

re-designing the back-end security authentication services for internal system access by staff to
make use of open standard, commercial, off-the-shelf products

evaluating a contactless smartcard solution to provide logical system access, staff identifi cation
and integrated building access

Acquiring intrusion prevention technology to strengthen the protection of Centrelink’s electronic
gateway.
Innovative online service delivery
Centrelink continues to explore the use of Information and Communications Technology (ICT) to
enhance the reach and effectiveness of services available to customers and business in a viable and
sustainable way.
The range of internet and automated telephony services offered to customers continues to grow with
more than 49 online options available by the end of 2005–06, compared with 30 available in 2004–05.
In addition, Centrelink continues to provide a range of services for business that enable direct data
interchange. Centrelink’s self service capability is underpinned by IT Refresh technology.
Centrelink’s primary self service delivery channels are:

self service provided to customers and business in the form of phone and web based technologies

Business-to-business systems that allow automatic updating of customer records when, for
instance, circumstances change or the customer requests a service from a third party.
Centrelink customers have reacted positively to these service options, demonstrating a gradual
increase in take up since the self service channels were established. For the period July 2005 to June
2006, approximately 9 per cent of all Centrelink customer transactions were undertaken via the
internet or automated phone self service. The online activity is complemented by signfi cant numbers
of transactions conducted by over 4500 business and community organisations on behalf of
customers.
The services offered are mainly information and general enquiry services. However, demand to
access administrative transactions that enable customers to update their Centrelink record or claim
for services online is growing rapidly.
In 2005–06, Centrelink customers conducted more than 6.59 million self service transactions via a
secure logon process to view and monitor their own Centrelink records without the assistance of a
Customer Service Adviser. Customers undertook more than 5.02 million activities including updating
personal details, advising Centrelink of changes in circumstances, reporting earnings, updating family
income estimates and checking payment details.
Local Liaison Officers
Centrelink has 151 Local Liaison Officers (LLOs) who provide assistance and information to 121
Members of Parliament and 32 Senators. All contacts from Members of Parliament or Senators are to
be actioned within two working days of the initial contact.
Centrelink has handled 4262 contacts with 99.6 per cent meeting the timeliness standards for 2005–
06.
Over the past 12 months, ‘local learning’ meetings were held within each electorate with Department
of Human Services counterparts, helping to strengthen local arrangements. Two interactive Business
Television broadcasts were held—one in November 2005 hosted by the Chief Executive Officer, Jeff
Whalan, and the other on 30 March 2006 hosted by the Secretary, Department of Human Services,
Patricia Scott to mark the first anniversary of the LLO Programme.
Local Liaison Officers provide a contact point between the Office of a local Member of Parliament or
Senator and the Department of Human Services agencies. This initiative continues to improve
information, services and support provided by Centrelink to Members of Parliament and Senators.
The relationship is a very effective and productive means of providing a service to our customers and
other key stakeholders in the community.
Multicultural training
To enhance the ability of Centrelink staff to respond to customers from diverse cultural and linguistic
backgrounds, the Multicultural Services Branch undertook a number of training activities in 2005–06.
A Multicultural Learning Needs Analysis was developed to identify training needs across the
Centrelink network, and develop a learning strategy for Multicultural Service Officers (MSOs) to
implement in each area in conjunction with relevant Business Teams.
Induction training for MSOs was redeveloped and successfully delivered to 16 MSOs. The induction
course can be organised in a group setting or undertaken as self paced learning.
A multicultural training module was developed to assist with employment related matters due to the
Welfare to Work changes. The module aims to increase the capability of staff in providing culturally
appropriate services to customers.
Creating an environment that enables staff to work safely and
productively
Workforce planning
Workforce planning is the continuous process of shaping the workforce to ensure capability for
delivering organisational objectives now and in the future. The Australian Public Service Commission
(APSC) and the Australian National Audit Office (ANAO) maintain an interest in Australian Public
Service agencies’ workforce planning efforts. Centrelink’s new Workforce Planning Framework is
aligned with APSC and ANAO recommendations.
In addition to providing a range of workforce data to managers and human resource practitioners,
workforce planning is an integral part of the Centrelink business planning cycle. Business priorities
are examined for ‘mission critical’ skills, and managers then work with human resource consultants to
implement targeted workforce strategies to provide those skills. In 2005–06, this work focused on
National Support Office branches and divisions. In 2006–07, this approach will be extended to the
Centrelink network.
A number of national workforce strategies were also developed during 2005–06, including the
Succession Management Implementation Guide and the Employee Attraction Policy.
Job redesign and training for Welfare to Work
Centrelink undertook the People and Jobs Project to ensure that Centrelink staff, particularly those
with a service delivery role, were prepared to take on the key responsibilities required to implement
the Government’s Welfare to Work policies.
A key component of the project redesigned customer-facing jobs to meet the requirements of the
changing business processes. This resulted in the development of the Customer Service Adviser and
Senior Customer Service Adviser roles to deliver services to working age customers. The positions
are defined by detailed job statements and capability requirements, and are supported by recruitment
documentation, performance management measures and learning and development opportunities.
A policy and technical skills training programme for customer service network staff engaged in
delivering Welfare to Work initiatives was designed and implemented in 2005–06. The programme
focused on building the capability of frontline staff in the Working Age Participation Business Line and
on addressing cultural, change management and core skills, as well as policy and technical learning
needs.
Tailored learning for National Support Office staff was also delivered to ensure all staff have a sound
understanding of the Welfare to Work initiatives and their impact on Centrelink's priorities and focus.
Employment conditions
Employment conditions negotiated between Centrelink and staff are contained in certified agreements
or individual Australian Workplace Agreements (AWAs).
A new certifi ed agreement, the Centrelink Agreement 2006–2009, was negotiated and came into
force on 23 January 2006. It replaced the Centrelink Development Agreement 2003–2005 that
notionally expired on 1 October 2005.
The Centrelink Agreement 2006–2009 is between Centrelink, the Community and Public Sector
Union, the Media, Entertainment and Arts Alliance and the Professional Officers Association (Victoria)
under Section 170LJ of the Workplace Relations Act 1996.
Key areas for this agreement were:

remuneration

changes to some leave arrangements

introduction of a new performance management system

more fl exibility for salary sacrifi ce and school holiday care arrangements

creation of an Employee Consultative Forum

Simplifi cation of agreement provisions and administrative arrangements.
Australian Workplace Agreements can support added fl exibility in many aspects of workforce
arrangements. Internal arrangements for AWAs were reviewed to ensure that:

options provided by legislation and government policy are available to all employees

agreements are negotiated with reference to individual employee preferences and the business
outcomes to be achieved

Remuneration is clearly linked to performance.
(For more information about AWAs, see Appendix 2.)
Balancing work and life
Centrelink employees have access to a range of conditions and services to help them maintain an
appropriate balance between work obligations and life commitments, especially in times of diffi culty.
The following initiatives included in the Centrelink Agreement 2006–2009 provided further support:

changes to recreation leave arrangements, which encourage each employee to have at least a
two-week break from work every year

Expansion of the School Holiday Care Allowance, which is now available for up to eight weeks in
a calendar year for child care for school age children during any school holiday period.
Performance management
The new Performance Management System aligns employee performance with Centrelink Strategic
Directions and reinforces the contribution individual performance makes to organisational
achievement.
This Performance Management System:

applies to all employees

ensures rigour, consistency and professionalism in performance assessment

outlines what will be rewarded, what is important and what is expected, including behaviours
consistent with the Australian Public Service Values and Code of Conduct

Provides salary advancement to employees achieving the required leadership and business
outcomes.
Achievements to date include development of:

certifi ed agreement and AWA clauses, policy and guidelines to establish and support the system

an online Performance Management System for employees and managers

support materials and a comprehensive performance management intranet site for employees and
managers

Core work outcomes and performance measures for most Centrelink network roles.
Health and safety
Centrelink actively seeks to identify, adopt and develop best practice in health and safety
management to reduce the social and financial cost of occupational injury and illness.
Centrelink’s Occupational Health and Safety (OH&S) policy, OH&S Agreement and Workplace Health
and Safety Plan provide the framework for improving workforce availability and injury management
performance and for reducing workplace injuries and Centrelink’s workers’ compensation premium.
Centrelink has reduced its workers’ compensation premium, with significantly fewer workers’
compensation claims across all injury types. Contributions to this outcome include:

improved early intervention performance

focusing prevention activities on key injury risks

improved performance measurement

Promotion of OH&S capability.
OH&S and injury prevention activities undertaken in 2005–06 included:

providing health assessments and programmes, including individual programmes and broader
health surveys

providing enhanced training programmes in customer aggression management

improving our safety investigation capability

improving awareness of common health issues, especially mental health and wellbeing

improving the skills of our managers to identify and address employees’ health issues

developing a psychological health strategy

promoting employees’ awareness of OH&S requirements

facilitating programmes to increase personal activity levels, such as ‘10 000 steps’ programme

undertaking projects to improve ergonomic practice

Trialing alternative early intervention models to assist employees.
The information required by Section 74 of the Occupational Health and Safety
(Commonwealth Employment) Act 1991 is included in Appendix 12.
Increasing employee availability
Centrelink’s Positive Attendance Project saw an increase in employee availability. Levels of employee
absences due to illness, injury, caring and other personal reasons remained constant for several
years before 2005–06. The drivers of employee absences were determined and strategies introduced
to encourage higher attendance levels. This resulted in an initial and ongoing success in reducing
absenteeism. The result for the 2005–06 financial years was an average of 14.09 days absence per
full-time equivalent employee (FTE). This is a reduction of 1.57 days absence per FTE from 2004–05,
when the average was 15.66 days.
Building a culture that values leadership, collaboration and
development
Top level result
2006–06 target staff satisfaction rate 70 per cent
Staff satisfaction rate achieved 66 per cent
Figure 11: Staff satisfaction with work, November 2002 to November 2005
Staff Poll
Employee feedback is valued and the Staff Poll is conducted to obtain views on a range of matters
including the effectiveness of staff related strategies.
The 2005–06 Staff Poll was undertaken in November 2005 in a new format. The poll covered existing
areas of staff satisfaction and commitment, with extra information gathered about engagement and
leadership.
In line with previous polls, the participation rate was approximately 70 per cent of employees.
Table 23 shows responses to four statements and provides links between Staff Poll results and
Centrelink balanced scorecard key performance indicators. In comparison with previous results, the
higher results from the November poll indicate an increasing level of employee engagement.
Table 23: Staff Poll trends
Staff poll
November 2005
Nov
Jun
Nov
Median
2005
2005
2004
Benchmark 2005
Positive (%)
Your team
leader/manager
provides good
leadership—this
refers to the
person who
supervises your
daily work
Nov
Jun
Nov
Median
2005
2004
benchmark
Negative (%)
79
70
70
63
10
12
12
15
At work, you have
opportunities to
learn and develop
yourself
62
58
59
54
20
20
20
22
You receive
regular feedback
about your work
61
60
60
42
19
19
19
33
You understand
Centrelink’s
purpose and how
it applies to your
work
90
87
88
61
2
3
3
14
(In the November
2005 poll, this
was—‘My
immediate
supervisor listens
and responds
appropriately to
me’.)
Leadership
Existing leadership development initiatives were reviewed over the year and the Centrelink
Leadership Development Framework was revised to:

integrate generic and role specifi c development

include more options for preparing managers for leadership roles

Provide a stronger focus on coaching.
To December 2005, the national leadership development programmes, targeting Business Managers
and Senior Executives, were delivered (see Table 24), comprising:

capability appraisal and feedback

executive coaching

a residential intensive workshop

Peer partnering.
Table 24: National leadership development programme participation
2002-03
2003-04
2004-05
2005-06
Total
SES
15
28
20
7
70
Non-SES
23
166
165
80
434
Totals
38
194
185
87
504
Centrelink continued its support for the Australia and New Zealand School of Government, by
sponsoring fi ve places on the Executive Masters of Public Administration Program and two places on
the Executive Fellows Program.
The aim of these programmes is to enhance the breadth and depth of policy and management skills
in the public sector. So far, 22 managers have been placed in the Public Administration Program and
six Centrelink Senior Executives have participated in the Fellows Program.
Table 25: Centrelink Australia New Zealand School of Government program participants
Program
Number of participants 2005-06
Executive Masters of Public Administration
Program
5
Executive Fellows Program
2
The Australian Rural Leadership Foundation was established to identify, develop and support highly
effective leaders in rural and regional Australia. The foundation’s leadership programmes are funded
through scholarships provided by a wide range of government, industry and corporate sponsors.
Recognising the challenges for leaders in rural and regional areas, Centrelink sponsored a foundation
scholarship for a Centrelink employee. The successful candidate, from a rural town in South
Australia, started the foundation’s part-time study course that is to be completed in 2007.
In 2005–06 Centrelink also sponsored places on Australian Public Service wide programmes
targeting senior leadership development (see Table 26).
Table 26: Succession program participation
Program
Number of participants 2005-06
Career Development Assessment Centre
12
Leading Australia’s Future in Asia (LAFIA China and Indonesia)
1
Leading Australia’s Future in Asia (LAFIA Pacifi c)
1
Cranlana
1
The Future Summit 2006
2
Team leader development
A series of 56 two-day residential workshops were conducted throughout Australia in January,
February and March 2006 for 1467 employees from leadership teams across 335 sites.
The workshops focused on improving ‘operational fundamentals’ such as queue management,
resource capacity and capability, and improving customer satisfaction. The workshops resulted in the
development of operational action plans to address any issues.
An internal audit of all team leader modules and programmes was undertaken in 2005–06 to identify
duplicated or outdated content and to provide more consistent delivery methodology and equity of
opportunity. In 2006–07, the new programme will address development needs, including the transition
from Centrelink 2 to Centrelink 3 roles and succession from Centrelink 3 to Centrelink 4.
Collaboration and development
Whole of government learning programmes
Whole of government learning programmes have been developed in conjunction with the Department
of Human Services, the Department of Employment and Workplace Relations, the Department of
Education, Science and Training, and the Department of Families, Community Services and
Indigenous Affairs to train staff in all agencies and interested external bodies (for example, the Job
Network) on the implementation of major government initiatives such as Welfare to Work. Based on
existing Centrelink learning content, these overview programmes were released in early May 2006.
The overview programmes have proven to be a useful tool for Centrelink employees and ensure
consistent messages across all agencies. The 45 learning programmes of around 20 minutes are self
paced online e-learning products that are fl exible enough to be incorporated into facilitated training. If
the concept proves successful, the topics covered can be expanded over time.
Inbound Programme
The major objectives of the Inbound Programme are to connect network, Call Centre and Area
Support Office employees to the political environment which shapes corporate decision making and
to ensure these employees are well briefed on Centrelink’s current focus and the future direction.
The Inbound week brings Centrelink Officers from each of the Areas, including Centrelink Call, to
National Support Office for a fi ve-day intensive programme. During the residential week, members of
the Centrelink Executive and various subject experts engage participants in strategic presentations.
The participants undertake and complete specifi cally designed projects, which they present to an
executive panel at the conclusion of the week.
The Inbound Programmes are specifi cally designed for Customer Service Centre and Call Centre
Managers, Centrelink staff 30 years of age and under, and specialists, such as Social Workers and
Centrelink Psychologists.
Outbound Programme
The Outbound Programme takes Centrelink employees from National Support Office into Area
Support Offices, Customer Service Centres and Call Centres to experience Centrelink’s business and
customer interaction at a local level. Stakeholders from other government and non-government
agencies also participate in the Outbound Programme in partnership with Centrelink staff.
The visits are specifi cally tailored to meet participants’ nominated objectives. In 2005–06 there was
particular focus on Senior Executive Service outbounds, which aimed to strengthen collaborative
relationships and network understanding across the organisation.
Nationally recognised qualifi cations
Centrelink continues to provide employees with the opportunity to complete nationally recognised
qualifi cations that support job roles within the organisation. The following table shows qualifi cations
issued during 2005–06.
Table 27: Nationally recognised qualifi cations
Code
Qualification name
Number
issued
BSB10101
Certifi cate I in Business
8
BSB20101
Certifi cate II in Business
8
BSB30101
Certifi cate III in Business
2
BSB40101
Certifi cate IV in Business
304
BSB50101
Diploma of Business
2
BSB51004
Diploma of Business (Frontline Management )
23
BSZ40198
Certifi cate IV in Assessment and Workplace
Training
232
CHC41402
Certifi cate IV in Community Services
(Information, advice and referral)
108
ICT40102
Certifi cate IV in Customer Contact
36
ICT40599
Certifi cate IV in Telecommunications (Call
Centres)
1
PSP40499
Certifi cate IV in Government (Fraud Control
Investigation)
120
PSP40599
Certifi cate IV in Government (Fraud
Prevention/detection)
90
PSP41504
Certifi cate IV in Government (Investigation)
2
PSP41404
Certifi cate IV in Government (Statutory
Compliance)
0
Code
Qualification name
Number
issued
PSP50104
Diploma of Government
18
PSP50499
Diploma of Government (Fraud Control
Investigation)
14
PSP51704
Diploma of Government (Investigation)
22
BSB51504
Diploma of Project Management
80
PSP50599
Diploma of Government (Fraud Control
Prevention/Detection)
5
CHO50799
Diploma of Community Services (Disability
Work)
1
BSA50197
Diploma of Business (Administration)
1
Diversity
As Centrelink’s customers cover the full spectrum of Australian life and society, Centrelink’s
workforce should reflect and be sensitive to this diversity. Actions to sustain workplace diversity and
ensure compliance with relevant legislation and regulations are ongoing and the more significant
activities undertaken are outlined below.
Indigenous employees
Centrelink’s National Indigenous Employees Plan 2005–2008 guides actions for:

