Our Purpose
Centrelink was created to provide exceptional service to the community by linking Australian
Government services and to achieve best practice in service delivery.
CENTRELINK ANNUAL REPORT 1999 – 2000
Contact officer
Comments and requests for further information on this report are welcome and can be sent to:
Ms Jan MC Cann
Telephone (02) 6212 0023
Fax (02) 6212 0480
Email jann.ji.mccann@centrelink.gov.au
Ms Julie Peard
Telephone (02) 6212 0025
Fax (02) 6212 0480
Email julie.peard@centrelink.gov.au
Strategic Services Team
Centrelink National Support Office
Box 7788
Canberra Mail Centre ACT 2610
World Wide Web home page address
www.centrelink.gov.au
© Commonwealth of Australia 2000
ISSN 1441–4392
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This annual report will be available on the Centrelink Internet site (www.centrelink.gov.au).
About this Report
This Annual Report has been prepared to inform the Parliament (through the Minister for Community
Services), other stakeholders and the community about Centrelink’s performance in providing
Australian Government services. The report is a key reference document and a document for internal
management. It forms part of the historical record and is the principal formal accountability
mechanism between government and Centrelink.
The report uses the same government outcome-output structure that was used to present the
Department of Family and Community Services 1999–2000 Portfolio Budget Statements and Portfolio
Additional Estimates Statements. It therefore reports on achievement against performance targets set
out in the Budget Statements and the Additional Estimates Statements.
The report is structured in the following manner:
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Chapter 1 describes Centrelink and its business.
Chapter 2 is the Chief Executive Officer’s overview, which focuses on significant issues and
performance and provides an outlook for the following year. It also includes a brief message from
the incoming Chairman of the Board.
Chapters 3–8 cover detailed performance reporting using the Balanced Scorecard to measure
performance against each of Centrelink’s Key Result Areas.
Chapter 9 gives a corporate overview of Centrelink and outlines the organizational structure. It
also covers other corporate matters, recognition of excellence, major conferences and major
speeches.
Chapter 10 explains the main corporate governance practices and the framework and structure of
the Board of Management.
Chapter 11 contains the audited Financial Statements.
Appendices i–xiii contains information required under specific legislation and other useful
information.
A glossary and index are located immediately after Appendix xiii.
We would like to acknowledge the efforts of Centrelink employees who provided the majority of
photographs in this report (excluding Board members), as part of the Take a Shot photograph
competition. This competition was initiated by the Strategic Services and Communication and
Marketing Teams, National Support Office.
1. Introducing Centrelink
Our Strategic Framework
As a developing organisation, a key priority for Centrelink has been to drive change through the
Strategic Framework, which provides a vision for the future, sets clearly defined goals, promotes
shared behaviours and facilitates future planning.
The Strategic Framework is reviewed annually in consultation with key stakeholders to ensure it
continues to provide a powerful basis for Centrelink’s current operations and future development. In
1999–2000, the Centrelink Strategic Framework 1998–2003 was updated and released as the
Centrelink Strategic Framework 1999–2004, Our Business, Our Future. The updated Strategic
Framework is presented in a simpler and more useable format for all Centrelink staff. It lists our
achievements up front and explains in plain English our purpose, vision, mission, corporate goals and
the underlying philosophies and activities necessary to achieve them.
The first part of the framework, Our Business, develops and reinforces the concepts on which
Centrelink was founded—to be first choice of Government and the premier broker and service
provider for our customers.
The second part of the framework, Our Future, concentrates on Centrelink’s business outcomes,
linking the goals to performance indicators and their associated practical strategies, actions and
timeframes.
The Strategic Framework maps the strategies to be put in place over the next three years in order to
achieve the Government’s aims when it established Centrelink as the one-stop-shop for service
delivery to the Australian community.
The framework is the key element in engaging Centrelink’s people in a common purpose and
approach while taking the organisation into the new millennium. It is supported at the local level by
Customer Service Improvement Plans, which outline how each Centrelink team will improve service
delivery and contribute to achieving Centrelink’s goals and realizing Centrelink’s vision.
In 2000–01 Our Future will be replaced by a Business Plan, a rolling plan incorporating the major
issues for Centrelink over the next three years. The theme of the Business Plan 2000–01 is Doing our
Current Business Better. The Business Plan has the following seven key objectives:
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improve performance to client agencies;
position Centrelink to effectively deliver on Welfare Reform initiatives;
reduce the complexity of dealing with government for all Australians;
align employee culture and skills with business direction and demonstrate Centrelink’s
commitment to its people;
enhance services to rural Australia;
increase quality; and
Move to a more efficient business.
Our Mission
Building a stronger community by:
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providing opportunities for individuals during transitional periods of their lives;
delivering innovative, cost-effective and personalised services for individuals, their families and
community groups via a one-stop-shop;
being committed to quality;
making the best use of available dollars;
listening to and enacting the community’s ideas for better service; and
Building a quality relationship with customers.
Outcome and Output Structure
Centrelink has one outcome which is Effective delivery of Commonwealth services to eligible
customers. This outcome is supported by the output of efficient delivery of Commonwealth services to
eligible customers (see Chapter 3, Performance Report, page 21 for more information).
Our Goals
To achieve the commitments to Government and client agencies, customers and staff, Centrelink has
set six goals to be achieved progressively over the next three years:
Client Partnerships
To build partnerships with client agencies that deliver the required results and provide value for
money.
Customer and Community
To increase customer and community involvement and satisfaction with services.
Centrelink People
To create an environment where Centrelink’s people give value to customers,client agencies and the
community through their skills and commitment to service.
Cost Efficiency
To manage our business efficiently and return a dividend to Government.
Innovation
To provide innovative and personalized solutions , consistent with government policy.
Best Practice
To be first choice and benchmarked as the best practice in service delivery.
We have also developed key performance indicators and use the Balanced Scorecard to measure
our performance against targets for five of these goals. Our sixth goal, best practice, is not measured
individually as it is the sum of the total achievement against the other five goals and will be validated
through external benchmarking.
Social Justice and Equity
Centrelink fully supports the Government’s social justice, access and equity objectives. The needs of
Indigenous communities, people from diverse cultural and linguistic backgrounds, people with
disabilities, women and people living in rural, remote and isolated areas are all key priorities in
delivery of our services.
Our Shared Behaviours
Our Shared Behaviours guide work practices, decision making and dealings with our customers,
clients and staff. They are:
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listening to customers and the community;
mutual respect for our customers and for each other;
exploring and putting in place innovative and cost-effective ways to provide the right outcome;
solving problems and developing opportunities; and
Behaving with integrity and in an ethical manner.
Our Quality First Policy
Centrelink’s Quality First Policy provides the link between our Strategic Framework and our
operational activities. The Quality First Policy is simply a structured way of how to go about providing
quality customer service.
Key elements include:
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a customer-driven focus within Centrelink;
an enhanced approach to leadership and team-based working arrangements;
a focus on customer service improvement and review;
the implementation of Balanced Scorecard methods of performance measurement;
best practice identification;
benchmarking;
performance improvement and process redesign; and
the introduction of quality assurance mechanisms.
Our Business Arrangements
Centrelink operates under a purchaser/provider framework. Broadly defined, a purchaser/provider
arrangement is one in which:
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the purchaser is the agent who decides what is produced; and
The provider is the agent who delivers the agreed outputs or outcomes.
Purchaser/provider arrangements clarify areas of responsibility and financial commitments to
particular functions. Benefits of such arrangements include:
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clarified expectations and responsibilities;
enhanced contestability (that is, the prospect of competition);
heightened accountability and priorities;
improved organisational responsiveness to client agencies and customers; and
A reduced risk that the purchaser may be ‘captured’ by the provider.
Centrelink’s business arrangements are outlined in either Business Partnership Agreements or other
agreements with client agencies. They outline:
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products and services to be provided;
performance outcomes and reporting mechanisms;
funding provisions;
arrangements agreed upon to manage particular issues; and
New and priority activities.
Business Partnership Agreements require clear specification of policy and operational outcome
requirements and ensure identification of respective purchaser/provider roles and responsibilities.
They provide clarity of performance and accountability expectations. The complete list of client
agencies with whom Centrelink has business arrangements can be found on Chapter 4, Our Client
Partnerships, page 25.
Access to Centrelink Services
Customers can now access Centrelink services in a variety of ways, including:
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in person (visiting a Customer Service Centre, Specialist Service Centre, or a Centrelink agent);
over the phone;
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electronically (on the Internet); and
By mail.
Our Business
Table 1: Our Business
OUR BASE
Functions
Income support, other payments and referral
services
OUR DIMENSIONS
Number of sites
Over 1000 sites Australia-wide
Number of employees
22 178*
Number of client agencies
13 key agencies
Payments on behalf of client agencies
Approx. $43.5 billion per annum
OUR CUSTOMERS
Number of customers
6.4 million
Number of individual entitlements
9.0 million
Letters to customers
Approx. 101 million per annum
Home visit reviews
98 673 per annum
Booked office appointments
Approx. 6.5 million per annum
New claims lodged
4.4 million per annum
Newstart and Youth Allowance continuations
14.1 million lodged per annum
Mainframe online transactions
Approx. 2.9 billion per annum
Successful telephone calls
Approx. 22.5 million per annum
Internet web page views
2.3 million per annum
* Includes ongoing and non-ongoing employees.
Figure 1: Summary of Services Provided to Customers by Centrelink
2. The Year in Review
Report of the Chief Executive Officer
1999–2000 has been a year in which tangible outcomes and achievements have begun to
demonstrate the full potential of the Centrelink model for delivery and linking of human services.
Since its inception in 1997, Centrelink has been working hard to create an efficient, customer-focused
organisation that is highly responsive to government policy requirements. Major process
improvements this year have produced important acrossthe-board efficiency gains, particularly in the
high profile area of call centre responsiveness.
While much remains to be done, and plans are in place for further efficiency gains, this year’s work
has provided a reliable platform from which Centrelink can now look forward and begin to deliver
some of its real potential.
Summary of Significant Issues and Development
The Hon. Larry Anthony MP was appointed Minister for Community Services on 29 July 1999.
Throughout the year, Centrelink supported the Department of Family and Community Services
(FaCS) in planning the provision of increased assistance to families, flowing from A New Tax System.
As part of this exercise Centrelink consolidated 12 complex payments into three, all payable from a
single agency—a new Family Assistance Office (FAO). This initiative has made it significantly easier
for families to access services and payments. This major achievement was marked by the opening on
1 July 2000 of 550 FAO sites located in Centrelink, Medicare and Australian Taxation offices (ATO)
across the country. This unique partnership involving three separate government agencies will
provide a one-stop-shop service to more than two million families.
This year has seen the seamless introduction of the new Payment Cycles arrangements, which
removed the fixed payment day that applied in many of the various payment streams. Our customers
now have more choice about how they can access payments. At the same time, Centrelink tightened
control on ‘over the counter’ part payments that were adding significantly to work load while offering
little return in terms of outcomes for customers.
Centrelink has one of the largest information infrastructures in Australia. It supports high profile
community support payments, protects private information and processes transactions on a scale not
replicated elsewhere in the country. Year 2000 represented a threat to that security and reliability.
Centrelink took this threat seriously and put in place a contingency plan that included disaster
modelling and a ‘time machine’ that tested every facet of our systems, rolling them into the Year 2000
and out again some 14 times. This was done at a cost much lower than both public service and
industry standards for organisations of our size and complexity. We moved smoothly through the
transition into the New Year without incident, thanks to the dedication and professionalism of our Year
2000 compliance team.
Good progress was made in the market testing of our Information Technology (IT) infrastructure.
Considerable effort went into ensuring that the outcomes of this critical activity will be successful for
both Centrelink and the chosen provider.
The National Support Office was restructured during the year to make it more clients focused and
better positioned to anticipate and manage change. As part of this restructuring, we created a Service
Integration Shop to support business development activities and achieve consistency and best
practice across the organisation.
Centrelink successfully managed the transition from cash accounting to an accrual accounting
framework for budget estimates. Centrelink is continuing to develop a business-like culture in
managing expense and capital budgets and expects this process to be completed within 12 months.
During the year, Centrelink responded positively to the Welfare Reform, instituted by Senator the
Hon. Jocelyn Newman, Minister for Family and Community Services, and to the Regional Australia
Summit. Our involvement demonstrated that Centrelink is an important asset for government by virtue
of its nation-wide infrastructure, its involvement with communities everywhere, and the trust and
respect those communities accord the organisation. It is expected that the Government will want to
build on these strengths in the coming year, especially in rural Australia.
We look forward to a strong role in making sure the Government’s plans for Welfare Reform are
successful.
A feature of the year has been the increasing emergence of community partnerships and strategic
alliances such as Rural Transaction Centres. Recent surveys indicate that the majority of our
customers (95 per cent) strongly support the importance of having a Centrelink Customer Service
Centre as an integral part of, and physically located in, their local community.
This year has seen continuing improvement in the employment market. Centrelink is funded in line
with customer number variations, including job seeker numbers, and we have, therefore, had to
adjust network resourcing levels in line with the decrease in job seeker numbers.
The Preparing for Work initiative was launched by Centrelink this year and represents a significant
improvement in the delivery of employment services to job seekers. Promoted as ‘Helping you find
work’, this initiative represents a more integrated, structured and personalized service for job seekers
that reinforces Centrelink’s role as the gateway for employment assistance services. All job seeker
contacts are now structured to incorporate the key elements of assessment, planning, referral and
follow up.
New arrangements for the delivery of Job Network services took effect from 28 February 2000 with
the commencement of Round 2 Job Network contracts. Working in close cooperation with the
Department of Employment, Workplace Relations and Small Business (DEWRSB), Centrelink played
a major role in providing information about the changes and supporting the transfer of affected job
seekers to new service providers.
There has been an increase in registrations by Indigenous job seekers as a result of cooperation
between Centrelink, DEWRSB and the Aboriginal and Torres Strait Islander Commission (ATSIC) on
joint strategies. Through visits to Indigenous communities we have been able to identify Indigenous
job seekers, link them to the Job Network and issue them with Indigenous Wage Assistance Cards.
Centrelink also worked cooperatively with Community Development and Employment Projects
(CDEP) to introduce the CDEP Participant Supplement from March 2000, which also provided access
to social security ‘add-ons’ such as the Health Care Card and Rent Assistance.
With an enhanced focus on improving services to rural and remote Indigenous communities,
Centrelink has opened a small office in Maningrida NT, and an Indigenous Call Centre in Kalgoorlie
WA. We will continue to engage community leadership to help us to maximise services to Indigenous
customers and communities.
Overview of Performance and Financial Results
This year’s report gives an account of our achievements against our outcome, output and our goals
and we are able to report strong results in most measures, including a pleasing lift in most areas of
staff satisfaction, an area we targeted for specific improvement in last year’s report.
Relationships with our clients have continued to improve this year; however we have been
disappointed with our performance in meeting key performance indicators. This applies particularly to
the indicators in the Business Partnership Agreement with DEWRSB.
While there were a variety of reasons for this less than optimal result—some outside Centrelink’s
control—many lessons have been learned about setting of targets and the management of
achievement of those targets.
As a result of these lessons, enhanced management information systems are a priority to facilitate
easy access to information on the performance of individual offices and teams. We have also
negotiated ‘stretching’ but achievable targets with our clients rather than accepting targets where we
had grave doubts that they could be achieved.
The success story in 1999–2000 has been the turnaround in Call Centre performance. Productivity
increased by nearly 50 per cent and customer satisfaction by 15 per cent with average response
times reducing from 177 to 70 seconds. Despite answering 22.5 million customer calls, an increase of
more than 2 million on 1998–99, our busy rates declined by nearly 60 per cent. Further improvements
are planned for 2000–01.
Overall service standards have improved and customers, particularly those in rural Australia, have
reported an increase in satisfaction with Centrelink’s people, services and information. On top of this,
we have received our highest ever customer ratings for our Customer Service Centres and Call
Centres.
Centrelink produced a sound financial result for the reporting year with its Annual Financial
Statements again being signed by the Auditor-General without qualification.
We achieved:
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a significantly improved operating result with a surplus before abnormal items of $24.8 million;
the return to Government of all required efficiency dividends totaling $210.8 million and
incorporating a 10 per cent reduction in fees paid by client agencies, a standard efficiency
dividend of an additional 1 per cent (cumulative each year) of total net operating costs and a
dividend of $25.4 million;
a positive cash position of $55 million without recourse to borrowings; and
a positive net equity position.
The Next 12 Months and Beyond
The theme for Centrelink’s Business Plan 2000–01 is doing our Current Business Better. The
Business Plan identifies seven key objectives, which are outlined in Chapter 1, Introducing Centrelink,
page 2. The Business Plan will be used throughout the organisation as the basis for detailed business
improvement plans.
Centrelink has embarked on the development of a new service delivery model. The new model
means that Centrelink will deliver one-to-one service based on a customer’s ‘life events’. ‘Life events’
are experiences such as having a baby, looking for a job, planning for retirement or arriving to settle
in Australia.
The Centrelink ‘life events’ model of service delivery is being developed in consultation with client
departments. The first critical step in developing the new service delivery model was the
implementation of one-to-one service, which was completed at the end of 1999. Centrelink’s one-toone service is a personalised approach to service delivery and is increasingly being delivered around
the ‘life events’ approach. We are also exploring how to take advantage of the Internet for online
service delivery and to position Centrelink for the Government’s Welfare Reform Agenda.
Improving Centrelink’s people management, our least satisfying Balanced Scorecard performance
indicator for the last two years, will be a critical factor in our readiness to meet the demands of the
new model. It remains, for the Board and management, one of our greatest challenges and it will be
the target for substantial effort at all levels throughout Centrelink during 2000–01.
The effective delivery of programs and services in rural and remote areas will continue to be a key
priority with a particular focus on increasing services through agents and electronic service delivery.
During the New Year, we intend to sharpen our focus on outcomes and improve consistency through
the continued development of a performance-driven culture. While we have been able to demonstrate
excellence in specific areas, our challenge for the future is to exceed expectations across all activities
at all times. We will need to refine and possibly reduce the present number of key performance
indicators to better measure performance in an environment of continuous improvement and the
pursuit of excellence.
Conclusion
I thank the ever increasing number of clients for putting faith in us to deliver services in a way which
meets both their own and their customers’ needs. I also thank members of the Board for their
contributions to Centrelink during 1999–2000. In particular, I want to acknowledge Mr Robin Marrett,
the inaugural Chairman of the Board, who retired on 26 July 2000, for the part he played in guiding
Centrelink’s development. I also acknowledge the efforts of Mr Philip Pearce, who was a member of
the Board and Chair of the Quality Committee until he passed away on 22 October 1999.
The Board was pleased to welcome its new Chairman, Mr John Pascoe AM, and new member, Mr
Don Fraser, who bring to it a wealth of experience in corporate strategy and planning and customer
service networks.
Most of all, I want to particularly acknowledge the hard work of our people—they have coped well with
a rapidly changing organisation and an array of new government policy initiatives over the past 12
months.
Centrelink will continue to make a difference to the people of Australia by delivering the Government’s
social policy agenda at increasing levels of service and cost efficiency. We intend to exceed the
Government’s expectations of the organisation.
Sue Vardon
Chief Executive Officer
Message from the Chairman
Centrelink is widely recognised as an innovative and leading edge provider of government services
and, therefore, it is with much pleasure that I have accepted the appointment of Chairman of the
Centrelink Board of Management.
I acknowledge the efforts of Mr Robin Marrett, the inaugural Board Chairman, for the part he played in
guiding Centrelink’s early development. I look forward to working with Sue Vardon, the other Board
members and the Centrelink team in building on the solid foundation and successes achieved in
Centrelink’s first three years of operation.
John Pascoe AM
Chairman
3. Performance Report
Table 2: Centrelink’s Performance at a Glance; Figures 2–5: Our Results
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements
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OUR PEOPLE
Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites
OUR COST EFFICIENT
ORGANISATION
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Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
OUR INNOVATIVE
ORGANISATION
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements
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To create an environment
where Centrelink’s people give
value to customers, client
agencies and the community
through their skills and
commitment to service.
Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites
To manage our business
efficiently and return a dividend
to Government.
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Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
To provide innovative and
personalised solutions,
consistent with Government
policy.
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements
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Figure 4
Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites
Figure 5
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


Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
Centrelink provided an
Expense Budget of $65m for
projects in 1999–2000 funded
from maintenance money. This
was allocated between projects
focusing on enhancing current
operations, implementing
legislative requirements and
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements







Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites





Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
developing and enhancing
future electronic service
delivery. In order to ensure that
the limited funding was spent
on the most important issues,
projects were centred around
the outcomes specified in the
current Business Plan and
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements







Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites





Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
future service delivery
mechanisms. The service
delivery enhancements include:

Centrelink Online, which
provides the infrastructure
to support the Call Centre
and Families Tax System
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements







Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites







Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
Call Centre Automation,
which will improve the
timeliness and effectiveness
of services
Seed funding to explore
various options to support
electronic service delivery of
the ‘life events’ model
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements







The results show data collected
and reported quarterly. The
significant improvement
recorded in the October–
December quarter is attributed
to very positive staff poll
results.
Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites
The results show year to date
variance in planned and actual
operating results before
abnormal items. Centrelink
incurred a net operating deficit
of $4.9m (after abnormal items)
for the year 1999–2000.





Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements









Implemented the new Public 
Service Act 1999
Conducted two staff polls
showing the overall level of 
staff satisfaction has
generally improved
Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites
Improved operating result
with a surplus before
abnormal items of $24.8m
Returned to Government
the prescribed efficiency
dividend of $210.8m







Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
Improved the Call Centre
system to include Global
Call Handling
Conducted Multimedia
Payphone trials in
partnership with HIC,
DEWRSB and Telstra
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements









Received public recognition
for Workplace Diversity
initiatives
Improved workers’
compensation management
led to a reduced prescribed
premium for 2000–01


Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites
Made additional savings of
$18m from national contract
management
Established the Cost
Optimisation Project to
enhance Centrelink’s
approach to strategic cost
management







Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
Participated in the TIGERS
project to improve service
delivery
Developed a draft version of
the Enterprise Architecture
to enhance Centrelink’s
ability to deliver new and
OUR CLIENT
PARTNERSHIPS
OUR CUSTOMERS AND
COMMUNITY
Our Key Result Areas
(Strategic Goals)
To build partnerships with client
agencies that deliver the
required results and provide
value for money.
To increase customer and
community involvement and
satisfaction with services.
Our Results
Figure 2
Figure 3
Our Outcomes
The results show outcomes
against all key performance
indicators set by client
agencies. The outcomes for
July–November reflect the
1998–99 scorecards, which
was replaced in October 1999.
Since that time, overall
performance remained
relatively stable against an
increased number of key
performance indicators.
The results show the average
level of customer satisfaction
across a range of Centrelink
services, with the overall target
represented as ‘1’. Although in
May 2000 overall satisfaction
with the quality of service fell by
4% to 66% nationally, this was
still 1% above the rating
achieved 12 months earlier.
Our Achievements








Improved productivity and
received a 2.5% pay rise in
July 2000
Retained 100% of existing
business and gained new
business
Commenced partnerships
with seven newly
established Rural
Transaction Centres
Achieved 2% above
benchmark for social
security compliance reviews
Implemented the reforms of
the Social Security
(Administration) Act 1999
Launched the Preparing for
Work initiative
Increased number of
Veterans’ Information
Services to 15 sites







Increased customer
satisfaction in Customer
Service Centres and Call
Centres
Increased Call Centre
performance and
established new Indigenous
and Rural Call Centres
Implemented one-to-one
customer service
throughout the network
Implemented the Payment
Cycles arrangements
Established a range of
community partnerships and
strategic alliances
Expanded Centrelink
services for Indigenous
customers in rural and
remote areas
changed business services
rapidly
Developed the Rural CDROM to increase support for
rural agents
Developed 1Business, the
Centrelink Education
Network and CentreThink
The Balanced Scorecard
The key instrument for measuring and reporting Centrelink’s performance in 1999–2000 is the
Balanced Scorecard.
The 1999–2000 Balanced Scorecard was developed last year through an extensive consultative
process. In September 1999 the Board of Management agreed to adopt the revised Scorecard.
Performance measures underlie each Key Result Area of the Scorecard, which correspond directly to
the goals in the Strategic Framework.
New measures introduced in the 1999–2000 Scorecard are designed to better reflect our business.
For example, a wide range of key performance indicators contained in the Business Partnership
Agreements with our client agencies are now measured in the Scorecard. Performance for each
scorecard measure is expressed against the relevant target or standard for that measure.
There has been greater acceptance of this revised Scorecard as a planning and monitoring tool with
increased alignment to corporate governance, performance feedback and strategic directions. The
Scorecard will be applied to each operational unit in Centrelink during 2000–01, improving
consistency and comparability across the organisation.
Performance against the Scorecard was reviewed monthly by the Board of Management in order to
identify and remedy emerging problems at an early stage.
Figure 6: 1999–2000 Centrelink Balanced Scorecard
4. Our Client Partnerships
Goal
Centrelink’s goal is to build partnerships with client agencies that deliver the required results and
provide value for money. The Balanced Scorecard measures our performance towards this goal
through the Client Partnerships Key Result Area.
Overview
Centrelink is committed to developing and maintaining strong partnerships with its clients to assist in
the effective delivery of government outcomes. By providing integrated access to a range of
Commonwealth Government services, Centrelink aims to achieve best practice in service delivery for
its clients, customers and the Government.
Centrelink’s Community Segment Teams and the Business Development Unit have worked
proactively with our client agencies this year under the purchaser/provider framework, which
formalises these relationships through our Business Partnership and Service Level Agreements (see
Chapter 1, Introducing Centrelink, page 4 for more information).
The Community Segment Teams have prime responsibility for ensuring that client agency policies are
properly implemented through the effective delivery of services to the community. These teams
provide direct support to staff within the Centrelink network through close links with client agencies,
development of consistent and integrated service delivery strategies and a continual focus on
improving the quality of services.
The Business Development Unit’s role is to support the Community Segment Teams in establishing
and maintaining their relationships with client agencies, to develop new business for Centrelink and to
negotiate Business Partnership Agreements.
Key Strategies
Centrelink business strategies and activities are designed to:






build client agency loyalty by delivering Business Partnership Agreement outcomes;
better inform clients about program and delivery performance;
deliver value for money services that meet or exceed client requirements;
identify and develop new business opportunities and priorities;
develop Centrelink’s business capability platform; and
deliver performance-assured products and services.
Focus
To achieve our client partnerships goal this year Centrelink has focused its energies on increasing the
percentage of our business which is covered by long-term Service Level Agreements and improving
the delivery of client agency outputs as specified in our Business Partnership Agreements. Our
endeavours have also been focused on working efficiently and effectively with our clients to assist
them in maximizing government outcomes.
Outcomes Achieved
Client Agency Satisfaction—Consolidating Relationships
Until recently client agency satisfaction has been recorded in the Balanced Scorecard through the
measurement of the number of Business Agreements that have been renewed with existing clients.
During 1999–2000 Centrelink retained 100 per cent of its existing client base and entered into
arrangements with a number of new clients. At 30 June 2000, Centrelink had arrangements with the
following client agencies:













Department of Family and Community Services (FaCS), including the Child Support Agency
(CSA);
Department of Education, Training and Youth Affairs (DETYA);
Department of Employment, Workplace Relations and Small Business (DEWRSB);
Department of Agriculture, Fisheries and Forestry (AFFA);
Department of Health and Aged Care (Health), including the Office of Hearing Services;
Department of Transport and Regional Services (DoTRS);
Department of Veterans’ Affairs (DVA);
Australian Electoral Commission (AEC);
Department of Communications, Information Technology and the Arts (DOCITA);
Tasmanian State Government;
NSW State Government;
State and Territory Housing Authorities; and
Department of Foreign Affairs and Trade (DFaT).
Client Agency Satisfaction—Value for Money
During 1999–2000 the Balanced Scorecard performance measure for Client Satisfaction was revised
and will now be determined through the ‘Value for Money’ question on the Client Agencies Survey.
This survey will form part of Centrelink’s integrated research framework and is currently being
developed as a major priority for 2000–01.
Business Partnership Agreement Outcomes
Department of Family and Community Services
Centrelink completed 1999–2000 by meeting a substantial majority of FaCS performance targets.
While a number of different indicators have been agreed with FaCS to assess Centrelink’s
performance across the various program types, timeliness and accuracy remain the two key
performance measures.
Centrelink exceeded the FaCS Business Partnership Agreement timeliness standards for
approximately 83 per cent of all payments during 1999–2000. Call Centre wait times have also
continued to be well under the agreed standard despite a sharp increase in FAO and tax reformrelated enquiries during the latter part of 1999–2000 (see Chapter 5, Our Customers and Community,
page 45).
As the principal service delivery agency for FaCS, Centrelink has prime responsibility for the delivery
of specific products and services to the Australian community to a set of agreed standards. Centrelink
has worked very closely with FaCS during the year to further refine the Business Partnership
Agreement and strengthen this service delivery relationship. Building on this successful partnership,
on 26 June 2000, Centrelink and FaCS signed the Business Partnership Agreement 2000–01.
Table 3: FaCS Timeliness and Accuracy Performance
KEY PERFORMANCE
INDICATOR
TIMELINESS
ACCURACY*
Target
Performance
Target
Performance
%
%
%
%
Age Pension
80
87
95
98
Disability Support Pension
70
73
95
98
Sickness Allowance
85
81
95
98
Carer Payment
80
89
95
98
Carer Payment
70
93
95
97
Mobility Allowance
85
84
95
99
Newstart Allowance
80
84
95
99
Mature Age Allowance
80
94
95
99
Partner Allowance
80
95
95
99
Youth Allowance
70
80
95
99
Austudy Payment
70
73
95
98
Family Allowance
85
94
95
97
Family Tax Payment
85
95
95
99
KEY PERFORMANCE
INDICATOR
TIMELINESS
ACCURACY*
Parenting Payment (Partnered)
80
91
95
97
Parenting Payment (Single)
90
95
95
98
Maternity Allowance
85
95
95
98
Widow Allowance
75
88
95
99
Special Benefit
90
69
95
98
* The accuracy performance figures above have been extracted using Centrelink’s Procedure and Accuracy Checking
Tool for the period 1 July 1999–24 May 2000. From 25 May 2000, Centrelink began upgrading its accuracy checking
software to Quality Online.
Major Initiatives
During the year Centrelink:












implemented the following budget initiatives:
– Newly Arrived Residents Waiting Period policy;
– Special Employment Advance; and
– Moving to an Area of Lower
Employment Prospects.
implemented the Social Security (Administration) Act 1999 changes for service delivery (see also
Chapter 5, Our Customers and Community, page 44);
developed REMOVE, an Intranet tool to help provide job seekers with quick replies to their
relocation queries (see Chapter 8, Our Innovative Organisation, page 105);
issued Health Care Cards to foster carers for the first time as part of the new Foster Carer
Package;
implemented the extension of Family Allowance to families with dependent children aged 16–24;
developed the Portability Simplification and Comparable Foreign Pension projects;
participated with FaCS in a series of workshops with Indigenous families which resulted in an
Extended Family Care Pilot program now taking place in Queensland, New South Wales and
South Australia;
commenced a banking trial with the Tangentyere Community near Alice Springs to assist
Indigenous customers in transferring from cheque/food voucher payments to the use of banking
services (see also Chapter 5, Our Customers and Community, page 53);
introduced Crisis Payment to customers eligible for a Centrelink primary payment who were
released from jail, or who were suffering domestic violence and unable to return home, or
experiencing a major crisis preventing return to home;
introduced the CDEP Participant Supplement and developed a new administrative system in
partnership with ATSIC to manage responsibilities with CDEP participants and social security
payments (see also Chapter 5, Our Customers and Community, page 52); and
implemented the extension of Mutual Obligation to job seekers aged 25–34 years (a joint initiative
with DEWRSB).
Department of Education, Training and Youth Affairs
Centrelink’s overall performance in meeting DETYA outputs has been pleasing with all key
performance indicators being achieved, with the exception of Literacy and Numeracy placements.
While the number of referrals that resulted in placements in Literacy and Numeracy training was
lower than anticipated, the implementation of a number of measures through the year resulted in a
substantial improvement over the number of placements achieved in 1998–99.
Table 4: DETYA Performance Summary
KEY PERFORMANCE
TARGET
PERFORMANCE
Literacy and Numeracy
Assessment referrals
15 000 pa
17 339
Literacy and Numeracy
placements
11 400 pa
9 254
New Apprenticeship Access
Programme referrals
500 pa
1 053
Advanced English for Migrants
Programme referrals
3 200 pa
3 072
Referral and Placement
Service
There were different performance measures during the financial year for the following DETYA
payments:

Effective from 1 July 1999 to 31 December 1999:
 ABSTUDY and Assistance for Isolated Children (AIC)—finalise completed applications within
seven working days of receipt at the relevant Centrelink processing centre; and
 Correctly determine eligibility, entitlement and payment destination.

The following measures were effective post 31 December 1999:
 Process ABSTUDY and AIC payments within 21 days of claim lodgement; and
 Accurately determine sampled grants and reassessments.
Table 5: ABSTUDY and AIC Performance 1 July 1999 to 1 December 1999
KEY PERFORMANCE
INDICATOR
TIMELINESS
ACCURACY*
Target
Performance
Target
Performance
%
%
%
%
ABSTUDY
70
67
95
97
AIC
70
81
95
99
Note: The above data relates to claims processed on the Education Student Assistance Scheme
(ESAS) system to the close of the processing period. The processing period ceased in October 1999
and ESAS also closed at this time.
Table 6: ABSTUDY and AIC Performance 1 December 1999 to 30 June 2000
KEY PERFORMANCE
INDICATOR
TIMELINESS
ACCURACY*
Target
Performance
Target
Performance
%
%
%
%
ABSTUDY
70
72
95
97
AIC
70
75
95
99
Note: The above data relates to the processing period which commenced in December 1999 and ended at 30 June 2000
on CEPS.
Figure 7: DETYA Referrals and Placements Performance Summary
Major Initiatives
During the year Centrelink:





implemented the Centrelink Education Payments System (CEPS), replacing SAS (see Chapter 8,
Our Innovative Organisation, page 103);
introduced the ABSTUDY 2000 policy;
actively participated in Youth Week activities (see Chapter 5, Our Customers and Community,
page 57);
developed an outreach package for the Centrelink network that included information on DETYA
programs for young people; and
Participated in the DETYA Youth Roundtable (see Chapter 5, Our Customers and Community,
page 58).
Compliance Activities—FaCS and DETYA
The Compliance Benchmark is a performance indicator in the Key Result Area of Client Partnerships,
under the 1999–2000 Balanced Scorecard. It is composed of four elements:




FaCS Compliance Reviews
DETYA Reviews
Prosecution Referrals
Child Care Service Reviews
Further information on debt prevention activities can be found in Chapter 7, Our Cost Efficient
Organisation, page 95 and Appendix ix, Compliance, page 219.
FaCS Compliance Reviews
Compliance review activity focuses on cases considered at high risk of incorrect payment as a result
of fraud, misrepresentation, error or omission on the part of the customer. Risk-based reviews are
conducted where there is a documented risk of incorrect payment, and include:



data-matching;
tip-offs from the public; and
Risk-based algorithm reviews.
The benchmark for FaCS compliance review activity totalled $698.6 million in savings and debts.
Against this, compliance reviews achieved $712.8 million in combined savings and debts, 2 per cent
above the benchmark.
DETYA Reviews
Reviews of entitlements are conducted for recipients of ABSTUDY and AIC where there is considered
to be a high risk of incorrect payment due to fraud, misrepresentation, error or omission on the part of
the customer. Risk-based review activity includes enrolment checking, tip-offs from the public and
data-matching. The benchmark for savings and debts from DETYA compliance activity is $10.4
million. Against this, DETYA reviews achieved $12.7 million, 22.4 per cent above the benchmark.
Prosecution Referrals
The benchmark for prosecutions was set at 4000 referrals to the Director of Public Prosecutions. This
comprises 3950 FaCS payment cases and a further 50 DETYA payment cases. Against this, a total of
4023 cases were referred to the Director of Public Prosecutions for consideration of prosecution
action during 1999–2000, 0.6 per cent above the target. Of these, 3967 were FaCS cases and 56
were DETYA cases.
Child Care Service Reviews
Regarding child care services, Centrelink agreed to conduct a total of 1000 reviews and
outreach/educational visits nationally. These reviews are conducted to ensure correct payments are
made to providers under the Child Care Service program. This benchmark was included in the FaCS
1999–2000 Business Partnership Agreement. Centrelink conducted 916 reviews and 493 educational
visits (1409 in total), 40.9 per cent above the benchmark.
Overall Compliance Achievement
The overall achievements against the Compliance Benchmarks are shown in Figures 8 to 11 below.
Figure 8: FaCS Compliance Reviews
Figure 9: DETYA Reviews
Figure 10: Prosecution Referrals
Figure 11: Child Care Service Reviews
Department of Employment, Workplace Relations and Small Business
The 12 DEWRSB key performance indicators continued to be a challenge for Centrelink during 1999–
2000. Steady improvement has been achieved against those key performance indicators for which
data has been available. Initiatives such as the new Sprite (see Chapter 8, Our Innovative
Organisation, page 104), Preparing for Work Agreements, and improvements in system interfaces will
enhance our ability to make further progress towards achieving key performance indicators over the
coming year.
Table 7: DEWRSB Performance Summary KEY PERFORMANCE TAR
KEY PERFORMANCE
INDICATOR
TARGET
PERFORMANCE
Job Seeker Satisfaction
80%
79%
Enrolment for Job Matching
100% within 28 days
74%
Job Network Members—
Breaches applied
60% of JNM breach
notifications are applied
58%
Job Network Members—
Breaches maintained
75% of decisions are
maintained
80%
KEY PERFORMANCE
INDICATOR
TARGET
PERFORMANCE
Intensive Assistance Point-inTime Capacity (Job Network
Members)
100% JNM above
97%
Intensive Assistance Point-inTime Capacity (Job Network
National)
90%
98%
Job Search Training contracted
places filled
100%
80%
Indigenous Intensive
Assistance
6.2%
5.2%
Work for the Dole Point-in-Time
Capacity
75%
49%
Work for the Dole Breach
action
85%
65.7%
Work for the Dole—placements
32 500
39 778
85% PITC
Table 8: DEWRSB Service Provider Satisfaction Summary
KEY PERFORMANCE
INDICATOR
TARGET
PERFORMANCE
%
%
Job Seeker Satisfaction—
Overall Services
80
79
Service Provider Satisfaction—
Overall Services
80
87
Major Initiatives
During 1999–2000 Centrelink:






upgraded the Employment Self Help facilities in a number of Sydney Olympic gateway sites to
enable job seekers to automatically match their résumé against vacancies in the national vacancy
database;
facilitated the transfer of job seekers to the new Job Network members as part of the
implementation of Round 2 Job Network contracts;
implemented the Return to Work program;
managed Centrelink aspects of the introduction of Community Work Coordinators as part of
changes to Work for the Dole;
implemented the extension of Mutual Obligation to job seekers aged 25–34 years (a joint initiative
with FaCS); and
developed the Preparing for Work Agreements initiative, which was implemented on 1 July 2000.
Department of Agriculture, Fisheries and Forestry
Centrelink continued to deliver Farm Help—Supporting Families through Change, Exceptional
Circumstances Relief Payment (ECRP) and ex-gratia payments (for Newcastle disease and farmers
in hardship in central north-east South Australia) during 1999–2000 on behalf of AFFA. In response to
audit findings early in the year, Centrelink has introduced a Rural Processing Unit in Area West
Victoria from 1 July 2000 to address concerns around poor timeliness performance for Farm Help.
Monitoring by the unit and streamlining of processes will assist in improving timeliness performance.
These changes were made in consultation with the client department to provide a more responsive
service to farmers.
ECRP’s performance was affected due to the fact that customers are able to be paid up to six months
in arrears from the time a claim is lodged, based on the commencement date of their Exceptional
Circumstances certificate. Centrelink is currently investigating processes to ensure the timeliness
standard is based on when the claim is lodged rather than the date from which arrears payments
apply.
Major Initiatives
During 1999 Centrelink was engaged by AFFA to deliver a major component of the new Dairy
Industry Adjustment Package, the Dairy Exit Program. This program is designed to assist dairy
farmers through the transition to a deregulated milk market from 1 July 2000 and Centrelink’s role is
to assess the entitlements of eligible dairy farmers and deliver exit payments. Service Level
Agreements are being negotiated with the Australian Dairy Corporation and Dairy Adjustment
Authority to deliver this new program.
Table 9: AFFA Performance Summary
KEY PERFORMANCE INDICATOR
TIMELINESS
Target
Performance
%
%
Farm Help
80
71
ECRP
80
38
Note: The Farm Help key performance indicator relates to the percentage of Restart Income Support
claims granted within the agreed timeframe.
Table 10: CSA Performance Summary
KEY PERFORMANCE INDICATOR
Child Support Applications processed
TIMELINESS
Target
Performance
%
%
95
79
Child Support Agency
The co-location of the CSA at 21 Centrelink sites this year has provided a one-stop-shop for
CSA/Centrelink customers. Importantly, Centrelink and CSA are committed to working together over
the following year to improve the timeliness of the customer registration process. A best practice
document has been developed in consultation with the CSA and Area Support Offices and system
enhancements are being investigated.
Major Initiatives
During 1999–2000 Centrelink:



improved the Registration Reform Practices;
implemented the Government’s $260 minimum liability initiative; and
Formalised CSA visiting service arrangements throughout the Centrelink network.
Department of Health and Aged Care
During 1999–2000 Centrelink continued to improve its processing of income assessments for aged
care residents, to enable Health to determine residential care fees. Centrelink consulted with key
stakeholder agencies to streamline processing, and has also undertaken considerable additional work
to finalise income assessments for a significant number of aged care residents. Enhanced monitoring
of processing performance has also been introduced across the network.
Major Initiatives
Centrelink submitted a bid for Health’s $42 million four-year tender to establish Carelink Centres in
each Home and Community Care region across Australia. As at 30 June 2000, the outcome of the
tender had not been announced.
Table 11: Health Performance Summary
KEY PERFORMANCE INDICATOR
TIMELINESS
Target
Performance
%
%
Matching and providing data to Health within 3
working days
85
85†
Matching and providing data to Health within 8
working days
100
88†
Assessing Non-Pensioner income details within
5 working days
85
100‡
Assessing Non-Pensioner income details within
10 working days
100
100‡
Income assessment updated within 5 working
days
85
99§
Income assessment updated within 10 working
days
100
99§
* Data not available for May 2000.
† Data relates to timeliness performance from start of aged care income assessment in March 1998 to 30 June 2000.
‡ Data relates to timeliness performance during 1999–2000.
§ Data relates to the population of aged customers as a whole; data specific to aged care residents is not available.
Timeliness data relates to performance during June 2000.
Office of Hearing Services
On behalf of the Office of Hearing Services, Centrelink maintains a Freecall™1800 telephone service
to customers seeking referral to hearing services.
Centrelink also processes applications for hearing assessment, hearing rehabilitation and the
selection and fitting of hearing aids.
Measurable performance targets were achieved for approximately three quarters of 1999–2000. The
final quarter saw performance drop below the target of 95 per cent of applications processed within
three working days of receipt. This was generally attributed to staff turnover. An internal review of
processes has been completed, together with the development of a training/retraining program.
Centrelink has now implemented more streamlined procedures, which should position it to achieve
agreed targets in 2000–01.
Department of Transport and Regional Services
During 1999–2000, Centrelink has implemented the Tasmanian Freight Equalisation Scheme (TFES)
Rate Review for DoTRS, as well as managing an increase of 25 per cent in the number of claims
withinexisting resources. An organizational review of Centrelink’s Tasmanian Freight Assistance team
has been undertaken as well as an internal audit on service delivery. Customer feedback obtained
during the year has also shown a high level of customer satisfaction.
Department of Veterans’ Affairs
In 1999–2000, Centrelink further increased the number of sites at which it offers an Information
Service to the veteran community on behalf of DVA. Located within Centrelink Customer Service
Centres, this service offers a separate waiting area for veterans and is staffed by specialist
information officers trained by DVA. In three sites, Centrelink also has agreements with DVA to
provide a Community Advisor Service for the veteran community.
Major Initiatives
Centrelink successfully tendered in 1999–2000 to provide further Veterans’ Information Services in
Bega, Mackay, Roma, Gladstone and Thursday Island. Veterans’Information Services are now
available in 15 Customer Service Centres in New South Wales, Queensland and South Australia, with
a site to be opened in Tasmania in July 2000.
(See also Chapter 5, Our Customers and Community, page 51.)
Table 12: DoTRS Performance Summary
ACTIVITY
TARGET
PERFORMANCE
Claims Arrears
< 60 days
109
Timeliness—TFES
< 8 days
7.9
TFES Claims Age (<15 days)*
100%
90.2%
*Calculated as a percentage of claims on hand where individual claims aged over 15 days could be
counted up to four times per month due to time taken to complete processing.
Australian Electoral Commission
Centrelink has been working cooperatively with the AEC in implementing the recommendations of the
1996 Joint Standing Committee on Electoral Matters. This arrangement has contributed to an
increase in the participation rate of electors and to improved accuracy of the electoral roll.
Department of Communications, Information Technology and the Arts
Centrelink operates the Government Information Centre in Launceston, Tasmania, on behalf of the
Office for Government Online, DOCITA, in cooperation with the Tasmanian State Government. The
Government Information Centre provides Call Centre access for information about government
services in Tasmania (see also Chapter 8, our nnovative Organisation, page 106).
Tasmanian State Government
Operating under a letter of intent, Centrelink has established co-located sites with Service Tasmania,
the Tasmanian Government Agency.
These sites provide a one-stop-shop for government services in five sites in Tasmania (see also
Chapter 8, Our Innovative Organisation, page 106).
NSW State Government
Centrelink provides office accommodation for the NSW State Government’s Department of Housing
at the Singleton Centrelink Customer Service Centre. To assist the Department of Housing,
Centrelink also provides reception services at this location.
State and Territory Housing Authorities
In order to assist Centrelink’s customers and all State and Territory Housing Authorities, Centrelink is
contracted to automatically deduct rent payments from customers’ accounts and then transfer the
payment to the relevant housing authority. These are voluntary arrangements whereby Centrelink’s
customers can choose to join or opt out whenever required.
Other Achievements
Centrelink’s business priorities in 1999–2000 were to continue to consolidate its business
relationships with existing clients and pursue strategic business opportunities to strengthen the
Centrelink image within the community.
Implementation of Tax Reform
As a component of the Government’s tax reform agenda, Centrelink became a partner agency with
the ATO and the HIC in a unique arrangement to establish the Family Assistance Office (FAO). FAO
will provide assistance, information and payments to more than 2 million families.
From 1 July 2000, FAO will be located in all Centrelink Customer Service Centres, Medicare Offices
and ATO sites. Families will be able to access an integrated range of family assistance payments and
services from over 550 sites across Australia. Centrelink computer systems will process all new FAO
payments for all customers.
Family payments and services will be simpler. Twelve complex payments for families with children will
be replaced with three new payments. The new payments are Family Tax Benefit Part A, Family Tax
Benefit Part B and Child Care Benefit.
Centrelink also responded to changes supporting the New Tax System as part of the Government’s
reform initiative. Work was undertaken to prepare for the major tasks of delivering savings bonuses
for older Australians and self-funded retirees, the Goods and Service Tax (GST) Assistance Scheme,
Family Adjustment Payment, increases in payments for all Centrelink customers, and changes to a
number of other payment rules, from 1 July 2000.
The savings bonuses will provide one-off tax-free payments to eligible Australians from 1 July 2000.
Around 1.5 million claim forms were issued to Centrelink’s customers, to ensure people who have
income from savings and investments are adequately compensated for the loss of purchasing power
following the introduction of the GST. As well as assessing claims from its own customers, Centrelink
will receive and process assessments done by the ATO and DVA for their customers.
A GST Assistance Scheme, for those not compensated through either the taxation or income security
systems, will be administered by Centrelink.
All payments made by Centrelink will be increased, income and assets thresholds will rise and, for
pensioners, the withdrawal rate under the income test will reduce.
Welfare Reform Agenda
Centrelink provided a submission to the Reference Group on Welfare Reform containing around 300
individual comments and suggestions from Centrelink’s service delivery network. Centrelink’s one-toone service delivery model and ‘life events’ approach were considered as part of the
recommendations contained in the Reference Group’s interim report released in March 2000. The
report and Centrelink’s submission (number 241) can be viewed at the FaCS Internet web site at
www.facs.gov.au under Welfare Reform. Centrelink will perform a key gateway role for the
implementation of the new government agenda.
Family Law Pathways
Centrelink is represented on the Family Law Pathways Advisory Group convened by FaCS. The
group’s terms of reference are to provide advice to Government on how to achieve a family law
system that provides effective support for families, coordinates customer-focused information and
services, and provides pathways that are effective and appropriate. The establishment of this highlevel group forms part of the Stronger Families and Communities Strategy, which has a key
component that focuses on outcomes to strengthen marriage and relationships. Centrelink has also
provided a full-time staff member to work for the secretariat of this committee.
Youth Pathways Action Plan Taskforce
Centrelink is involved in the taskforce’s interdepartmental committee, which supports the taskforce in
setting a five-year framework for programdelivery to youth. The framework will focus on the areas of
homelessness, family breakdown, employment, education and training, suicide prevention, early
intervention and community-based initiatives. The taskforce is made up of government and
nongovernment representatives and is chaired by Captain David Eldridge of the Salvation Army. The
interdepartmental committee includes representatives from FaCS, DETYA, the Attorney General’s
Department, DEWRSB, Health, Prime Minister and Cabinet, DoTRS and Centrelink. Centrelink
provided a submission to the taskforce and extensive feedback on the first draft of the report. The
taskforce is expected to finalise the report in September 2000 to report back to the Government.
Social Work Services
In line with their internal training and support role, Centrelink’s Social Workers are increasingly being
asked to provide training for customer contact staff in other human service organisations. In 1999–
2000, Centrelink Social Workers provided interpersonal skills training for staff working in the
electorate offices of Members of Parliament throughout Australia and for Emergency Relief providers
in four pilot sites across Australia. This training focused on improving the communication and referral
skills required when working with people with complex difficulties.
Carer Allowance
An important initiative of the 1998–99 Budget was the introduction of the new Carer Allowance which
incorporated the former Child Disability Allowance and Domiciliary Nursing Care Benefit. The
implementation of this initiative involved the transfer of 50 000 customers from Health into the
Centrelink network. The Centrelink Carers’ Team was awarded an Australia Day Award for their
innovative approach and exceptional customer service during the implementation of this project (sees
also Chapter 9, Corporate Overview, page 120 for details of other awards).
Joint Operations Groups
A series of Joint Operations Group meetings have been convened between Centrelink and client
agencies. The meetings have proved to be an excellent forum to work through operational and
technical issues in a collaborative manner. Significant progress has been made on a number of highly
complex matters as a result of recent forums. Centrelink will continue to use this forum to aid
understanding and improve outcomes for our customers.
New Business
Department of Foreign Affairs and Trade
Centrelink has recently won a three-year tender with DFaT to operate the new Passport Information
Service from the International Call Centre in Hobart. The scheduled opening date for this service is
early July 2000.
Rural Transaction Centres
Centrelink is supporting DoTRS in increasing government services to remote and regional Australia
with the establishment of Rural Transaction Centres (see Chapter 5 Our Customers and Community,
page 51).
Centrelink International Services
During the year Centrelink centralised a range of processing activities in its Centrelink International
Services unit, located in Hobart, to take advantage of specialist knowledge and skills. This unit now
has prime responsibility for the payment of foreign pensions under the Social Security Agreements
that Australia has with other countries. International Services also manages portability of Australian
pensions, reimbursement by the New Zealand Government of pensions paid by Australia to ex-New
Zealanders now living in Australia, claims for foreign pensions lodged in Australia and other issues
that cross international boundaries.
Challenges
Special Benefit was subject to an audit conducted by the Australian National Audit Office (ANAO) in
1999–2000. The ANAO concluded that there was a significant degree of non-compliance of Special
Benefit new claim assessment decisions with the Social Security Act 1991, the Guide to the Act and
other relevant guidelines. It also concluded that procedures used to monitor and report the accuracy
of assessments of Special Benefit new claims were not sufficiently reliable.
The monetary effect of the incorrect assessments was relatively small. The resulting net overpayment
of Special Benefit was estimated to be approximately $1.4 million or 2.3 per cent of total Special
Benefit payments during the period covered by the audit.
These are relatively complex claims and any one office might make only a handful each year. Hence
Centrelink has put in place an intensive monitoring program to expedite finalisation of more difficult
cases and address broader policy and procedural issues.
Management of the timeliness of Sickness Allowance processing has also been an ongoing
challenge. During 1999–2000, the Centrelink network has achieved significant improvement in
timeliness figures, but has been unable to consistently meet the agreed standard of 85 per cent within
21 days. Together, FaCS and Centrelink have closely examined the reasons for delays in processing,
including changes to entitlement and admission procedures. It was subsequently agreed to adjust the
standard to 80 per cent within 21 days, with effect from 1 July 2000. It is expected that this more
realistic estimate of the time required to process claims will be reflected in future timeliness results.
Future Outcomes
Centrelink’s priorities for our client partnerships goal for 2000–01 are to:






improve our performance in meeting all client departments’ key performance indicators;
strengthen our existing client relationships by focusing on efficiency and providing exceptional
value for money;
provide our clients with high quality informative program and delivery performance information;
work closely with clients to develop strategies to improve customer access to government services
in rural, remote and isolated areas;
implement the new integrated research framework to benchmark our performance against client
agencies, staff, customer and community expectations; and
Develop a unified, business-driven approach to risk and performance assurance.
5. Our Customers and Community
Goal
Our goal is to increase customer and community involvement and satisfaction with services. The
Balanced Scorecard measures our performance towards this goal through the Customer and
Community Key Result Area.
Overview
In 1999–2000, Centrelink has directed its attention towards improving services to customers. We
have further advanced personalised one-to-one service for customers and have improved services to
customers who live in rural and regional Australia. The provision of improved services through
Centrelink’s Call Centre network has also been a key area of focus for the year.
These and other initiatives have resulted in customers reporting an increase in satisfaction with
Centrelink—its people, services and information.
Key Strategies
Our key strategies are to:


develop a better understanding of customer and community needs and expectations;
design products and services to meet customer, community and client agency needs and
expectations, and assist Centrelink people in the delivery of service;




link customer service with people management, property plans, investment decisions and
technology rollout;
create a customer driven culture;
measure customer and community satisfaction; and
promote Centrelink’s contribution to the wider community.
Focus
The main themes within these strategies for 1999–2000 have been:






improved access to services, including the implementation of one-to-one service throughout the
Centrelink network;
improved rural and remote servicing;
building partnerships;
working with customers and the community;
improved access to services and information; and
Helping customers through difficult transitions.
Outcomes Achieved
Customer Satisfaction with Services
Centrelink continues to regularly monitor customer satisfaction with its service through its suite of
customer satisfaction surveys (see Appendix xii and Appendix xiii for more details). In the 12 months
to May 2000, there was a statistically significant increase in customer satisfaction with Centrelink—its
people, services and information—up by 1 per cent to 66 per cent. Overall satisfaction with Centrelink
rose by 2 per cent among those customers receiving rural payments. These figures represent a good
result given that there were a number of environmental factors that may well have influenced our
customers’general perceptions of government service at the time of the survey. The survey period
covered the lead-up to the launch of FAO, and other significant external changes including the
introduction of the GST and Life Time Health Cover.
Centrelink also regularly monitors customer perceptions of how well it is performing against the key
commitments in its Customer Charter. Customer satisfaction with performance against the Customer
Charter remained stable. A summary of performance against the Charter commitments can be found
in Appendix xiii and the Charter’s status can be found in Appendix xi. Customers’ awareness of the
Charter has risen 4 per cent since May 1999, but still remains quite low at only 12 per cent.
Customer Satisfaction with Service Delivery Channels
Centrelink’s two main methods of delivering services, Customer Service Centres and Call Centres,
have recorded their highestever customer satisfaction results in the 12 months to May 2000. Overall,
customer satisfaction has risen significantly for both Customer Service Centres (up 4 per cent to 77.2
per cent) and Call Centres (up 9.8 per cent to 70.1 per cent). Customers living overseas continued to
be very satisfied with the overall quality of Centrelink service (up 2 per cent to 94 per cent).
Customers accessing Centrelink services through Centrelink’s extensive network of visiting services
and agents rated the quality of these methods of access highly, with satisfaction rates of 79.7 per
cent and 83.9 per cent respectively.
Customers’ satisfaction with ease of access to Centrelink services significantly increased over the
year (up 5 per cent to 59 per cent), with room for further gains.
Centrelink’s telephone service continued to improve over the year reflected by an increase in
customer satisfaction, recorded in May 2000, against both ‘time on hold’ (up by 16.5 per cent to 32.4
per cent) and ‘ease of getting through’(up by 11.8 per cent to 60.1 per cent). ‘Ease of getting through’
is the primary key driver of customer satisfaction with Centrelink’s Call Centre service, while ‘time on
hold’ is ranked as the fourth most important key driver.
Loyalty
Since May 1999 there have been increases in customer loyalty both nationally and across our two
main service delivery channels (Customer Service Centres and Call Centres). Nationally the number
of customers who have said that ‘if another organisation could offer the same services as Centrelink,
they would remain with Centrelink’ increased by 1 per cent to 54 per cent. Levels of customer loyalty
are now consistent for both Customer Service Centres and Call Centres (at 50.1 per cent and 50.4
per cent respectively), with an increase of 2.2 per cent for Customer Service Centre customers and a
5.7 per cent increase for Call Centre customers.
Favourability
Over the last 12 months the favourability rating (the overall impression of the organisation) by
Centrelink’s customers has remained stable. In the same period the general community’s favourability
rating slightly increased for Centrelink and decreased for all other organizations measured.
Centrelink’s Value to the Community
Centrelink’s image as an organisation who cares about its customers, understands their needs and is
easy to deal with, has improved significantly since May 1999 for both Call Centre and Customer
Service Centre customers. Customers continue to place high value in having a physical Centrelink
presence in their community (95 per cent). All customer groups rated this feature highly in the 93–99
per cent range. This presence is most important to customers from Disabilities (99 per cent), Rural
(98 per cent) and Parenting Payment (Single) (98 per cent) segments.
Other Achievements
Improved Access to Services
One-to-one customer service
Centrelink made further advances in 1999–2000 towards the implementation of one-to-one service
where every customer has one main customer service officer to manage all business that cannot be
completed by the customer over the phone. One-to-one service was implemented throughout the
network by December 1999.
Having established these arrangements Centrelink is well placed to move to the ‘life events’
approach, where the one-to-one customer service officer will focus on delivering the best mix of
products and services to each customer, based on their individual needs and circumstances.
In the National Customer Satisfaction Survey conducted in May 2000, 91 per cent of those customers
who had experienced Centrelink’s one-to-one service were satisfied with the one-to-one service
arrangement.
Social Security (Administration) Act 1999
The Social Security (Administration) Act 1999 was implemented on 20 March 2000. As a result, social
security law now comprises the Social Security Act 1991, the Social Security (Administration) Act
1999, and the Social Security (International Agreements) Act 1999. The new legislation makes it
easier for customers, or their nominee, to record their intention to claim for financial assistance and to
be paid from an earlier date than might otherwise be the case.
The wide ranging reforms had a significant impact on the Centrelink network including through:



the introduction of a standard ‘Intent to Claim’ process across all social security payments and
concession cards;
the introduction of a first instalment advance on all social security pensions and benefits; and
Changes to notification responsibilities to ensure that all customers notify changes in
circumstances or the likelihood those changes will occur.
Payment Cycles Project
The Payment Cycles arrangements announced in the 1997–98 Federal Budget were implemented
very successfully by Centrelink in partnership with FaCS.
Payments can now be paid on any week day chosen by the customer and are usually made
fortnightly in arrears. Since 1 July 1999, all payments have been based on the number of days in the
entitlement period.
All affected customers were advised of the changes to their paydays and transition or adjusting
payments were made to 1.3 million customers. Members of a couple had their fortnightly entitlement
periods aligned to ensure that changes in circumstances affected both their payments in the same
manner. Decisions on the dates of effect of changes have been automated to ensure greater
accuracy and consistency when amending entitlements, thereby reducing the risk of overpayments
occurring.
The Urgent Payment Policy was reviewed taking into account the impact of Payment Cycles changes.
The new policy resulted in a significant reduction in customer enquiries and aggression related to
requests for early payments by Electronic Benefit Transfer card and manual cheque. The policy has
been favourably received by community agencies who prefer that future payments do not need to be
reduced to recover amounts issued early in the pay period. The policy takes account of the needs of
customers who are in genuine hardship.
Call Centres
In 1999–2000, Centrelink Call Centres showed unprecedented improvement in overall performance
and customer service.
Average speed of answer reduced from 177 seconds in 1998–99 to 70 seconds. Busy rates declined
by nearly 60 per cent. Centrelink Call Centres answered 22.5 million customer calls, an increase of
more than 2 million on 1998–99. During the course of the year, productivity increased by nearly 50
per cent.
In this year, Centrelink Call Centres were benchmarked internally and externally against other
Australian and international Call Centre organisations. Centrelink performed well and achieved many
Best in Class performance indicators. Further improvements will be achieved with the Business Plan
2000–01 reflecting areas that require further attention.
Improved call handling capacity resulted from a variety of factors. Firstly our recruitment practices
have been fine tuned with higher retention rates of skilled staff. Resource planning and the
employment of temporary staff to meet peak demand periods was very successful through both the
Payment Cycles implementation and also the traditionally busy Christmas/New Year period.
Online National Information pages were established to enable staff to source all Centrelink change
information in real time, thereby enhancing customer service.
The business hours of the Centrelink Call Family and Children line were extended from 8 a.m. to 8
p.m. in 1999–2000, in response to feedback from customers at Value Creation Workshops and via
Centrelink’s internal processes.
The lead-up to the implementation of the new tax system and the FAO provided challenges as it was
the largest system based change conducted by Centrelink in recent times. The number of customers
affected by this change led to unmet call demand through late June 2000 while customers enquired
about the expected changes to their payments. Extensive contingency plans enabled Centrelink Call
Centres to continually handle more than 100 000 calls per day through this busy period. An extra 400
staff (both permanent and temporary) were employed between March and August 2000 to meet this
expected demand.
Figure 12: Call Wait Time
Centrelink will continue to improve Call Centre operations with the development of automated
telephone based customer self service and Interactive Voice Response trials (see Chapter 8, Our
Innovative Organisation, page 100). Centrelink has also established a number of additional Call
Centre services:
Indigenous Service Line
The Indigenous Service Line was implemented in March 2000 as an extension of the Palmerston
Indigenous Call Centre, established in December 1998. It provides remote Indigenous customers with
personalised service by Indigenous customer service officers located in Darwin and Cairns. Its
implementation coincided with the CDEP changes (see Chapter 4, Our Client Partnerships, page 27).
Job Search Training Line
The Job Search Training Line provides services to customers on Intensive Assistance and those
requiring Job Search Training. A customised service is provided which ensures customers gain
access within 15 seconds. All performance standards, contained in the Business Partnership
Agreement with DEWRSB, were met.
Additional Call Centre
A new Call Centre was opened at Tweed Heads in March 2000. It is also a FAO site with
approximately 80 customer service officers.
Indigenous Call Centre
The Kalgoorlie Indigenous Call Centre, comprising a team of six people, began taking calls in mid
July 2000. The official launch will take place in September 2000 during National Aborigines’ and
Islanders’ Day Observance Committee week. The catchment area for the KalgoorlieCall Centre will
be remote Indigenous communities in Kalgoorlie, Geraldton and South Hedland.
Rural Call Centres
In support of the Government’s commitment to increase services to rural customers to overcome the
effects of distance and isolation, Centrelink opened the first of its Rural Call Centres in Maryborough,
Queensland, in January 2000. A second Rural Call Centre will open in mid September 2000 in Port
Augusta, South Australia. As a result, customers in rural areas of South Australia and Queensland
will now have access to a tailored telephone service. As staff employed in these new Rural Call
Centres are local, they are more familiar with the needs of our rural customers and specific rural
issues.
Consistent with the one-to-one service delivery approach, one operator handles all of a customer’s
enquiries, rather than having specialist telephone queues for different payment types.
Centrelink Multilingual Call
Centrelink Multilingual Call Centre provides the full range of Call Centre services to customers in their
own language and receives on average 20 000 calls each month. Services are provided in 19
languages. An additional nine languages are also supported via a call-back service.
Customer Appointment System
The use of appointments to complement Centrelink’s one-to-one service initiative continues to receive
a high level of customer approval. From October 1999 to June 2000, appointments on average were
available within 2.6 working days of the customer’s request. In May 2000, 80 per cent of customers
were satisfied with the appointment arrangements. Furthermore, 81 per cent of customers were
satisfied with the time and date of their appointment. There has been a significant increase in
satisfaction with the ease of making an appointment over the phone (up from 76 per cent to 79 per
cent).
Since September 1999, an electronic document is attached to each booked appointment, providing
an accurate and permanent record of the appointment. This document facilitates a seamless service
for the customer from the Call Centre to the Customer Service Centre. The appointment system is
also able to record the types of services that particular staff can provide and when those staffs are
available. Where a customer has been allocated to a one-to-one customer service officer, the
appointment system displays the next available appointment with this officer.
Customer Service Centres
Preparation for the establishment of FAO from 1 July 2000 had a major impact on Centrelink
Customer Service Centres, requiring a specifically tailored fitout involving changes to signage, image
and colour schemes.
The other main changes to Centrelink’s service delivery network during 1999–2000 included:
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Positioning Centrelink Customer Service Centres to better meet localised customer demand by
expanding shop front services. In addition, 13 Customer Service Centres were relocated to new
premises;
improving access in regional and rural Australia through the establishment of eight new small
Customer Service Centres; and
Improving access for Indigenous people, through the establishment of an alternative service
delivery model for remote Indigenous communities at Maningrida, Northern Territory.
Olympic Jobs Initiative
The Olympic Games provides a unique opportunity for job seekers to find work in Sydney in the lead
up to the Games, and during the actual Games period. Centrelink’s ‘Helping you find work—Gateway
2000 Olympics Employment Strategy’ aims to help as many job seekers as possible find paid work in
the greater Sydney area in the lead up to and during the Olympics. In this initiative, Centrelink is
working closely with retail, hospitality and catering, transport and logistics and property services (such
as security guards), as well as the Olympic Labour Network. This initiative goes beyond the
Olympics—the Olympics represent an opportunity to gain skills and experience, but the focus is to
assist people into long-term employment.
Case Based Funding Trial
In partnership with FaCS, Centrelink has participated in a trial of case-based funding, a new way of
funding disability employment services. Funding is based on a job seeker’s assessed need for
assistance in finding and keeping a job. The assessment process involves the application of the Job
Seeker Classification Instrument to 1999–2000 Annual Report 48 all participating job seekers.
Together with disability factors incorporated through the use of the Work Ability Tables, this
information is used to assign a funding band to individual job seekers.
The trial commenced in November 1999 and ended on 30 June 2000. If evaluation results are
positive, the trial will lead to a more efficient customer-focused system for funding employment
assistance services for disabled customers.
Child Care Crèches for Remote Indigenous Communities
JET Childcare Resource Workers and local community councils in a joint initiative with the Jobs,
Education and Training program (JET) established crèches at five remote communities in the
Northern Territory. JET funding has enabled training needs such as first Aid certificates to be met.
Some of the centres have extended their hours to include out of school care, which has reduced
vandalism and other inappropriate activities in the area. One site, at Bathurst Island, was awarded a
one-off grant of $20 000 from the FaCS Childcare Program. This enabled the child care centre to
extend their service to become a licensed full-time care facility, eligible for Commonwealth child care
funding.
Childcare Assistance and immunisation
The Government’s initiative to improve immunisation coverage of children by linking the payment of
Childcare Assistance to immunisation status was successfully implemented during the year. In the
months leading up to the cancellation action, many customers were contacted personally by
Centrelink staff in an effort to maximise the compliance rates and minimise inconvenience for working
families. The net effect of the campaign has been to increase immunization rates of children in child
care above the national average.
Improving Services to Families
Work progressed on a major initiative to improve customer satisfaction with our services for families.
Strategies were put in place to:
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improve accuracy and consistency of decision making, underpinned by a suite of new electronic
reference guides for families staff;
implement innovative ways of providing access to Centrelink products and services; and
Develop improved consultative mechanisms to obtain customer feedback from families and key
stakeholders.
Enclaves—Work Opportunities for People with Disabilities
Several Customer Service Centres in Western Australia have initiated innovative projects to provide
work opportunities to people with disabilities in their area. Working with local employment and training
service providers, the Customer Service Centres have provided opportunities, predominantly to
people with intellectual disabilities, to perform administrative work in cooperation with the Centrelink
team.
Trial programs have proven very successful, with several offices extending their participation on an
ongoing basis. People participating in the programs earn a productivity wage and gain increased selfesteem, independence, and work experience and communication skills. Centrelink staffs receive
valuable support in delivering service to customers, while breaking down attitudinal barriers towards
people with disabilities and learning about accommodating disabilities in the workplace.
Financial Information Service Seminars
Centrelink’s Financial Information Service (FIS) Seminars are specifically designed to inform people
about how to make best use of their financial resources and about the benefits of financial planning
for themselves and their families.
The focus in 1999–2000 has been on younger people, with well over half the participants being aged
under 55 years. A telephone booking service has been introduced to deal efficiently with demand and
to provide customers with attendance options. Of the 90 000 people who attended seminars during
the year, about 30 000 used the booking service.
Review and Appeals
By placing the majority of its Authorised Review Officers (AROs) in Customer Service Centres,
Centrelink has increased their accessibility to customers and provided a more personalised service to
customers who request a review of a decision. This has also enabled AROs to provide more direct
coaching assistance to original decision makers in making the correct decision on
customers’entitlements, particularly where the customer’s circumstances and/or policy and legislation
are complex.
There were 36 043 requests for internal review in 1999–2000, which represents a decrease of 23.9
per cent over the number of 1998–99 requests. Nationally in 1999–2000, AROs finalised 36 732
reviews within a national average time of 26 days. The corresponding figures for 1998–99 were 46
362 reviews finalised in an average of 39 days.
Improved Rural and Regional Servicing
National Strategy
Since the implementation of Centrelink’s National Rural and Regional Servicing Strategy in July 1998,
Centrelink has been tailoring its services to the particular needs of small rural and regional
communities, and has expanded its presence into over 170 new rural communities. Centrelink has
also opened new Call Centres dedicated to the needs of Indigenous and rural customers (see
Improved Access to Services: Call Centres, page 45).
Centrelink has a strong focus on working together at the local level and in seeking the views of
customers, community representatives and other private and government organisations in order to
improve services and reduce the possibility of duplication of services.
Centrelink has established partnerships with Federal, state and local governments and the private
sector to improve access to Centrelink services for rural customers.
Making Use of Technology
Centrelink has also implemented a range of technological solutions to improve services to rural and
regional customers.
These include:
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the use of forms stored electronically on CD-ROM, which support agents in their work by enabling
them to print forms for customers;
involvement in the Telstra Multimedia Payphone trials in rural Australia; and
Enhancements to Remote Access Services.
(See also Chapter 8, Our Innovative Organisation, page 101–105.)
Rural Transaction Centres
The Commonwealth Government committed up to $70 million (drawn from the Telstra Social Bonus
package) over five years to help rural communities establish 200 Rural Transaction Centres (RTCs).
RTCs provide access to basic private and government transaction services such as personal
banking, some business banking, postal services, Medicare Easyclaim, and telephone and facsimile
facilities. Rural communities with populations below 3000 are eligible for assistance to establish a
RTC.
Centrelink recognised the opportunities provided by RTCs in meeting its commitment to improve
access for rural and regional customers and has supported this program since its establishment.
When communities develop their business plans for a RTC, Centrelink is consistently one of the most
popular services requested for their community. Centrelink is present in seven of the first 13 RTCs
established, located in Eugowra, Urana (NSW), Welshpool (Vic), Port Broughton (SA) and Aramac,
Crows Nest and Dirranbandi (Qld).
Centrelink contracts the RTC as a Centrelink agent. The centre provides services for customers to
obtain information and forms, make simple enquiries, access Centrelink through a dedicated
telephone and facsimile machine, and use the Internetenabled PC to access information on
employment and education opportunities.
Services for Veterans in Rural and Regional Australia
Centrelink is working with DVA to provide services to the veteran community in rural and regional
areas.
Centrelink provides a Veterans’ Information Service in:
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seven Customer Service Centres in NSW (Bega, Coffs Harbour, Dubbo, Orange, Port Macquarie,
Tamworth and Wagga);
six in Queensland (Cairns, Gladstone, Mackay, Rockhampton, Roma and Thursday Island); and
One in each of South Australia (Mt Gambier) and Tasmania (Launceston).
The Veterans’ Information Service enables veterans to make enquiries and receive information about
a number of issues including:
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eligibility and applications for all DVA income support payments;
eligibility and applications for compensation entitlements;
enquiries regarding veterans’ current payments and entitlements;
new budget initiatives affecting current and potential DVA clients;
eligibility for DVA treatment cards;
DVA grant programs; and
Bereavement payments, funeral benefits and War Graves.
Co-located within these Centrelink Customer Service Centres, the service offers separate waiting and
contact areas for veterans, and is staffed by specialist information officers trained by DVA. In Cairns
and Launceston, a DVA staff member is co-located in the Centrelink Customer Service Centre and
the Centrelink staffs provide relief and backup. All sites have DVA-specific phone lines.
In three sites in NSW (Dubbo, Coffs Harbour and Port Macquarie), DVA has extended the service to
include a community development and advisory role. Community Advisors work with community
organisations, including ex-service organisations and local health services, to identify the needs of
veterans within the community and assist in developing programs to meet these needs.
(See also Chapter 4, Our Client Partnerships, page 34.)
Indigenous Employment
Centrelink staff worked together with DEWRSB and ATSIC on joint strategies and visits to Indigenous
communities in regard to employment assistance. This led to an increase in registrations by job
seekers linking to the Job Network and the issuing of Indigenous Wage Assistance Cards.
Centrelink worked cooperatively with ATSIC and CDEP communities to introduce the CDEP
Participant Supplement in March 2000. The payment also provides access to ‘add-ons’such as the
Health Care Card and Rent Assistance. Centrelink has entered into a Memorandum of Understanding
with ATSIC designed to improve the administration of the relationship between Centrelink, CDEP
communities and participants with regard to their income support responsibilities.
(See also Chapter 4, Our Client Partnerships, page 27.)
Expansion of Centrelink services for Indigenous Customers
Centrelink’s expanded servicing capacity in remote areas included providing a number of agents and
local Customer Service Centres with video conferencing facilities to allow customers in isolated
Indigenous locations direct access to Centrelink for interviews and specialist advice. In Queensland,
the Cloncurry and Doomadgee communities have agents assisting customers with income support
enquiries as well as résumés and job search activities. These offices have video conferencing
facilities with Internet access.
Building Partnerships
In addition to its partnership arrangements with client agencies, Centrelink has a wide range of
partnerships with community organisations and other levels of government, including through RTCs
the TIGERS project and WA Telecentres (see Chapter 8 Our Innovative Organisation, page 106).
Our community partnerships typically start from very small beginnings, often through employee
initiative and customer/community feedback. The partnerships all involve Centrelink’s core business
activities and are often locationally specific with subsequent strong community ownership.
Different community partnerships can take the form of referring customers to another organisation,
making office space and facilities available, providing training, being involved on the board of a
community organisation, getting involved in local fundraisers or working together to solve a problem
affecting our mutual customers. A number of additional examples are outlined below.
Home and Community Care partnership
Camberwell Customer Service Centre, Melbourne is involved in a community partnership with the
local Home and Community Care Service (HACC) funded by the Commonwealth and Victorian
Departments of Health. This partnership has been established to identify customers who are not
receiving home and community services but may be at high risk. Under the partnering arrangement,
Centrelink contacts these customers to offer them a combined home visit by workers from Centrelink
and HACC. The joint home visit provides customers with advice and information about Centrelink
products and appropriate HACC support.
Partnership with Tangentyere and Westpac
Centrelink is involved in an innovative collaboration with Tangentyere Council and Westpac Bank in
Alice Springs, working with Indigenous customers who do not access banking facilities. These
customers are paid by cheque, which not only limits their opportunity to budget and manage their
finances, but can lead to some exploitative practices in the cashing of cheques. The starting point for
this project was the Centre for Aboriginal Economic Policy Research report on Improving Indigenous
access to the delivery of banking and other financial services in Central Australia, July 1999, which
came about through a joint initiative of ATSIC and Centrelink.
Refugee Community Initiative Building Links
The Refugee Community Initiative ‘Building Links’ combines the efforts of Shepparton Customer
Service Centre and a large number of community and state government organisations, as well as the
Department of Immigration and Ethnic Affairs. The aim of the initiative is to provide assistance to the
community of mainly Iraqi refugees (currently around 200 families) who have moved into the rural
townships in the Goulburn Valley from metropolitan centres. Centrelink has contributed to funding a
consultant to work directly with the Iraqi community to undertake a more comprehensive needs
assessment and to identify requirements for ongoing service provision and coordination in the areas
of health, employment, financial and cultural needs. It is intended that the project will yield a regional
settlement plan as well as a model for managing service provision to emerging refugee communities
in rural areas.
Gold Coast Seniors on the Net
Centrelink has been working with a local group of older people who are using the Internet to network,
exchange information and establish a ‘community of common interest’. Centrelink has been actively
promoting its services, including FIS seminars, through this electronic network.
Working with Customers and the Community
Centrelink takes every opportunity to involve its community and business partners in the process of
listening to customers to understand their needs. One way it does this is by joint participation in Value
Creation Workshops, focus groups and reference groups, and community activities.
Value Creation Workshops and Other Workshops
Community Partnerships
During the year Centrelink conducted 12 Community Partnership Value Creation Workshops at
different locations across Australia. The purpose of these workshops is to clarify the role Centrelink
can play in establishing effective working relationships with community organisations with whom we
have mutual customers. Some of the themes emerging from these workshops are:
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sharing information and knowledge to improve understanding;
assisting customers to access services; and
Working cooperatively to improve outcomes for customers.
Centrelink is continuing to work with the local community to identify actions both Centrelink and the
community can take to strengthen their relationships.
People with Disabilities
Centrelink provides the gateway to employment assistance for people with disabilities. A series of
Value Creation Workshops were conducted during the second half of 1999 on the provision of
employment assistance for people with disabilities. The workshops were designed by National
Support Office in partnership with Area Brisbane and the FaCS State office in Queensland.
Two types of workshops were held: one with customers with disabilities who had sought assistance in
seeking employment; and the other with disability employment service providers. Workshops were
conducted in five locations nationally and involved staff from the national, state and local levels of
both Centrelink and FaCS.
Valuable feedback was obtained from participants about current policies, processes and levels of
satisfaction with services. Strategies are being developed to address the issues raised by customers
and disability employment service providers.
One-to-One Service
Over the past 12 months, 11 Value Creation Workshops with a theme of ‘Individualising Service’have
been conducted throughout Australia to gauge the success of one-to-one service. Of those customers
that attended these workshops 71 per cent were satisfied or very satisfied with Centrelink’s service,
83 per cent rated the Centrelink staff from good to excellent and 82 per cent of customers rated staff
as helpful or very helpful.
Indigenous Customers
Fourteen Value Creation Workshops for Indigenous customers were conducted throughout Australia’s
urban, rural and remote areas in 1999–2000. These workshops were run by nine accredited
Indigenous facilitators. The use of Indigenous facilitators proved beneficial in encouraging customer
feedback during these workshops.
Customers from Diverse Cultural and Linguistic Backgrounds
Feedback is sought from customers from a diverse range of cultural and linguistic backgrounds
through Value Creation Workshops conducted in customers’ languages. Over the past 12 months, a
number of workshops were conducted in five languages, including Arabic, Greek and Vietnamese.
The outcomes of these workshops reflected many of the values determined in standard workshops.
Customers who do not have the usual access and feedback channels available because of their
linguistic background have an opportunity to contribute to the development of service delivery change
in their local Customer Service Centre. In addition to the familiar service values, customers in these
workshops emphasised the importance of provision of services in a non-discriminatory manner.
Customers indicated the need for staff to understand their cultural difference, while providing a more
personalised service.
New review strategy for Parenting Payment customers
Centrelink and FaCS conducted a joint project to improve the out-dated review arrangements for
Parenting Payment (Single) customers. Through a number of focus groups, customers provided
valuable input into this project. As a result, the 12-weekly personal lodgement requirement was
replaced with a targeted approach from 4 September 1999.
The new review strategy aims to improve customer service by:
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increasing the flexibility of lodgement options;
reducing customer contacts by targeting the cyclical review process; and
Streamlining the risk based review process.
Consultative Groups
Centrelink Disability Customer Service Reference Group
The Reference Group, which includes representation from peak disability, industry and community
organisations, has now been in operation for three years and continues to provide feedback about
quality of services and advice on the impact of new initiatives. The membership of the Reference
Group has expanded in the past year.
During 1999 the Reference Group worked on the following priority issues:
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identifying and communicating with customers with an intellectual disability;
the employment assessment process;
outsourcing medical assessments; and
implementation of recommendations regarding interpreter services.
National Multicultural Reference Group
Centrelink has established a National Multicultural Reference Group to provide an opportunity for
peak ethnic community groups to comment on both government policy and Centrelink’s delivery of
related services. The group was formed following consultation with peak ethnic community agencies
in June 1999. Meetings are held twice yearly with representatives of peak ethnic bodies from around
Australia.
The first meeting of the National Multicultural Reference Group was held from 30 November to 1
December 1999. Issues covered included future service delivery, services for refugees and tax
reform.
Multicultural Advisory Committees
Centrelink continues to run State/Territory Multicultural Advisory Committees. The purpose of these
consultative forums is to facilitate communication between Centrelink and state-based organizations
that deal with migrants and refugees.
Following discussion with peak ethnic leaders in June 1999 on community consultative arrangements,
steps were taken to improve the consultation model. It was agreed that each State/Territory should
adopt a model with the following criteria:
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open membership;
a community or Centrelink chair;
a community convenor;
secretarial support provided by Centrelink;
senior level representation by Centrelink; and
Attendance by client agencies.
The majority of State/Territories have since implemented the above model.
Relationship with Carers’ Association
During 1999–2000, members of the Centrelink Carers Team were invited by the Carers’Association to
participate in working groups relating to the communication needs of carers. Different groups target
different aspects of communication—design and technology, content and development and cultural
awareness. Members of the working groups represent peak bodies, government agencies,
communication specialists, ethnic and Indigenous community workers and carers. Centrelink’s
presence demonstrates a willingness to improve communication channels and provides an
opportunity for Centrelink to promote financial assistance and other services.
Community Activities
National Carers’ Week
In October 1999, Centrelink continued to promote the role of carers in the community through
National Carers’ Week under the theme ‘Share the Care’. The week is designed to help raise
community awareness of the thousands of people who care for children, relatives or friends who are
frail aged or have a chronic illness or disability. Centrelink staff linked with local organisations such as
Carers’ Associations to promote information resources, support networks and other services available
for carers around Australia.
International Day of People with a DisAbility
The International Day of People with a DisAbility, 3 December 1999, was a great success. The
National Information Communication Awareness Network was commissioned by FaCS and Centrelink
to coordinate activities at a national level. Meanwhile, the Centrelink network hosted and participated
in local events to celebrate the day and strengthen community partnerships.
Centrelink staff demonstrated strong commitment to the day. Their innovative ideas, including
newspaper supplements about disability issues , shopping centre displays and ‘adopting’ a disability
for the day, increased community participation and interest. The positive feedback received has
encouraged Centrelink people to build on these successes, with planning for 2000–01 underway.
International Day of Older Persons
On the International Day of Older Persons, 1 October 1999, around 40 Centrelink offices in all States
conducted special celebrations. These celebrations included office open days, financial seminars,
and morning and afternoon teas for older customers and local representatives of seniors’
organisations. The financial seminars in particular were very successful. A theme for the day was
‘Banking for Seniors’, involving FIS officers and representatives of the banking industry in discussing
deeming accounts, fees and charges and self service banking technology. In addition four offices
hosted a demonstration of the Older Persons and Banking Technology Project, developed by Health
and the Australian Bankers’ Association (ABA), which provided retirees with information about, and
an opportunity to use ATM and EFTPOS devices. A special flyer on how customers can reduce bank
fees and charges was developed for the day in conjunction with ABA and FaCS, which continues to
be an extremely popular product for our customers.
Involvement in seniors’ and Investment Expos
Centrelink has been represented at a number of seniors, Money and Investment Expos in all States.
The presence of FIS officers at these events has allowed us to provide information to many people
who are still in the workforce, or approaching retirement, as well as to pensioners and self-funded
retirees.
Youth Week
During Youth Week, 2–8 April 2000, a number of successful promotional activities were undertaken.
One major activity was the Centrelink Art Competition. In addition, each Area undertook activities, for
example:
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an essay competition in Area Tasmania;
involvement in a youth festival in Area South Metropolitan NSW;
Tweed Heads Customer Service Centre, Area Pacific Central, launched a new training program
for disadvantaged youth;
Youth Certificates were awarded in Area South East Victoria to a number of officers who had
successfully completed Community Services Certificate IV— Youth Services;
a colourful mural was painted in the Gawler Customer Service Centre, Area South Australia, by
local secondary school students; and
Specialist Youth Services Officers at Mt Druitt Customer Service Centre, Area West NSW,
organised ‘Get It Together’, an open air stall day, in which 25 community organisations, 16
secondary schools and around 300 students participated. The event also involved other
customers and local businesses.
Centrelink Involvement in the Youth Roundtable
Centrelink provides an information and support role to Youth Roundtable members to assist them
with their community action projects. The Youth Roundtable comprises 50 members aged between
15 and 25. Each Roundtable member undertakes a community action project to raise government
and community awareness of the issues faced by young people today. Centrelink has assisted Youth
Roundtable members with projects based around financial issues and the effects of drugs on young
people.
Improved Access to Information
Statement Style Letters
Centrelink introduced statement style letters in mid 1999 to replace the vast majority of letters, which
many customers found confusing and intimidating and often resulted in unnecessary contact with
Centrelink. Research indicated that customers had a strong preference for simple and concise pointform letters, which could be easily referenced and understood. Research during 1999–2000
confirmed a marked preference for the new style letters with very high customer acceptance and
satisfaction levels.
Some customers (particularly age pensioners) with substantial sources of income or assets, and their
financial advisers, have found that the new format does not provide enough information for their
requirements. We are continuing to work on ways to improve the quality of our letters for this group
and for our customers in general, and to provide more specific details on how a person’s entitlement
has been calculated.
Age Pension News
In September 1999, the circulation of Age Pension News was extended to include over 200 000 selffunded retirees who hold a Commonwealth Seniors Health Card. In March 2000, Age Pension News
was also extended to older Australians who have deferred claiming age pension under the Pension
Bonus Scheme. Age Pension News is one of Australia’s largest circulation periodicals, going directly
to over two million age and service pensioners and self-funded retirees four times a year. Its
readership constitutes around 95 per cent of Australia’s seniors, or 12 per cent of the total population.
It is also produced in 15 community languages with an audio edition available for customers with a
visual impairment.
Australian Pension News
Centrelink International Services publishes Australian Pension Newsfor the 54 000 customers who
live overseas. It is published in eight languages (English, Italian, Spanish, Greek, Turkish,
Macedonian, Serbian and Croatian) in April and October each year. In addition, recorded cassette
versions are produced for visually-impaired customers. Each issue generates hundreds of letters
complimenting Centrelink on helping people living overseas to keep in touch with changes to their
income support arrangements and with related events in Australia. The newsletter also features
general interest items which reinforce the Australian connection. Customers were particularly
impressed with the article on the anniversary of the Snowy Mountain Scheme in the October 1999
edition.
Rural News
This year Centrelink introduced Rural News, a quarterly magazine aimed at people living in rural and
regional Australia. Rural News is the primary publication used by Centrelink to communicate with
rural and regional communities. A key focus of the magazine is to provide up-to-date information
about Centrelink and other government initiatives to rural people who may be unaware of what is
available. The magazine provides information about Centrelink payments and services and how to
access them, topical items of interest to these communities and improvements to service delivery to
rural and remote areas.
Rural News is mailed out direct to over 16 000 community, business and government organisations
such as Centrelink agencies, rural counsellors, accountants and solicitors.
Launch of Unzipped
Centrelink has taken publications for young people into a new era with the launch of the Unzipped
magazine. The magazine was designed for young school leavers as part of a comprehensive
communication strategy that promotes Centrelink as a major provider of services for young people.
The magazine is written in plain English and provides information on studying, training, job seeking
and personal support while providing a mix of text, colour photos and cartoon graphics. Unzipped was
modelled on other magazines read by the target age group.
Unzipped was launched in Youth Week. The inaugural issue announced the National Centrelink Art
Competition, which aims to evoke a higher level of appeal and interest among young people through
the use of their art work and contributions in subsequent issues of Unzipped.
Multilingual Information
Centrelink is one of the largest government providers of online multilingual information. The
Centrelink web site currently has 29 fact sheets and 11 publications available in up to 42 different
languages, which can be printed as required. Centrelink also produces a large range of printed
brochures and pamphlets in up to 18 languages. These brochures are specially designed to provide
clear and succinct information for easy translation.
Fortnightly radio programs are broadcast in 24 languages across Australia on SBS and community
radio stations. Efforts will be made in the next year to better target our diverse customer base. This
will include coverage of newer arrival languages in future broadcasts and, where possible, increasing
the overall number of languages broadcast.
Regular editorial articles are also published in the national ethnic press in eight languages.
Language Services
Centrelink maintains a panel of around 2000 contracted interpreters and translators to provide
language services across its network to customers who cannot communicate in English.
In the last 12 months, Centrelink received over 55 500 requests for interpreter and translating
services. For 99 per cent of these requests, Centrelink provided an interpreter or translator within
three working days of the request. The internal standard for this service is 85 per cent.
Expansion of language capability at International Services
Currently Centrelink International Services has staff with language skills in Dutch, French, German,
Greek, Italian, Portuguese, Spanish and Serbo-Croatian. There is a policy to employ staff with
language skills, other than English, when needed and this has been a feature of recent recruitment.
Centrelink International Services has a dedicated team (separate from the Multilingual Call Centre) to
handle phone enquiries from Centrelink International Services customers in Australia and overseas.
(Customers may reverse the charges through their local operator so they do not pay for the call.) A
full-time Italian translator is employed and a network of other translators provides translations of
customer letters, medical reports and other documents. To improve customer service, bilingual letters
are sent to Centrelink International Services customers when explaining adverse decisions.
Indigenous CD-ROM
In the next 12 months, Centrelink will develop an Indigenous version of the Rural CD-ROM, a tool
designed to assist Centrelink agents in delivering quality services to rural and remote customers.
The Indigenous CD-ROM will be specifically targetted at addressing the needs and issues of
community agents. It is envisaged that the Indigenous CD-ROM will assist in meeting the particular
cultural and literacy needs of Aboriginal and Torres Strait Islander communities.
(See also Chapter 8 Our Innovative Organisation, page 105.)
Helping customers through difficult transitions
Centrelink is developing a service delivery model based on ‘life events’ of people in the community,
rather than the traditional ‘silos’ of government programs. This approach supports our mission to
provide opportunities for individuals during transitional periods in their lives. We have taken steps in
1999–2000 to focus on customer needs at particular points in their lives to progress the
implementation of Centrelink’s service delivery model.
Preparing for Work Initiative
The Preparing for Work initiative, introduced in November 1999, represents a dramatic change in the
way Centrelink conducts its business with job seekers. The initiative integrates service delivery of
social security payments and employment assistance, placing a strong emphasis upon work and
social participation outcomes.
This approach has resulted in more tailored employment service delivery with improved targeting of
employment assistance. It has also made the job seeker more accountable for their job seeking
efforts. The Preparing for Work Agreements initiative, introduced on 1 July 2000 enhances this
initiative. The approach complements and reinforces other Centrelink initiatives such as one-to-one
service and is a realisation of the concept of a ‘service offer’.
Closure of BHP Steelworks, Newcastle
With the impending closure of the BHP Steelworks, Centrelink adopted some innovative approaches
to customer service. Working in conjunction with BHP management, a temporary Centrelink site was
opened in the grounds of the steelworks in August 1999. Office hours were those which best suited
the many shift workers at BHP. Using remote accessing technology, Centrelink staff were able to
process claims online.
FIS seminars were conducted on site, interpreters were available to help customers complete claim
forms and messages were put on employee payslips about Centrelink services. Over 2000 interviews
were conducted. Assistance was also provided to the families of those affected by the closure of
BHP.
More Intensive and Flexible Services Pilot
The More Intensive and Flexible Services Pilot (MIFS) was established in July 1996, by the then
Department of Social Security. Administration was transferred to Centrelink in July 1998. The pilot
provided secondary rehabilitation (including physiotherapy, occupational therapy, speech therapy and
counselling) and pre-vocational training (including budgeting, travel, training, grooming, and self
esteem) to customers in receipt of the Disability Support Pension.
The pilot was completed on 30 June 2000. Approximately 2100 customers participated and many
customers have been assisted in improving their work ability. The information gathered from the pilot
will be used by FaCS to inform the Welfare Reform agenda.
Annual Jobs Education and Training New interview Target
For the first time, Centrelink exceeded the national target of 55 000 new JET interviews by over 16
per cent. The JET program provides assistance for single parents in transition from the caring role to
financial independence. JET continues to be a highly sought after program and throughout the year
an emphasis was placed on improving and defining program outcomes.
Social Worker Provision of Crisis Services
There is increasing awareness of the need for Social Workers to provide more intensive assistance to
some customers at risk of longer term social exclusion. Examples of this are young people without
parental support identified as being ‘at risk’, and customers at risk of suicide and family breakdown.
An example of the work being done to assist families in crisis is the Family Crisis Childcare pilot
project currently being conducted in Townsville. This pilot project entails the provision of an intensive
case management service by a Centrelink Social Worker. The pilot is funded by FaCS and aims to
explore how child care, in tandem with other support services, can achieve better outcomes for
partnered and single young parents (aged between 15 and 25). The results of this pilot to date are
encouraging.
In their work with young people Social Workers focus increasingly on assisting them to re-engage
with their family, find stable accommodation and return to education or employment. Centrelink also
takes part in actions under the National Suicide Prevention Strategy, which has as its initial step the
provision of advanced training in suicide prevention to Centrelink Social Workers and occupational
psychologists.
Disaster Response and Recovery
Centrelink is one of a number of agencies committed to responding to the needs of people and
communities devastated by natural disasters. A national strategy has been developed to ensure that,
in the event of a disaster, Centrelink continues to provide its normal services to the community as well
as additional assistance to those people who have been most affected by the disaster. This additional
assistance can take the form of payments such as Special Benefit, Crisis Payment, or Disaster Relief
Payment, or counselling services such as providing Social Worker assistance to local community
recovery agencies.
During 1999–2000, Centrelink provided financial and counselling assistance to a number of
communities that had been affected by several natural disasters, for example:


In north-eastern South Australia, 213 farmers whose income has been affected by long-term
drought and locust plague received an ex-gratia payment from March 2000.
During Cyclones Steve, Tessi, Vaughan, and Rosita, which caused rain and severe long-term
flooding across Australia during early 2000, Centrelink provided Social Worker assistance and
processed numerous payment claims. Centrelink also activated special lodgement/payment
procedures to ensure payments to job seekers were not interrupted.
East Timor and Solomon Islands Assistance
Centrelink was involved in providing financial and welfare assistance to Australian citizens evacuated
from East Timor (September 1999) and the Solomon Islands (June 2000) due to civil unrest.
Centrelink was part of the joint State and Commonwealth Government Emergency Reception Teams
that were set up to receive evacuees as they arrived in Australia and was active in attending to
numerous requests for financial and welfare support as well as providing ad hoc assistance to the
various community welfare organisations.
Challenges
Authorised Review Officers
Authorised Review Officers have increased their accessibility to customers and to Customer Service
Centre staff. Due to the increased time spent dealing directly with customers, a focus for Authorised
Review Officers next year is to achieve consistent performance against their timeliness standards.
The average time taken to finalise a review fell by more than 33 per cent from the previous year, and
Authorised Review Officers will aim to continue to reduce the time taken to finalise reviews.
Future Outcomes
Implementation of the Centrelink Service Delivery Model
The service delivery model means that Centrelink will deliver services based on a customer’s ‘life
events’. ‘Life events’ are experiences such as having a baby, looking for a job, planning for retirement
or arriving to settle in Australia. The Centrelink ‘life events’ model of service delivery is being
developed in consultation with client agencies, and the list of ‘life events’ is being validated through
external customer research.
This model touches on everything Centrelink does, including:



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
how we deliver products and services to customers;
proof of identity procedures;
the availability and use of electronic services;
the way our Customer Service Centres are designed; and
The methods of reporting to the clients, the Government and the community.
Within the model, all that is required from customers when they contact Centrelink is for them to
describe their circumstances. The customers then receive a personalized solution that best meets
their needs. This way of working does not assume the customer already knows which products,
services and delivery options are available, which questions to ask or which payments to apply for.
Instead, customers receive greater personalized service and Centrelink sorts out the complexities of
government for them.
Centrelink’s service delivery model will include:


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

a one-to-one customer service officer for each customer, who takes responsibility for all of that
customer’s business;
individualised service offers based on ‘life events’;
decision support systems (incorporating improved compliance and risk assessment measures),
which will assist our people to deliver accurate and appropriate service offers to customers (see
Chapter 8, Our Innovative Organisation, page 110);
a wider and better targeted range of access options for our customers, including the Internet and
other forms of electronic access, as well as improvements to current face-to-face and phone
services;
improved proof of identity procedures, saving time for customers and staff, and providing greater
integrity in the delivery of government services; and
Offices in more convenient locations that are suitable for the needs of all the customer groups.
The first step in implementing the new model involved a consolidation phase from September 1998 to
December 1999, where Centrelink improved productivity, reduced arrears, cleared up systemgenerated work, and implemented one-to-one service throughout the network. Continuing
implementation of the model will include:




strengthening the basic building blocks of its one-to-one service arrangements, including how we
engage customers, assess, plan, refer and follow-through;
capturing data to support stronger local community partnerships, and exploring how this
information can be provided to customers via the Centrelink web site;
defining ‘customer relationship management’ and devising an appropriate strategy; and
Redesigning the Centrelink web site and publications to reflect the ‘life events’ of our customers.
Figure 13: Customer Centric Service Delivery
Improved Telephone Access
Our Business Plan 2000–01 focuses on further improvements to Call Centres through some key
processes:




In 1999–2000 Centrelink Call Centres commenced a First Call Resolution policy to ensure each
customer’s queries are finalised on the customer’s first call. Implementation of this policy is
expected to be finalised by late 2000 and is a key strategy in improving customer access and
satisfaction.
A new comprehensive Quality Assurance Package will provide staff with information about how
satisfied customers are with the service of their Call Centre.
A new Workforce Management Tool will be introduced to streamline a very resource-intensive
forecasting and scheduling process, automate many of our current processes and provide real
time management information.
The implementation of an advanced Telecommunication Platform will further improve customer
access.
International Freecall™Facility
As part of Centrelink’s commitment to improving customer access Centrelink International Services is
developing an international Freecall™ facility for customers living overseas to replace the current
reverse call option. This will mean that many of our overseas customers will have the same level of
access to Centrelink services as those living in Australia. International Freecall™ will be implemented
gradually, commencing in 2000–01. The Freecall™ facility will initially be targeted to those countries
which host the majority of our overseas customers. Extended business hours for the Centrelink
International Services Call Centre are being considered as a means of enhancing the service.
Improving Service to Rural and Regional Customers
The effective delivery of programs and services in rural and regional areas will continue to be a key
priority for Centrelink during 2000–01. Centrelink will build on its achievements through
implementation of the National Rural and Regional Servicing Strategy in improving access to
Centrelink services for rural and regional customers (including Indigenous customers), through
agents, new partnerships and electronic service delivery.
Paralympic Games
With over 5000 athletes competing in the Paralympic Games, this will be the second biggest sporting
event in 2000. Centrelink’s involvement will include co-hosting a display at the Community Pavilion
with FaCS to promote the services and products Centrelink provides to people with disabilities.
Specific communication products will also be produced to promote participation and increase the
profile of the Games.
Review and Appeals
The new Administrative Review Tribunal will be established in 2001.
Centrelink has already been taking action to develop and implement its own best practice in the
context of appeals. One example is the participation by some Centrelink Administrative Law staff in a
pilot project conducted by the Administrative Appeals Tribunal. The early results of this pilot indicate a
significant reduction in the time taken to resolve appeals to the tribunal. The Administrative Law team
involved will continue to work within the shorter timeframes achieved and will cooperate with the
tribunal in assessing the possible application of the project elsewhere.
6. Our People
Goal
Our goal is to create an environment where Centrelink’s people give value to customers, client
agencies and the community through their skills and commitment to service. The Balanced Scorecard
measures our performance towards this goal through the Centrelink People Key Result Area.
Overview
During the first two years of Centrelink’s operation, our ‘people’ focus was managing the
extraordinary amount of concurrent change while creating a new organization and a new way of doing
business. 1999–2000 has been a year of consolidating gains and anchoring new approaches in the
culture.
We have used the opportunities provided by initiatives in the Centrelink Development Agreement
1999–2002 and the Public Service Act 1999 to deliver practical, innovative and inclusive people
practices and processes, which build the capabilities and commitment of our people to achieve
Centrelink goals.
Key Strategies
Our key strategies in developing our people’s skills and commitment to service are to:
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create an environment where people can give their best;
promote a culture of high-performing people;
promote effective leadership as integral to the Centrelink culture; and
create a learning environment within Centrelink.
Focus
Our focus, based on the goals in Centrelink’s People Plan 1999–2000, has been to ensure that our
people understand the big picture and how their job fits in; have clear responsibilities; have the skills
and knowledge development needed to meet those responsibilities; and have the appropriate work
tools and work policies.
We have also encouraged team leaders and managers to focus more effectively on achieving positive
outcomes for the people measures in the Balanced Scorecard. As the following summary table
shows, we achieved our target for all but one measure.
Table 13: 1999–2000 Balanced Scorecard ‘People’ Measure
1999–2000 BALANCED SCORECARD ‘PEOPLE’ MEASURES
TARGET
NATIONAL
RESULT
Learning
Individual learning—% of staff
with Team & Individual
Learning Plans
80%
86%
Learning effectiveness—% of
positive responses in regard to
learning opportunities
30%
55.9%
Investment in staff well-being—
av. $ spent per full-time
equivalent ($/FTE)
$150/FTE
$156.64/FTE
Organisational well-being
Performance development
Staff satisfaction—% of positive 65%
responses in regard to job
satisfaction
65.3%
Recognition of good
4%
performance— % of employees
with instances of formal
recognition*
51%
1999–2000 BALANCED SCORECARD ‘PEOPLE’ MEASURES
TARGET
NATIONAL
RESULT
Performance feedback—% of
positive responses in regard to
feedback
20%
48.4%
Leadership
Quality of leadership—% of
positive responses in regard to
leadership
45%
62.5%
Cost efficiency
Increased attendance—
reduction in unplanned leave
16.71
days/FTE
14.73
days/FTE
Comcare—reduction in
premium rate
<1.16%
1.00%
* Target was set low as this measure was included for the first time.
Outcomes Achieved
Creating an environment where people can give their best.
For our people to give their best we need to provide them and their managers with practical,
innovative and inclusive people practices and processes which build satisfaction and commitment.
Consulting our People
The Centrelink Development Agreement 1999–2002 recognised Centrelink’s commitment to
consultation of employees and their representatives. Employee consultation and involvement in
decision making assists Centrelink by:
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engaging employees in Centrelink’s strategic directions, so that their ideas and knowledge can
contribute to our future;
creating commitment to Centrelink’s directions; and
Enabling Centrelink to address and respond to employee concerns.
Centrelink conducted two staff polls in 1999–2000 to provide feedback on a range of job satisfaction,
leadership and staff development issues. The national results show the proportion of staff who
provide positive or very positive responses to these criteria.
Table 14: Staff Poll Outcomes 1997–2000
STAFF POLL OUTCOMES 1997–2000
1997
1998
1999
2000
Understanding
Centrelink’s role
48.0
37.0
80.7
81.8
Understanding
your role
13.0
8.0
80.9
82.6
Job satisfaction
65.0
62.0
67.7
65.3
STAFF POLL OUTCOMES 1997–2000
1997
1998
1999
2000
Good leadership
56.0
50.0
68.1
62.5
Learning
opportunities
33.0
24.0
58.2
55.9
Feedback on your
performance
13.0
8.0
42.8
48.4
Having the tools
to do your job
65.0
61.0
64.8
68.4
As the table demonstrates, the overall level of staff satisfaction has generally improved. The 1999 poll
results recorded significant improvements in the areas of feedback and learning opportunities.
Results from the 2000 poll were similar to the 1999 poll. The most marked improvement was in
relation to feedback, which showed a significant improvement in positive responses. We were also
pleased with the significant improvement in positive responses in relation to understanding of
Centrelink’s and employees’ roles.
As Centrelink’s Indigenous staffing rate has dropped from 3.9 per cent to 3.6 per cent in the last 12
months, we also undertook some survey research to help us understand the issues relating to
attraction, retention and satisfaction of our Indigenous employees.
Analysis of the results suggests that development and career opportunities, cultural differences and
learning opportunities are the key issues. The outcomes from the survey will be used to develop a
revised Indigenous recruitment and career development plan, to be launched early in 2000–01.
At the National Strategic Development Conference conducted in November 1999, management, staff
and union representatives developed a ‘top ten’ list of key initiatives that will improve Centrelink’s
strategic outcomes. These initiatives have been addressed in the Business Plan 2000–01.
Consultation at other levels has included the National Strategic Consultative Committee which meets
twice yearly, as well as formal consultative arrangements at the Area level, and informal and ad hoc
arrangements as required. These arrangements are supported by appropriate facilities for those
employees with a representative role.
During the year, a review of consultative arrangements was undertaken in accordance with the
Centrelink Development Agreement 1999–2002. The review assessed the effectiveness of current
arrangements in Centrelink, including a survey of arrangements in other Australian Public Service
(APS) agencies. The review’s recommendations, which focus on strategies for broader based
consultation with our people, are under consideration.
Implementing the Public Service Act 1999
The major issue in implementing the new Public Service Act 1999, which came into effect on 5
December 1999, was the short timeframe between enactment and the date of effect. The changes in
the heads of legislation required a major overhaul of Centrelink’s people management delegations.
Along with this, all of Centrelink’s current policy and procedures, including our classification structure
and matters dealing with the assignment of duties, were updated to ensure compliance with the new
legislation.
To date, we have developed new policy and procedures on people management matters such as
review of actions, conditions of engagement of ongoing employees, breaches of the APS Code of
Conduct, acceptance of gifts and other benefits, resignation, outside employment and nonperformance of duties.
With the simplification of the Act policy and procedures needed to be in place for many issues that
were previously prescribed by legislation. Our capacity to make the best use of the opportunities
provided by the new Act will not be fully realised until we can undertake the level of consultation with
our people to which we are committed.
It has been very important to ensure that our people know about changes arising from the new
legislation. Prior to the date of effect Centrelink issued advice via our Human Resource Advisory
Units. In addition, we can now explain changes through the new Centrelink People Handbook on
CentreNet (Centrelink’s Intranet) and Business TV presentations.
Workplace Relations
Generally, Centrelink has strengthened its positive relationship with employees and their
representatives. Minimal time has been lost due to industrial action. Only two workplaces were
affected by stop work meetings.
At the organisational level, only two matters, both related to the implementation of the Centrelink
Development Agreement 1999–2002, were the subject of conciliation in the Australian Industrial
Relations Commission. One involved the implementation of the performance assessment process
and the other, to the development of guidelines under the agreement. Both matters were successfully
resolved by agreement between Centrelink and the Community and Public Sector Union.
At the individual employee level, a number of dismissals have been challenged in the Australian
Industrial Relations Commission. The vast majority were settled by agreement between Centrelink
and the applicant in the case, and no cases were the subject of arbitration against Centrelink.
Workplace Diversity
In line with Centrelink’s Workplace Diversity Plan, Workplace Diversity: A Plan for Change 1997–
2000 and the Disability Discrimination Action Plan we are committed to developing a culture that
supports the principles of workplace diversity. Detailed Equal Employment Opportunity recruitment
and staffing data are located at Appendix iv, Centrelink Employee Overview, page 187.
Our achievements this year under the plan are as follows.
Reaching our goals
The Public Service and Merit Protection Commission and the Institute of Public Administration cosponsored the 1999 Workplace Diversity Awards in March 2000. Centrelink won the regional award
for two of its initiatives:
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the establishment of the Palmerston Indigenous Call Centre to assist Indigenous customers; and
The Disability Awareness Training package conducted in Victoria to increase customer service
officers’ awareness of disability issues.
The awards acknowledge the positive work Centrelink has undertaken to utilise the diversity of skills
and life experiences of its people.
(See also Chapter 9, Corporate Overview, page 120 for details of other awards.)
Adaptive technology service
Centrelink provides access to adaptive technology for about 101 employees with a sight or physical
impairment that prevents them from using a keyboard and mouse. They are provided with computerbased technical aids that are configured to run in the Centrelink environment. This service helps in
meeting our ‘reasonable adjustment’ obligations under the Disability Discrimination Act 1992. It is also
a part of our early intervention and rehabilitation programs for employees who have a temporary
disability or impairment as a result of Occupational Overuse Syndrome or other injury.
Developing our people’s awareness and understanding of harassment and discrimination in the
workplace
Centrelink undertook a promotional campaign to ensure our workplace is free of harassment and
discrimination. ‘Harassment—Not Here’ is the key message that appears on promotional material
such as posters, stickers, fact sheets and screensavers. The posters and fact sheets also provide
information on responsibilities, rights and where to find help.
Linking workplace diversity awareness with customer service training
About 15 per cent of Centrelink’s employees come from diverse cultural and linguistic backgrounds
and many bilingual employees directly assist customers in their own language. To assist employees
to provide services to customers from diverse cultural and linguistic backgrounds we have produced
two new training packages.
The first, developed by the Multicultural Services Team, is a multimedia, computer based training
package that uses Centrelink specific scenarios. Modules include:
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multicultural (including Indigenous) issues;
interpreter and translation services;
intercultural (including Indigenous) communication;
centrelink Multilingual Services;
ethnic Naming Systems; and
payments and services for migrants and refugees.
The program links to the Certificates III and IV and the Diploma in Business (Administration) (see
Accredited Learning Programs below).
The second is a Cultural Awareness and Sensitivity Training program developed by the specialist
staff at Blacktown Customer Service Centre, Area West NSW. The program is available for use by
service delivery teams that have a highly diverse range of customers and employees and want to
increase the awareness and improve sensitivity of their employees towards each other and their
customers.
Centrelink has an ongoing role to assist people who have an impairment to reach the right services,
including those related to seeking and undertaking work. In partnership with a range of experts in
disability services, vocational rehabilitation and employment, Area Pacific Central and the Disability
and Carers’ Community Segment team developed a guide entitled Investing in Ability—a Guide to
Understanding, Evaluating and Reducing the Impact of Injury, Illness or Disability in the Workplace.
The guide, which will be published in September 2000, will:
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assist Centrelink employees and others in the disability community to provide needs-based
assessments and employment-related services to people with disabilities;
offer a range of practical information to encourage a holistic understanding of a person’s needs
and their work requirements;
look at the real impact of impairment and how it affects people’s daily lives, focusing primarily on
issues relating to accessing and undertaking work; and
include information about how adjustments can be made to reduce workplace barriers.
Valuing differences
Celebrating Ability
To celebrate the International Day of People with a DisAbility, Centrelink and FaCS ran a workshop
on career planning for employees with an injury, illness or disability. The idea for the workshop came
from participants in the 1998 celebrations. Feedback from this year’s participants suggests that this
should become a regular feature, focusing on current issues for employees with disabilities.
Cultural Diversity Forum
To better support our employees from diverse cultural and linguistic backgrounds, we have set up a
cultural diversity forum. This forum provides them with an opportunity to discuss current issues and to
provide support not available elsewhere.
Celebrating Diversity
To raise our people’s awareness of significant cultural and religious events in our community we have
prepared and promoted a calendar of international and Australian cultural and religious events.
Support for local communities through fundraising
Centrelink employees have been involved in a wide range of fundraising ventures for charity
organizations. Some Customer Service Centres have monthly charity days and others get behind
local or national events in their community.
Providing better work/life choices
Centrelink is committed to providing a flexible work environment that recognizes our people’s need for
work/life balance. To ensure that we maintain a reasonably high level of employee availability during
the December/January school holiday period we offer employees a child care subsidy. This year,
because of potential Year 2000 problems, we needed to maintain a higher than usual level of
employee availability over the Christmas/New Year period. To highlight and address additional child
care requirements during this period we undertook surveys of affected employees. One of the
outcomes was a very successful January School Holiday Program for school age children sponsored
by Area West Victoria.
In recognition that competing demands on people’s time is often an area of stress in their lives, we
are developing an online Work/life Resource Kit that will provide employees with information on how
they can find better balance between work and home.
Health and Safety
In accordance with our Occupational Health and Safety (OH&S) Agreement we have developed an
OH&S program. The aim of the program is to create a well-developed health and safety culture in
Centrelink. We want workplaces where managers and employees actively identify and eliminate
hazards and are committed to the integration of OH&S practices into everyday business.
In order to improve our OH&S performance and make the greatest contribution to our overall
business performance, we have focused this year on strategies to:
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reduce the number and severity of accidents and incidents occurring in our workplaces;
reduce the frequency and cost of workers’ compensation claims;
ensure our compliance with OH&S legislative requirements; and
integrate OH&S activities into mainstream management practices.
Best practice injury prevention and management
Centrelink recognises that customer aggression is a major occupational health and safety issue.
Reducing the severity and incidence of customer aggression has been a priority this year.
Centrelink and Comcare co-sponsored a project to develop best practice principles to identify, assess
and control all actual and potential situations and events that may give rise to customer aggression.
Major outcomes of the research project are:

an action plan to implement improvements in prevention, incident management and post-incident
management of customer aggression; and

the release in February 2000 of a Centrelink/Comcare risk management guide for customer
service providers entitled Applying Best Practice Principles to the Prevention and Management of
Customer Aggression.
Centrelink Area Support Offices are developing local action plans to apply the best practice risk
management principles identified in this research. These plans will include a commitment to monitor
our progress and review our approach as our business and working environment evolves.
The release of the guide at a time when the issue of workplace violence was being highlighted in the
media and other forums has identified Centrelink as a recognized best practice organization in the
prevention and management of customer aggression. As a result, Centrelink is regularly consulted by
other customer service provider organisations wishing to develop or further enhance their approach to
preventing customer aggression.
Monitoring, Evaluation and Analysis of OH&S Outcomes
Centrelink recognises that effective health and safety management systems make good business
sense, represent a cost-effective investment in our people and will lead to a reduction in the high
social and financial costs of occupational injury and illness. To ensure that a cooperative and
consultative relationship exists between Centrelink and its employees in resolving health and safety
issues, all Centrelink Human Resource Advisory Units report quarterly on the:

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
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number of Designated Work Groups;
number of Health and Safety Representatives and Deputy Health and Safety Representatives,
and requirements for health and safety training;
number of Health and Safety Committee meetings and details on the frequency that committees
meet; and
qualitative aspects of health promotion and early intervention activities.
The number of incidents reported to Comcare Australia, including the number of investigations
conducted, and directions and notices given to Centrelink during the 1999–2000 periods are shown
below.
Table 15: Occupational Health and Safety Details 1999–2000
TYPE OF INCIDENT
NUMBER REPORTED TO COMCARE
Death
2
Serious personal injury
24
Incapacity for 30 or more continuous working
days or shifts
5
Dangerous occurrence
26
Total
57
Table 16: Investigations conducted by Comcare
DETAILS OF INVESTIGATIONS CONDUCTED
NUMBER
Investigations,including tests on plant,
substances,objects etc., in the course of such an
investigation
8
Notices given to Centrelink under section 29 of
the OH&S(CE) Act 1991— Provisional
Improvement Notices
2
Directions given to Centrelink under section 45
of the OH&S(CE) Act 1991—Directions that the
workplace not be disturbed
0
Notices given to Centrelink under section 46 of
the OH&S(CE) Act 1991— Prohibition Notices
0
Notices given to Centrelink under section 47 of
the OH&S(CE) Act 1991—Improvement Notices
0
Total
10
Note: OH&S(CE) Act 1991—Occupational Health and Safety (Commonwealth Employment) Act 1991.
With a focus on the proactive aspects of health promotion and early intervention activities, we began
from June 1999 to monitor investment in organizational well-being in the Balanced Scorecard. Using
external benchmarks from other public sector employers, we set a target of an average of $150 per
full-time equivalent employee. We achieved our target with an annual average investment per fulltime equivalent of $156.64.
Reducing the Comcare Premium
Comcare has advised that Centrelink’s 2000–01 workers’ compensation prescribed premium rate will
be $1.00 for each dollar of wages and salary, down 22 cents from the 1999–2000 rate of $1.22 per
wage and salary dollar. Centrelink’s performance compares very favourably with other
Commonwealth agencies where the average reduction in prescribed premium rate was only half a
cent. However, Centrelink’s premium rate remains slightly higher than the Commonwealth pool rate of
$0.98 per wage and salary dollar.
Premium rates are determined by reference to both claim frequency and cost. For Centrelink, this
year’s premium rate reduction can be attributed to fewer claims (when compared both to other
agencies and to our 1998–99 claim frequency) and a higher proportion of claims without time off
work. This result points to the success of our early intervention and prevention strategies.
However, the average cost of our claims rose an average of $1331 in comparison to a $1012 rise for
the Commonwealth pool. To address this issue, we will be encouraging our rehabilitation case
managers to focus on best practice approaches to managing high cost claims.
Positive Attendance project
We have been monitoring employee attendance through the ‘Improved Attendance’ measure in the
Balanced Scorecard since 1997. This measure includes all personal leave (including sick and carer’s
leave), short periods of unpaid miscellaneous leave and compensation leave. This measure (minus
the compensation leave component) is also included among the measures used to determine pay
rises in the Centrelink Development Agreement 1999–2002.
This year we reduced our unplanned absence by 15.68 per cent, which is the equivalent of two days
per full-time equivalent employee. This is a good result considering that unplanned absence had risen
by 3.6 per cent during 1998–99. However, this year’s overall result of 14.73 days for each full-time
equivalent employee remains higher than APS and industry averages.
Maintaining the reduction in unplanned leave is a priority for Centrelink. Under the agreement, the
unplanned leave measure is one of the measures used to determine our next pay rise.
To assist us to further reduce unplanned leave, we are working with managers and employees to
create a positive attendance culture. We are developing a ‘Supporting Attendance at Work’program
that will include:




an attendance policy statement aligned with Centrelink’s current and future business needs;
a team leader’s resource kit containing information and tools to assist managers and team leaders
to obtain solutions tailored to local needs;
an education program for employees to assist them to understand the extent, nature and cost of
non-attendance; and
better attendance monitoring and reporting tools.
Promoting a culture of high performing people
We have been working toward creating a high performing workforce by:




clearly articulating the productivity outcomes people need to deliver and linking these outcomes to
pay;
providing structured performance feedback that links employees’ objectives to our goals and
Shared Behaviours;
improving recruitment and selection processes; and
recognising the superior performance and contribution of our people.
Table 17: Centrelink Development Agreement Scorecard
MEASURES
TARGET
RESULT
1.
Client Partnerships
timeliness of claims
processed
1
1.11
2.
Client Partnerships—
accuracy standards are
met
1
1.04
3.
Client Partnerships—
compliance benchmark
1
1.10
4.
Customer &
Community—overall
customer satisfaction
1
1.00
5.
Customer &
Community—satisfaction
with personal service
1
1.06
6.
Customer &
Community—call waiting
time
1
3.04
7.
Customer &
Community—appeals
1
0.97
8.
People—Team and
1
Individual Learning Plans
0.88
9.
Cost-Efficiency—
reduced Comcare
premium
1
1.16
10.
Cost-Efficiency—
increased attendance
1
1.07
11.
Cost-Efficiency—debt
reduction
1
0.89
Overall Average*
1.21
* Assessment based on 31 May 2000 year to date data as June data would not alter outcome.
Linking Pay to Performance
To recognise the contribution made by all our people to achieving business outcomes, and to ensure
that pay increases are supported by genuine productivity improvements, the Centrelink Development
Agreement 1999–2002 links employees’ salary increases with our overall average of performance
against the following 11 Balanced Scorecard measures.
As we had met our target, in accordance with the agreement, a 2.5 per cent pay increase was paid
from the first full pay period in July 2000. We will continue to focus our efforts on maintaining and
improving our performance against these measures because they will also be used to determine the
4 per cent pay rise in July 2001.
Structured performance feedback
In 1999 we introduced a new performance assessment system that is linked to individual salary
advancement, provides regular, structured feedback and an annual assessment of an employee’s
performance. Assessment is based on:


team based assessment of whether an individual’s behaviour is aligned with our Shared
Behaviours; and
supervisor assessment of achievement against agreed work objectives.
Implementing the new system has required a change in culture and work organisation, particularly for
managers and team leaders carrying out the performance assessments. Employees also have a
responsibility to provide feedback to their colleagues, develop their own plan and participate in a selfassessment of their performance.
Staff poll responses indicate that the value of performance feedback is beginning to be noticed. For
example, more people agree that they have a clearer understanding of what is expected of them at
work. In 1997 only 13 per cent of poll respondents agreed that they knew what was expected of them
at work (reflecting a significant uncertainty at the time of the creation of Centrelink). However positive
responses increased to 82.6 per cent in June 2000. Similarly, 81.8 per cent of poll respondents
indicated they understood Centrelink’s purpose and how it applied to their work in June 2000. This
was a 1.1 per cent increase on the October 1999 result and a 44.8 per cent increase on the 1998
result.
Core Selection Criteria that Target Key Attributes
In February 2000 we adopted three core selection criteria for all positions other than the Senior
Executive Service (SES). These criteria were developed in consultation with managers and
employees who were asked to consider what attributes our people need for the future. The attributes
centre on the Centrelink Shared Behaviours, customer service and business acumen.
Local and National Award and Recognition Schemes
In Centrelink recognition schemes have been in place at the local level for some time. These
schemes focus equally on informal and formal mechanisms to recognise our people’s contributions
and develop a common sense of purpose.
The Centrelink National Awards were introduced to provide a more formal framework for recognition
and to encourage acknowledgement of the vital role our people play in helping achieve corporate
goals and objectives. Awards are made in four categories: Customer Service; Community
Partnerships; Change Management; and Support Services, leading to the selection of an overall
winner.
The Quality Committee of the Board developed the seven criteria by which nominations are judged.
The first National Awards, presented in September 1999, attracted 45 high quality nominees. Overall
winner was the Employment Needs Assessment Trial, a joint Centrelink and FaCS initiative, which
also won the 81 1999–2000 Annual Report Our People Customer Service category award. Other
category winners were:



Community Partnerships: Innovations in Disability Servicing, Area Pacific Central;
Support Services: IT Infrastructure Team, National Support Office;
Change Management: Quality Team, Area Western Australia.
(See also Chapter 9, Corporate Overview, page 120 for details of other awards.)
We also support and encourage a high level of local recognition for individuals and teams through our
Balanced Scorecard ‘recognition’ measure. As this was the first time we included this measure, we
set a modest target of 4 per cent of all employees. We have been delighted with the outcome of an
average of 51 per cent. This outcome is confirmed by the very positive poll results in regard to
feedback.
Promoting effective leadership
Organisational culture change requires the direct, visible involvement of the Chief Executive Officer
(CEO) and top executives. Accordingly, the Guiding Coalition (see Chapter 9, Corporate Overview,
page 115) commissioned the development of a Centrelink Leadership Framework which outlines the
strategies and tools we need to develop the leadership capabilities required now and in the future.
Recent staff poll results relating to leadership have shown a substantial rise in positive responses
from 50 per cent in 1998 to 68.1 per cent in October 1999.
The June 2000 results show a slight drop to 62.5 per cent, which we have started to address through
the Leadership Framework.
Developing the Centrelink Leadership Framework
The Centrelink Leadership Framework was developed following the identification of needs and
priorities for enhancing leadership in Centrelink. In particular, we:





undertook a survey of Guiding Coalition members;
analysed the demographics of our leadership groups;
considered feedback from previous staff polls;
reviewed the outcomes of 360 degree feedback exercises undertaken in 1998–99; and
Added an additional capability to the Centrelink Leadership Capabilities.
Table 18: Centrelink Leadership Framework
STRATEGY
TIMEFRAME
Level 1
Enhance the skills of of existing
leaders at all levels
Short to medium
Level 2
Foster emerging leadership
talent
Medium to long
Level 3
Establish the next generation of Long-term
leaders
Coaching and Feedback Workshops
Work on enhancing the skills of existing leaders has already commenced. Coaching, feedback,
problem solving and influencing have been identified by the Guiding Coalition as priority issues to be
addressed.
A rigorous program to enhance coaching skills was conducted with all Guiding Coalition members. In
addition, several Area Leadership Teams have undertaken 360 degree feedback programs and
coaching workshops. Using their feedback, we have identified communication and sharing of
information, trust and delegation as areas to be addressed.
Leadership Development Programs
To enhance the skills of current leaders and develop the skills of future leaders, a wide range of
Leadership Development Programs have been conducted across the network. They included issues
such as leadership development, visionary leadership, succession planning and management. A
mentoring program to develop potential leaders in Centrelink has commenced and will be expanded
in the next year.
In addition to our internally developed programs, the Centrelink Leading Change panel of providers
continues to provide access, where appropriate, to external expertise in leadership development.
Australian Workplace Agreements
To provide greater flexibility, accountability, reward and development opportunities for Centrelink
senior leaders (SES and nonSES) and to assist Centrelink to retain key employees, we have
encouraged them to negotiate and sign Australian Workplace Agreements. To date 55 Centrelink
SES and 108 non-SES employees have been paid approximately $607 000 in performance bonuses
this year.
Creating a learning environment within Centrelink
The People Plan 1999–2000 states that Centrelink’s competitive advantage depends on the
knowledge and ability of our people and the application of that knowledge and ability to their jobs. As
a large and geographically dispersed organisation, the challenge for Centrelink is to target and deliver
business-focused learning and development experiences of a consistently high standard across the
full range of our people’s learning needs.
We are creating a learning environment that promotes and supports an integrated approach to team
and individual learning and development. We want our people’s learning to be:



supported by effective Team and Individual Learning Plans (TILPs);
business-focused, competency-based and externally accredited; and
delivered using innovative technologies that provide good value for our learning dollar and a return
on the investment of our people’s time.
Our initiatives appear to be having a positive effect. The positive responses in relation to learning
opportunities rose from 24 per cent in 1998 to 58.2 per cent in October 1999. They dipped slightly to
55.9 per cent in the June 2000 poll, indicating that we need to continue our efforts.
Team and Individual Learning
Consistent with our move to a team-based approach where everyone contributes to meeting team
goals, we are encouraging all our people to complete and maintain an up-to-date TILP. Through the
TILP process we have the opportunity to identify, plan and deliver current and future learning and
development programs to meet the needs of individuals and develop our overall people capability.
To monitor the TILP process we have included the completion and review of TILPs as a measure in
the 1999–2000 Balanced Scorecard. To further highlight the value of this process, the measure was
also included as one of the 11 measures used to determine salary increase provided for in the
Centrelink Development Agreement 1999–2002.
Starting from a base of 46 per cent of employees with TILPs at June 1999, 86 per cent of employees
had a TILP in place by 30 June 2000. Slow progress at the commencement of the year meant that we
were unable to meet the 80 per cent target by the deadline of 30 December 1999, causing us to miss
our pay rise target for this measure. TILPs remain a scorecard measure for pay rises for the life of
the agreement.
Accredited Learning Programs
Centrelink is a Registered Training Organisation, which enables us to develop and deliver several
nationally recognized competency-based learning programs. These programs all focus on building
skills and knowledge to improve our customer service. We offer a:






Certificate in Business (Office Administration);
Certificate in Business (Administration) for front line customer service officers;
Diploma in Business (Administration) for Team Leaders;
Certificate in Community Services (Youth) for Youth and Students employees;
Diploma in Community Services (Disability Work) for Disability employees; and
Certificate in Fraud Control (Investigation) for Compliance employees.
Over 270 people are participating in these programs. Their feedback is being used to review the
programs and to assist in developing complementary new programs.
Innovative Tools for Learning
Meeting the learning and development needs of employees in a national organization with
Centrelink’s size and diversity presents a challenge. We are meeting this challenge by using state-ofthe-art learning technologies to improve the consistency, access and timeliness of our learning
outcomes. Our major innovation in 1999–2000 is the Centrelink Education Network.
(See Chapter 8, Our Innovative Organisation, page 108 for more details.)
To complement the Centrelink Education Network we are developing an Online Learning Centre,
which will provide greater access to a range of web-based and computer-assisted learning materials.
As with the Education Network programs, these materials are being developed by the actual product
designers.
Development Programs
Feedback from our network suggested that products and policies designed in National Support Office
did not always reflect an understanding of their full impact on the network. Two development
programs, Inbound and Outbound, have been developed to address these concerns. They provide
participants with a better understanding of Centrelink’s business and culture and an opportunity to
contribute to the exchange of ideas and knowledge between National Support Office and the network.
Inbound
The Inbound Program, which commenced in November 1999, brings 16 Centrelink Band 4
employees from the network to National Support Office for an intensive five-day residential program
during which participants complete projects on critical issues requiring network input and perspective.
The program includes presentations from keynote speakers including the Centrelink Executive,
National Managers and the Secretaries of FaCS and DEWRSB. It also includes sessions on the
governance of Centrelink and the purchaser/provider relationship with client agencies. A visit to
Parliament also gives participants an opportunity to learn about parliamentary history, attend
Question Time and meet both portfolio Ministers.
The three Inbounds that have been delivered have received excellent feedback from the 48
participants. The program will continue in 2000–01.
Outbound
The Outbound program, which also commenced in 1999, provides Centrelink Band 4 employees from
National Support Office with an individually tailored program of three to five days experience in the
network. The program takes them to Customer Service Centres, Area Support Offices and Call
Centres where they have opportunities to experience first-hand the service delivery environment. We
will be continuing this program as it has also received excellent feedback from the 85 people who
have participated.
Noah’s Ark Outbound
The Noah’s Ark Outbound program aims to build mutual understanding and enhance working
relationships between Centrelink and FaCS. SES officers from FaCS policy branches are paired with
their Centrelink program counterpart for a fourday tour of our network. The schedule is similar to the
Centrelink Outbound program but includes an additional visit to a FaCS State Office and other
stakeholder agencies. This program will be delivered until December 2000, when a review will be
undertaken to determine its future.
Other Achievements
Improving Pay Processing
Infolink HR (Centrelink’s Human Resource Management System) has been operational since June
1999. Infolink HR has enabled Centrelink to simplify and streamline the processing of employee pay
and entitlements, resulting in significant savings. It is estimated that these savings will be in the order
of $4 million per year and are directly related to the reduction in the number of employees required to
support pay processing.
During the year Centrelink moved from a network of nine ‘transitional’ pay centres to a National Pay
Centre at Burnie, a National Compensation Service Centre in Adelaide, a Transfer Service Centre at
Box Hill and a Remote Allowances Service Centre in Townsville. The InfoPay Call Centre at
Melbourne provides streamlined assistance for employees for pay and pay processing matters.
The National Pay Centre network is supported by the Infolink HR project team. Consistent with the
objective of achieving best practice in the delivery of People Management products and services, the
team is undertaking enhancements to the current version of Infolink HR, particularly in the area of
management reporting.
Improving Access to People Management Information and Advice
Feedback from our people indicated that they needed access to timely, consistent and accurate
advice on people management issues. We have been able to improve our ability to communicate with
our people using our well-developed Intranet technologies.
People Handbook
A comprehensive People Handbook was launched on the People Management home page in
January 2000 and has been very well received. It uses a ‘worklife events’ model similar to the ‘life
events’ model used for our external customers.
Information on People Management policies and processes can be accessed through the following
seven ‘worklife events’: selecting good people; working; learning; leading and managing; changing
jobs; well-being at work; and leaving Centrelink. Navigation through topics is enhanced by links to
related Centrelink and external agency sites. The handbook’s contents and structure is continually
under review, with updates being posted as required.
Sharing ideas and linking best practice information
We have also used CentreNet to provide our people with the opportunity to contribute and share
ideas. The ‘Ideas that Work’ site in the People Handbook is regularly updated with innovative ideas
that have been successfully put into practice in Centrelink and other organisations. People can also
contribute their suggestions for improving people processes and procedures in Centrelink via an
‘Ideas Bank’. Suggestions are electronically forwarded to the People Management team for
consideration and response.
A suggestion received through the Ideas Bank prompted the establishment of the ‘Rumour Mill’during
1999. The Rumour Mill is a question-and-answer based forum where employees can anonymously
lodge rumours about what is happening in Centrelink. It provides a way for our people to have issues
of concern addressed promptly by those who know the correct answers. Over 680 rumours have
been received and answered to date (see also Chapter 8, Our Innovative Organisation, page 107)
Workforce Planning
Integrating workforce planning with business planning
In order to remain competitive, Centrelink needs to ensure that it has the workforce capability to
deliver the outcomes sought by Government and client agencies, especially when tendering for new
business.
In 1999–2000 People Management and Strategic Services teams commenced a workforce planning
project, in recognition of the importance of this planning activity for Centrelink. The ANAO, in its report
on Employee Reductions in the Australian Public Service, recommended that agencies monitor their
employee skills and workforce demographics to ensure the ongoing management of agencies’ human
capital, corporate knowledge, workforce core skills, diversity profiles and succession planning.
To date, a methodology for workforce planning has been developed and work has been undertaken
to assess the people implications of Centrelink’s Business Plan 2000–01. The key outcome of the
workforce planning project is that, by June 2001, workforce planning will be fully integrated with
business planning processes at all levels in Centrelink.
Information and Technology Graduate recruitment and Talent Bank
To build our capabilities to deliver IT services today and to position our workforce for tomorrow’s
demands, the Information and Technology (I&T) Group conducted an I&T Graduate Recruitment
campaign that resulted in the engagement of 59 graduates in 1999 and a further 29 in 2000. In
addition, an I&T Talent Bank has been set up to enable the assignment of people to projects in a way
that meets business priorities and individual career development needs. The Talent Bank also
supports learning and workforce planning strategies through the integration of assignment,
recruitment and learning functions. A skills survey has been completed and capabilities are being
recorded and monitored on a database.
(See also Chapter 8, Our Innovative Organisation, page 107.)
Career transition programs
We have developed career transition programs for employees whose functions are being or may be
outsourced. The programs deliver a range of products including information kits covering issues
related to redundancy, information sessions on HR aspects of redundancy, access to career
management services and access to transition training.
Delivery of the career management program has been provided by DBM Australia to employees in
most capital cities. Employees have had access to a range of programs designed to assist individuals
make career and lifestyle decisions. In addition, employees have had access to $3000 transition
training in order to develop new skills and qualifications.
The functions of 40 printing services employees were outsourced in late 1999. Nine employees
elected to seek redeployment options within Centrelink and a number of strategies including trial
placements, job swaps and referral to external agencies were used to place excess employees.
Seven employees have been permanently redeployed, one employee remains on retention and
another employee retired during the retention period.
The program has also been available to in-scope employees in our IT Infrastructure team. We have
tailored our strategies and initiatives to the needs of employees, targeting specific programs at key
points of the process. A high level of support is required to retain employees through the process and
to prepare them for a career transition in the event that outsourcing of IT Infrastructure functions
occurs. Regular newsletters are published advising employees of scheduled programs and events
and providing updates on the market testing process. If a decision to outsource IT Infrastructure
functions is made we will be able to provide individualised assistance through on-site Career
Transition Resource Centres.
Challenges
During 2000–01 we will continue with many of the important activities started in 1999–2000. The
following activities have been included in Centrelink’s Business Plan 2000–01 and the People Plan
2000–01.
Continuing the implementation of the Centrelink Development
Agreement 1999–2002
In accordance with the Centrelink Development Agreement 1999–2002 we will consider the removal
of work availability barriers from the classification structure. The barriers were included in the
structure to reduce the potential for unwarranted increases in Centrelink’s salary profile due to
broadbands. Progress with the work availability barrier project has been steady but slower than
expected owing to the complexity of job design in Centrelink.
Leadership Development
We will develop and deliver workshops in business acumen and emotional intelligence for the Guiding
Coalition. These workshops will then be rolled out to leaders and managers throughout Centrelink.
We will also find ways to provide stronger linkages between the Centrelink’s Shared Behaviours and
the Leadership Capabilities.
A Focus on Learning
Aligning our people’s skills with our business directions is an important objective of Centrelink’s
Business Plan 2000–01. We will undertake a consultative review of our National Learning Strategy
and develop a Learning Framework to strengthen the links between accredited learning, technical
training, and corporate learning and to identify the best application of innovative learning media.
To improve the coordination of learning planning and delivery and to monitor the knowledge levels
and skills of our people we will develop an integrated learning management system.
Employee Consultation
The Business Plan 2000–01 includes a commitment to monitor and respond to employee satisfaction
issues. Action is underway at both the national and local levels to address issues identified through
the staff polls. Work is also being undertaken to link staff perception research with feedback from
customer, client and community stakeholder research through the integrated research framework.
Upgrading our Human Resources Management System
There will be a major upgrade of Infolink to the next version of the SAP software during 2000–01. The
new version will incorporate a learning module that will support both learning and development
processes and reporting functions.
Developing the People Management Service Offer
We will work with our internal customers and stakeholders to develop a People Management service
offer. It will provide a framework through which we can monitor and improve our responsiveness to
our customers. We will align and coordinate activities across all People Management functions;
develop performance indicators to ensure that we can provide a business focused return on
investment; and provide regular feedback on outcomes to stakeholders and partners.
Key activities will include:




a ‘Delivering Human Resources in Centrelink’ conference;
a People Management Business Plan;
a people management events calendar; and
a people management benchmarking project.
Future Outcomes
The primary ‘people’ objective of Centrelink’s Business Plan 2000–01 is to align employee culture
and skills with Centrelink’s business direction. This objective and its strategies will form the basis for
Centrelink’s People Plan 2000–01. The People Plan, which is part of the Business Plan, includes
initiatives which will assist employees to: gain a greater understanding of our business; and develop
skills and knowledge to deliver the Government’s Welfare Reform initiatives. Other strategies in the
plan, such as workforce planning, aim to build our overall people capability.
7. Our Cost Efficient Organisation
Goal
Our goal is to efficiently manage our business and return a dividend to Government. The Balanced
Scorecard measures our performance towards this goal through the Centrelink Cost Efficiency Key
Result Area.
Overview
Centrelink achieved all its financial goals for 1999–2000, as follows:




a better than break-even operating result before abnormals;
returned the required efficiency dividends to Government;
achieved a positive cash position (without recourse to borrowings); and
a positive net equity position.
These results were in marked contrast to the 1999–2000 Portfolio Budget Statements’ anticipated
operating loss and requirement for cash borrowings. The positive results for 1999–2000 were a
culmination of actions taken by Centrelink during the year (and prior years) to ensure the return of
required efficiency dividends to Government.
Key Strategies
Our key strategies are to:


use external and internal benchmarking and review prices;
use benchmark prices to develop and implement a pricing methodology linked to actual costs,
taking into consideration quality risk management and investment strategies;






facilitate best practice, innovation and quality in business practice to advance Centrelink’s
competitive price position;
ascertain the costs of all operations across Centrelink;
ensure business management systems deliver outcomes including the provision of up-to-date
performance and costing data to support Centrelink activities;
identify appropriate areas for outsourcing;
develop and implement a learning strategy to enhance Centrelink’s business culture; and
Assign accountabilities for business outcomes to all managers.
Focus
To meet our cost-efficient goal, Centrelink has focused on achieving a break-even or better operating
result before abnormal and a positive cash and net equity position. We have also focused on
maintaining high levels of customer service while paying all efficiency dividends to Government and
redeveloping the funding model.
Outcomes Achieved
Operating Result
Centrelink generated an operating surplus (before abnormals) of $24.8 million for 1999–2000. After
abnormal items were taken into account, a net operating deficit of $4.9 million was incurred, which
was a significant improvement on the 1998–99 result of $31 million. This result was achieved after
taking into account an efficiency dividend of $211 million that was returned to Government via a
reduced revenue base.
The impact of the efficiency dividend is notionally illustrated below.
A summary of 1999–2000 expenditure and staff years is also shown below.
Table 19: Centrelink’s Net Operating Result 1999–2000 and 1998–99
1999–2000
1998–99
$m
$m
Revenue (net of dividend)
1 679
1 697
Revenue (before dividend)
1 890
1 793
Expenses
-1 654
-1 677
Operating Result
236
116
Abnormal Item*
-22
-81
Abnormal Item*
-8
30
Operating Result before
dividend
206
65
Efficiency Dividend
-211
-96
Net Operating Result
-5
-31
* Financial Statement Note 16.
Table 20: Summary of Resources
BUDGET*
ACTUAL
BUDGET†
1999–2000
1999–2000
2000–01
$’000
$’000
$’000
Revenue from
Government
(Appropriation) for
Departmental Output
0
0
250
Revenue from other
sources
1 661 834
1 678 713
1 745 973
Total price of output
1 661 834
1 678 713
1 746 223
Total Revenue for
Outcome
1 661 834
1 678 713
1 746 223
Price of Agency Output
Output: Efficient
delivery of
Commonwealth
Services to eligible
customers
(Total price of output)
BUDGET*
ACTUAL
BUDGET†
1999–2000
1999–2000
2000–01
$’000
$’000
$’000
Equity Injection
26 211
26 211
19 202
Loans‡
64 112
64 112
0
Total Capital for
Agency
90 323
90 323
19 202
1999–2000
2000–01
20 416
21 254
Staffing Years
(Number)
* Full year budget, including additional estimates.
† Budget prior to additional estimates.
‡ Centrelink fully repaid the $64.112 million loan in 1999–2000.
Revenue
FaCS was the major source of revenue, providing 89.9 per cent of Centrelink’s overall revenue.
Centrelink’s operating revenue is primarily derived from those client agencies with whom Centrelink
negotiates and agrees Business Partnership Agreements. Funds are transferred to Centrelink in
accordance with arrangements specified in the Business Partnership Agreements for the delivery of
services.
Table 21: Revenue to Centrelink 1999–2000
CLIENT AGENCY
REVENUE
$(’000)
Department of Family and Community Services
1 509 489
Department of Employment, Workplace
Relations and Small Business
121 250
Department of Education, Training and Youth
Affairs
24 462
Department of Health and Aged Care
2 401
Department of Agriculture, Forestry and
Fisheries Australia
3 677
Other Revenue
17 434
Total
1 678 713
Abnormal Items
The 1999–2000 abnormal expense item of $29.8 million comprises $21.4 million in voluntary
redundancies and a write-off of $8.4 million in internally developed software due to the development
and implementation of a new family payments system in 2000–01 (see Chapter 11, Financial
Statements, note 5, page 157).
Balance Sheet and Cash Flow
A positive cash position of $55 million was reported for 1999–2000. Centrelink managed its funds
under new devolved banking arrangements implemented on 1 July 1999. Centrelink’s investment
strategy enabled it to generate almost $5 million in interest revenue for the year. Centrelink’s revenue
has been reduced by a total of $5 million in 2000–01 on the basis of it continuing this positive
performance.
Prescribed Efficiency Dividend
In 1999–2000, for the third year in a row, Centrelink delivered government efficiency dividends in the
form of a reduction in the fees paid to Centrelink by client agencies. In recognition of Centrelink’s
need to achieve significant efficiencies through the integration of services and the removal of
duplication across several agencies, a special dividend, in addition to the standard annual efficiency
dividend of 1 per cent of total net running costs, was applicable. In 1999–2000, the level of the
additional efficiency dividend was 10 per cent. The special efficiency dividend resulted in the return to
Government of $139.4 million in 1999–2000.
Since its inception Centrelink has returned a total of $361 million in efficiency dividends to
Government.
The Financial Statements section of the Annual Report (see Chapter 11 Financial Statements, page
137) shows revenue net of the dividend. The effects of the dividends are illustrated in the table below,
which provides a breakdown of the individual components of the dividend.
Table 22: Government Dividend Requirements
1999–2000
1998–99
$m
$m
Normal
46.0
31.0
Special
139.4
59.2
IT infrastructure
25.4
5.9
Total
210.8
96.1
Other Achievements
Debt Prevention Activities
Centrelink is committed to ensuring that all customers are paid correctly and that the incidence of
incorrect payment is, where possible, reduced. This goal is promoted through a framework of
business procedures, controls and systems and by targeting specialist debt prevention resources to
identify and address the major causes of preventable debt.
Specialist Debt Prevention and Monitoring Officers, in partnership with relevant Centrelink Community
Segment Teams, play a key role in the development, implementation and promotion of debt
prevention strategies. The Debt Prevention and Monitoring function includes:




identifying and applying strategies to minimise and prevent customer debts to Centrelink;
monitoring debt activity to ensure debts are processed in a timely manner;
conducting debt prevention information and outreach programs within the community; and
raising Centrelink staff awareness of debt-related issues.
As a high number of debts occur because some Centrelink customers do not correctly advise
changes to their income, Centrelink has introduced a wide range of preventative measures. These
measures include:






targeting outreach to employers with a high number of casual or temporary staff, who are
traditionally more likely to incur income-related debts;
contacting Family Allowance customers to confirm the accuracy of their estimated income;
educating customers about their responsibility to advise Centrelink of changes in their
circumstances through seminars and information strategically placed in Centrelink customer
publications;
identifying and educating Newstart Allowance customers who have recently incurred an incomerelated debt in an attempt to minimise the risk of these customers incurring future debts;
reviewing the Rent Assistance entitlement of customers who appear to be paying an excessive
amount of rent; and
distributing specially produced Centrelink information leaflets with payslips to casual AEC
employees (6000 for the 9 October 1999 ATSIC election and 80 000 for the National Republic
referendum of 6 November 1999).
During 1999–2000, there were over 900 000 individual customer contacts carried out as part of
various debt prevention initiatives.
Additional information about compliance activities can be found in Chapter 4, Our Client Partnerships,
page 29, and Appendix ix, Compliance, page 219.
Cost Per Service—Activity Based Costing
The Cost Optimisation Project has been established to enhance Centrelink’s approach to strategic
cost management including the use of Activity Based Costing.
Regular up-to-date output costing data will inform business pricing, cost benchmarking, process reengineering and resource allocation processes. Activity Based Costing is being conducted in
consultation with Centrelink’s client agencies. To date, two surveys of staff effort have been
conducted to map inputs to activities and outputs. It is expected that systems-based transaction data
will be available early in 2001.
Funding Models
Centrelink, its client agencies and the Department of Finance and Administration (DoFA) are working
together to develop a new funding model for Centrelink.
Current funding arrangements are out of date, complex, different for each client, create instability,
encourage accountability for inputs not outputs and do not capture changes in cost drivers across all
payment types.
The new funding model should be in place for use in the 2001–02 Budget and in the next round of
Business Partnership Agreements.
GST Implementation
Centrelink undertook a considerable amount of work to ensure it was GST-ready on 1 July 2000.
Changes were made to policies, procedures, systems and structures during 1999–2000 and as a
result Centrelink was able to meet its legislative obligations in respect of A New Tax System from 1
July 2000.
Contract Management
During 1999–2000, Centrelink has achieved savings of approximately $18 million as a result of
prudent management of national contracts. These savings have been achieved through the contracts
associated with:
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outgoing telecommunications services;
travel services;
managed voice services;
motor vehicle leases; and
photocopier and mail services.
The savings have been realised as a result of negotiating new contracts or contract management
activities including:
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cost reductions from better practices;
reduction in or waiver of supplier invoices;
liquidated damages and rebates; and
reimbursement of costs from inter-agency activities.
Outsourcing initiatives
During 1999–2000, Centrelink market-tested three activities previously undertaken in-house. As a
result of the competitive tendering and contracting (CTC) process, three separate contracts were let.
Details relating to these contracts are provided below.
Mail Sorting and Transfer Services
A contract for mail sorting and transfer services was let in September 1999 with a total contract value
of $220 000. The term of the contract is for one year. $64 000 in savings were identified as a result of
the CTC process.
Publishing, Printing, Distribution and Services for Personalisation and Mailing
In early 1999, through a CTC process, Centrelink incorporated a number of functions previously
independently contracted out into one combined contract. The function of personalisation was added
to the overall contract arrangement for the first time. The term of the contract is for five years and
commenced in August 1999. The estimated value of the contract is $135 million and savings are
estimated at over $3 million.
Legal Services
Centrelink conducted a CTC process in late 1999 for the renewal of its legal services contract
arrangements. As a result, a standing offer panel contract was established for the provision of legal
services for a three year period with an estimated value of $8.53 million.
ETI*Extract
The Knowledge Team has developed a new data warehousing tool, ETI*Extract, which has
significantly improved programming practices, reduced maintenance costs and reduced computer
processing time by more than half. This initiative considerably enhances the Knowledge Teams’
delivery of management information to all Centrelink staff. As this project is still in its first phase of
implementation, Knowledge Team expects the flow through from the use of this product to continue to
deliver significant efficiency.
Challenges
Centrelink faced a number of challenges to achieving required operating results and positive cash
and equity positions for 1999–2000. These included:
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implementing and managing under devolved banking arrangements;
total efficiency dividends to be returned to Government increasing from $96.1 million in 1998–99
to $210.8 million in 1999–2000, while at the same time ensuring satisfactory service standards
were maintained or improved;
improved economic conditions reducing agency revenue under purchaser/provider arrangements
as a result of reductions in Newstart and Youth Allowance customers. Remedial action to
expenses was required to ensure the achievement of a breakeven operating result;
consolidating financial and budgeting arrangements under an accrual framework; and
ensuring Centrelink GST-readiness for 1 July 2000.
Future Outcomes
Energy Management
Centrelink will undertake a two stage Energy Management Program through AGL (Australian Gas
Light Company), designed to ensure it meets the Government’s energy reduction targets. Subject to
the Stage 1 data validation process, it is hoped to enter into an Energy Performance Contract to be
funded and managed by AGL, with guaranteed energy reduction outcomes. Centrelink’s Property
Operating Expense will reduce as energy savings are realised. Should the contract proceed,
Centrelink will be the first Commonwealth Agency to enter such an arrangement. This should
establish Centrelink as a lead Agency in energy performance contracting.
Pricing Review
Centrelink is scheduled for a DoFA Pricing Review in 2001–02. The work that has been done in
1999–2000 on strategic cost management, benchmarking and the development of a new funding
model will place Centrelink in a good position to commence this review.
8. Our Innovative Organisation
Goal
Our goal is to provide innovative and personalised solutions consistent with government policy.
Overview
Centrelink undertakes a wide range of projects and initiatives designed to enhance Centrelink’s ability
to deliver a range of services. Many of these projects are the backbone of our future services,
providing the architecture and infrastructure to enable Centrelink to be flexible and responsive. These
projects and initiatives show how prevalent the culture of innovation is in Centrelink.
Highlights include the development of Centrelink Online and Decision Support (Expert) Systems to
support future electronic service delivery. Other innovative projects include the development of the
Rural CD-ROM, 1Business, the Centrelink Education Network and CentreThink.
Key Strategies
The key strategies are to:
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use new and emerging technologies to personalise service, expand choice, increase convenience,
support decision making and support the one-to-one model of customer service;
build business partnerships and strategic alliances for a ‘single window’ to government ervices;
encourage innovation and creativity in Centrelink people; and
develop an Enterprise Architecture.
Focus
While continuing to deliver the business today to meet the expectations of our clients, customers, the
community and Government, Centrelink is always looking to the future to maximise its opportunities
and to transform tomorrow in a way that will exceed the expectations of our stakeholders.
Outcomes Achieved
In improving current performance, Centrelink seeks to use new and emerging technologies to
personalise service, expand choice, increase convenience, support decision making and support the
one-to-one model of customer service.
Delivering Customer Service Today
Call Centre Automation
Centrelink receives over 20 million calls each year. To meet this demand Centrelink’s Call Centre
system has been improved. Technical improvements such as Global Call Handling, which moves
calls around the network to even out peaks and flows in individual centres, and CallScan, which
provides valuable management information, have been implemented to improve the waiting times for
our customers.
A number of trials of automated telephone based customer self services are being undertaken. A trial
of automated phone-based self service payment details commenced in April 1998 in WA, and is
currently being redeveloped for national rollout in 2000–01.
A trial of phone lodgement of fortnightly mandatory continuation forms commenced in December
1999 and will finish in August 2000. The trial is being held in a sample of Customer Service Centres
in Area South Australia, covering a cross section of customer demographics. Approximately 2200
customers chose to take part.
Customers ring a dedicated phone number (for the cost of a local call) and answer a series of
questions, including declaring earnings, using the number pad on their telephone. Customer records
are updated and payment generated using this information. Customer response has been
overwhelmingly positive, especially customers with part-time or casual earnings.
Telstra Multimedia Payphone
Centrelink, HIC and DEWRSB, together with Telstra, have been conducting trials of a touch-screen
based payphone which, besides allowing standard phone calls, can connect the user directly to
participating ‘content providers’. These Multimedia Payphones combine payphone, smartcard, printer,
multimedia and Internet technologies, offering the potential for delivery of a wide range of services
and information.
(See also Chapter 5, Our Customers and Community, page 51.)
The trial is limited to 10 locations in rural Australia and will cease on 30 September 2000.
The Centrelink site contains a wide range of information covering the payments and services
delivered by Centrelink, the location of the nearest Centrelink Customer Service Centre and
information on specialist services. It will soon be enhanced to allow customers to register and make
enquiries online regarding their own payment information.
Emergency and General Assistance Payment
The Emergency and General Assistance payment (EMG) system was developed and implemented by
Centrelink under the Disaster Assistance Payments project.
The EMG system is one part of a suite of IT developments designed to allow Centrelink to react
quickly and efficiently in times of disaster. Centrelink is now able to make ex-gratia payments to
customers affected by disasters, or other emergency situations, at very short notice. In the most
extreme cases, payments can be made available within hours of the event. The flexibility built into the
EMG system allows Centrelink to tailor payments to the requirements of individual situations, and to
address many different situations simultaneously if the need arises.
Self help facilities for rural customers
Centrelink has also focused on providing a range of technological solutions to improve services to
rural and regional customers.
The provision of self help facilities in very small communities have given rural customers better
access to government services including through:
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a dedicated Internet enabled personal computer to allow access to job vacancy details,
information about the Job Network and a list of available local providers and other relevant
information;
dedicated facsimile and phone equipment to provide direct access to Centrelink staff and
specialist services; and
v Figure 14: Centrelink Organisational Framework and Customer Service Network ideo
conferencing facilities and printers (in some locations).
Video conferencing facilities are used by some Centrelink agents. This has enabled rural and remote
customers to have face to face interviews and obtain specialist advice with staff in Centrelink offices.
Remote Access Services
The Remote Access Services (RAS) Program allows Centrelink to deliver services in situations where
no Centrelink office exists. With the aid of a specially configured laptop computer, staff can:
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offer services in otherwise isolated parts of Australia;
assist in areas cut off by natural disasters;
visit customers physically unable to attend an office; and
Work from home.
RAS is a viable low-cost small office alternative. Customer service officers have made substantial
efficiency gains with the use of RAS. In 1999–2000, we achieved the following improvements:
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RAS architecture has been moved to a very stable and highly scalable platform. It is highly secure
with hardware and user authentication and full encryption services.
The number of RAS laptops has risen from 600 to over 1200, and is expected to further increase.
Income Record
Centrelink implemented the Income Record form for job seekers with earnings after a version was
successfully trialled in Tasmania. The Income Record form assists job seekers to easily keep track of
their earnings each fortnight in order to minimise errors and to promote accurate notification of
earnings. By recording the amount earned each day on the Income Record, job seekers have a better
understanding of the amount they are required to declare to Centrelink. One version of the record
allows for piece rates while another is designed for the job seeker’s employer to stamp or sign the
form to verify the amount declared. This significantly reduces the number of times Centrelink has to
contact employers to verify amounts earned by job seekers.
Centrelink Education Payments System (CEPS)
Centrelink was engaged by DETYA to migrate the Education Student Assistance System (ESAS)
across to Centrelink’s claims and payments processing infrastructure. ESAS supported a number of
important student assistance programs, namely:
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ABSTUDY;
AIC;
Pensioner Education Supplement; and
Financial Supplement Loan Scheme.
The implementation of CEPS provides a number of benefits to Centrelink and its customers:
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Customers are Figure 14: Centrelink Organisational Framework and Customer Service Network
able to advise a change of circumstances at any Centrelink office or Call Centre to have their
records updated.
the system allows the management of continued entitlement by interface with other family
members’ records.
the system was built to facilitate a claim and annual review service rather than an annual claim
process.
(See also Chapter 4, Our Client Partnerships, page 29.)
Centrelink IT Services
Centrelink IT systems availability and response-time performance exceeded the 99 per cent targets
set in Business Partnership Agreements for 1999–2000. Since June 1999, IT systems releases have
progressively increased in size and complexity. The major June 2000 release was twice the size of
the June 1999 release, and was the largest release ever undertaken by the I&T Group. Over the past
12 months the I&T Group has changed 21 per cent of its internally developed software functions,
altered 15 000 computer application procedures and increased the overall application asset holdings
by 11 per cent. In the same time period, attention to defect metrics has resulted in a 78 per cent
reduction in release bug screen defects.
Centrelink has developed an extensive IT capability over the past 15 years. We are currently ranked
by industry experts as the fourth largest IT user in Australia. Our technological capabilities are aligned
with the growing business demand that arises from technology advances, allowing us to implement
more complex applications, process increasing volumes of information, increase the sophistication of
our Call Centre services and extend our presence onto the Internet.
IT Infrastructure
The Network 2000 project focused on providing Year 2000 compliant computing infrastructure for
Centrelink. With all major deliverables completed by September 1999, Network 2000 was a complex
logistical exercise impacting on all Centrelink sites and resulting in the comprehensive upgrading of
computing hardware and software.
The project provided an immediate increase in overall network stability as well as the current 32 bit
operating platform (Windows NT) necessary to deliver Centrelink’s future major information
technology projects.
Supporting Staff
Internet, Intranet and Extranet Services in Centrelink
The Internet, Intranet and future Extranets will continue to provide a common platform on which a
substantial amount of customer information can be collected, integrated, analysed and shared.
Our corporate Intranet, known as CentreNet, was established to deliver information and interactive
services to our staff throughout Australia. The scale of CentreNet makes it one of the largest public or
private Intranets deployed in Australia.
CentreNet provides an online phone book, entitlement ready reckoners, people management
interrogation tools including employment/pay self service, ideas laboratories and information about
our products and services and the teams within Centrelink who provide these services.
The Centrelink Internet site provides over 1000 pages of information and basic email query options. It
is being redeveloped for ‘life events’and will have increased interactivity via email with a secure
messaging capability, as well as a number of downloadable forms. It also provides hotlinks to a range
of other services both public and private.
ATO and HIC staff in FAO will be provided with access to the Intranet via the new Extranet to enable
them to make use of the assessment tools.
Mapstat
‘Mapstat’ allows staff from any Call Centre to quickly locate specific information about local Centrelink
Customer Service Centres and relevant services for customers on the phone. This information
includes detailed maps and photos to assist the customer in finding the location of offices, as well as
information on services offered and contact details. Call Centre operators can be advised of changes
or new information within seconds providing a consistent, reliable and efficient service to customers.
This application has potential for deployment on the Internet for direct customer access.
Sprite
An Intranet business IT support tool known as Sprite was deployed for employment services staff. It
supports customer service officers with a range of job seeker contacts.
Sprite facilitates an online claim process and provides significantly increased decision support. In
addition, it provides a ‘Statement of Circumstances’, a printout of the information held by Centrelink,
for use in the review process. The job seeker simply certifies its correctness or indicates any changes
of circumstances.
Other key features and benefits are:
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productivity gains from more efficient mainframe updates;
a summary of complex job seeker information with the option of ‘drilling down’ for the detail;
reduced system complexity, with increased surety that the customer service officer has taken the
action that is required; and
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links to other Intranet sites such as the DEWRSB ‘vacancy database’.
(See also Chapter 4, Our Client Partnerships, page 31.)
Support for Rural Agents
A Rural CD-ROM was developed during 1999–2000 to help provide better support to Centrelink
agents and to improve the quality of information and services provided to their rural and regional
customers. The content and presentation of the Rural CD-ROM is in line with the ‘life events’
approach and is updated and distributed quarterly.
The Rural CD-ROM provides agents with access to:
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a wide range of printable Centrelink forms and publications, and up-to-date reference information
on Centrelink payments and services;
a customer screening support tool, which guides agents through a series of questions to identify
the payments and services best suited to individual customers; and
training modules for new initiatives.
(See also Chapter 5, Our Customers and Community, page 51.)
Relocation Tool
Centrelink has developed an Intranet tool called REMOVE (Reduced Employment Moving Test) to
assist job seekers with relocation queries. REMOVE makes an initial assessment of whether a move
or an intended move complies with legislative requirements. The tool uses CentreNet to link the
national localities database to small area labour market data and will then apply business rules in
accordance with the policy and legislation. The complete package includes a detailed reference guide
and is easy for staff to use.
REMOVE has been very successful in assisting Centrelink staff to readily advise a job seeker
whether their move would invoke a deferment period. REMOVE has been consistently in the top 15
sites visited on CentreNet suggesting its widespread application and its high value to Centrelink staff.
(See also Chapter 4, Our Client Partnerships, page 27.)
Building business partnerships
TIGERS
The Trials of Innovative Government Electronic Regional Services (TIGERS) project is part of the
Federal Government’s accessing the Future program funded from the Telstra Social Bonus Package.
It is the lead demonstration project to encourage Commonwealth, state and local government
agencies to harness IT and telecommunications in order to integrate service delivery and improve
customer service. It consists of four sub-projects:
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The Government Information Centre, Launceston, will be further developed to enable telephone
services for all three levels of government.
A single point of entry through the Internet will be developed to enable clients to undertake ‘all in
one’ transactions with agencies. This will include electronic application lodgement and online
payments. The new web site will act as a front page for the Tasmanian State Government by
providing ‘cutting edge’ searching and information retrieval facilities in a user friendly format.
Selected over the counter Commonwealth and local government services will be delivered through
Service Tasmania’s network of 24 shopfronts.
Innovative ways of delivering services will be explored, taking advantage of new technologies and
related programs.
Service Tasmania and Centrelink have been working together over the past two years to jointly
deliver services to their customers. The TIGERS project will expand the locations and range of
services for Centrelink customers. This will be done, initially, in two phases.
The first phase will see enhancements to agent arrangements with Service Tasmania. Centrelink
agencies have been established at Service Tasmania shops in Sheffield, Scottsdale, Deloraine, New
Norfolk, Triabunna, Smithton and Georgetown. These Service Tasmania shops will deliver a range of
Centrelink services including providing assistance with claims, form lodgment and general enquiries.
The second phase of the Centrelink partnership will identify and use appropriate technology to build
on business relationships with the aim of further expanding services in rural communities.
(See also Chapter 5, Our Customers and Community, page 53.)
WA Telecentres
The WA Government has established the WA Telecentres to provide rural and regional communities
with local access to enhanced IT services and a supportive network across Western Australia.
Centrelink has negotiated an arrangement with the WA Department of Commerce and Trade to
deliver a range of basic information access services from 57 WA Telecentre locations. Centrelink
customers are able to use the facilities to collect forms and other Centrelink information, make basic
enquiries, and obtain free access to a photocopier and telephone, facsimile and Internet facilities to
contact Centrelink.
(See also Chapter 5, Our Customers and Community, page 53.)
Encouraging innovation and creativity in Centrelink’s people
CentreThink
CentreThink provides a forum for staff to discuss, promote and share ideas for improving Centrelink.
As part of Centrelink’s strategic framework, it is committed to providing opportunities for Centrelink
people to influence our future through their ideas and innovations. CentreThink is the mechanism for
this process as it is available to staff at all levels of the organisation, and at all sites.
CentreThink comprises three components:
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‘Ideas Bank’ allows staff to propose ideas for improvement and innovation. Over 700 ideas were
submitted in 1999–2000.
‘Let’s Talk’ permits staff to discuss problems and ideas that have been implemented at the local
level. Approximately 65 postings were made to ‘Let’s Talk’ each day in 1999–2000.
‘Rumour Mill’ allows staff to obtain an official response to rumours in the workplace. There were
over 680 postings in 1999–2000.
(See also Chapter 6, Our People, page 87.)
Creativity Support
Centrelink encourages the use of Electronic Service equipment in combination with creativity
products, tools and techniques by facilitators at workshops and conferences. The products include
Decisions (Grouputer), MindManager and Six Thinking Hats.
Talent Bank
The I&T Talent Bank has been developed to enable the assignment of people to projects in a way
that meets business priorities and individual career development needs.
(See also Chapter 6, Our People, page 87.)
ITWorks
A monthly Business TV Program ITWorks is produced by Centrelink’s I&T Group. The program
provides IT related information and training to Centrelink staff and showcases new and innovative
technologies.
Enterprise Architecture
During 1999–2000, Centrelink developed a draft version of the Enterprise Architecture. The primary
aim of the Enterprise Architecture is to enhance Centrelink’s ability to deliver new and changed
business services rapidly. The data and technology components of the architecture are currently
defined to a much greater level of detail than the business and information components. This
imbalance will be addressed in the forthcoming year in line with the business strategy and business
process re-engineering developments.
Centrelink is committed to ensuring that the business and IT components of the architecture are
aligned and comprehensively documented. This will enable greater levels of speed, flexibility and
cost-effectiveness of all operations.
Other Achievements
Centrelink Education Network
In April 2000, Centrelink launched the Education Network, an interactive distance learning facility that
can provide a virtual classroom in almost every workplace. Using business television and interactive
keypads, any number of ‘students’ at a given time can answer questions or ask for help, and can
speak to the trainer via a built-in microphone.
The Education Network has enabled us to target learning opportunities to the needs of specific
workgroups, delivering highly consistent learning and catering to different levels of knowledge. In
addition, staff can now receive their technical training directly from subject-matter specialists. For
these reasons, this technology has proved to be a popular way to learn.
Since its commencement, the Education Network has broadcast an average of four learning sessions
per day covering a wide range of topics. Within the first 15 days, learning sessions delivered six
subject categories to over 2000 participants. This initiative demonstrates Centrelink’s commitment to
finding innovative and effective ways of giving our people the tools they need to deliver even better
service to Centrelink customers.
(See also Chapter 6, Our People, page 84.)
1Business
1Business focuses on aligning Centrelink’s I&T capabilities and services to the rest of the business to
assure quality outcomes. It is a process for both parties in a partnership to describe current levels of
satisfaction, outline the issues or barriers to improved performance and to identify a range of
improvement actions in an agreed timeframe. At a local and national level, it enables both sides of the
business to better understand the factors affecting the achievement of exceptional service from their
customers’perspective.
Centrepay
Centrepay allows Centrelink customers to voluntarily have regular amounts deducted from their social
security payments for expenses such as rent, gas, water, or electricity direct to organizations
providing that service. Following increased demand for Centrepay from a number of organisations,
various enhancements to the electronic deduction facility will be introduced in 2000–01.
Centrelink’s existing IT Model 204 structure and SAP functionality will be combined with
developments in electronic communications and networking to enable the timely electronic exchange
of information between Centrelink and service providers.
Challenges
Changing Expectations and Needs
Centrelink customer expectations are changing, as they increasingly expect faster, more flexible and
simpler options to access information and other services. Customers expect Centrelink to organise its
business to provide them with the right service at the right time and in the right place.
Communities are today becoming wired up online. The ability to find information, tap into services,
and communicate with others over long distances is becoming very real. As this empowerment
increases, people are beginning to demand the same services from Centrelink, regardless of their
rural, remote, or urban location.
E-business strategies are growing around the world, to the extent that services can now largely be
provided by anyone, anywhere, anytime. Customers are no longer bound by what exists in their
locality and brand loyalty has taken on a very different meaning. Centrelink has to develop a new
image for both the customers of its services and the purchasers of the service delivery.
Within a contestable environment, Centrelink must be more flexible in order to accommodate the
diverse business requirements of clients. Business clients want high-quality performance information
on their products and Centrelink’s service delivery.
Centrelink needs to be aware of emerging technologies in order to position itself ahead of potential
competitors, in respect of research and development, technology acquisition and skills.
The emergence and availability of the home PC and other electronic devices with the ability to
connect to the Internet has meant that new forms of security and customer authentication are
required in order to conduct e-business and protect the customer’s privacy.
Knowledge management, particularly in relation to its scope and scale, will continue to be a critical
issue for Centrelink.
Centrelink will need to take advantage of the opportunities that arise to forge a broad range of
alliances and partnerships with federal, state, local government, community and private sector
organisations to expand its services.
Future Outcomes
Transforming Tomorrow
Centrelink Online
The Centrelink Online project delivers the new IT infrastructure required to enable Centrelink’s
electronic service delivery initiatives to proceed. The goals of Centrelink Online are to:
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facilitate service delivery across multiple access channels (for example Interactive Voice
Response, Web, Kiosk);
allow business logic in IT systems to be reused across access channels;
provide separation of workflow (business processes) from business rules;
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provide for seamless access to multiple back-end IT systems;
leverage existing legacy IT systems; and
be scalable, flexible, open, secure, manageable, cost-effective and outward looking.
In essence, Centrelink Online provides application developers with a set of standard functions and
facilities that hide underlying complexities and enables the rapid development and delivery of
electronic service delivery initiatives.
Andersen Consulting, as systems integrator, worked with Centrelink staff during 1999–2000 to
develop and deliver two versions of Centrelink Online, namely:
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Version 1—to support the initial implementation of Call Centre Automation (Screen Pop,
Softphone and payment details); and
Version 2—to support the electronic service delivery aspects of FAO (Intranet access by FAO staff
located in ATO and HIC offices; Intranet access to the Childcare Operators System).
Once testing has been completed in the early part of 2000–01, Centrelink Online Version 3 will
support further Centrelink electronic service delivery initiatives including Accessing Centrelink,
Customer Internet Services and Expert Systems. Call Centre Automation and FAO will also migrate
to Version 3.
By the end of 2000–01, Centrelink Online will have provided major components of the robust and
flexible architecture and infrastructure required to underpin Centrelink’s electronic service delivery
capability and integrate with existing systems and data. This capability will significantly enhance
Centrelink’s ability to personalise service, expand choice and increase convenience for customers.
Decision Support (Expert) Systems
The payments and services offered by Centrelink are complex, wide-ranging and subject to high
levels of change. In such an environment the development of Decision Support (Expert) Systems will
assist our staff to deliver accurate and appropriate service offers to customers (see also Chapter 5,
Our Customers and Community, page 63).
Softlaw Corporation, an Australian company and industry leader in expert system technologies, has
been engaged to assist in jointly developing a Decision Support (Expert) System with Centrelink and
FaCS.
Softlaw Corporation will provide their expert system software ‘Statute Expert’ and manage overall
system development, in addition to providing staff training and support services to staff of both
Centrelink and FaCS. Staff from Centrelink, FaCS and Softlaw Corporation were co-located in
Canberra from March 2000 to begin development of the Decision Support (Expert) System.
The system will:
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guide staff through the necessary policy rules and legislation to help them determine a customer’s
likely entitlements as they enter customer information;
provide a record of the decision path;
generate up front a customer letter of likely entitlement at interview; and
Include a ‘what if’ capability to enable customers to test a number of scenarios in assessing the
impact of possible changes in their circumstances.
The Decision Support (Expert) System will assist staff in their day-to-day processing and service
functions and address customer concerns about accuracy, consistency, clarity and completeness of
information.
The system will support the FAO implementation in 2000–01. Customer Service Centres will initially
receive the system in stand-alone mode. A version integrated with existing Centrelink systems is
scheduled to be released in 2001–02, and it is envisaged that the system will later become available
on the Internet for customer self-service.
The longer term possibility of extending the Decision Support (Expert) Systems rulebase approach to
cover all the business of client agencies and allowing customers access to their own records for
restricted access or update is being examined.
Accessing Centrelink
The Accessing Centrelink project will assist staff to accurately and efficiently deliver service offers to
new customers experiencing a ‘life event’. The tool will create a generic admission procedure across
all ‘life events’ with access to all products and services. In this regard it can be seen as a low level
decision support tool for customer streaming and admission purposes for all ‘life events’.
The benefits of such a tool are that:
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