providing greater employment opportunities for Indigenous Australians

assisting Indigenous employees to fulfi l their career goals through the provision of development
and learning opportunities

ensuring Indigenous employees receive appropriate support

Increasing our understanding of the identity and experience of Indigenous Australians and
reflecting this awareness in our internal and external service delivery.
Scholarships offered under the Centrelink Indigenous Cadetship and Scholarship Programme, assist
Indigenous employees to gain tertiary level qualifi cations and develop their career potential. Fifteen
Indigenous employees graduated in 2005–06, with qualifi cations in disciplines such as Social Work,
Psychology, Education, Business, Sociology, Arts and Commerce.
Cadetships offered under the National Indigenous Cadetship Project conducted by the Department
of Employment and Workplace Relations (DEWR) assist Indigenous students undertaking their first
undergraduate degree. As part of this project, 15 cadetships were made available in 2005–06.
Traineeships offered under the DEWR Indigenous Australian Contract Management Trainee
Programme to provide school leavers with sustainable career pathways in contract management.
Two employees were sponsored by Centrelink as Indigenous Community Volunteers to support
implementation of projects identified by Indigenous communities under Council of Australian
Governments initiatives. These volunteers were involved in projects for the Billabong Aboriginal
Corporation in the Australian Capital Territory and the Amata Indigenous Community PY Ku Centre in
South Australia.
Table 28: Centrelink Indigenous Scholarship and Cadetship programs
Program
Recruited in
2005
Recruited in
2006
Currently
studying
Graduated in
2006
Scholarships
11
8
19
11
Cadetships
4
7
13
5
Total
15
15
32
16
Department of Human Services Cross Agency Indigenous Employment Action
Agenda
In October 2005 the Department of Human Services (DHS) Cross Agency Indigenous Taskforce was
created to examine and improve service delivery and employment outcomes for Aboriginal and
Torres Strait Islander peoples within DHS agencies. Centrelink is the coordinating agency for the
DHS Indigenous Employment Taskforce.
The key employment areas of focus articulated by the Secretary of DHS and endorsed by the Minister
were the development of joint strategies and activities in four key employment areas:

best practice in attracting and recruiting Indigenous Australians

Indigenous cadets, graduates and trainees

retention and career advancement strategies

Appropriate training for DHS employees who deal with Indigenous customers and employees.
Achievements to date include:

implementing Indigenous employee plans across DHS agencies

developing Indigenous measures for internal and external recruitment practices and policies

continuing to develop the DHS cross agency Aboriginal and Torres Strait Islander cross cultural
training and starting the rollout of stage one

holding the first DHS Cross Agency Indigenous Employees Conference (in New South Wales)

establishing a number of DHS cross agency Aboriginal and Torres Strait Islander employee
networks

introducing process designs for joint cadetships

making a DHS agencies’ commitment to offer 22 Indigenous cadet placements, 46 traineeships
and 23 graduate places

Creating an internal scholarship ‘menu’ to assist agencies with a range of options that will help
employees in their career pathways.
Focus on youth
Graduate Programme
Centrelink’s Graduate Programme plays a key role in developing employee capability. In past years,
this programme focused on graduates from Information Technology disciplines. In 2005–06, 150
graduates were recruited under this programme—100 with degrees in Information Technology and
another 50 from the following disciplines:

Accounting and Finance

Arts and Humanities

Business and Commerce

Communication and Media

Human Resources

Psychology

Social Work

Statistics.
Selection for the Graduate Programme is highly competitive. In the 12 months, Graduate Programme
participants receive tailored training, and mentor support and many participated in work placement
rotations. At the conclusion of the graduate year, participants are well positioned for leadership roles
in Centrelink.
Young Professionals Development Programme
Under the Young Professionals Development Programme, Centrelink offers younger employees (30
years and under) the opportunity to take part in development opportunities as a recruitment and
retention initiative. The programme includes:

Centrelink Exchange Programme—employees take part in a workplace exchange programme for
up to six months. In 2006–07 the focus will be on internal rotations and exchanges.

YouthLink—provides learning and development opportunities, participation in corporate projects
and a chance to network with young Centrelink employees and senior managers around Australia.

Institute of Public Administration Australian Young Professionals Network—a forum for young
professionals to exchange ideas and innovations in the public sector and to participate in special
interest activities.
National Youth Awards
National Youth Week offers a chance for Centrelink to recognise the innovation and creativity of
young Centrelink employees and the way Centrelink serves young people in the wider community.
Centrelink’s Youth Awards showcase the breadth of talent in the organisation. The work performed by
award recipients recognises the multifaceted ways that Centrelink is able to tailor services to the
needs of local communities and the specifi c circumstances of individuals.
Centrelink’s Chief Executive Officer, Jeff Whalan and Deputy Chief Executive Officer, Carolyn Hogg
presented 19 employees from across Australia with their awards at a ceremony in Canberra.
Mature Age Strategy
Centrelink’s Mature Age Strategy includes several initiatives to recognise and value the contribution
of mature age employees; provide fl exible employment options to achieve a work/life balance and
facilitate phased retirement from full-time work.
In April 2006, the Preparing for Retirement from Full-time Work Programme was conducted for
National Support Office employees aged 45 years and older. The programme focus is thorough
preparation for retirement from full-time work and addresses life and career planning and health,
legal, superannuation and financial issues. It also promotes the benefits of the Alumni Program (see
below). Programme resources are now available across Centrelink. These resources provide for fl
exible programme delivery and include video and DVD resources, contact lists and written reference
material. The programme promotes the option of a phased retirement and ways for mature age
employees to continue to contribute to Centrelink.
Alumni Program
The Centrelink Alumni Program was launched on 9 December 2005 and enables former employees
to remain involved with Centrelink. It also means that Centrelink can use their skills and experience
through short-term employment opportunities that may become available. As at 30 June 2006 there
were 483 members of the Program.
People with disabilities
The Commonwealth Disability Strategy is about removing barriers and enabling the full participation
of people with disabilities. In Centrelink, a range of policies and procedures ensure that the strategy’s
principles are applied. In 2005–06:

6.1 per cent of all Centrelink employees identified as having a disability

the DisAbility Coalition and the Employees with DisAbilities Network continued

International Day of People with a DisAbility was promoted

Access to web based applications for people with a disability was provided and promoted.
A pilot Work Experience Program for Technical and Further Education Students with Disability within
the Illawarra region was developed and will start on 3 July 2006.
Centrelink also contributed to the Australian Public Service (APS) Management Advisory Committee
report on employment of people with disabilities in the APS.
For more information about Centrelink’s activities to support people with a disability and compliance
with the Disability Discrimination Act 1992, see Appendix 7.
Internal awards
Centrelink recognises special achievements of its employees and internal awards presented in 2005–
06 are listed below.
Centrelink National Awards
Centrelink National Awards celebrate outstanding business achievement. A winner, highly
commended and commended awards were selected from over 100 nominations in the following
categories:

Ross Divett Memorial Award

Customer Service Awards

Change Management Award

Building Networks Award

Responsiveness to Government Award

Process Improvement Award.
The winners of the Ross Divett Memorial Award, the most prestigious category, were the employees
and teams who were responsible for an inspiring and high quality organisational response to people
in need following the 2004 Asian tsunami.
Australia Day Achievement Awards
In 2006, 109 individuals and teams were recognised for their achievements. Recipients were
presented with either certifi cates or Australia Day Achievement Medallions from the National
Australia Day Council at special awards ceremonies conducted throughout Centrelink. The following
two award recipients are examples of outstanding dedication to service:

Rapid Connect Team—this team established a new, collaborative method of working within
government to implement government initiatives, and they led the way with implementation of the
first phase of Welfare to Work. The team has been instrumental in facilitating major cultural
change among Centrelink Customer Service Advisers, and the team’s work has attracted
excellent feedback from the network and customers.

Members of the Department of Families, Community Services and Indigenous Affairs/ Centrelink
Hartley Lifecare Ability Cycle Challenge team—over the past fi ve years, employees participating
in the Hartley Lifecare Ability Cycle Challenge have promoted Centrelink’s commitment to
community business partnerships, corporate volunteering and healthy lifestyles. The team has
raised more than $270 000 for disability–carer relief in the Canberra region. The partnerships
developed by the team through the Cycle Challenge highlight the benefits of government,
business and community sectors working together.
Chief Executive Officer’s Service Awards
Centrelink’s Chief Executive Officer (CEO) Service Awards represent length of service in the
Australian Public Service (APS). They are awarded to Centrelink employees who have unbroken APS
service from 20 years onwards. During the year, 305 CEO Service Awards were presented to
Centrelink employees.
External awards
Public Service Medal
Each year Centrelink submits nominations for the prestigious Public Service Medal for outstanding
public service, awarded twice a year as part of the Queen’s Birthday and Australia Day Honours List.
On Australia Day 2006, Public Service Medal awards were presented for outstanding public service in
the provision of emergency assistance to the victims of the Lower Eyre Peninsula bushfi res and their
families.
2005 Prime Minister’s Employer of the Year Awards
On 1 December 2005, Mirrabooka Customer Service Centre received one of the Prime Minister’s
Employers of the Year Awards. These awards recognise excellence in the employment of people with
disabilities.
2005 YOGIE Award
Sponsored by the ACT Department of Disability, Housing and Community Services, the YOGIEs
recognise excellence in youth. The Centrelink Community Unit, Area South West, was presented with
the Innovation in Practice Award. This award recognises a service/ organisation or programme that
has demonstrated exceptional ‘thinking outside the square’, effecting change and improvements in
service delivery to and outcomes for young people.
Chapter 7
Our efficiency and effectiveness
Strategic theme: Demonstrating value for money
Highlights for 2005–06

Achieved an $11.2 million operating result (see page 123)

Maintained a positive cash position during the year, with a closing balance of $217.5 million1 (see
page 124)

Centrelink Funding Model endorsed by Government in the 2004–05 Federal Budget provided a
return of $45.6 million due to a decrease in customer generated workloads (see page 123)

Enhanced existing controls frameworks including revision to the Chief Executive Instructions and
review of delegation authorities to Centrelink Officers (see page 118)

Further progress on achievements already made as part of the IT Refresh Program (see page
124)

In March 2006 a portal targeted at families customers successfully released (see page 125)

Approximately 2400 information technology changes released across all system environments
(see page 125).
Description
Funded by the Australian Government through business partnership agreements or similar
arrangements with policy departments, Centrelink needs to ensure its internal business processes
meet stakeholder and government expectations.
Centrelink has improved effi ciency through implementation of cost management and sound
budgetary controls, such as increased information technology capability, collaborative purchasing,
tendering and contracting arrangements, and effective resource management.
The strategic objectives in this chapter demonstrate Centrelink’s focus on improving the efficiency
and effectiveness of services.
1 Cash includes the cash receivable from the Offi cial Public Account, which is held at call on behalf
of Centrelink by the Department of Finance and Administration.
Strategic objectives

Ensure the best service offer at the best price (see below)

Manage resources effectively, Efficient ly and ethically (see page 119).
Ensure the best service offer at the best price
Consultancy services
To deliver government services effectively Centrelink sometimes requires specialist consultancy
services when particular skilled expertise is needed, suffi cient expertise is unavailable in the agency,
or independent advice is required.
The engagement of consultants is carried out in accordance with the requirements of the
Commonwealth Procurement Guidelines and Centrelink’s Chief Executive Instructions.
Centrelink uses the information published by the Department of Finance and Administration in its
Guidance on Identifying Consultancies for Annual Reporting Purposes, July 2004 to distinguish
between consultancies and non-consultancy contracts for annual reporting purposes.
During 2005–06, 63 new consultancy contracts were entered into, involving total actual expenditure of
$2 404 225. In addition, fi ve ongoing consultancy contracts were active during 2005–06 financial
year, involving total actual expenditure of $966 011.
Appendix 5 includes all consultancy contracts let by Centrelink during 2005–06 with a value of $10
000 or more. For total expenditure on consultancy contracts for the current and previous two financial
years, see Table 29.
Table 29: Expenditure on consultancy services
Financial year
Total consultancy service expenditure ($)
2003-04
8 516 086
2004–05
9 072 403
2005–06
3 370 236
Competitive tendering and contracting
Since its establishment in 1997, Centrelink has market tested and outsourced a significant number of
its corporate services and other functions—see Appendix 4 for more information.
Exempt contract
Centrelink has no contracts or standing offers that were exempted from publication in the Purchasing
and Disposal Gazette.
Purchasing
Centrelink has performed its purchasing function in accordance with the Commonwealth Procurement
Guidelines, which were revised in January 2005. Centrelink amended its Chief Executive Instructions
to reflect the revised guidelines, and established an online procurement training course to educate its
network purchasing staff about the new requirements.
Along with the Department of Human Services (DHS) and its agencies, Centrelink examined possible
new, shared tendering and contracting arrangements for all of its new major procurements. Shared
tendering across DHS and the agencies is expected to lead to reduced tendering costs, and improved
prices because of greater economies of scale. One example of such collaboration has been the
establishment of a General Management Services panel of 57 fi rms providing access to expertise
and experience across 13 corporate disciplines.
Formal interagency consultation processes now operate at the beginning of all new major tender
exercises, and a growing number of joint tenders are planned for release to the market in 2006–07
and beyond.
As part of a strategy, DHS and its agencies are coordinating their buying power to make joint
purchases and savings. One example of this is shared information technology (IT) support services
between Centrelink and CRS Australia.
On 26 March 2006, CRS Australia’s IT support services were successfully transitioned to Centrelink.
IT infrastructure upgrades
A number of infrastructure upgrades and replacements were performed to meet critical business
need, including for Welfare to Work.
The mainframes were upgraded under the renegotiated contract called OIO (Open Infrastructure
Offering), and the fi le and print server upgrades were completed. In all, 8500 of Centrelink’s aged
personal computers were replaced and Storage Area Network, Mainframe Direct Access Storage
Device and TAPE Infrastructure enhanced.
Strategic Cost Management
The Strategic Cost Management (SCM) Framework within Centrelink has been further refi ned during
2005–06. SCM is based on a systems-based approach through which mainframe and other
transactional data are captured then linked to the customer service staff effort and associated costs.
Further improvements to the accuracy and completeness of this data have been made in 2005–06.
Strategic Cost Management provides:

the basis for the construct of the transactional variable component of the Centrelink Funding
Model as agreed by government

management information that assists in internal cost and quality performance measurement, and

Alignment of internal budget distributions with the Centrelink Funding Model.
Strategic Cost Management output cost data aids the effectiveness of Centrelink’s corporate,
comparative reporting framework and provides information to support the costing of Centrelink’s
service channels. The SCM methodology is being progressively updated to contribute to the
maintenance of the currency and accuracy of the Centrelink Funding Model.
Manage resources effectively, efficiently and ethically
Customer Account Start Up
The Customer Account Start Up process reuses customer data already held by Centrelink. This has
produced significant improvements, including shorter claim processing and improved data quality.
The process was rolled out nationally in September 2005 to support the RapidConnect initiative. The
tool was built following trials of the Customer Account Start Up processes for Parenting Payment
(March 2004), Newstart Allowance and Youth Allowance (October 2004), and for processing New
Apprentice claims (March 2005).
The Customer Account Start Up process enables a Centrelink Customer Service Adviser to process
claims with a customer either face-to-face or via the phone. The Start Up process can be used in
Centrelink Customer Service Centres or Processing Centres. Where data is collected over the phone,
the subsequent face-to-face interview is more Efficient , allowing the Customer Service Adviser to
focus on the customer and the participation aspects of their relationship with Centrelink.
There are, on average, 75 000 Customer Account Start Up claims each month and with the First
Contact Service Offer, the new processes provide a more complete service to the customer, while
supporting implementation of the Government’s Welfare to Work initiatives.
Centrelink User Centred Design
A key aim for Centrelink is to ensure software applications designed for use by staff and customers
are user friendly, Efficient and able to deliver benefits. Centrelink User Centred Design (UCD)
ensures a quality user experience by promoting interactive design principles and methods, and by
providing design consultancy to projects involved in the development of web applications. These
principles are also applied to managing the application presentation standards and standards
framework for Centrelink.
User Centred Design aligns the business objectives of the organisation with the needs of application
users, to maximise effi ciency, usability, accessibility, conformity and satisfaction. As a key element of
its government service delivery framework, Centrelink understands the importance of developing
consistent and standardised staff and customer applications. To achieve this, UCD is responsible for
keeping pace with emerging best practice and whole of government requirements provided by the
Australian Government Information Management Office.
Defence Signals Directorate gateway certifi cation
To meet expanding electronic business requirements for effective service delivery, Centrelink is
completing the design, building and commissioning of dual, high availability, electronic gateways at
both of its data centres in 2005–06. The dual gateway design supports online business continuity by
automatic failover of gateway services in the event of service outages
in one of the gateways.
The Australian Government Information and Communications Technology Security Manual require
Australian Government agencies to have their external gateways certified yearly in accordance with
the Defence Signals Directorate’s Gateway Certifi cation Guide. As well, Australian Government
Information Management Office policy requires certifi cation of gateways to maintain connection to
FedLink.
Centrelink gateways achieved provisional certifi cation under the Infosec-Registered Assessor
Programme to the PROTECTED level in May 2006.
As Centrelink grows its online business the need for secure and flexible external gateways is a
necessary requirement.
IT Refresh—year three
IT Refresh is a $312 million, fi ve-year programme announced in the 2002–03 Annual Budget. IT
Refresh is developing new Centrelink technical capabilities to:

provide a platform for improved online service delivery

ensure that doing business with government is made easier and less costly for organisations in
the public, private and community sectors

deliver savings in departmental and administered costs

reduce the risk of service compromise or failure due to ageing of existing systems

Provide an infrastructure that can be used by other government agencies.
The first two years of the programme focused on improving and upgrading Centrelink’s infrastructure
to support online capabilities. The focus towards the end of the programme is on delivering those
online services to customers, government and business.
To ensure that doing business with government is made easier and less costly for organisations in
the public, private and community sectors, IT Refresh has worked to increase system availability and
capacity so customers can access Centrelink internet services whenever they choose. New hardware
and software platforms were deployed to support extra self service options; and high level security
access and controls for customers and business, protect customer records, guard privacy, and
prevent misuse of the system and information.
IT Refresh contributes to information sharing and integrated service delivery across government
departments and agencies, and third party participation contributes to savings in departmental and
administered costs.
IT Refresh enables the transfer of high volumes of information between applications and
organisations that form the government’s service delivery network. This allows enhanced storage and
validates and protects the integrity of customer, government, transaction and performance
information. Improved data capacity, memory, performance and processing speed focus on providing
faster, easier and more efficient access to information.
Ethics and values
Centrelink has undertaken a number of initiatives to enhance its ethical culture.
Executive Adviser
In April 2006, Centrelink contracted an Executive Adviser to advise senior executives on ethics. His
work assists Centrelink in ensuring our decisions are informed and we operate with integrity and
comply with the Australian Public Service (APS) Values and Code of
Conduct. The Executive Adviser also provides direction for the Enhancing Ethical Culture Project to
develop an ethics framework and handbook that supports the strategic theme of Building confi dence
in Centrelink.
Internal fraud and ethics
Centrelink is committed to supporting staff in complying with the APS Values and Code of Conduct
within an ethical workplace culture. This environment is promoted through a range of fraud prevention
and control initiatives including:

planning for fraud control

conducting fraud prevention and ethics training

developing proactive detection programmes

Investigating matters of potential fraud and misconduct.
Cases involving suspected breaches of the APS Values and Code of Conduct are reported through
various confi dential reporting methods available to staff and the public. All cases are managed and
investigated by suitably experienced and qualifi ed Centrelink staff. These qualifi cations include the
Advanced Diploma of Government (Fraud Control Management) and Diploma of Government (Fraud
Control Investigation). All staff are internationally recognised as Certifi ed Fraud Examiners.
Table 30: Centrelink’s framework for preventing and addressing internal fraud
Prevent
What framework
and infrastructure
is in place?
Detect
Internal Fraud
and Ethics
Section Fraud
Financial
and Debt
Management and Management
Accountability Act Branch Employee
Public Service Act reporting and
and Regulations
protection policy
Commonwealth
Public reporting
Fraud Control
Public Service Act
Guidelines Audit
and Regulations
and Risk
Information
Committee
Technology (IT)
People and
capabilities—for
Planning Division example,
Internal Fraud
datamatching and
and Ethics
analysis External
Section Fraud
Scrutiny—for
and Debt
example, media,
Management
Parliament,
Branch Privacy
administrative
and Information
tribunals,
Access Network
Ombudsman,
Australian
National Audit
Office
Investigate
Commonwealth
Fraud Control
Guidelines
Australian
Government
Investigations
Standards Public
Service Act and
Regulations
Qualifi ed and
trained
investigators with
national and
international
accreditation
Deter
Commonwealth
Fraud Control
Guidelines Public
Service Act and
Regulations
Commonwealth
Director of Public
Prosecutions
(DPP) Offence
provisions under
various Acts and
Regulations
How does
Centrelink go
about it ?
Biennial fraud
control plan Preemployment
screening
programme,
including police
checks for
employees
Security
clearances where
appropriate
Management and
staff skilling
Coordinated
awareness
campaigns
Process
controls—
delegation
procedures and
requirements,
separation of
duties Integrity
assurance
projects
Executive
oversight Biennial
fraud control plan
Reporting
facilities
established,
including phone
hotline Control
testing and
analysis Audit
trails built into
computer
systems Use of
intelligence to
detect areas of
risk, data mining
and analysis
Undertake
integrity
assurance
projects
Collaborate with
other Australian
Government
departments
Internal Fraud
and Ethics
Section
coordinates and
investigates all
complaints and
alleged
occurrences of
fraud Fraud and
Debt
Management
Branch
investigates all
allegations of staff
programme
payment fraud
Investigations are
carried out by
qualifi ed
investigators
Suspected
misconduct
managed by
People and
Planning Division
Communication
strategy to
reinforce
requirements and
raise fraud
awareness
Refer all
appropriate cases
of criminal
conduct to the
Australian
Federal Police
and DPP for
action Refer all
appropriate cases
of staff
misconduct to be
investigated as
suspected
breaches of the
Australian Public
Service Code of
Conduct
Operating result
Centrelink reported an operating result of $11.2 million for 2005–06. This equates to 0.5 per cent of
total 2005–06 income of $2.3 billion. Consistent budgetary restraint, which was exercised throughout
2005–06, contributed to this sound result.
Revenue adjustments included a return to government of $45.6 million under the Centrelink Funding
Model for reduced customer workloads in line with the workload reconciliation principle of the funding
model.
Table 31: Centrelink’s operating result 2005–06 and 2004–05
2005-06 $’000
2004-05 $’000
Income
2 318 313
2 251 734
Expenses
–2 307 136
–2 224 737
Operating result
11 177
26 997
Note: 2004–05 comparative fi gures have changed to reflect compliance with Australian Equivalents
to International Financial Reporting Standards.
Revenue
Centrelink’s revenue is primarily derived from policy departments with which Centrelink has business
partnership agreements. Centrelink provides services on behalf of more than 25 departments.
Significant additions to revenue include $116 million for Federal Budget, including $73 million for
government’s Welfare to Work programme and $35 million for 2005–06 Additional Estimates
(including $10 million for drought assistance).
Table 32: Revenue to Centrelink from services 2005–06
Sources of revenue
$’ 000
Department of Families, Community Services and Indigenous
Affairs
1 192 294
Department of Employment and Workplace Relations
896 555
Department of Education, Science and Training
115 226
Department of Agriculture, Fisheries and Forestry
16 507
Department of Health and Ageing
13 479
Other client revenue
24 254
Total revenue from services
2 258 315
(a) Excludes $60.0 million in revenue comprising software credits available under a contractual
agreement ($56.4 million), resources received free of charge ($3.1 million), direct appropriations
received from government ($0.250 million) and asset adjustments ($0.250 million).
Table 33: Summary of resources
Budget(a) 2005–06 Actual 2005–
$’000
06 $’000
Budget(b) 2006–07
$’000
Price of output
Output: Efficient delivery of Australian
Government services to eligible customers
Revenue from government
(Appropriation) for departmental
output
250
250
636 936(c)
Revenue from other sources
2 303 329
2 318 063
1 922 178
Total price of output
2 303 579
2 318 313
2 559 114
Total revenue for outcome (Total
price of output)
2 303 579
2 318 313
2 559 114
Equity injection
56 524
56 524
95 237
Total capital for Agency
56 524
56 524
95 237
Staffing years (number)
22 900
23 094
25 285
(a) Portfolio Budget Statements 2006–07 Estimated Actual Result for 2005–06
(b) Portfolio Budget Statements 2006–07 Budget for 2006–07.
(c) Includes direct appropriation from government for Centrelink Funding Model Infrastructure—$548
million, implementation of the Australian Government’s health and social services access card—$87
million, for Compensation for Detriment Caused by Defective Administration—$0.25 million, and $2
million for other minor Budget measures.
Balance sheet and cash flow
Centrelink’s financial position is strong and has improved from the previous year, with the value of
total assets exceeding total liabilities by $231.2 million. Cash available at the end of the financial year,
including cash held at the Offi cial Public Account, was $217.5 million.
Centrelink invested $132.1 million in fi xed assets during the year. This was mainly for leasehold
improvements ($19.5 million), infrastructure, plant and equipment ($43.5 million) and internally
developed software ($68.9 million).
Improved online delivery of services
The online component of the IT Refresh Programme gives Centrelink the ability to deliver more
services online to customers, business, community organisations, and Centrelink staff.
The online systems and technology of IT Refresh enabled:

new and existing Family Tax Benefi t customers to claim online for Maternity Payment, Maternity
Immunisation Allowance, and Family Tax Benefi t for newborns

phone and internet self service, including facilities for customers to register online without staff
assistance

the exchange of information and the ability to process transactions between business and
Centrelink more Efficient ly and at a lower cost

Staff to access information in one place, so that relevant and current information needed to assist
customers can be found easily and quickly, and allow groups of customers to report income and
activities without having to visit a Centrelink office.
Customer Portal
An example of IT Refresh improved online services is the Customer Portal, which acts as an entry
point for customers to access Centrelink’s web based information. The portal was developed with
input from Centrelink customers and aims to make it easier to access personal information and
services while continuing to ensure privacy and security.
March 2006 saw the first release of the portal to a targeted group of families customers enabling them
to:

view and update family income estimates

estimate the amount of family assistance that may be available

Advise Centrelink of changes in circumstances such as non-lodgement of a tax return or return to
work.
The success of the initial release of the Customer Portal created a solid foundation to build more
portal capabilities, which will extend access to online information and services for all of Centrelink’s
customers.
The introduction of portal technology also puts Centrelink in a position to apply the same approach to
the development of extra portals for use by businesses and community organisations.
IT systems and software
IT release management
In 2005–06, Centrelink released approximately 2400 IT changes across all system environments.
This continued the trend in recent years, increasing the number of system changes by 5 to 10 per
cent per year. Eight major IT system releases were introduced (four quarterly and four mid-range) in
addition to numerous minor weekly and daily releases.
These items brought new and enhanced capabilities to the IT infrastructure underpinning Centrelink’s
business operations. Preparation and planning prior to each release, as well as close monitoring of
performance in the period following each release, ensured issues were handled quickly and the
impact on service delivery was minimised.
The introduction of improvements to Centrelink’s release management processes, procedures and
tools through IT Service Management (an IT Refresh funded project) provided a means to manage
future increases in system releases more effectively and Efficient ly.
During 2006–07, these system releases will be essential for government initiatives such as Welfare to
Work and Budget measures, including family’s assistance and Better Service, Better Compliance,
and the groundwork for the Access Card and grant letters. System releases will also continue to
extend and improve self service products and services (via the internet and phone).
Network server replacement
During the last quarter of 2005, all Domino, Windows and Netware servers in the Centrelink network
were successfully upgraded. The new servers have provided productivity and performance
enhancements and contributed to improvements in Centrelink’s reliable and supported operations
network.
Single User Workspace
The Single User Workspace (SUW) has been developed to deliver greater effi ciency for ‘whole of
customer’ service delivery and to support new initiatives such as Welfare to Work. It achieves this by
putting in place an easy to use, consistent and fast interface between customer service staff and the
computer based tools used to assist customers.
The SUW makes customer information and IT tools available in one convenient place on Centrelink
staff computers. The first stage, delivered by 30 June 2006, provides the tasks to support Welfare to
Work.
Single User Workspace builds on previous Centrelink initiatives such as Business Process Reengineering, Customer Update and Customer Account. It takes into account various reviews and
audits that supported the need for a more consistent and integrated process.
The integrated functions within SUW work at a considerably higher speed than present customer
service tools and platforms. Across the initial development period, staff who used SUW provided
positive feedback about ease of use and time saving perspectives.
Testing services
Having one of the largest and most complex IT operations in Australia, Centrelink makes a
considerable investment in the acquisition, development and implementation of software applications.
To ensure quality and stability of what is released into the production environment, dedicated test
teams provide assessments on the level of quality expected from software awaiting release.
A highlight for 2005–06 was the joint testing programme developed by the Department of
Employment and Workplace Relations and Centrelink to facilitate the implementation of Welfare to
Work.
Centrelink testing of IT capabilities for the delivery of the Welfare to Work initiative required
approximately 370 extra staff to meet the short-term demand for skilled testers. This staffs were
sourced from existing contract providers, Centrelink Alumni, Centrelink service delivery network staff
and the Centrelink Application Services Panel.
Centrelink also engaged the services of IBM through the Application Services Panel to independently
test three business components for Welfare to Work. This was to better address the periodic surges
in capacity demand for testing. This strategy was very successful and Centrelink will continue to use
external testing services in the future as demand, timeframes and budgets allow.
Joint testing environments were further developed by the Department of Education, Science and
Training, the Department of Immigration and Multicultural Affairs and Centrelink, which allowed
testing of the departments’ systems that require linked IT capabilities. The successof current and
future inter-agency IT capabilities will rely on continued expansion and development of collaborative
testing arrangements.
Also during 2005–06, as part of IT Refresh Programme, achievements in Testing Capability Projects
included:

implementing ‘production like’ controls on testing infrastructure, based on an up to date inventory
of infrastructure and better incident, change and release management

Introducing a system that automates test record selections, enabling tests to be carried out more
Efficient ly and cost effectively. The automated system also improved the current test case
management process by removing manual intervention and reducing the time required to
generate test environments.
Property management
Centrelink maintains a leased portfolio of 425 sites occupying 540 830 square metres. The property
portfolio comprises 316 Centrelink Customer Service Centres (CSCs), 25 Call Centres, 30 other
customer service sites, 35 sites housing National and Area Support staff, and 18 storage and other
sites.
Leasing and facilities management services are provided for the portfolio by Jones Lang LaSalle. In
2005–06, Office lease and associated costs, including those for the portfolio, were $197.72 million.
Management of the property portfolio focused on providing accommodation to meet the needs of a
constantly changing service delivery environment. This required offices to be well located, within
reach of customers, and in a good quality environment in which to deliver government services.
During 2005–06, nine CSCs were relocated to enable better access for customers to Centrelink
services, six CSCs were amalgamated into three centres, and one Call Centre was relocated. In an
ongoing programme to increase customer and staff amenity, 18 CSCs were refurbished to current
standards. The public contact areas in a further 20 CSCs were upgraded including Centrelink’s
corporate branding and marketing products to improve the appearance of offices and provide
customers with improved facilities and access to Centrelink information. In total, $21.06 million was
spent on capital improvements in 2005–06.
New CSCs were established at two locations—Fitzroy, Victoria and Stanthorpe, Queensland.
A new Student and Youth Service Centre opened in Bendigo, Victoria and a new Retirements Service
Centre was established in Perth, Western Australia.
Centrelink also provided staff housing in remote locations where a suitable rental market did not exist,
sometimes in the form of transportable homes. Centrelink owns 30 such residences. In 2005,
Centrelink entered an agreement with a developer to design, construct and lease a new 40 000
square metre Office building so that the National Support Office can be located in the Tuggeranong
Town Centre precinct in the Australian Capital Territory. The new building is expected to be ready for
occupation in early 2008.
User Assurance Centre
The User Assurance Centre (UAC) collects user feedback, both from customers and staff, to assist in
developing products and processes. Initially, the UAC was created as a Centrelink capability, but
more recently provides services to ‘sister’ agencies within the Department of Human Services and to
other government departments.
Through the UAC, Centrelink can assess the relevance and useability of electronic and paper based
products, tools and processes by having customers and staff provide feedback in the controlled and
impartial UAC environment.
The core of this activity is undertaken in the Centrelink Useability Laboratory located in Adelaide. This
facility supports observation, recording, measurement and evaluation of products at various stages of
development—a capability that contributes greatly to the development of high quality tools, processes
and practices for use by staff and customers alike.
The UAC also provides user centred evaluation and development of learning packages. For example
in 2005–06, UAC staff played a major role in the development of the Job Capacity Assessment
learning package on behalf of the Department of Human Services.
During 2005–06, the UAC provided user centred evaluation services for:

Medicare Australia, about donation questions on the Medicare Claim Form

Medicare Australia and Centrelink, about the new combined Medicare and Families’ claim form
and process

The Australian Government Information Management Office about the ‘Connected Government’
website developed for the public service.
Chapter 8
Financial
Chapter 9
Appendices
Appendix 1: Australian National Audit Office activity
Centrelink contributes to the social and economic outcomes set by government by delivering services
on behalf of policy departments. In many cases Australian National Audit Office (ANAO) audit
recommendations include Centrelink’s policy departments, and refer to Centrelink’s relationship with
those departments. In all cases Centrelink has agreed to work with policy departments to discuss
ANAO recommendations in the context of the relevant business partnership agreements, or similar
arrangement. The ANAO issued a number of audits during 2005–06 involving Centrelink (see Table
34). Centrelink agreed to all recommendations (some with qualifi cation) and is currently addressing
those recommendations. Details of the audits are available at the ANAO website at
www.anao.gov.au
Table 34: ANAO audits tabled 2005–06
ANAO audits Subject
ANAO report number
Date table
Random sample survey (within
Centrelink)
Report 43 of 2005–06
31 May 2006
Integrity of electronic customer
records
Report 29 of 2005–06
15 February 2006
Management of net appropriation
agreements
Report 28 of 2005–06
31 January 2006
Reporting of expenditure on
consultants
Report 27 of 2005–06
30 January 2006
Forms for individual service delivery
Report 26 of 2005–06
25 January 2006
Green Office procurement
Report 22 of 2005–06
22 December 2005
Design and implementation of ESC 3
Report 6 of 2005–06
18 August 2005
Continuing ANAO audits
In addition to the ANAO audits tabled in 2005–06, Centrelink contributed to a number of audits that
will continue after 30 June 2006. These are:

random sample survey (within Centrelink)

salary packaging administration in the Australian Public Service

Complex Assessment Officers

project management in Centrelink

Family Tax Benefi t

Business support process audit—outcomes and outputs.
ANAO liaison—major Centrelink achievements
During the year, Centrelink achieved:

a coordinated contribution by divisions and branches to the ANAO’s audit activities

Systematic monitoring of implementation of recommendations from ANAO audit reports.
Appendix 2: Australian Workplace Agreements
Australian Workplace Agreements (AWAs) offer Centrelink fl exibility in managing its workforce
arrangements.
Non-Senior Executive Service Australian Workplace Agreements
As at 30 June 2006, 677 non-Senior Executive Service (SES) employees were on AWAs. Table 35
below shows the salary range for non-SES AWAs in 2005–06.
Table 35: Non-Senior Executive Service staff on AWAs
Classification
Annual salary range
Centrelink 4 (APS Executive 1 and 2 or
equivalent
$70 257 to $135 932
Centrelink 3 (APS 5 and 6 or equivalent)
$54 088 to $98 500
Centrelink 2 (APS 3 and 4 or equivalent)
$40 479 to $53 557
Non-SES employees whose AWAs were approved prior to 15 June 2005 are generally entitled to
performance pay, subject to meeting performance measures. Performance pay is usually paid at a
rate of 4 per cent of salary per year. Table 36 below shows the total amount of performance pay for
non-SES employees on AWAs in 2005–06.
Note: AWAs that have been approved since 15 June 2005 do not contain performance pay, but rather
provide for salaries to be adjusted annually, based on assessed levels of individual performance.
Table 36: Total amount of performance pay for non-SES staff on AWAs
Classification
Aggregated amount
Number of
employees receiving
performance pay
Average bonous paid
per employee
Centrelink 4 (APS
Executive 1 and 2 and
equivalent)
$1 069 522.36
340
$3145.65
Centrelink 3 (APS 5
and 6 and equivalent)
$20 869.68
10
$2086.97
Total
$1 090 392.04
350
$3115.41
Senior Executive Service
The remuneration arrangements for all SES employees are provided through AWAs. As at 30 June
2006, 88 SES employees in Centrelink were covered by AWAs. Salaries are determined by the Chief
Executive Officer and are broadly within three bands representing three classifi cation levels. Table
37 outlines the salary range for each classifi cation.
Table 37: Salary range against SES classifi cations
Classification
Salary range
SES Band 1
$114 000 to $137 927
SES Band 2
$143 391 to $166 901
SES Band 3
(a)
a) SES Band 3 salaries have not been included, as they will enable identifi cation of individual
employees’ package due to the small number of employees at that level.
Centrelink SES employees have been entitled to performance pay subject to meeting performance
measures. The performance pay is generally paid at a rate of 4 per cent of annual salary per year.
Table 38 shows the total amount of performance pay for SES employees in 2005–06.
Note: During 2005–06, the majority of SES employees have moved onto a new AWA framework
which provides for annual individual performance based salary advancement, rather than
performance pay.
Table 38: Total amount of performance pay for SES in 2005–06
Classification
Aggregated amount
Number of
employees receiving
performance pay
Avereage bonus paid
per employee
SES Band 1
$142 007.12
66
$2151.62
SES Band 2
$33 095.61
11
$3008.69
SES Band 3
$16 976.00
2
$8488.00
Total
$192 078.73
79
$2431.38
Table 39 outlines the composition of SES in 2005–06.
Table 39: Composition of SES in 2005–06 as at 30 June 2006
Classification Total
Female
Male
Full-time
Part-time Ongoing
Nonongoing
SES Band 1
69
29
40
69
Nil
69
Nil
SES Band 2
16
7
9
16
Nil
16
Nil
SES Band 3
3
2
1
3
Nil
3
Nil
Total
88
38
50
88
Nil
88
Nil
These figures relate to the number of Senior Executive employees. They do not include employees
on temporary performance.
Appendix 3: Commonwealth legislation affecting Centrelink
Enabling legislation
Commonwealth Service Delivery Agency Act 1997
Human Services Legislation Amendment Act 2005
Legislation conferring functions on Centrelink
A New Tax System (Bonuses for Older Australians) Act 1999
A New Tax System (Family Assistance and Related Measures) Act 2000
A New Tax System (Family Assistance) (Administration) Act 1999
A New Tax System (Family Assistance) (Consequential and Related Measures) Act 1999
A New Tax System (Family Assistance) Act 1999
Aged Care Act 1997
Child Care Act 1972
Child Care Payments Act 1997
Child Care Rebate Act 1997
Child Support (Assessment) Act 1989
Child Support (Registration and Collection) Act 1988
Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997
Disability Discrimination Act 1992
Disability Services Act 1986
Employment Services Act 1994
Family Assistance Legislation Amendment (More Help for Families—One-off Payment) Act 2004
Farm Household Support Act 1992
Gift Duty Assessment Act 1941
Health Insurance Act 1973
Hearing Services Administration Act 1997
Income Tax Assessment Act 1936
Income Tax Assessment Act 1997
National Health Act 1953
Social Security (Administration) Act 1999
Social Security (International Agreements) Act 1999
Social Security (Rewrite) Transition Act 1991
Social Security Act 1991
Social Security Legislation Amendment (One-off Payments for Carers) Act 2005
Student Assistance Act 1973
Veterans’ Entitlements Act 1986
Compliance legislation
Crimes Act 1914
Data-matching Program (Assistance and Tax) Act 1990
Financial accountability
A New Tax System (Fringe Benefits) Act 2000
A New Tax System (Goods and Services Tax Transition) Act 1999
A New Tax System (Goods and Services Tax) Act 1999
Auditor-General Act 1997
Bankruptcy Act 1966
Criminal Code Act 1995
Financial Management and Accountability Act 1997
Fringe Benefits Tax Act 1986
Fringe Benefits Tax Assessment Act 1986
Lands Acquisition Act 1989
Taxation Administration Act 1953
People management
Age Discrimination Act 2004
Disability Discrimination Act 1992
Equal Employment Opportunity Act 1987
Equal Opportunity for Women Act 1999
Human Rights and Equal Opportunity Commission Act 1986
Long Service Leave (Commonwealth Employees) Act 1976
Maternity Leave (Commonwealth Employees) Act 1973
Occupational Health and Safety (Commonwealth Employment) Act 1991
Public Employment (Consequential and Transition) Amendment Act 1999
Public Service Act 1999
Racial Discrimination Act 1975
Safety, Rehabilitation and Compensation Act 1988
Sex Discrimination Act 1984
Superannuation (Productivity Benefi t) Act 1988
Superannuation Act 1922
Superannuation Act 1976
Superannuation Act 1990
Superannuation Guarantee (Administration) Act 1992
Workplace Relations Act 1996
Administrative law
Acts Interpretation Act 1901
Administrative Appeals Tribunal Act 1975
Administrative Decisions (Judicial Review) Act 1977
Copyright Amendment (Moral Rights) Act 2000
Copyright Act 1968
Federal Court of Australia Act 1976
Freedom of Information Act 1982
Judiciary Act 1903
Ombudsman Act 1976
Privacy Act 1988
General
Archives Act
Auditor General Act
Commonwealth Electoral Act 1918
Electronic Transactions Act 1999
Environment Protection and Biodiversity Conservation Act 1999
Appendix 4: Competitive tendering and contracting
Table 40: Outsourced functions
(a)
Category
Nature of activity
Outcome of competitive
Period and value
tendering and contracting
Human Resources
Recruitment
Panel of 14 providers
SES recruitment
Panel of four providers
Occupational health and
safety in several areas
15 providers across
Australia
Employee Assistance
Program
27 providers across
Australia
Three years
Total value $26.4m
Two years
Total value $3.2m
12 months
Total value $176
000
12 months
Total value $4.95m
Category
Nature of activity
Outcome of competitive
Period and value
tendering and contracting
Surveillance services
15 providers across
Australia
Removalist broker
Toll Transport Pty Ltd
12 months
Total value $7.13m
Five years
$3.1m
Three years
$12.7m
Work capacity and
medical Assessments
Panel of seven providers
(transferred to
Department
of Employment and
Workplace
Relations—
April 2005)
Property
Lease administration
(including new leases,
lease renewal, lease
termination, rent reviews
and negotiating subleasing) Property
occupancy expense bill
paying
Jones Lang Lasalle
Australia Pty Ltd
Five years $17m
Travel administration
services
Qantas Airways Ltd
Three years $60m
(includes Centrelink
staff and student
airfares booked by
Qantas Business
Travel)
Printing copying and
publishing
Stream Solutions Pty Ltd
Five years $125m
Office machine
services—Multi
Functional Devices
Fuji Xerox Australia Pty Ltd
Three years
$13.5m
Building inspections,
routine and planned
maintenance, minor new
works Accommodation
management services
Building security services
Office
Services
Category
Other
Nature of activity
Outcome of competitive
Period and value
tendering and contracting
Distribution (courier)
services
Panel of seven providers
Three years Total
value $7.8m
Press clipping services
Media Monitors Australia
Pty Ltd
Three years $260
000
Fleet management
services
Lease Plan Australia Ltd
Six years $73.2m
(includes cost of
lease of vehicles)
Valuation services
Australian Valuation Offi ce
Five years $69.5m
Memorandum of
Understanding
Internal audit
Panel of 10 providers
Three years Total
value $5.5m
Debt recovery services
Panel of two providers
Two years $16m
Translation services for
publications
Panel of four providers
Four years Total
value $360 000
Ongoing term
Translation services
relating to customer
benefits—ad hoc
Panel of 285 providers
Total value $250
000 per
Annum
Interpreting services—
sessional
On Call Interpreters and
Translators Agency Pty Ltd
Two years $9.8m
Interpreting services—ad
hoc
Panel of 2200 providers
Ongoing term Total
value $4m per year
Legal services
Panel of seven providers
4 years Total value
$19.5m
Business TV production
Optus Networks Pty Ltd
5 years $6.3m
183 rural agents
181 rural Access Points
Agent services
191 Rural Agents and
12 months Total
value $8.2m
13 Indigenous Access
Points
(a) Some entries on this listing incorporate the initial contract with the options to extend as one term.
Centrelink may exercise its right not to take up the option to extend and not incur the associated extra
cost of the extension.
Appendix 5: Consultancy contracts let during 2005–06 of $10
000 or greater
The following legend serves as an explanatory guide to the data contained in Table 40:
(a)Explanation of selection process terms drawn from the Commonwealth Procurement Guidelines
(January 2005):

Open Tender (OT): A procurement procedure in which a request for tender is published inviting all
businesses that satisfy the conditions for participation to submit tenders. Public tenders are sought
from the marketplace using national and major metropolitan newspaper advertising and the
Australian Government AusTender internet site.

Select Tender (ST): A procurement procedure in which the procuring agency selects which
potential suppliers are invited to submit tenders. Tenders are invited from a shortlist of competent
suppliers.

Direct Sourcing (DS): A form of restricted tendering, available only under certain defined
circumstances, with a single potential supplier or suppliers being invited to bid because of their
unique expertise and/or their special ability to supply the goods and/or services sought.

Panel: An arrangement under which a number of suppliers, usually selected through a single
procurement process, may each supply property or services to an agency as specifi ed in the
panel arrangements. Tenders are sought from suppliers that have pre-qualifi ed on the agency
panels to supply to the government. This category includes standing offers and supplier panels
where the consultant offers to supply goods and services for a pre-determined length of time,
usually at a pre-arranged price
(b) Justifi cation for decision to use consultancy:

A—skills currently unavailable within agency

B—need for specialised or professional skills

C—need for independent research or assessment
Table 41: All consultancy contracts let during 2005–06 with a value of $10 000 or greater
Reference
number
Consultant
name
SODS05/05480001
CONS05/0381
SODS03/1189B-0001
SODS03/1189C-0001
Selection
process
Justification
Alliance
General management
Consulting
services— change
35 640
Group Pty Ltd management
Panel
A
Anthony
Stuart Blunn
45 000
DS
A
311 425
DS
A
127 600
DS
A
Biometix Pty
Ltd
Biometix Pty
Ltd
Description
Review of data
matching processes
Advice on
authentication
systems—December
2005–July 2006
Advice on
authentication
Contract
price $
Reference
number
Consultant
name
Description
Contract
price $
Selection
process
Justification
systems—June
2006–July 2007
Courage
Partners Pty
Ltd
Analysis and advice
on service delivery—
1 July 2005–30 June
2006
38 500
OT
B
Courage
Partners Pty
Ltd
Analysis and advice
on service delivery—
additional work 9
March 2006–30 June
2006
44 460
OT
B
David Caple
and
Associates
Identify and mitigate
physical stress
factors in call centres
28 050
DS
B
CONS06/0033
David Deans
Advice to Centrelink
Welfare to Work
Strategic Committee
72 273
DS
C
CONS05/0387
Deloitte
Touche
Tohmatsu
Plan and review
implementation of a
new programme
79 794
ST
A
CONS05/0398
Deloitte
Touche
Tohmatsu
formerly C/Stormont
Deloitte
Touche
Tohmatsu
Advice on IT
architecture
343 200
ST
A
CONS05/0625
Advice to Centrelink
DFD.Com Pty
Customer Service
Ltd
Strategy Committee
79 500
DS
C
79 500
DS
C
19 503
DS
B
Panel
B
SODS03/0712A-0001
SODS03/0712A-0002
CONS06/0338
DOAS05/0626
Advice to Centrelink
DFD.Com Pty Service Delivery
Performance
Ltd
Committee
SODS02/1596D-0013
Fujitsu
Australia Ltd
Strategic planning
advice
SODS05/05710001
Fujitsu
Australia Ltd
General management 53 020
Reference
number
Consultant
name
Contract
price $
Selection
process
Justification
122 100
Panel
B
41 910
OT
B
Graeme John
Freedman
Advice on security
access and
authentication
technologies and
standards—
December 2005–
June 2006
71 000
Panel
B
CONS06/0310
Graeme John
Freedman
Advice on security
access and
Authentication
technologies and
standards—June
2006 – June 2007
233 200
DS
B
SODS05/05760001
Hay Group
Pty Ltd
General management
services— strategic
198 000
planning
Panel
C
Advice and review of
CONS06/0089
Hinds
Workforce
Research Pty
Ltd
300 000
OT
B
CONS05/0440
Hugh Watson
Consulting
Pty Ltd
Functional review
and advice on
Centrelink division
66 967
DS
C
CONS06/0060
Hugh Watson
Consulting
Pty Ltd
Functional review
and advice on
Centrelink outposted
units
51 563
DS
C
Description
services—strategic
planning— 21 March
2006–12 May 2006
General management
SODS05/05710002
Fujitsu
Australia Ltd
services—strategic
planning— 11 April
2006– 19 June 2006
General management
SODS05/05710003
CONS06/0018
Fujitsu
Australia Ltd
services—strategic
planning— 15 May
2006–26 June 2006
organisational
cultural change
programme
Reference
number
Consultant
name
Description
Contract
price $
Selection
process
Justification
CONS05/0492
ICTPro Pty
Ltd
Data warehouse
strategic review
44 000
DS
B
CONN06/0004
Insight SRC
Pty Ltd
Organisational
climate survey
12 000
ST
B
79 500
Centrelink’s
Investment and Major
Programs Committee
DS
C
Consultancy services
to
CONS06/0070
Michael John
Roche
DOAS06/0169
Mike
Goldstein
and
Associates
Undertake a process
review of IT Refresh
80 000
DS
A
EXTS06/0063
Morison
Consulting
Pty Ltd
Consultancy services
to Centrelink’s
Finance Committee
79 500
DS
B
EXTS06/0090
Morison
Consulting
Pty Ltd
79 500
DS
B
33 690
DS
B
Consultancy services
to
Centrelink’s Audit
and Risk Committee
DOAS05/0274
Nous Group
Pty Ltd
Provide
recommendations on
the service delivery
network model and
review
SODS05/05880001
Nous Group
Pty Ltd
General management
services— strategic
50 026
planning—March
2006- April 2006
Panel
B
SODS05/05880003
Nous Group
Pty Ltd
General management
services— strategic
13 000
planning—April 2006May 2006
Panel
B
CONS05/0551
Oliver Winder
Pty Ltd
Chair of Centrelink’s
Audit and Risk
Committee
DS
C
79 500
Reference
number
Consultant
name
Contract
price $
Selection
process
Justification
21 000
ST
B
73 480
DS
A
38 720
DS
B
61 380
DS
B
OT
B
38 500
Panel
B
Savv-e Pty
Ltd
Development of elearning modules to
support programme
implementation—28
April 2006- 12 May
2006
103 200
ST
A
Savv-e Pty
Ltd
Development of Elearning modules for
a new programme
implementation—21
June 2006- 30 June
2006
30 000
DS
B
Description
Consultancy services
for
EXTS06/0160
CONS06/0300
SODS06/01280001
Pearlwise Pty
Ltd T/A
Centrelink’s Nationa
Skildum_Reid Sponsorship
Programme
Peoplebank
Australia Ltd
Peter
Kennedy
Analysis and
recommendations for
customer records
systems upgrade
Development of an
ethics strategy,
framework and
integrity action plan
SOXS04/08370001
Phoenix IT&T
Consulting
Pty Ltd
SODS05/0595 0001
Price
Waterhouse
Coopers
SOXS04/0838001
PSI
Consulting
Ltd
CONS06/0235
CONS06/0386
Advice and support
for IT procurement
General management
services— change
231 000
management
(general)
Review of
Centrelink's IT
contract management
processes
Reference
number
Consultant
name
Description
Contract
price $
Selection
process
Justification
CONS06/0396
SMS
Consulting
Group Ltd
Review and report on
cost sharing
arrangements
between
Commonwealth
agencies
12 867
DS
B
ITCS06/0279
SMS
Management
and
Technology
Ltd
Review of a
Centrelink IT system
99 000
ST
B
79 500
DS
C
237 600
ST
B
Consultancy services
to
DOAS05/0628
Surote Pty
Ltd
SOXS04/0462B-0001
Terranovate
Group PTY
LTD
Advice to the interagency Refresh
Steering Committee
CONS06/0171
TMI Services
Pty Ltd
Advice on
development of
21 500
service recovery
management strategy
DS
B
UniQuest Pty
Limited
Assist Centrelink to
improve staff
recruitment, induction
and training
processes
21 278
OT
C
82 500
DS
C
45 455
DS
B
SODS04/0640A-0001
EXTS05/0353
University of
Canberra
Centrelink’s IT
Committee
Research and
development of a
dynamic micro
simulation
model
SOXS04/08100002
University of
Canberra
represented
by the
National
Centre for
Social and
Economic
Modelling
Consultancy services
to prepare Area Profi
le Reports based on
the Customer Service
Project Model
Reference
number
SOXS04/08100003
CONS06/0009
SODS04/09740002
Consultant
name
Description
University of
Canberra
represented
by the
Consultancy services
to
National
Centre for
Social and
Economic
Modelling
prepare Welfare to
Work impact
scenarios based on
the Customer Service
Project Model
Contract
price $
Selection
process
Justification
50 000
DS
B
University of
Technology
Sydney
Advice and analysis
on data mining
services
50 000
DS
C
University of
Western
Literature review in
the field of Business
Integrity
20 020
Panel
C
60 000
DS
A
Australia
ITCS06/0265
Value
Business plan
Creation
development
Group Pty Ltd
SODS05/06060001
Value
Creation
Group Pty Ltd
General management
ATF The
services— strategic
84 763
Value
planning
Creation
Group Unit
Trust
Panel
B
SODS05/06060002
Value
Creation
Group Pty Ltd
General management
ATF Trading
services— corporate 87 500
as The Value
governance
Creation
Group Unit
Trust
Panel
C
DS
B
Vision
Australia—
CONS06/0184
Accessible
Information
Solutions
Provision of online
accessibility
consultancy services
10 000
Reference
number
Consultant
name
Description
Contract
price $
Selection
process
Justification
ITCS06/0182
Xamax
Consultancy
Pty Ltd
Privacy impact
assessment of new
security and identifi
cation technologies
64 000
DS
B
CONS05/0526
Yellow Edge
Performance
Architects
Development of
strategic human
resources plan
79 200
ST
B
TOTAL
4 695 381
Appendix 6: Customer and Community Satisfaction Survey
Programme
Market research companies conduct all of these surveys. Participation in surveys conducted for
Centrelink is voluntary. The market research company provides Centrelink with an aggregated report
of results, ensuring that no individual responses can be identified and that no individual will ever be
identified in the research results provided to Centrelink. Research companies are given customer
details (such as name, gender, main payment type, address, and phone number). Phone interviews
are conducted with current customers aged 16 years or older but exclude those:

with a silent phone number

with a mobile phone only or no phone

in prisons, hospitals, hostels or nursing homes

who do not want to participate in research

Who may have special privacy needs.
Customers who have declined to participate in research are excluded for a 12-month period, and
those who completed the survey are excluded for the next four months. A quota (or ceiling) is used to
ensure that customers from a single payment type do not overwhelm the sample. Survey results are
weighted to reflect the views of the customers within the respective survey populations.
The national customer survey is run each year, with a random selection of around 1300 current
customers. All major customer segments are represented in the survey. To ensure that a good cross
section of customers is achieved, there is a quota of
120 completed interviews for each customer segment, except rural payments where there is a quota
of 100 completed interviews. As this means that some segments are under or over represented
compared with their incidence in the population at large, responses are weighted to reflect the actual
representation of each customer segment in the total Centrelink customer population. Recent contact
with Centrelink is not a requirement to participate in the survey. The survey measures perceptions of
overall service quality and tests performance against a range of image attributes and service
elements that customers have identified as important.
The response rate for this survey was 26 per cent.
The Centrelink Customer Service Centre (CSC) customer satisfaction survey targets customers who
have recently visited a CSC and measures their perceptions of the quality of service they received on
that occasion. The survey is run continuously, completing around 62 000 interviews each year. The
target is 200 completed interviews for each CSC. Results are weighted by offi ce, to reflect the actual
distribution of customers who visit each individual CSC. The sample used to draw these interviews
may incorrectly include a number of customers who state they did not attend a particular Office on a
particular day; this group of customers are then not interviewed in the survey.
The response rate for this survey was 47 per cent.
The Call Centre customer satisfaction survey targets a random selection of current customers who
have recently phoned Centrelink and measures their perception of the quality of service they received
on that occasion. This survey is run continuously, completing around 13 000 interviews a year. The
target for each business line in the Call Centre is 250 interviews. Results are weighted to the number
and type of customers who have phoned a Call Centre in the period.
The response rate for this survey was 53 per cent. The community attitudes survey is conducted by
phone with people aged 18 years or over who are randomly selected from the Telstra electronic
White Pages. The survey provides a general indication of Centrelink’s image, familiarity and
favourability within the broader community. Members of the public who are not aware of Centrelink
are excluded from participating in the survey at the initial screening stage. Forty per cent of the 1224
respondents interviewed in June 2006 identified themselves as Centrelink customers, of which the
majority were in receipt of Age Pension (31 per cent), Family Tax Benefi t (16 per cent), and Disability
Support Pension (11 per cent). Results are weighted back to the Australian population aged 18 years
and over who are aware of Centrelink, and by gender within age and within location (using data from
the Australian Bureau of Statistics).
The response rate was 20 per cent.
Top Level Customer Satisfaction result
The 2005–06 Top Level Customer Satisfaction Result is measured by weighted targeted business
lines through the Customer Service Centre and Call Centre rolling Customer Satisfaction Survey
results.
Calculation Rule: (A/100*33.33) + (B/100*33.33) + (C/100*33.33)

Measure Item A = Family and Child care Business Line index % of customer satisfaction with
Centrelink services

Measure Item B = Seniors, Carers and Rural Business Line index % of customer satisfaction with
Centrelink services

Measure Item C = Working Age Participation Business Line index % of customer satisfaction with
Centrelink services.
In 2003–04 and 2004–05 Top Level Customer Satisfaction Results were measured by weighted
combination of Call Centre and Customer Service Centre Customer Satisfaction survey results.
Calculation Rule: (A + B)/2

Measure Item A = Weighted positive Customer Service Centre customer satisfaction results

Measure Item B = Weighted positive Call Centre customer satisfaction results.
In 2005–06 Centrelink aligned the Customer Service Centre survey methodology more closely with
the Call Centre survey methodology. When this changed methodology is applied to previously
published CSC survey results for the 2003–04 and 2004–05 financial years, the impact is an increase
in overall satisfaction from 84.1 per cent to 84.4 per cent in the 2003–04 financial year and an
increase in overall satisfaction from 84.1 per cent to 84.3 per cent in the 2004–05 financial year. Top
Level Customer Satisfaction results therefore increase by .15 per cent in 2003–04 and .1 per cent in
2004–05. These slight increases are not reflected in the ‘Overall Customer Satisfaction with Last
Contact with Centrelink, 2003–04 to 2005–06’ Figure 6 at the start of Chapter 5. This fi gure reflects
previously published results.
Appendix 7: Disability Discrimination Act 1992 reporting
The Disability Discrimination Act 1992 (DDA) covers disability issues in relation to the administration
of Australian Government laws and programmes and the provision of goods, services and facilities.
The Commonwealth Disability Strategy provides the background for Australian Government
organisations to ensure that their policies, programmes and services are accessible to people with
disabilities. Centrelink’s people policies and guidelines meet the requirements of the DDA and the
needs of people with disabilities.
As an employer, Centrelink ensures that:

employment policies and procedures comply with the DDA

staff training and development programmes include relevant information about the needs of
people with disabilities, as members of the community, as clients and as staff; and that they are
accessible to people with disabilities

agency recruiters and managers apply the principle of ‘reasonable adjustment’

employment of people with disabilities includes capacity to support the needs and abilities of the
individual

Workplace strategies support the employment of people with disabilities.
Achievements
Achievements in 2005–06 included development of a pilot Work Experience Program for Technical
and Further Education (TAFE) Students with Disability within the Illawarra Region will start on 3 July
2006. In conjunction with TAFE Illawarra and CRS Australia, the pilot programme offers a four-week
training course and work experience programme for TAFE students with disability. The programme
includes training in Office administration skills and customer service skills and the opportunity to
develop skills working in a team environment in the Australian Public Service. The programme
enables students with disability to gain meaningful work experience that will provide them with the
capacity to compete for other roles on merit.
In 2005–06, a Disability Awareness Training Programme was developed and delivered to Centrelink
employees about the needs of people with disability as members of the community and as customers.
During the year, Centrelink also contributed to the Australian Public Service (APS) Management
Advisory Committee report on employment of people with disability in the APS. This included
providing information on Centrelink’s employment practices and coordinating focus groups for
employees who identified as having a disability. Among other issues, the focus groups explored the
reasons why some employees do not disclose their disability, and provided feedback on recruitment
practices and the work environment. The responses from these focus groups will also assist in the
development of an updated Centrelink Disability Action Plan.
The DisAbility Coalition has recently revised its terms of reference and continues to meet on a regular
basis.
Future directions
Future directions for Centrelink’s commitment to employees with disabilities include:

evaluation of the work experience pilot programme and possible extension to other areas and
agencies

development of the updated Centrelink Disability Action Plan

Continued review and development of learning resources and programmes to ensure they meet
the needs of employees with a disability.
Appendix 8: Ecologically sustainable development and
environmental performance
This section reports on Centrelink’s ecologically sustainable development and environmental
performance during 2005–06 under Section 516A of the Environment Protection and Biodiversity
Conservation Act 1999.
In June 2005, Jeff Whalan, Centrelink’s Chief Executive Officer, reaffi rmed Centrelink’s commitment
to ecologically sustainable development by signing the revised Centrelink Environmental Policy
Statement. The statement covers Centrelink’s operations throughout Australia and is available on the
Centrelink website at www.centrelink.gov.au
Centrelink Environmental Management System
In January 2005, Centrelink began to develop a corporate Environmental Management System
(EMS) based on the requirements of the Australian New Zealand Standard AS/NZS 14001:2004. As
a result of the EMS development, Centrelink has focused on its primary areas of impact on the
environment, which are:

energy use

greenhouse gas emissions

waste to landfi ll

Consumption of natural resources (including water and paper).
Environmental programmes were developed around building an environmentally aware business
culture; and developing and implementing specifi c environmental impact reduction programmes for
property and facilities management, information and communications technology, vehicle fl eet
management, printed information products and office consumables. These initiatives are outlined in
Centrelink’s Environmental Management Plan.
Sustainable business practices
Centrelink made progress in 2005–06 with integration of environmental impact considerations into
key business planning and service delivery processes.

Environmental risk management was integrated as standard business practice into the corporate
project planning process

To support sustainable resource management, Centrelink issued an Eco-Efficient Chief Executive
Instruction, which directs staff to consider environmental impact and value for money in all
procurements. The instruction was applied in major information technology procurement activities
and is being integrated into standard procurement operating procedures.

Environmental initiatives, which complemented the objectives and targets outlined in the
Environmental Management Plan were incorporated in the organisation’s 2005–06 business
plans.
Environmental training and awareness
As part of the initiative to build an environmentally aware business culture, Centrelink strengthened its
programme of environmental training and awareness during 2005–06. A Centrelink Environmental
Stewardship training video was developed to promote Centrelink’s environmental stewardship
principles to new employees via employee induction programmes. During the year 450 employees
attended environmental training.
To support the operation of Centrelink’s EMS and implementation of environmental initiatives,
Centrelink has a network of 285 volunteer environmental ‘champions’. This network shares
environmental best practice via newsletters, national teleconferences and an annual Environmental
Champion Coordinator conference.
Centrelink’s first internal Environmental Performance Report was published in May 2006. It provides
Centrelink staff with an insight into the environmental objectives that Centrelink has achieved.
Energy use
Since March 2003, Centrelink has worked with AGL Energy Services to develop and implement an
innovative energy management programme. Since the programme began, energy audits have been
conducted at 240 Centrelink offices. These audits have identified the potential for cost Efficient
energy saving upgrades such as re-lamping with tri-phosphor or quad-phosphor lighting and
implementing security/access controls. Rollout of these energy conservation measures started in a
number of Centrelink sites. Results are already showing that since the energy conservation measures
were introduced the sites have recorded an average reduction of 10 per cent in electricity
consumption.
Centrelink energy consumption data for 2005–06 are still being consolidated; however,
Centrelink reduced its overall annual energy consumption by 7310 gigajoules during 2004–05
(available in the current Energy Use in the Australian Government’s Operations 2004–05 reports).
Greenhouse gas emissions
Centrelink joined the Greenhouse Challenge in October 2004. This initiative involves a programme of
greenhouse gas emission reductions across a range of activities based on the key business focus
areas covered by the Centrelink Environmental Policy Statement.
Light and power usage is a major contributor to Centrelink’s greenhouse gas emissions. Centrelink
recently entered an agreement to purchase 25 per cent ‘green balance’ power within 178 Centrelink
Customer Service Centres, with emissions offset under the Australian Government’s Greenhouse
Friendly™ Program.
Centrelink’s fl eet of vehicles also contribute to greenhouse gas emissions. Centrelink developed a
number of initiatives in 2005–06 to reduce greenhouse gas emissions from fleet management
practices. The size of the vehicle fl eet was reduced from 1117 to
1019 vehicles during the year and 42 per cent of pool fl eet vehicles had a Green Vehicle Guide
rating of 10.5 or greater, exceeding the Australian Government target of 28 per cent for agency
vehicle fl eets in 2005–06.
Centrelink has encouraged Area Office fl eet managers to subscribe their fl eet vehicles to the Greenfl
eet emissions offset programme. At 30 June 2006, 89 per cent of Centrelink’s fl eet had subscribed to
Greenfl eet, resulting in a Centrelink specifi c tree planting.
The arrangement is for 11 000 trees to be planted in Victoria on 4 September 2006 on behalf of
Centrelink to abate greenhouse gas emissions—equivalent to a reduction in greenhouse gas
emissions of 2800 tonnes of carbon dioxide.
A sustainable business practice has been introduced in Centrelink to use ethanol/petrol blended fuels
where possible in the vehicle fl eet. All new vehicles leased after 1 July 2006 must be able to operate
on E10 ethanol/petrol blended fuels.
At a ‘Greening of Centrelink’ event in May 2006 Centrelink’s Chief Executive Officer was presented
with two certifi cates from Greenfl eet and AGL for its contribution to offsetting greenhouse gas
emissions.
Paper use
Centrelink is continuing to replace paper based methods of providing information to customers and
stakeholders with online tools. In 2005–06, Centrelink transferred approximately 5 per cent of printed
forms to an online environment, making a total of
65 per cent of all forms now available online.
Centrelink is also continuing to reduce the amount of paper it uses within its offices. Paper
consumption data for Centrelink’s National Support Office during 2005–06 demonstrated a 16 per
cent reduction, which can be attributed in part to the rollout of double sided printing as the standard
default setting for Centrelink’s personal computer network.
Waste management and recycling
Centrelink has introduced strategies to minimise waste generation in its building design and
construction techniques. Tuggeranong Office Park has adopted a zero waste to landfi ll policy for all
internal office redesign. The Office park uses modular partition components for all internal Office
construction. This means components can be moved and placed in storage and reused when
needed.
During the year, waste audits were undertaken at Tuggeranong Office Park and in two sites within the
office network. The audits are currently being analysed to support the development and
implementation of a new National Waste Management Strategy.
Sustainable property management
Centrelink continued to promote sustainable environmental management of its properties, upgrading
its Building Performance Specifi cations and leasing documents to achieve a 4.5 star Australian
Building Greenhouse Rating (AGBR) for all newly constructed buildings and, where possible, a 3.5
star rating for new leased premises.
In October 2005, development started on a 40 000 square metre national headquarters building in
Tuggeranong with a 4.5 star AGBR. Ecologically sustainable development principles were
incorporated in the design, including:

water conservation measures such as a grey water recycling system, rainwater and stormwater
recycling, a 50 per cent solar hot water system, a dual fl ush toilet system, and tap sensors to
reduce water wastage

waste reduction, by using precast concrete panels and innovative slab construction

low toxicity materials in Office furniture and use of recycled materials

energy conservation measures, such as a smart metering system, energy Efficient T5 lamps,
automated lighting controls, and double low energy solar performance glazing throughout the
facility

contractual arrangements with the landlord to have the building EMS certifi ed to Australian New
Zealand Standard AS/NZS 14001 and acceptance by the landlord of rental offsets should it not
achieve an annual 4.5 star ABGR or water effi ciency targets.
Appendix 9: Eight key areas of focus
Recent survey results against each of Centrelink’s eight key areas of focus are outlined in the tables
below.
Table 42: Staff capability—attitude and knowledge
Attribute
Result
Centrelink staff behave with honesty and
integrity
89% Strongly Agree/Agree
The way Centrelink staff treat you in terms of
being polite and friendly
87% Very Good/Good
Centrelink staff treat customers fairly and
equally
80% Strongly Agree/Agree
Centrelink staff are skilled and knowledgeable
about business
78% Very Good/Good
Centrelink staff take responsibility to solve your
issues
78% Strongly Agree/Agree
Centrelink staff care about you and want to help
you
74% Strongly Agree/Agree
Table 43: Promptness and consistency of service delivery
Attribute
Result
Centrelink staff do what they say they will do
82% Strongly Agree/Agree
Centrelink values your time
60% Strongly Agree/Agree
Centrelink serves you promptly and does not
make you wait too long
58% Very Good/Good
You get the same answer if you ask different
staff the same question
52% Strongly Agree/Agree
Table 44: Better on-paper communication
Attribute
Result
Ease of understanding Centrelink letters
80% Very Good/Good
Accuracy of Centrelink letters
79% Very Good/Good
Ease of understanding how much you are
entitled to receive in terms of payments and
services
67% Very Good/Good
Ease of fi lling out Centrelink forms
62% Very Good/Good
Table 45: Management of mistakes
Attribute
Result
A customer’s payments will not be affected in
any way if they make a complaint
76% Strongly Agree/Agree
You know how to have a decision about your
payments reviewed
74% Strongly Agree/Agree
Centrelink is prompt and Efficient at resolving
mistakes
65% Strongly Agree/Agree
Ease of being able to make a complaint to
Centrelink about its service
63% Strongly Agree/Agree
Table 46: Aligning future service delivery arrangements with customer expectations and preferences
Attribute
Result
Centrelink gives you choices about the ways you
90% Strongly Agree/Agree
can contact them
Table 47: Access to and integration of services
Attribute
Result
Your Centrelink Office is located in a place that
is convenient and easy for you to get to
84% Strongly Agree/Agree
You can usually do business with Centrelink at a
day and time that suits you
80% Strongly Agree/Agree
Centrelink is an easy organisation to deal with
67% Strongly Agree/Agree
Table 48: Improvements to the Customer Service Centre environment
Attribute
Result
Length of time in queue
53.6% Very Good/Good
Table 49: Working with our customers and the broader community to achieve positive outcomes
Attribute
Result
Centrelink puts people in contact with other
appropriate services that it does not provide
itself
71% Strongly Agree/Agree
Centrelink provides services and assists people
to identify options that will help them get a job
69% Strongly Agree/Agree
Appendix 10: Equity and diversity
Legend
F = Female
M = Male
I = Indigenous Australian (Aboriginal, Torres Strait Islander or both Aboriginal and Torres Strait
Islander)
D = People with disabilities
L = People whose first language is a language other than English or who speak English and another
language(s)
N = Non-ongoing
O = Ongoing
Table 50: Equity and diversity groups
Total
F
M
I
D
L
O
N
O
N
O
N
O
N
O
N
O
N
Area
Brisbane
1853
110
1314
77
539
33
57
1
84
0
92
3
Area
Central and
Northern
QLD
803
119
634
100
169
19
124
8
57
0
47
5
Area East
Coast NSW
1135
39
749
29
386
10
24
0
70
0
218
1
Area
Hunter
NSW
1144
43
862
34
282
9
47
0
78
0
32
2
Area North
Australia
443
16
340
11
103
5
92
2
17
0
29
1
Area South
Australia
1487
54
1022
39
465
15
36
2
106
0
151
1
Area South
Metro NSW
841
99
608
74
233
25
17
1
42
3
291
57
Area South
West NSW
805
36
599
31
206
5
40
0
43
0
47
1
Area South
East
Victoria
1125
68
786
44
339
24
11
0
70
1
173
0
Area West
Australia
1153
138
1121
99
432
39
73
3
104
1
153
2
Area Pacifi
c Central
1555
104
1111
82
444
22
94
4
109
3
86
1
Area West
NSW
748
29
545
22
203
7
14
0
40
0
224
2
Area West
Victoria
1155
37
777
27
378
10
24
0
59
0
133
0
Area
Tasmania
896
90
578
70
318
20
40
0
63
0
60
1
Call Centre
Network
4950
8
3813
7
1137 1
96
0
205
0
247
0
National
Support
Office
3550
Total
employees
25339 1225
147
1716
76
17433 870
Table 51: Equity and diversity separations
1834 71
51
1
177
0
7906 355
859
22
1419 9
448
3
2686
82
Total
F
M
I
D
L
O
N
O
N
O
N
O
N
O
N
O
N
Area
Brisbane
120
64
80
48
40
16
2
0
3
0
9
3
Area
Central and
Northern
QLD
69
94
43
78
26
16
8
6
6
2
4
3
Area East
Coast NSW
94
22
62
15
32
7
4
0
6
0
17
0
Area Hunter
NSW
81
64
62
52
19
12
4
2
5
1
1
2
Area North
Central Vic
85
43
53
26
32
17
3
1
13
0
11
3
Area North
Australia
56
31
43
22
13
9
11
2
4
0
4
0
Area South
Australia
81
35
53
18
28
17
4
0
9
0
3
0
Area South
Metro NSW
44
57
24
35
20
22
2
0
4
2
18
16
Area South
West NSW
85
27
61
22
24
5
4
1
8
0
6
2
Area South
East
Victoria
93
18
64
13
29
5
2
0
12
0
12
0
Area West
Australia
166
129
117
102
49
27
25
2
21
2
16
1
Area Pacifi
c Central
115
115
73
85
42
30
10
6
11
5
8
1
Area West
NSW
60
35
37
24
23
11
0
0
6
1
13
1
Area West
Victoria
73
47
52
34
21
13
5
0
5
0
10
0
Area
Tasmania
37
81
23
66
14
15
1
1
2
1
4
1
Call Centre
Network
743
13
555
8
188
5
29
1
28
0
26
0
National
Support Offi
ce
326
77
154
50
172
27
9
1
24
4
38
4
Total
separations
2328 952
772
254
123
24
167
18
200
37
1556 698
Table 52: Equity and diversity commencements
Total
F
M
I
D
L
O
N
O
N
O
N
O
N
O
N
O
N
137
149
99
104
38
45
4
2
0
0
5
8
Area Central and
24
Northern QLD
200
21
170
3
30
2
16
0
1
0
8
Area East Coast
NSW
75
51
53
40
22
11
2
0
0
0
7
1
Area Hunter
NSW
82
82
69
67
13
15
0
2
0
1
3
2
Area North
Central Vic
107
121
83
70
24
51
0
1
1
2
3
1
Area North
Australia
69
32
59
21
10
11
9
2
0
0
4
1
Area South
Australia
11
88
9
61
2
27
0
2
0
1
2
1
Area South
Metro NSW
18
172
16
121
2
51
0
1
0
4
2
74
Area South West
115
NSW
49
87
41
28
8
3
1
1
0
7
1
Area South East
Victoria
65
75
52
48
13
27
1
0
0
0
2
1
Area West
Australia
93
193
69
141
24
52
3
4
2
0
5
2
Area Pacifi c
Central
47
128
38
102
9
26
0
5
0
2
1
2
Area West NSW
57
46
44
34
13
12
0
0
2
0
4
0
Area West
Victoria
74
72
56
51
18
21
1
0
1
0
4
0
Area Tasmania
21
116
13
89
8
27
1
0
0
0
4
3
Call Centre
Network
1511 9
1174 7
337
2
29
0
9
0
47
0
National Support
Offi ce
348
164
184
83
6
3
5
1
65
7
Area Brisbane
198
115
Total
2854 1781
commencements
2106 1282
748
499
61
39
Appendix 11: International visits to Centrelink
Table 53: International visits
21
12
172
117
Date
Delegation
Areas of Interest
July 2005
Sweden—Parliamentary
committee delegation
Liverpool Call Centre Health
and culture of Indigenous
people
July 2005
Korean delegation
Area South Metro Social Work
July 2005
China—Ministry of Labour and
Social Security
Tuggeranong Customer
Service Centre— Centrelink’s
service delivery model
July 2005
Thailand—Ministry of Social
Development and Human
Security
Liverpool Call Centre
Implementation of social
security reforms
August 2005
Thailand—Thammasat
University
Northern Beaches Customer
Service Centre— Centrelink’s
service delivery model
August 2005
Malaysia—Employees
Provident Fund
Woden Customer Service
Centre—customer service
delivery
August 2005
China—Shanghai Ministry of
Labour and Social Security
Bureau
Placements in Area Brisbane
and National Support Office—
customer service delivery
September 2005
China—welfare workers
Glen Waverly Customer
Service Centre— Social Work
services
October 2005
China—Ministry of Finance
Business briefi ng by Area
West Victoria
Thailand—Ministry of Labour
Sydney and Melbourne—
service delivery for mature age
customers
October 2005
Call Centre management
Centrelink Education Network
October 2005
Samoa—Office of Cabinet
Family and Community
Services Library
Multicultural services
Marrickville Customer Service
Centre
November 2005
New Zealand—Ministry of
Social Development
Management and
implementation of major
change programmes
Korea—Ministry of Labour
Parramatta Customer Service
Centre—Centrelink’s service
delivery model
November 2005
Sweden—Research Service of
the Swedish Parliament
Welfare to Work Braddon
Customer Service Centre—
Centrelink’s service delivery
model
December 2005
China—Shanghai Labour and
Social Security Bureau
Overview of Centrelink
December 2005
Korea—Ministry of Health and
Welfare
Liverpool Area Offi ce
December 2005
Indonesia
Study tour, Maroubra Customer
Service Centre— Centrelink’s
service delivery model
December 2005
China—Hong Kong Ministry of
Social Welfare
Delivery of employment
services through the Job
Network
November 2005
December 2005
China—Shanghai Labour and
Social Security
Study tour, Centrelink overview
Bureau
February 2006
Organisation for Economic Cooperation and
Development
March 2006
March 2006
April 2006
Germany–German Ministry of
Labour and Social
Delivery of income support
payments, and
Affairs
interaction with Job Network
members
Japan—Ministry of Health,
Welfare and Labor
Centrelink and Job Network
China, Shanghai—Ministry of
Labour and Social
Security delegation
April 2006
Welfare to Work and service
delivery
New Zealand—Regional
Commissioner for Social
Development, Work and
Income
Social security legislation,
compliance, performance
management, and labour
market issues
Strategies for assisting sole
parents, people
with disabilities and the use of
professionals/
psychologists
May 2006
May 2006
May 2006
Hong Kong–Social Welfare
Advisory Committee
Netherlands—Parliamentary
Commission on
Policies and practices of family
welfare and
domestic violence in Australia
Employment and Social Affairs
Interactions with customers
prior to Job Network, Welfare to
Work, and payment process
South Africa—Umsobomvu
Youth Fund
Youth focused assistance and
policy
Appendix 12: Occupational Health and Safety (Commonwealth
Employment) Act 1991 reporting
In accordance with subsection 16(3) of the Occupational Heath and Safety (Commonwealth
Employment) Act 1991 (OH&S Act), Centrelink’s current agreement with the Community and Public
Sector Union (CPSU), covers the election of health and safety representatives (HSRs) and sets out
the roles and responsibilities of all managers/team leaders, employees, HSRs, O&HS committees
and the CPSU.
Investigations conducted
Comcare conducted:

seven investigations assessing the management of manual handling injury and occupational
overuse syndrome risks or reviewing the outcomes of previous investigations

two investigations after Centrelink referred provisional improvement notices for investigation

One investigation into a reportable incident.
Notices issued
One improvement notice and two provisional improvement notices (PINs) were issued in accordance
with the OH&S Act. One PIN was cancelled by the investigator and the other was withdrawn by the
health and safety representative.
The improvement notice was issued by an investigator to improve the management of body stressing
risks at Hurstville Customer Service Centre. The improvement notice was complied with and the
investigation closed.
Table 54: Notices issued
Type of notice
Number
Notices given to Centrelink under section 29 of the Act—Provisional
Improvement Notices
2
Notices given to Centrelink under section 47 of the Act—Improvement
Notices
1
Total
3
Table 55: Incidents notified to Comcare
Type of notice
Number
Serious personal injury 18
18
Prescribed incapacity (30 or more working days or shifts)
3
Dangerous occurrence
88
Total
109
Appendix 13: Organisational chart—list of positions and
incumbents as at 30 June 2006
Chief Executive Officer
Jeff Whalan
Deputy Chief Executive Officer, Customer Service Delivery
Mandy Ritchie
General Manager Customer Service Design and
Implementation
Norman Walker
General Manager Customer Service Delivery
Grant Tidswell
General Manager Customer Service Strategy
Natalie Howson
Chief Information Officer
John Wadeson
General Manager IT Planning and Refresh
Louise Tucker
General Manager Core Business IT Systems
Tuan Dao
General Manager Corporate IT Systems
Eija Seittenranta
Chief Financial Officer
Karel Havlat
General Manager People and Planning
Sheryl Lewin
General Manager Audit and Risk
Bob McDonald
General Manager Communication
Hank Jongen
Deputy Chief Executive Officer Stakeholder Relationships
Carolyn Hogg
General Manager Employment Disability and Education
Paul Conn
General Manager Business Integrity
Phil Richardson
General Manager Families, Seniors, Rural and Community
Darryl Alexander
General Manager Welfare to Work Taskforce
Greg Divall
General Manager Access Card
Brendan Sargeant
Customer Service Delivery
Area Brisbane
Paul McNae
Area Central and North Queensland
Peter Searston
Area East Coast New South Wales
David Walsh
Area Hunter
Louise Hamilton
Area North Australia
Barbara Causon
Area North Central Victoria
Kate Hay
Area Pacifi c Central
Lyn Agnew
Area South Australia
Mary Kosiak
Area South Metro New South Wales
Vicki Buchanan
Area South West New South Wales
Peter Gillies
Area Tasmania
Robert Williams
Area West New South Wales
Gillian Long
Area West Victoria
Chris Nunan
Area Western Australia
Ben Agius
Service Delivery Coordination
Brian Small
Call Centres
John Dorian
Call Centres
Peter Bickerton
Emergency Management Projects
Mark Wellington
Customer Service Design and Implementation
Business Process Design
Graham Maloney
Service Delivery Support
Brian Silkstone
Working Age Participation
Peter Doutre
Families and Child Care
David Batchelor
Rural and Cross Payments
Annette Drury
Business Integrity
Paul Goodwin
Customer Service Strategy
Channel Integration and Support
Tony Gargan
Self Service Strategy
Robin Salvage
Customer Experience
Brian Catto
Social Work Services
Peter Humphries
Psychology Services
Ruth Freeman
IT Planning and Refresh
Technology Strategies
Trevor Smallwood
Infrastructure Architecture (Specialist)
Peter Gunning
Applications Architecture (Specialist)
Steve Crisp
IT Demand and Capability
Brian Richardson
Core Business IT Systems
Business Systems Operations
Lian Tee
Better Service Projects
Luke Woolmer
Testing and Release Management
Julie Fursman
Corporate and Data Services
Helen Austin
Corporate IT Systems
Infrastructure Operations
Sarbjit Sidhu
Infrastructure Projects
Glenn Archer
Corporate and Web Based Projects
Helen Skrzeczek
Database Operations, Application and Telephony Platforms
Kevin Parsons
Security and Information Protection
Pat Fegan
Financial Management and Business Support
Contracts and Procurement
Chris Welburn
Budgeting and Management Accounting
Frank Startari
Financial Management and Services
Brad Clark
Property and Environmental Management
Colin Parker
Project Coordination
Elaine Ninham
Legal Services
Brendan Jacomb
Audit
Evaluation and Audit
Simon Moore
Communication
Communication and Marketing
Vacant
People and Planning
Workplace Relations and Employment Policy
Peter Cotterill
Workforce Capability
Michele Kane
Organisational Learning and Development
Paul Cowan
Planning and Change Management
Malcolm Wright
Ministerial, Parliamentary and Executive Support
Jenny Teece
Business Integrity
Business Integrity Strategy
John Sims
Compliance and Review
Catherine Rule
Fraud and Debt Management
Sheldon White
Performance and Information
Gabrielle Davidson
Employment Disability and Education
Employment Services
Moya Drayton
Disability Services
Pam Saunders
Education and Training
Michelle Cornish
Working Age Requirements
Rilka Macainsh
Family Seniors and Community
Family and Child Care Services
Dennis Mahony
Seniors, Carers and Means Test
Cheryl-Anne Moy
International Services
Robert Williams
Rural and Cross Payments Services
Jo Gaha
Multicultural Services
Peter Rock
Indigenous Services
Katrina Fanning
Community Sector Relationships and Business Liaison
Marcia Williams
Welfare to Work Taskforce
Case Management
Vicki Beath
Access Card Business
Vacant
Access Card IT
Vacant
Appendix 14: Our people—all Centrelink employees
The figures in Table 56 below represent the total number of all Australian Public Service employees
within Centrelink as at 30 June 2006. They include employees on paid and unpaid leave and
employees on temporary performance at a higher level (see also Average Staffi ng Levels in the
annual Financial Statements, on page 168).
The fi gures in Table 39 represent the composition of SES in employment as at 30 June 2006.
Centrelink Area Offices and the Call Centres have identified SES positions with the remainder
located in National Support Office.
Legend
F = Female
M = Male
F/T = Full-time
P/T = Part-time
O = Ongoing
N = Non-ongoing
I = Indigenous Australian (Aboriginal, Torres Strait Islander or both Aboriginal and Torres Strait
Islander)
D = People with disabilities
L = People whose first language is a language other than English or English and another language(s)
SES = Senior Executive Service
IT = Information Technology
Table 56: All Centrelink non-SES employees
Total
F
M
F/T
P/T
O
N
Centrelink 4
1738
911
827
1644
94
1720
18
Centrelink 3
5852
3666
2186
5202
650
5786
66
Centrelink 2
16 281
12 137
4144
12 183
4098
15 448
833
Centrelink 1
410
253
157
322
88
245
165
Passport Information
Service Operator
47
36
11
10
37
21
26
rainees/Cadets
33
21
12
33
0
30
3
382
299
83
314
68
375
7
828
705
123
648
180
739
89
406
87
319
392
14
403
3
16
1
15
16
0
15
1
409
99
310
399
10
406
3
6
5
1
6
0
6
0
19
14
5
15
4
17
2
23
18
5
20
3
18
5
11
7
4
11
0
7
4
26461
18259
8202
21215
5246
25236
1225
Centrelink
Professional 2
Centrelink
Professional 1
Centrelink IT
Manager
Centrelink IT
Technical
Centrelink IT
Centrelink Public
Affairs 4
Centrelink Public
Affairs 3
Centrelink Public
Affairs 2
Centrelink Public
Affairs 1
Total
Table 57: National Support Office
Total
F
M
F/T
P/T
O
N
Centrelink 4
1163
596
567
1087
76
1150
13
Centrelink 3
1200
693
507
1067
133
1156
44
Centrelink 2
261
177
84
230
31
212
49
Centrelink 1
40
18
22
38
2
16
24
Trainees/Cadets
25
16
9
25
0
25
0
23
17
6
21
2
23
0
4
4
0
4
0
4
0
404
87
317
390
14
401
3
16
1
15
16
0
15
1
400
96
304
390
10
398
2
6
5
1
6
0
6
0
19
14
5
15
4
17
2
22
17
5
20
2
17
5
11
7
4
11
0
7
4
3594
1748
1846
3320
274
3447
147
Total
F
M
F/T
P/T
O
N
Centrelink 4
114
60
54
112
2
114
0
Centrelink 3
609
443
166
549
60
608
1
Centrelink 2
4184
3273
911
2869
1315
4181
3
Centrelink 1
5
5
0
5
0
3
2
27
21
6
20
7
27
0
19
18
1
17
2
17
2
4958
3820
1138
3572
1386
4950
8
Centrelink
Professional 2
Centrelink
Professional 1
Centrelink IT
Manager
Centrelink IT
Technical
Centrelink IT
Centrelink Public
Affairs 4
Centrelink Public
Affairs 3
Centrelink Public
Affairs 2
Centrelink Public
Affairs 1
Total
Table 58: Call Centre network
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 59: Area Brisbane, Queensland
Total
F
M
F/T
P/T
O
N
Centrelink 4
43
22
21
41
2
43
0
Centrelink 3
440
278
162
397
43
436
4
Centrelink 2
1323
971
352
1073
250
1246
77
Centrelink 1
41
29
12
38
3
26
15
32
26
6
27
5
32
0
75
61
14
66
9
62
13
6
3
3
6
0
2
0
Centrelink IT
6
3
3
6
0
2
0
Centrelink Public
Affairs 2
1
1
0
0
1
1
0
Total
1963
1391
572
1650
313
1853
110
Centrelink
Professional 2
Centrelink
Professional 1
Centrelink IT
Manager
Table 60: Area Central and North Queensland
Total
F
M
F/T
P/T
O
N
Centrelink 4
31
23
8
30
1
29
2
Centrelink 3
202
133
69
187
15
199
3
Centrelink 2
613
510
103
506
107
515
98
Centrelink 1
21
17
4
18
3
12
9
14
12
2
12
2
14
0
38
36
2
31
7
34
4
922
734
188
787
135
803
119
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 61: Area East Coast, New South Wales
Total
F
M
F/T
P/T
O
N
Centrelink 4
30
18
12
27
3
30
0
Centrelink 3
259
153
106
226
33
259
0
Centrelink 2
791
535
256
600
191
757
34
Centrelink 1
14
8
6
9
5
14
0
20
15
5
19
1
20
0
60
49
11
49
11
55
5
1174
778
396
930
244
1135
39
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 62: Area Hunter, New South Wales
Total
F
M
F/T
P/T
O
N
Centrelink 4
38
24
14
35
3
37
1
Centrelink 3
303
199
104
242
61
302
1
Centrelink 2
777
615
162
555
222
747
30
13
12
1
13
0
13
0
56
46
10
42
14
45
11
1187
896
291
887
300
1144
43
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 63: Area North Central, Victoria
Total
F
M
F/T
P/T
O
N
Centrelink 4
36
17
19
34
2
36
0
Centrelink 3
285
173
112
243
42
283
2
Centrelink 2
950
626
324
733
217
876
74
Centrelink 1
21
13
8
13
8
13
8
23
18
5
18
5
23
0
68
59
9
57
11
64
4
Centrelink IT
1
0
1
1
0
1
0
Total
1384
906
478
1099
285
1296
88
Centrelink
Professional 2
Centrelink
Professional 1
Table 64: Area North Australia
Total
F
M
F/T
P/T
O
N
Centrelink 4
28
12
16
28
0
27
1
Centrelink 3
118
87
31
116
2
117
1
Centrelink 2
268
218
50
240
28
258
10
Centrelink 1
13
8
5
11
2
9
4
Trainees/Cadets
5
2
3
5
0
5
0
12
12
0
10
2
12
0
15
12
3
14
1
15
0
459
351
108
424
35
443
16
Total
F
M
F/T
P/T
O
N
Centrelink 4
41
19
22
40
1
41
0
Centrelink 3
412
254
158
345
67
411
1
Centrelink 2
974
705
269
678
296
936
38
Centrelink 1
26
11
15
20
6
13
13
33
27
6
26
7
31
2
55
45
10
34
21
55
0
1541
1061
480
1143
398
1487
54
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 65: Area South Australia
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 66: Area South Metro, New South Wales
Total
F
M
F/T
P/T
O
N
Centrelink 4
22
12
10
22
0
22
0
Centrelink 3
174
115
59
157
17
174
0
Centrelink 2
653
479
174
532
121
571
82
Centrelink 1
30
21
9
27
3
18
12
15
14
1
11
4
14
1
46
41
5
38
8
42
4
940
682
258
787
153
841
99
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 67: Area South West, New South Wales
Total
F
M
F/T
P/T
O
N
Centrelink 4
18
15
3
17
1
17
1
Centrelink 3
197
125
72
181
16
195
2
Centrelink 2
549
429
120
433
116
519
30
Centrelink 1
24
17
7
22
2
24
0
18
13
5
12
6
18
0
35
31
4
27
8
32
3
841
630
211
692
149
805
36
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 68: Area South East, Victoria
Total
F
M
F/T
P/T
O
N
Centrelink 4
31
23
8
29
2
31
0
Centrelink 3
228
142
86
214
14
226
2
Centrelink 2
769
549
220
595
174
739
30
Centrelink 1
73
39
34
66
7
48
25
21
15
6
18
3
21
0
69
62
7
46
23
58
11
Centrelink IT
2
0
2
2
0
2
0
Total
1193
830
363
970
223
1125
68
Total
F
M
F/T
P/T
O
N
Centrelink 4
30
16
14
30
0
30
0
Centrelink 3
381
236
145
344
37
379
2
Centrelink 2
1142
864
278
866
276
1028
114
Centrelink 1
30
20
10
19
11
16
14
39
29
10
35
4
39
0
69
55
14
56
13
61
8
1691
1220
471
1350
341
1553
138
Centrelink
Professional 2
Centrelink
Professional 1
Table 69: Area West Australia
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 70: Area Pacifi c Central, Northern New South Wales and Southern Queensland
Total
F
M
F/T
P/T
O
N
Centrelink 4
41
22
19
41
0
41
0
Centrelink 3
409
273
136
372
37
407
2
Centrelink 2
1050
775
275
800
250
989
61
Centrelink 1
45
32
13
16
29
15
30
39
32
7
27
12
36
3
75
59
16
62
13
67
8
1659
1193
466
1318
341
1555
104
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 71: Area West, New South Wales
Total
F
M
F/T
P/T
O
N
Centrelink 4
24
12
12
24
0
24
0
Centrelink 3
159
107
52
141
18
159
0
Centrelink 2
531
394
137
425
106
506
25
Centrelink 1
4
2
2
2
2
3
1
20
14
6
19
1
20
0
39
38
1
33
6
36
3
777
567
210
644
133
748
29
Total
F
M
F/T
P/T
O
N
Centrelink 4
25
11
14
25
0
25
0
Centrelink 3
242
133
109
226
16
242
0
Centrelink 2
832
585
247
624
208
799
33
Centrelink 1
2
1
1
2
0
1
1
23
16
7
18
5
22
1
68
58
10
50
18
66
2
1192
804
388
945
247
1155
37
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 72: Area West Victoria
Centrelink
Professional 2
Centrelink
Professional 1
Total
Table 73: Area Tasmania
Total
F
M
F/T
P/T
O
N
Centrelink 4
23
9
14
22
1
23
0
Centrelink 3
234
122
112
195
39
233
1
Centrelink 2
614
432
182
424
190
569
45
Centrelink 1
21
12
9
16
5
14
7
Passport Information
Service Operaor
47
36
11
10
37
21
26
10
6
4
8
2
10
0
37
31
6
22
15
26
11
986
648
338
697
289
896
90
Centrelink
Professional 2
Centrelink
Professional 1
Total
Appendix 15: Our services
The services listed below are the policy department outcomes delivered by Centrelink to support its
outcome and output.
Department of Agriculture, Fisheries and Forestry

Citrus Canker Assistance Package (Output 3)

Dairy Type Grants (Output 1)

Drought Assistance Package including Exceptional Circumstances Relief Payment and Prima
Facie Interim Income Support (Output 2)

Environmental Management Systems Incentives Program (Output 1)

Farm Help (Output 2)

Sugar Industry Reform Program 2004 (Output 3)
Department of Education, Science and Training
• Community Development Employment Project Participant Supplement (Output 3.1)
Department of Employment and Workplace Relations
Outcome 1—Efficient and Effective Labour Market Assistance
Working Age payments (Output 1.1)
• Working Age payments and compliance (Output 1.1.1)
Labour market programme management and delivery (Output 1.2)

Information, referral and support services (Output 1.2.1)

Employment services (Output 1.2.2)

Indigenous employment programmes (Output 1.2.3)

Mutual obligations initiatives (Output 1.2.4)

Employment preparation services (Output 1.2.5)
Outcome 2—Higher Productivity, Higher Pay Workplaces

Workplace Relations Policy and Analysis (Output 2.1)

Workplace Relations Implementation (Output 2.2)
1
Outcome 3—Increased Workforce Participation
Working age policy (Output 3.1)

Working Age policy legislation (Output 3.1.1)

Research and evaluation (Output 3.1.2)
Labour market strategies (Output 3.2)

Labour market analysis (Output 3.2.1)

Industry and labour supply strategies (Output 3.2.2)

Community Development Education Management (Output 3.2.3)
Department of Families, Community Services and Indigenous Affairs

Age Pension (Output 3.1)

Assurance of Support (Output 1.1)

Bali Assistance Package (Output 1.1)

Bereavement Allowance (Output 3.1)

Carer Allowance (Output 3.3)

Carer Payment (Output 3.3)

Centrelink Multilingual Call (Output 1.1)

Child Care Benefi t (Output 3.3)

Child Support Registrations (Output 1.3)

Commonwealth Seniors Health Care Card (Output 3.1)

Community Agents Program (Output 2.2)

Community Partnerships Agreement (Output 2.2)

Concession Cards (Output 3.1)

Crisis Payment (Output 3.6)

Cyclone Larry Income Support for Farmers and Small Business (Output 5.1)

Cyclone Larry Fuel Excise Subsidy (Output 5.1)

Double Orphan Pension (Output 3.1)

Family Tax Benefi t (Parts A and B) (Output 1.3)

Financial Information Service (Output 3.1)

Language services including interpreting and translating (Output 3.2)

Jobs Education and Training (JET) Child Care Fee Assistance (Output 3.3)

Lump Sum and Telephone Allowance Advances (Output 3.1)

Marriage Like Relationships (Output 3.7)

Maternity Immunisation Allowance (Output 3.1)

Maternity Payment (Output 3.1)

Multicultural Service Officer Program (Output 1.1)

Nominee Arrangements (Output 3.1b)

Pension Bonus Scheme (Output 3.1)

Pension Loans Scheme (Output 3.1)

Pharmaceutical Allowance (Output 3.1)

Reconnect Program (Output 1.2)

Remote Area Allowance (Output 2.1)/Remote Area Allowance (Output 3.1)

Rent Assistance (Output 2.1b)

Retirement Assistance for Farmers (Output 3.1)

Seniors Concessions Allowance (Output 3.1)

Special Benefi t (Output 3.6)

Special Employment Advance (Output 3.1)

Telephone Allowance (Output 3.1)

Utilities Allowance (Output 3.1)

Widow B Pension (Output 3.1)

Wife Pension (Output 3.1)
Department of Health and Ageing

Commonwealth Carelink Program in Western Australia (Output 3.2)

Income Assessment of Residential Aged Care Fees (Output 3.1)

Medicare Safety Net (Family Tax Benefi t Customer Validation) (Output 2.1)

Pharmaceutical Benefits Scheme (Concession Validation) (Output 2.1)
Department of Immigration and Multicultural Affairs
• Assurance of Support (Output 1.1)
Department of Industry, Tourism and Resources
• Cyclone Larry Business Assistance Fund (Output 5.1)
Department of Veterans’ Affairs

Defence Force Income Support Allowance (Output 1.2)

Veterans’ Information and Community Support Services in selected Centrelink sites (Output 4.1)
Torres Strait Regional Authority
• Community Development Employment Project Participant Supplement (Output 3.1)
Other services
International

foreign pension access and assessment

international agreements

Portability of payments.
Appendix 16: Purchasing activity and contract management
Table 74: Advertising and direct mail expenditure
Payee
Amount ($)
Purpose
HMA Blaze
8178
Advertising related to the sugar industry
HMA Blaze
27688
Advertising related to the New Apprentice Scheme
HMA Blaze
238859
Advertising related to the Financial Information Service
HMA Blaze
23155
Advertising related to the Indigenous Cadetship Programme
HMA Blaze
55063
Advertising related to the 2006 Commonwealth Games
HMA Blaze
73585
Advertising related to ‘Have You Heard’ campaign
HMA Blaze
106124
Advertising related to Call Centre opening
HMA Blaze
94954
Advertising related to the Graduate Recruitment Programme
HMA Blaze
9994
Advertising related to Centrepay
HMA Blaze
1453033
Advertising related to Centrelink
Table 75: Payments $1500 and over made to advertising agencies and agencies with advertising
campaigns
Payee
Amount ($)
Purpose
Independent and
General Pty Ltd
52 229
Dissemination of Centrelink information to the ethnic
community
National
Indigenous Radio
Service
RPH Australia
10 640
Advertising for the Indigenous community
38 407
Advertising for the print handicapped
Special
Broadcasting
Service
370 780
Provision of multicultural broadcast services
Table 76: Payments $1500 and over made to direct mail organisations
Payee
Amount ($)
Purpose
PMP
Communications
Stream Solutions
454 541
Preparation and mailout of agency material
766 016
Preparation and mailout of agency material
Hermes Precisa
Pty Ltd
Hermes Precisa
Pty Ltd
1 345 730
Preparation and mailout of News for Seniors
1 191 768
Preparation and mailout of agency material
Note: All figures in the above tables are GST exclusive.
Table 77: Payments $1500 and over to marketing research organisations
Payee
Amount ($)
Colmar Brunton
Social Research
26 900
DBM Consultants
1 105 939
Eureka Strategic
Research
78 970
Mark Dignam and
Associates
83 830
Market Access
Consulting and
Research
166 786
Market Solutions
125 709
Newton Wayman
Chong and
Associates
356 470
Quantum Market
Research
40 186
Synovate
141 243
Purpose
Market research related to identifying an effective staff
spokesperson for use in information strategies
Market research related to Centrelink Call Centre and
Customer Service Centre customer satisfaction; Better
Service Initiative; National Customer Satisfaction; and
Actions on Australian National Audit Office recommendation
Market research related to website redevelopment testing;
letters testing and evaluation of Financial Information
Service seminars
Market research related to staff research about the
corporate wardrobe, and about time boxes in Centrelink
forms
Market research related to the development of the Welfare
to Work information products; to exploring Business
Television usage with staff, and to a review of letters
production
Market research related to the Customer Portal design
development, and to improving customer letters
Market research related to Centrelink Agents and Access
Points; Centrelink self service take up; of the SU19 self
service trial; marketing makeover evaluation; and staff and
customer attitudes to self service and online claims
Market research related to understanding more about
Centrelink audiences
Market research related to key text testing, and to the
Customer Service Centre audit programme
Market research related to communication with families’
customers
Woolcott
117 260
Research
Worthington Di
40 873
Market research related to testing News for Seniors
Marzio
Centrelink also managed research with the following companies for the Department of Human
Services and Hearing Australia on a full cost recovery basis.
Newton Wayman
Market research related to testing the ‘Have you Heard?’
Chong and
38 635
communication strategy for Indigenous Australians for
Associates
Hearing Australia
Market research related to the Smart Technologies and
Quantum Market
125 000
Services project for
Research
the Department of Human Services
Appendix 17: Salary overview
The following table shows Centrelink’s range of job classifi cations and salaries.
Table 78: Employees covered by the Centrelink Agreement 2006–09
Employee type
Number
SES
0
Non-SES
25 796
Table 79: Salary ranges for employees covered by the Centrelink Agreement 2006–09
Classification
Annual Salary Range ($)
Centrelink 4
70 527–95 286
Centrelink 3
51 008–65
Centrelink 2
41 032–51 007
Centrelink 1*
31 832–39 948
Centrelink Australian Passport Information
Service Operator
36 025–44
Centrelink Professional 2
70 527–95 286
Centrelink Professional 1
38 414–63
Centrelink IT
44 286–95 286
Centrelink Public Affairs 4
92 201–96 913
Centrelink Public Affairs 3
74 193–89 942
Centrelink Public Affairs 2
57 385–67 227
Centrelink Public Affairs 1
47 185–54 088
Centrelink Graduate Trainee
37 988–39 948
Centrelink Customer Service Trainee
33
Centrelink Administrative Trainee
10 966–24 819
Centrelink Cadet—full-time study
10 807–17
* Junior rates apply:

under 18 years –60%

at 18 years –70%

at 19 years –81%

At 20 years –91%.
Appendix 18: Supplement—Annual Report 2004–05, correction
of material errors
The following page reference relates to the 2004–05 Annual Report:

Page ii, in the address block has Canberra Business Centrelink, this should have read Canberra
Business Centre.

Page 131, paragraph eight, Self Service, states ‘Families now have self-service access to an
increasing range of options—for example, families can now apply for Family Tax Benefi t over the
internet.’ The correct text should have read ‘Families can now update their income estimates, view
their payment and current child care details, and claim for approved child care and update their
details.’

Page 296, Index, refers to ‘Usability laboratory on page 39’. There was no reference to ‘Usability
Laboratory’ on page 39.
List of shortened forms
AAT
Administrative Appeals Tribunal
ABS
Australian Bureau of Statistics
ACT
Australian Capital Territory
AGBR Australian Building Greenhouse Rating
ANAO Australian National Audit Office
APS
Australian Public Service
APSC
Australian Public Service Commission
ARO
Authorised Review Officer
AS/NZS Australian and New Zealand Standard
ATO
Australian Taxation Office
AUSTRAC Australian Transaction Reports and Analysis Centre
AWA
Australian Workplace Agreement
CART
Centrelink Academic Reassessment Transformation
CCeS
Centrelink Confi rmation eServices
CCO
Centrelink Community Officer
CDEP
Community Development Employment Program
CEO
Chief Executive Officer
CFO
Chief Financial Officer
CIO
Chief Information Officer
CPSU
Community and Public Sector Union
CRU
Customer Relations Unit
CSA
Child Support Agency
CSC
Customer Service Centre
CSDA
Commonwealth Services Delivery Agency
DAFF
Department of Agriculture, Fisheries and Forestry
DASD
Direct Access Storage Device
DCALB
Diverse Cultural and Linguistic Background
DCEO-CSD Deputy Chief Executive—Customer Service Delivery
DCEO-SR
Deputy Chief Executive Officer—Stakeholder Relationships
DDA
Disability Discrimination Act
DEST
Department of Education, Science and Training
DEWR
Department of Employment and Workplace Relations
DFAT
Department of Foreign Affairs and Trade
DoHA
Department of Health and Ageing
DHS
Department of Human Services
DoTaRS
Department of Transport and Regional Services
DPP
Commonwealth Director of Public Prosecutions
DS
Direct Sourcing
DT
Direct Tender
DVA
Department of Veterans’ Affairs
EC
Exceptional Circumstances
EMS
Environmental Management System
ERM
Enterprise-wide Risk Management
FaCSIA
Department of Families, Community Services and Indigenous Affairs
FAO
Family Assistance Offi ce
FOI
Freedom of Information
GM A&R
General Manager—Audit and Risk
GM C
General Manager—Communication
GM P&P
General Manager—People and Planning
HOME
Household Organisational Management Expenses
HSR
Health and Safety Representatives
ICT
Information and Communications Technology
IPP
Information Privacy Principle
ISO
Indigenous Service Officer
IT
Information Technology (system or application)
IVR
Interactive Voice Recognition
JCPAA
Joint Committee for Public Accounts and Audit
KPI
Key Performance Indicator
LAFIA
Leading Australia’s Future in Asia
LLO
Local Liaison Officer
MP
Member of Parliament
MSIC
Maritime Security Identifi cation Card
MSO
Multicultural Service Officer
NAIDOC
National Aboriginal and Islanders’ Day Observance Committee
NECC
National Emergency Call Centre
NSW
New South Wales
NT
Northern Territory
OH&S
Occupational Health and Safety
OIO
Open Infrastructure Offering
OPIC
Office of Indigenous Policy Coordination
OT
Open Tender
PINS
Provisional Improvement Notices
RASC
Remote Area Service Centre
Qld
Queensland
SAN
Storage Area Network
SES
Senior Executive Service
SSAT
Social Security Appeals Tribunal
ST
Select Tender
SUW
Single User Workspace
TAFE
Technical and Further Education
TSRA
Torres Strait Regional Authority
TWFS
Tasmanian Wheat Freight Scheme
Vic
Victoria
UAC
User Assurance Centre
UCD
User Centred Design
WA
Western Australia
CO001.0610