accurate, complete and consistent advice is given on first contact;
customer information is provided and recorded once only; and
customer satisfaction is increased due to the reduction in form-filling as it is an online claim.
The first phase of the project will be delivered by January 2001 and by April 2001 the second phase
will be introduced to cover all major Centrelink services.
Call Centre Automation
The Centrelink Service Delivery Strategy sets a clear direction for enhancing our service offers over
the coming decade. Call Centre Automation is the first real step in offering multiple channels of
electronic access for current and future Centrelink customers.
To move forward into the new online service delivery environment required of all Federal agencies by
Government, and to position Centrelink to be at the forefront of developments, the following directions
are now ready for development over the next two years:



Computer Telephony Integration (integrating telephony and computer technologies) will provide
new customer self-service choices and bring new tools directly onto the desktop of Centrelink’s
customer service officers.
Interactive Voice Response will provide voice recognition, greater matching of customer needs to
Centrelink staff skills, and lead towards integration with web-based services.
Inbound and Outbound Strategies will involve proactively contacting customers on a personalised
basis, resulting in fewer letters and more direct contact at times that suit customers.
Centrelink is putting the following building blocks in place in 2000–01 to enable these developments
to proceed. These include:



developing new Call Centre tools such as Screenpop (presenting customer information right on
the desktop) and Softphone (literally putting the phone into the computer to improve processes);
fully automating transactions for customers, starting with expanding telephone based customer
self service inquiries to personal data; and
enhancing call routing and performance reporting information.
e:Commerce
In line with the Government Online Strategy, developed by the Office for Government Online, the
Centrelink e:Commerce project aims to electronically deliver the processes associated with materials
and services purchasing and supplier payment by the end of December 2001.
The Infolink I&T team is currently performing a technical evaluation of the available e:Commerce
solutions through site visits, meetings with suppliers and independent research. A pilot project is
planned for late 2000 with a subsequent complete rollout by December 2001. These initiatives will
enable Centrelink to take advantage of the business opportunities and operational efficiencies
associated with electronic trading.
9. Corporate Overview of Our Organisation
Legislation
The Commonwealth Services Delivery Agency Act 1997 (the CSDA Act) which came into effect on 1
July 1997 formally established Centrelink. Under this Act the Agency comprises:



a Board of Management;
the Chief Executive Officer; and
the employees.
Other legislation affecting Centrelink is outlined in Appendix i.
Centrelink’s Functions
The Act confers on the Agency responsibility for:




the provision of Commonwealth services in accordance with service arrangements, and activity
included in the arrangements that is incidental, conducive or related to the provision of the
services;
any functions conferred on the Agency under any other Act;
any functions that the Minister, by written notice given to the Chairman, directs the Agency to
perform; and
activity incidental, conducive or related to the performance of any of its other functions.
Role of the Board of Management
The Act gives the Board power to do all things necessary or convenient to be done for, or in
connection with, the performance of its functions. The Board’s functions are:


to decide the Agency’s goals, priorities, policies and strategies; and
to ensure that the Agency’s functions are properly, efficiently and effectively performed.
The Board must also ensure that general policies of the Commonwealth Government that apply to the
Agency, the Board or the employees are carried out.
Notifiable Events
Under Sections 9 and 13 of the CSDA Act, the Board must comply with a direction from the Minister,
given in writing to the Chairman, about the performance of its functions, the exercise of its powers or
the conduct of its meetings. Particulars of any directions given by the Minister in a financial year must
be included in Centrelink’s Annual Report.
Section 10 of the CSDA Act requires that, before giving a direction under Section 9, the Minister must
ask the Board for its advice and comments on the impact of the direction on the Agency’s operations.
Particulars of advice by the Board are also required to be reported in Centrelink’s Annual Report.
No notifiable events or ministerial directions were received during 1999–2000.
Role of the Chief Executive Officer
The CEO is responsible for the day-to-day management of Centrelink and Centrelink’s operations.
Guiding Coalition
Centrelink has a flat management structure; the traditional divisions and branches have been
replaced with teams. A SES officer leads each team. There is no hierarchical order for these teams
and their leaders.
Every SES officer is a member of the Guiding Coalition. The Guiding Coalition is Centrelink’s
Management Committee. Each member represents his or her people. The Guiding Coalition meets
about every six weeks.
The Guiding Coalition’s role is, within the directions or policies determined by the Board of
Management, to:




guide the organisation;
set enabling direction and take key decisions;
establish a culture for the future; and
Be an educative forum.
The Span of the Centrelink Network
The organisational shape of Centrelink has remained dynamic and has been under continual review
over the past year as Centrelink has expanded its operational capacity.
The organisational structure reflects the business operations logically, and facilitates the ongoing
streamlining of organizational levels and functions. It also provides the flexibility to build
organisational capabilities that will be required for Centrelink to function in an increasingly contestable
environment.
Customer Service Centres, agents and community agents are positioned to allow the widest possible
access to all Australians, whether they be in metropolitan, rural or remote localities (see Figure 15,
Span of the Centrelink Service Delivery Network). This network allows Centrelink to deliver a
comprehensive suite of services consistent with the Government’s one-stop-shop policy.
Area Support Offices
Given its national focus, Centrelink has grouped its various service centres into 15 geographical
areas, each with an Area Support Office headed by an Area Manager. These offices provide
management, administrative and operational support for Customer Service Centres.
Figure 14: Centrelink Organisational Framework and Customer Service Network
Figure 15: Span of the Centrelink Service Delivery Network
National Support Office
The National Support Office is Centrelink’s headquarters and, as its name suggests, supports the
Board of Management, Ministers, client agencies and the Centrelink network that interacts directly
with customers.
There are three main types of teams in the National Support Office: Theme Teams; Community
Segment Teams; and Information and Technology (I&T) Teams.
Theme Teams manage corporate functions and ensure that Centrelink develops and demonstrates
best practice in all aspects of its operations.
Community Segment Teams, corresponding to the major customer groups to which Centrelink
delivers payments and services, are responsible for ensuring the achievement of performance levels
set out in Business Partnership Agreements for their particular customer group. They also provide the
main point of liaison for day-to-day contact between Centrelink and its client agencies.
I&T Teams are responsible for the development, release and maintenance of IT products and
services for Centrelink.
(See Figure 14, Centrelink Organisational Framework. )
Other Corporate Matters
Restructure of National Support Office
National Support Office underwent a major restructure in 1999–2000. The restructure aimed to
improve the service that it provides to the network, client agencies, the Board and Ministers and other
key stakeholders. It was instigated in response to feedback from clients highlighting concerns with
consistency of service across the network and the time lag between announcement of policy changes
and actual implementation of those changes by Centrelink.
One of the major changes arising from the restructure was the creation of the Service Integration
Shop, which will support the development of customised service offers for client agencies and
interface extensively with the network and I&T services. This will allow Centrelink to develop a
consistent and preferred way of doing business through sharing best practice across Community
Segments and the organisation as a whole.
The restructure will also allow an increased focus on client relationship management with clients and
external stakeholders, and will enable Centrelink to better anticipate and respond to client needs and
better position itself for new business opportunities in the future.
Executive Appointments
Mr Paul Hickey has been appointed to the position of Deputy Chief Executive Officer, Business
Capability.
His previous positions include:


Executive Director, Australian Quarantine and Inspection Service; and
Deputy Secretary, Department of Employment, Education and Training (now DETYA).
Senior Management Remuneration
The Government’s workplace relations and wages policy supports the determination of wages and
conditions as far as possible by agreement at either the enterprise or workplace level. As such, it is
Centrelink policy to remunerate the SES by Australian Workplace Agreements. Centrelink does not
use classification bandwidths as the basis for remuneration.
Discretionary Grants
Centrelink does not administer any discretionary grant programs.
Assets Management
Assets management does not form a significant aspect of Centrelink’s strategic business.
Year 2000 Compliance
The Year 2000 Compliance Project was initiated in March 1996 to address the Year 2000 issue in the
Family and Community Services Portfolio. Early recognition of the potential Year 2000 problem and
comprehensive testing undertaken during the previous two years has resulted in a successful rollover
into the Year 2000 for Centrelink, with no Year 2000 related problems. All Centrelink Customer
Service Centres opened for business on Tuesday 4 January 2000, and as expected, Centrelink’s
operations during the first business cycle of the New Year was business as usual. Centrelink
customers were unaffected by the Year 2000 issue, with all payment systems operating as required.
Total expenditure for Centrelink’s Year 2000 project was $21 million over a three year period, which
included $11.34 million seed funding from the Office for Government Online. The largest expenses
were $6 million to build and maintain a specific Year 2000 testing environment and $5 million to
complete an extensive testing program, which was conducted by Centrelink and contract staff.
Repairing systems, making transition preparations and coordinating staff accounted for $10 million.
Centrelink was diligent in managing Year 2000 expenditure. While Centrelink has one of the largest
integrated computing environments in Australia, it managed to keep Year 2000 expenditure to a
modest level compared to other national organisations.
Centrelink’s Year 2000 project was designed to ensure our customers would not experience any
disruptions to payments or service benefits. The Centrelink Business Continuity Plan allowed for
alternative measures to be put in place to ensure no disruption in the event of system failure.
A Year 2000 simulation exercise was held and formal continuity and business resumption frameworks
were established. These practices allow Centrelink to be well positioned for future business and
systems continuity issues.
During July 1999, the Office for Government Online requested that Centrelink participate in an
independent third party review of Year 2000 preparedness. As a result, external consultants Acumen
Alliance were selected by Centrelink from the Office for Government Online approved panel of
consultants to conduct the review. The scope of the review included appropriateness of Year 2000
Business Continuity Planning and thoroughness of testing and certification.
The final report by Acumen Alliance concluded that Centrelink’s estimates for seed funding were
accurate and appropriate funds were managed well, a rigorous certification process had been
followed, and the Year 2000 Project Office had followed best practice.
Recognition of Excellence
Customer Charter Awards
Centrelink has won the silver award for ‘Excellence in integrating Service Charter-driven customer
service outcomes with core business practices.’ This was one of nine awards in three categories to
Commonwealth agencies that competed in the inaugural Service Charters—Awards for Excellence in
Customer Service scheme (see also Appendix xi, Customer Charter Status and Customer Feedback
Handling Report, page 227).
The awards were established as an incentive for agencies to improve the quality and efficiency of
service delivery. The scheme was open to Commonwealth agencies with a service charter in place.
The objective of the scheme was to recognise and encourage agencies and their staff to provide a
high standard of service to the public and encourage agencies to set even higher levels of
performance.
Australia Day Honours List
Frank Astone, Area WA, was awarded a Public Service Medal in the Australia Day Honours List for
support provided to sight impaired staff to use computer based systems and adaptive software.
Centrelink Australia Day 2000 Awards
Centrelink recognised a wide range of staff from across the network for their exceptional efforts
throughout 1999 with Australia Day awards.
Queens Birthday 2000 Honours List—Public Service Medals
Two of the 15 Public Service Medals in the Queen’s Birthday 2000 Honours List went to Centrelink
staff for their outstanding service:


Ross Divett, Deputy CEO, was awarded a medal in honour of his contribution to the creation of
Centrelink.
Dieu Hanh Nguyen, Cabramatta NSW, was recognised for her services to occupational
psychology.
In addition, Julie McLane, Cluster Training Coordinator, Dubbo NSW, received the Australian Fire
Service Medal for dedicated service as a volunteer in the NSW Fire Services.
Workplace Diversity Awards
The Public Service and Merit Protection Commission and the Institute of Public Administration cosponsored the 1999 Workplace Diversity Awards in March 2000. Centrelink won the regional award
for two of its initiatives:


the establishment of the Palmerston Indigenous Call Centre to assist Indigenous customers; and
The Disability Awareness Training package conducted in Victoria to increase customer service
officers’ awareness of disability issues.
(See also Chapter 6, Our People, page 74.)
Australian Teleservice Association Awards
In June 2000, Lisa Thomas of Centrelink Call Adelaide won an Australian Teleservice Association
Award for Call Centre Champion. Lisa was recognised for her contribution to improving Call Centre
services through training.
WA Community Service Industry Awards
Bunbury Customer Service Centre received a finalist award at the WA Community Service Industry
Awards in November 1999, recognizing Centrelink’s Caterpillar Cottage, a staff child care centre.
Adult Multicultural Education Service Awards
Thay Horn, Multicultural Service Officer, Dandenong Customer Service Centre, Victoria, received a
Commendation in the Humanitarian section of the Adult Multicultural Education Service Awards, for
services to the Cambodian community.
Commonwealth Executives’ Forum Innovations Award
In the Commonwealth Executives’ Forum Innovations Awards, the Ballarat Marketing Team and Area
North Victoria received awards regarding Disability Awareness Training for customer service officers.
Centrelink National Awards
The first Centrelink National Awards, presented in September 1999, attracted 45 high quality
nominees. The overall winner was the Employment Needs Assessment Trial, a joint Centrelink and
FaCS initiative which also won the Customer Service category award. Other category winners were:



Community Partnerships: Innovations in Disability Servicing, Area Pacific Central;
Support Services: IT Infrastructure Team, National Support Office; and
Change Management; Quality Team, Area Western Australia.
(See also Chapter 6, Our People, page 81.)
ISO 9002 Standard Certification
Recognition in the form of certification to the ISO 9002 standard has been achieved for the national IT
Support Help Desk and for the printing services administered by Output Management. This standard
requires excellence in the provision of customer service and a focus on continuous improvement.
International Assistance
China Visit
During November 1999, Brian Pacey, National Manager Detection and Review Team conducted
workshops at a training program on Social Security and Social Welfare Management in the People’s
Republic of China. The theme was ‘The Implications of Private Sector and Mixed Models for the
Finance and Delivery of Social Security’. Centrelink was represented at two workshops on ‘Risk
management and compliance in cash based social security programs’and ‘Retirement and labour
market cash benefits service delivery’.
Our Centrelink representative, and other selected workshop participants, also met with the Executive
of the Chinese Ministry of Labour and Social Security. The Chinese officials were keen for future
cooperation with Centrelink on a broader range of issues.
Bulgaria Consultancy
Members of the Audit, Centrelink Call and Detection and Review Teams undertook an eight month
consultancy in Bulgaria with IDP Education. They formed part of a team of eight business consultants
drawn from both Centrelink and FaCS to work on a World Bank project. The project involved
redesigning business practices and developing application software for the Bulgarian National Social
Security Institute.
Centrelink Major Conferences
Generating Service Delivery Opportunities and Outcomes for
Aboriginal Communities Conference
The Business Manager of Centrelink’s Indigenous Community Segment Team presented a paper
entitled Centrelink’s Commitment to Maximise Service Provision to Aboriginal and Torres Strait
Islander Communities—A National Perspective.
International Caring Conference
Centrelink was a major sponsor of the International Caring Conference held in Brisbane from 29–31
March 2000. The conference brought together international guest speakers to discuss the future of
caring. The conference also provided a forum for carers, organisations and departments to discuss
emerging issues such as Welfare Reform. It was also an opportunity to showcase Centrelink to key
international figures.
International Executive Conference—Focus on Social Security
On 9 May 2000, Virginia Mudie, National Manager, Employment Services Community Segment,
presented a paper entitled ‘Vision and Strategy of Centrelink—Customer/Client Orientation with Life
Events’at the International Executive Conference—Focus on Social Security, held in Potsdam,
Germany.
Six Countries Conference on Benefit Fraud in New Zealand
Two officers from the Detection and Review Team attended the Six Countries Conference on Benefit
Fraud in New Zealand in September 1999 and presented a paper on ‘Fraud Prevention and
Detection—Liaison Between Revenue and Welfare Agencies’.
Six Countries Conference on Internet Applications
Jane Treadwell, Chief Information Officer, attended the Six Countries Conference on Internet
Applications in Baltimore USA, in September 1999 and made a joint presentation, with FaCS, on the
Internet and electronic service delivery.
Joint International Federation of Social Workers and Australian
Association of Social Workers Conference
Centrelink was a major sponsor of the joint IFSW/AASW Conference, which was held in Brisbane in
September 1999. A number of Centrelink Social Workers presented papers, and the conference
included a presentation by Ms Sue Vardon, CEO.
Major Speeches
Sue Vardon, CEO
The Importance of Inclusive Service Delivery and Social Supports for Regional Development
‘Beyond our Boundaries’
Regional Multicultural Conference, Port Lincoln South Australia 6 April 2000
Best Practice in Federal Government Service Delivery
Share the Care
2nd International Conference on Caring, Carers Association of Australia, Brisbane 30 March 2000
Address to the National Press Club
2 February 2000
One-To-One: The Art of Personalised Service
The Case Management Society of Australia, 3rd Annual Conference 1 February 2000
Graham Bashford, Deputy CEO
The New Interface between Government and the Community on Social Welfare Delivery: Centrelink,
is it working as hoped?
‘Public and Private Sector Governance in Australia: Exploring the changing boundaries’
Inaugural National Institute for Governance Conference Canberrra, April 2000
Jane Treadwell, Chief Information Officer
Serving Australia on land and online: Clicks and mortar in the 21st century
World Bank, Poland May 2000
10. Corporate Governance
Governance Framework
Centrelink is located within the Family and Community Services portfolio and operates under the
Commonwealth Service Delivery Agency Act 1997(CSDA Act). It is subject to the Financial
Management and Accountability Act 1997(the FMA Act) and is staffed under the Public Service Act
1999, which replaced the Public Service Act 1922 on 5 December 1999.
Many of Centrelink’s governance features are innovative. Unlike other government bodies under the
FMA Act, Centrelink has a Board with executive powers that is fully accountable to the Minister. It has
an independent Chairman (who is also the Chief Executive under the FMA Act) and the majority of
the Board members come from private sector backgrounds.
The governance framework allows the direct participation of at least two of the heads of the
purchasing agencies on the Centrelink Board. This ensures a strong stewardship for the purchasing
agencies and the Government since Centrelink is responsible for the disbursement of large sums of
public monies on behalf of its client agencies.
The Board’s structure and processes and its reporting arrangements facilitate appropriate leadership,
management environment, risk management, and monitoring and accountability in the organisation.
Ministerial involvement ensures effective accountability with sufficient flexibility to allow greater
capacity for innovation and improved customer service.
The Board of Management
Board membership as at 30 June 2000
The CSDA Act specifies that the Board should consist of:



the Chairman;
the CEO of Centrelink; and
at least four other members including at least two who are not principal officers of Commonwealth
authorities.
Board Members
CHAIRMAN
Mr Robin Marrett
Current Positions:

Director, Ruskin Industries Limited.
Previous Positions:




Chairman, Electricity Trust of South Australia;
Chairman and Chief Executive of the Economic Development Authority of South Australia;
General Manager and Chief Executive of the Electricity Trust of South Australia; and
Chairman and Managing Director of Mobil Oil, New Zealand and Hong Kong/China.
Mr Robin Marrett retired from the Chairman’s position in July 2000.
CHIEF EXECUTIVE OFFICER
Ms Sue Vardon
Current Positions:

Adjunct Professor, Institute of Governance, University of Canberra.
Previous Positions:




Chief Executive, Department of Correctional Services, South Australia;
Commissioner for Public Employment, Office of the Commissioner for Public Employment, South
Australia;
CEO, Office of Public Sector Reform, South Australia; and
CEO, Department of Family and Community Services, South Australia.
DIRECTORS
Ms Chris Gillies
Current Positions:


Group Executive—Group Services, St George Bank, Sydney; and
Director, CPT Global Limited.
Previous Positions:



Head of Information Technology, Bank of Melbourne;
General Manager, Information Technology, Coles Myer Limited; and
General Manager, MITS Proprietary Limited, Sydney.
Mr John Thame
Current Positions:


Chairman, Permanent Trustee Company Limited;
Member, Council of the National Museum of Australia;




Director, Australian Geographic Group;
Director, Australian Wheat Board;
Director, St George Bank Group; and
Director, Reckon Limited.
Previous Positions:

Managing Director, Advance Bank of Australia Limited.
Mr Philip Pearce
Mr Pearce was a member of the Board and was Chair of the Quality Committee until he passed away
on 22 October 1999. He was then the:


Chairman, James Boag & Son Limited;
National Manager Rothschild & Son Australia Proprietary Limited.
Previous Positions:


Chief Financial Executive, Woolworths Limited; and
Director, Accounting and Audit, Arthur Anderson & Company.
NON-VOTING MEMBERS
Dr David Rosalky
Current Positions:

Secretary, Department of Family and Community Services (FaCS).
Previous Positions:






Secretary, Department of Workplace Relations and Small Business;
Secretary, Australian Capital Territory Chief Minister’s Department;
Under Treasurer, Australian Capital Territory Government;
First Assistant Secretary, Commonwealth Department of Finance;
Group Chief, Canadian Treasury Board; and
Senior Private Secretary to the Prime Minister of Australia.
Dr Peter Shergold AM
Current Positions:


Secretary, Department of Employment, Workplace Relations and Small Business (DEWRSB); and
Chairman, Board of the Public Sector Management Course.
Previous Positions:




Public Service Commissioner, Public Service and Merit Protection Commission;
CEO, Comcare Australia;
CEO, Aboriginal and Torres Strait Islander Commission; and
Head, Office of Multicultural Affairs.
NEW CHAIRMAN
Mr John Pascoe AM
Mr John Pascoe AM was appointed as the new Chairman of the Board and non-Executive Director on
26 July 2000.
Current Positions:

Non-Executive Chairman, George Weston Foods;









Director, Cambooya Investments Limited;
Chairman, Objective Corporation Limited;
Chairman, CommSecure Limited;
Chairman, Sealcorp Limited;
Member of the Board, Royal Alexandra Hospital for Children;
Member of the Advisory Council, Australian Graduate School of Management;
National Chairman, The Duke of Edinburgh’s Award Scheme in Australia;
Member of the Board of Trustees, The Duke of Edinburgh’s International Foundation (UK); and
Part-time Board Member, Tourism of New South Wales.
Previous Positions:




CEO, George Weston Foods;
Director, Qantas;
Chairman, Corporation and Securities Panel; and
Partner, Stephen Jacques and Stephen (now Mallesons).
NEW DIRECTOR
Mr Don Fraser
Mr Don Fraser was appointed as a non-executive Director to the Board on 26 July 2000, replacing Mr
Philip Pearce.
Current Positions:

Independent Management Consultant and Corporate Adviser.
Previous Positions:






Consultant to Dairy Farm International;
Regional Director, Dairy Farm International;
Fresh Foods Development Director, Dairy Farm International;
Joint Managing Director, Dairy Farm Spain;
State General Manager, Woolworths Qld; and
Executive Director, Australian Safeway Stores.
Board Appointments and Remuneration
The Chairman and members of the Board (who are not principal officers of Commonwealth agencies)
were appointed on a part-time basis by Senator the Hon. Jocelyn Newman, then Minister for Social
Security, on 1 September 1997 for three years. All are eligible for re-appointment.
Board members who are principal officers of Commonwealth agencies hold office during the
Minister’s pleasure or while they remain the principal officers of the agencies (s. 23(2) and 27 of the
CSDA Act). Currently, two principal officers of Commonwealth departments which have a service
agreement with Centrelink (FaCS and DEWRSB) sit as non-voting members of the Board.
The Remuneration Tribunal determines the remuneration and allowances paid to Board members.
The CEO is appointed by the Board on a full-time basis. Part 4 of the CSDA Act states that the CEO
holds office on terms and conditions, including remuneration and allowances, determined by the
Board in writing. The Board is required to obtain advice from the Remuneration Tribunal in relation to
the terms and conditions, including remuneration and allowances, on which the CEO holds office.
Disclosure of Interests
Board members provide statements to the Chairman advising of their directorships of other
companies and organisations. The CSDA Act requires that any Director who may have a direct or
indirect pecuniary interest in a matter being considered discloses the nature of the interest at a
meeting of the Board.
Board Operations
The Board meets each month to deal with the significant issues relating to Centrelink’s operations. It
works from an agenda agreed by the Chairman in conjunction with the CEO who reports to the Board
on Centrelink’s financial and operational performance. The Chairman provides a report of each
meeting to the Minister for Family and Community Services and to the Minister for Community
Services outlining the key issues discussed and any significant decisions taken at the meeting.
Board Committees
The Board uses three committees to keep it fully informed about the details of Centrelink’s work. They
are:



An Audit Committee to support the Board in ensuring Centrelink operates with proper financial
management and internal controls.
An Information and Technology Committee to provide advice and direction to the Board on
strategic IT issues, particularly those likely to impact on Centrelink’s ability to deliver government
services.
A Quality Committee whose responsibility is to assure the Board that Centrelink is delivering
services that will see it remains as the ‘first choice’ for Government and customers and is
benchmarked as best practice in service delivery.
The Chairman and all non-Executive Directors participate in at least one committee of the Board. The
CEO attends meetings of all committees. The charter of each of these committees is at Appendix ii.
The table on the next page provides details of the Board members’ attendance at Board and
Committee meetings.
Corporate and Operational Plans
Centrelink’s strategic, business and operational planning is reported on in Chapter 1 Introducing
Centrelink, page 2. The associated performance reporting and review is covered in Chapter 3
Performance Report, page 17.
Risk Management and Fraud Control
Risk Management in Centrelink
Centrelink has a structured overall risk management regime,which is a unified approach seeking to
align language and methodology and make risk integral to all planning, management and reporting. It
is also a staged approach to achieve cultural change and avoid being just the imposition of another
process.
In 1999–2000 Centrelink built further on its tradition of risk management, including:


an active audit program providing assurance across the business;
an enhanced financial statements ‘sign off’ process that includes all managers;








a quality assurance framework;
program risk assessments;
large scale compliance activity;
fraud control strategies and action plans;
debt prevention strategy;
business continuity and disaster recovery plans;
project risk assessments; and
Internal risk management workshops.
Late in 1999, Centrelink reinforced the use of standard language and methodology in its Risk
Management Guidelines for strategic and corporate planning, management and reporting. Risk
management will be an integral part of the business improvement planning process for 2000–01.
Last year a ‘vertical slice’of people from across Centrelink prepared its first Strategic Risk
Management Plan. This built on work in program risk assessment and has been endorsed by the
Board for use in corporate and strategic planning. It contains messages not only about the most
important risks to Centrelink’s survival and how they are being controlled, but also about how it views
risk.
Table 23: Members’Attendance at Board and Committee Meetings
BOARD
MEMBER
R. Marrett
C. Gillies
BOARD
MEETINGS
AUDIT
COMMITTEE
QUALITY
COMMITTEE
INFORMATION
TECHNOLOGY
COMMITTEE
(12 meetings)
(3 meetings)
(1 meeting)
(8 meetings)
11/12
2/3
1/1
–
(Board Chairman)
(C’ttee Chair)
11/12
–
–
8/8
(C’ttee Chair)
P. Pearce*
0/4
–
1/1
–
(C’ttee Chair)
J. Thame
12/12
3/3
–
8/8
S. Vardon
11/12
2/3†
1/1
6/8
D. Rosalky
11/12
3/3
–
6/8
P. Shergold
12/12
–
–
–
* Mr Pearce passed away on 22 October 1999.
† As CEO, Ms Vardon attends meetings but is not a member of the Audit Committee.
Ethical Standards
The Public Service Act 1999, which replaced the Public Service Act 1922, came into effect on 5
December 1999 and contains both the APS Values and Code of Conduct. In accordance with the new
Act, Agency Heads must promote the APS Values and establish procedures for determining whether
an APS employee has breached the Code of Conduct. The APS Values are espoused in Centrelink’s
Expectations Statement which sets out standards of behaviour applicable to Centrelink employees. A
presentation on the new Act, including the APS Values, was given to Centrelink’s Guiding Coalition.
In addition, the values have been promoted in People Matter, a bulletin issued to all Centrelink
employees.
The CEO established procedures for determining whether an APS employee has breached the Code
of Conduct on 5 December 1999. Due to the short timeframe between enactment and date of effect of
the new Act there was insufficient time to finalise consultation with the union and employees on the
procedures, prior to them being established. Consultation is currently under way and may result in
amendments to the procedures.
When establishing the procedures, Centrelink sought to streamline the process for determining
whether a breach had occurred, while maintaining the integrity and natural justice elements of the
process. Centrelink aimed, by publicising the code of conduct, to ensure that all employees
understood their obligations.
The procedures have been made available to all Centrelink employees via the People Handbook on
CentreNet and the Expectations Statement will shortly be added to the handbook.
Since 5 December 1999 a number of employees have been subject to the procedures. The nature of
the breaches of the Code of Conduct and the sanctions imposed vary. However, a number of
employees have had their employment terminated in accordance with the procedures for breaches of
the code of conduct, including breaches of privacy and misuse of Centrelink facilities, specifically
email.
Overall, implementation of the code of conduct and the new procedures has been successful. The
code itself is straightforward and the simpler procedures are easy to understand. In order to assess
their overall effectiveness, Centrelink will continue to monitor the arrangements over the next 12
months.
(See also Appendix vii, Privacy, page 213, for details of action taken against employees involved in
privacy breaches.)
11. Financial Statements
Appendices
Appendix i
Commonwealth Legislation Relevant to Centrelink
Enabling Legislation
Commonwealth Services Delivery Agency Act 1997
Legislation Conferring Functions on Centrelink
Aged Care Act 1997
Child Care Act 1972
Child Care Rebate Act 1993
Child Support (Assessment) Act 1989
Child Support (Registration and Collection) Act 1988
Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997
Defence (Re-establishment) Act 1965
Disability Discrimination Act 1992
Disability Services Act 1986
Employment Services Act 1994
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
Re-establishment and Employment Act 1945*
Social Security Act 1991
Social Security (Administration) Act 1999
Social Security (International Agreements) Act 1999
Student Assistance Act 1973
Veterans’ Entitlements Act 1986
Compliance
Crimes Act 1914
Data-matching Program (Assistance and Tax) Act 1990
Financial Accountability
Auditor General’s Act 1997
Financial Management and Accountability Act 1997
Fringe Benefits Tax Assessment Act 1986
Fringe Benefits Tax Act 1986
Lands Acquisition Act 1989
People Management
Disability Discrimination Act 1992
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 1922†
Public Service Act 1999
Racial Discrimination Act 1975
Safety, Rehabilitation and Compensation Act 1988
Sex Discrimination Act 1984
Superannuation Act 1922
Superannuation Act 1976
Superannuation Act 1990
Workplace Relations Act 1996
Administrative Law
Acts Interpretation Act 1901
Administrative Decisions (Judicial Review) Act 1977
Administrative Appeals Tribunal Act 1975
Federal Court of Australia Act 1976
Freedom of Information Act 1982
Judiciary Act 1903
Ombudsman Act 1976
Privacy Act 1988
General
Commonwealth Electoral Act 1918
Electronic Transactions Act 2000‡
* The Re-establishment and Employment Act 1945 was repealed by the Statute Stocktake Act 1999
with effect from 22 September 1999.
† The Public Service Act 1922was repealed with effect from 5 December 1999 as a result of the
commencement of the Public Service Act 1999.
‡ The Electronic Transactions Act 2000will establishes the legal validity of electronic transactions
where affected legislation specifically permits only paper-based transactions. At present no legislation
that significantly impacts on Centrelink’s corporate operations or client services is affected by this Act.
Appendix ii
Committees of the Board
Charter for the Audit Committee of the Board of Management
Background
The Audit Committee assists the Board of Centrelink with its responsibilities for financial reporting,
maintaining an efficient system of internal controls and reviewing specific matters that may arise from
the external audit process.
Membership
As at 30 June 2000 the members of the Audit Committee were:

Mr Robin Marrett (Chairman and Chair of the Committee);


Mr John Thame (Director); and
Dr David Rosalky (Director)
Ms Sue Vardon attends meetings in her capacity as CEO of Centrelink.
With the appointment of Mr John Pascoe AM, Chairman, and Mr Don Fraser, Non-Executive Director,
the membership of the committee was changed at the Board meeting of 8 August 2000 as follows:




Mr John Thame (Chair of the Committee);
Mr John Pascoe AM (Chairman of the Board);
Mr Don Fraser (Director); and
Dr David Rosalky (Director).
Ms Sue Vardon will continue to attend meetings in her capacity as CEO.
Meetings
Meetings shall be held at least quarterly or more frequently if required.
The Chair of the Committee will report to the Board on meetings of the Audit Committee.
Responsibilities
The Audit Committee’s specific responsibilities are:






overseeing the agency’s internal audit function and its liaison with external auditors and audit
committees of client agencies;
overseeing compliance with statutory and legislative requirements;
approving the internal audit work program;
reviewing the major findings of internal and external audits, and the adequacy of action taken;
monitoring the effectiveness of the internal audit function; and
Monitoring Centrelink’s accounting policies and practices against world best practice.
Charter for the Information and Technology Committee
Background
Because of the criticality of IT to the success of Centrelink, the Board has agreed to the
establishment of an I&T Committee under the following charter and noting that the words ‘Information
Technology’ for this Committee mean:
The application of computing, telecommunications and multimedia technologies to the collection,
storage, processing and dissemination of information.
Charter
The Committee will ensure the Board has a clear understanding of Centrelink’s IT including:




the scope, composition and costs of the current IT environment;
the capability of the current IT environment to support the current business of the agency and
issues surrounding this support;
the IT strategic plan and its alignment to Centrelink’s business strategy; and
The technology trends and opportunities which should be considered in positioning Centrelink for
the future.
Membership
As at 30 June 2000 the members of the I&T Committee were:



Ms Chris Gillies (Director and Chair of the Committee);
Mr John Thame (Director);
Dr David Rosalky (Director); and

Ms Sue Vardon (CEO).
With the appointment of Mr John Pascoe AM, Chairman, and Mr Don Fraser, Non Executive Director,
the membership of the committee was changed at the Board meeting of 8 August 2000 as follows:





Ms Chris Gillies (Director and Chair of the Committee);
Mr John Thame (Director);
Mr John Pascoe AM (Chairman of the Board);
Dr David Rosalky (Director); and
Ms Sue Vardon (CEO).
Meetings
The Committee meets each month.
Responsibilities
The I&T Committee’s specific responsibilities are to provide timely advice and direction to the Board
in the following areas:





current and strategic IT issues and their potential impact on the future success of Centrelink;
the future direction and leadership of IT specifically, the why, what, when and how of outsourcing;
the capability of the current IT organisation to deal with the rate of change required to achieve
Centrelink’s vision and objectives;
as a reference point for Centrelink’s IT processes; and
As the ‘conscience’ for IT in Centrelink.
Charter for the Quality Committee of the Board of Management
Background
To assist the Board to fulfil its responsibilities for ensuring that Centrelink’s functions are properly,
efficiently and effectively performed, the Quality Committee has set the following objectives for its
work:



establish a framework that supports the achievement of quality outcomes;
ensure that there are appropriate ways of measuring quality outcomes; and
Report to the Board on the achievement of quality outcomes.
Achievement of Outcomes
To meet the above objectives, the Committee will focus on a number of key aspects of Centrelink’s
operations, including:





people management;
communication and marketing;
strategic thinking;
customer service; and
Performance and business assurance.
Focus of the Committee’s Review Work
On behalf of the Board, the Committee will maintain a continuing review and overseeing role across
several major strategic functions and activities, including:





Centrelink’s marketing operations;
business and strategic planning;
customer service and performance measurement;
business and quality assurance; and
People capabilities.
The Committee will develop a workplan to ensure the objectives are met.
Membership of the Committee
As at 30 June 2000 the Committee comprised the following members:


Ms Sue Vardon (Chair); and
Dr Peter Shergold.
Mr Philip Pearce was previously the Chairman of this Committee until 22 October 1999.
With the appointment of Mr John Pascoe AM, Chairman, and Mr Don Fraser, Non-Executive Director,
the membership of the committee was changed at the Board meeting of 8 August 2000 as follows:



Mr Don Fraser (Director and Chair of the Committee);
Dr Peter Shergold AM (Director); and
Ms Sue Vardon (CEO).
Advisers to the Committee
Centrelink staff whose work is of key relevance to the Committee’s objectives will be advisers to the
Committee and will attend meetings of the Committee.
They include the following General and National Managers:







Service Integration Shop;
Future Service Delivery Project;
Performance Assurance and Evaluation;
Communication and Marketing;
Service Improvement;
People Management; and
Strategic Services.
In addition, an Area Manager may be invited to attend meetings of the Committee when appropriate.
Where the Committee considers it of benefit, it will engage consultants or external practitioners to
provide input about other relevant and successful programs.
Meetings
Meetings of the Committee will be held quarterly or more frequently if required. Reports on the
Committee’s work will be provided to each meeting of the Board of Management.
Appendix iii
Internal and External Scrutiny
The Audit Process in 1999–2000
The Chief Auditor with Assurance and Assessment staff, augmented by a panel of audit and
evaluation firms, continued to assist the Board and Management to discharge their responsibility for
controlling Centrelink in a manner that results in the efficient and cost-effective management of risk
with proper financial management and internal controls.
The Audit Committee comprises the Chairman and two non-executive Board members and met
quarterly during the year. An annual work program was developed on a risk assessment basis in
consultation with the Australian National Audit Office and client agencies. It was considered by the
Audit Committee and approved by the Board. The Committee monitored closely the progress and
conclusions of audit work, responses to all internal and external audit findings, the financial
statements process and the control environment. The Committee now considers quarterly reports on
the operation of fraud and security controls.
Audits covered all aspects of operations, including information systems, financial operations and
systems and performance. Ad hoc audits and special investigations were added to the program as
required.
Assurance and Assessment coordinated the development of Centrelink’s first Strategic Risk
Management Plan. This built on work in team, function, project and program risk assessment. The
plan was endorsed by the Board for use in Centrelink’s corporate and strategic planning.
Major evaluations are managed in parallel with the audit process. Assurance and Assessment also
supported team-based evaluations and developed an Evaluation Handbook.
Internal Audit
Forty eight internal audit reports were issued. A number of other reports were issued by the external
auditor (see ANAO below).
There were 143 unresolved findings and recommendations at the end of 1999–2000 and 222 were
resolved during the year compared with 147 unresolved findings and 169 resolved in 1998–99. These
numbers reflect both the importance of audit in the corporate governance of Centrelink and the very
successful model for focusing management attention on resolution of issues identified.
Assurance and Assessment surveys Centrelink managers about their progress in resolving all internal
audit findings and external audit recommendations quarterly.These reports are considered at each of
the Committee’s meetings with the Chief Auditor’s assessment, highlighting instances where he
considered management had not resolved an issue or progress was unsatisfactory and the CEO’s
views. In the case of ANAO reports, ANAO officers provided their assessment. The Committee invites
relevant managers to present where warranted.
Australian National Audit Office Activity
Significant external audits conducted by the ANAO that impacted on Centrelink were as follows:
Report No 1, 1999–2000, Performance Audit, Implementing Purchaser/Provider Arrangements
between Department of Health and Aged Care and Centrelink
The objective of the audit was to determine the administrative effectiveness of the implementation of
the service delivery arrangements between Centrelink and the Department of Health and Aged Care
(Health) by examining project planning for, and management of, the implementation, and the
establishment of ongoing purchaser/provider arrangements.
The ANAO concluded that Centrelink and Health had achieved the implementation of aged care
service delivery by the amended due date of 1 March 1998, as required by Government. Both
Centrelink and Health complied with government policy, and legislative requirements.
Report No 8, 1999–2000, Performance Audit, Managing Data Privacy in Centrelink
The objective of the audit was to assess the systems put in place to protect data privacy.The audit
reviewed the adequacy of the policies, procedures and the administrative framework associated with
data privacy and the computer systems that are used to store and disseminate data. The ANAO also
examined compliance with legislative requirements.
The ANAO concluded that Centrelink had established key elements of a sound framework to meet
the Information Privacy Principles in the Privacy Act 1988 and confidentiality provisions in other
legislation. Generally, suitable policies, procedures and systems relevant to privacy issues are also in
place. It made recommendations to improve Centrelink’s framework for the management of data
privacy.
Centrelink has accepted the findings in the report and is acting on them with a view to making further
improvements in the protection of customers’privacy. In particular, Centrelink has introduced a Quality
Assurance Framework which promotes and supports risk assessment at the team level and has
developed its first Strategic Risk Management Plan which forms the overarching context for the
development of individual risk assessments.
Report No 10, 1999–2000, Financial Statements Audit, Control Structures as Part of Financial
Statements of Major Commonwealth Agencies for the period ended 30 June 1999
The ANAO examined Centrelink’s control structures as part of its financial statements audit.
The ANAO concluded that certain aspects of Centrelink’s information technology control structure and
risk management practices could be improved to increase the level of assurance over the accuracy
and validity of benefit payments. Significant audit findings were made in the areas of IT controls, the
income support system, the Financial Management Information System and risk management. The
ANAO acknowledged that considerable work had been undertaken by Centrelink in an effort to
resolve all of the above issues.
Report No 20, 1999–2000, Performance Audit, Special Benefits
The audit examined the extent to which new claims for Special Benefit had been determined in
compliance with the Social Security Act 1991, the Guide to the Act and other relevant guidelines, and
whether Centrelink and FaCS had appropriate procedures to help ensure such compliance. The audit
also examined whether procedures had been established to ensure that relevant and timely
information is available to intending migrants, and newly arrived migrants, concerning their eligibility
for Special Benefit.
The ANAO concluded that there was a significant degree of non-compliance of Special Benefit new
claim assessment decisions with the Act, the Guide to the Act and other relevant guidelines and that
the procedures used to monitor and report the accuracy of assessments of Special Benefit new
claims were not sufficiently reliable.
The monetary effect of the incorrect assessments was relatively small. The resulting net overpayment
of Special Benefit was estimated to be approximately $1.4 million or 2.3 per cent of total Special
Benefit payments during the period covered by the audit. In relation to the provision of information
concerning Special Benefit to intending and newly arrived migrants, the ANAO concluded that
appropriate action had been taken.
Centrelink agreed with the ANAO findings and has put in place processes and procedures to address
the issues. The ANAO considered that the actions initiated and planned by Centrelink will, if
implemented effectively, considerably improve the accuracy of the assessments of new claims for
Special Benefit.
Report No 21, 1999–2000, Financial Statements Audit, Audits of the Financial Statements of
Commonwealth Government Agencies for the period ended 30 June 1999
The Financial Statements for the period ended 30 June 1999 were unqualified.
While Centrelink experienced difficulty throughout the financial year reconciling the Financial
Management Information System, significant effort was applied to improve controls, and at year-end,
to perform the reconciliation. The ANAO considered that Centrelink successfully completed the
overall reconciliation within satisfactory materiality parameters.
Report No 43, 1999–2000, Performance Audit, Planning and Monitoring for Cost Effective
Service Delivery—Staffing and Funding Arrangements
The overall objective of the audit was to determine whether Centrelink’s planning, monitoring and
costing arrangements provide a sound basis to underpin its delivery of quality, cost-effective
customer services.
The ANAO concluded that Centrelink’s strategic and financial planning processes are sound,
essentially reflecting good practice. However, it recommended more prescription to Area managers
on resource distribution methodologies to ensure an appropriate alignment of staffing resources to
meet local service delivery demands and an improved availability of management information at
service outlet level. It also recommended an accelerated development of Activity Based Costing
methodologies to improve capacity to report to Government on output costs and further improve cost
effectiveness.
Centrelink agreed with the ANAO’s findings and recommendations. While Centrelink accepted the
need to continue to provide guidelines and to maximise national consistency across Australia, it saw
final resource allocation decisions continuing to be based on local conditions in Areas. Also,
Centrelink took careful note of the specific criticisms of its initial approach to Activity Based Costing
and it has made considerable progress in addressing these issues since the time of the audit.
Report No 52, 1999–2000, Financial Statements Audit, Control Structures as part of the Audits
of Financial Statements of Major Commonwealth Agencies for the period ended 30 June 2000
Generally the ANAO acknowledged progress and focused on the need for further risk management.
The ANAO concluded that the risk management framework should be strengthened to include an
overarching assessment of the adequacy of existing mechanisms to maintain the risk of incorrect
payment at an acceptable level and a high level risk management strategy focusing on the critical
elements of Centrelink’s business. It also raised a number of remaining unresolved issues relating to
information technology systems and controls, the IT general control environment, income support
systems and compliance activity.
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 Ombudsman’s Office. Customers’concerns embrace
a wide range of matters, including their perception of the fairness of legislation governing their
benefits and disagreement with decisions which affect them. Typically there have been increases in
complaints when rules change or new pay arrangements are put in place.Fortunately only little more
than half of the total contacts with the Ombudsman’s Office by Centrelink customers are related to
perceived faults with how Centrelink delivers services to them.
The remainder are related to:



disputed decisions;
Centrelink administrative policies and practices; and
Legislative provisions.
For the 2885 issues investigated, the Ombudsman concluded that there was:



an arguable defect in Centrelink’s administration in 39 per cent of instances;
no apparent defect in 33 per cent of instances; and
No conclusion to be drawn in the remaining 28 per cent.
It is particularly pleasing that the number of all customer contacts with the Ombudsman’s Office has
significantly decreased from 11 599 in the previous reporting year to 9674 in the year just concluded,
a decrease of 16.1 per cent.
Most complaints are quickly resolved at local level while a much smaller number which involve more
general issues of procedure and delivery are referred to the CEO. Increasingly there is close
cooperation between the Ombudsman’s Office and Centrelink’s National Community Segments, with
regular contact between officers of both agencies enabling a constructive exchange of information
with the aim of resolving any problems relating to systemic matters. The emergence of a monitoring
role for the Ombudsman’s Office in these matters is warmly welcomed.
The past year has also seen quarterly reporting by the Office of complaints received from Centrelink’s
customers. This has proved very valuable in tracking those payments which attract the greater
number of complaints and in identifying any procedural matters which are affecting customer
satisfaction. Centrelink, together with FaCS, provides a briefing to the Minister in relation to these
quarterly Ombudsman releases.
Centrelink has also been working closely with the Ombudsman’s Office to improve its customer
feedback mechanisms.
As indicated in its report, Balancing the Risks, issued in 1999, the Ombudsman’s Office is concerned
that customers of Commonwealth agencies have ready access to information which affects their lives.
The Ombudsman’s Office indicated then that the ‘life events’ model of customer service delivery
being developed by Centrelink promised much greater effectiveness in this regard. The
Ombudsman’s Office continues to monitor Centrelink’s steady progress in achieving this goal.
Appeals
Centrelink provides advocacy services and manages appeals to external tribunals on behalf of FaCS
and AFFA. Details of appeals to the Social Security Appeals Tribunal, the Administrative Appeals
Tribunal and the Federal Court can be found in the FaCS and AFFA annual reports.
Appendix IV
Centrelink Employee Overview
The following tables show employee numbers by various employment categories as at 30 June 2000.
Further information on people management initiatives in general can be found in Chapter 6, Our
People, and page69.
Table 24: Centrelink Staffing
ALL CENTRELINK
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
CEO
1
1
0
1
0
1
0
Centrelink SES
59
24
35
58
1
59
0
Centrelink 4
971
422
549
957
14
967
4
Centrelink 3
4 535
2 581
1 954
4 219
316
4 494
41
Centrelink 2
14 807
10 395
4 412
12 149
2 658
13 440
1 367
Centrelink 1
604
421
183
486
118
221
383
Centrelink
Professional 1
416
350
66
291
125
321
95
Centrelink
Professional 2
288
221
67
237
51
281
7
ALL CENTRELINK
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink IT
232
57
175
225
7
230
2
Centrelink IT
Manager
230
51
179
221
9
229
1
Centrelink IT
Technical
4
2
2
4
0
4
0
Centrelink
Public Affairs 1
8
3
5
8
0
8
0
Centrelink
Public Affairs 2
7
5
2
5
2
6
1
Centrelink
Public Affairs 3
2
0
2
2
0
2
0
Trainees/Cadets 14
10
4
14
0
9
5
Total
14 543
7 636
18 877
3 301
20 272
1 906
22 178
NATIONAL SUPPORT OFFICE
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
43
18
25
42
1
43
0
Centrelink 4
554
259
295
544
10
552
2
Centrelink 3
892
470
422
852
40
867
25
Centrelink 2
384
256
128
359
25
331
53
Centrelink 1
76
56
20
72
4
12
64
Centrelink
Professional 1
0
0
0
0
0
0
0
Centrelink
Professional 2
4
3
1
4
0
4
0
Centrelink IT
228
57
171
221
7
226
2
Centrelink IT
Manager
230
51
179
221
9
229
1
ALL CENTRELINK
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink IT
Technical
4
2
2
4
0
4
0
Centrelink
Public Affairs 1
8
3
5
8
0
8
0
Centrelink
Public Affairs 2
7
5
2
5
2
6
1
Centrelink
Public Affairs 3
2
0
2
2
0
2
0
Trainees/Cadets 5
4
1
5
0
5
0
Total
1 184
1 253
2 339
98
2 289
148
2 437
CALL CENTRE NETWORK
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
1
0
1
0
1
0
Centrelink 4
46
15
31
46
0
46
0
Centrelink 3
435
292
143
415
20
435
0
Centrelink 2
3 670
2 773
897
2 835
835
3 011
659
Centrelink 1
28
21
7
22
6
4
24
Centrelink
Professional 1
0
0
0
0
0
0
0
Centrelink
Professional 2
18
15
3
16
2
17
1
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
ALL CENTRELINK
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
3 117
1 081
3 335
863
3 514
684
4 198
AREA HUNTER NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
26
11
15
26
0
26
0
Centrelink 3
221
130
91
182
39
220
1
Centrelink 2
668
469
199
522
146
644
24
Centrelink 1
16
13
3
12
4
4
12
Centrelink
Professional 1
20
18
2
10
10
16
4
Centrelink
Professional 2
15
9
6
13
2
15
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
AREA HUNTER NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
650
317
766
201
926
41
967
AREA EAST COAST NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
1
0
1
0
1
0
Centrelink 4
27
8
19
27
0
27
0
Centrelink 3
230
117
113
216
14
229
1
Centrelink 2
815
515
300
668
147
760
55
Centrelink 1
44
22
22
38
6
40
4
Centrelink
Professional 1
30
26
4
20
10
23
7
Centrelink
Professional 2
16
11
5
14
2
16
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
AREA EAST COAST NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Total
1 163
700
463
984
179
1 096
67
AREA WEST NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
21
8
13
21
0
21
0
Centrelink 3
127
66
61
119
8
126
1
Centrelink 2
522
383
139
435
87
505
17
Centrelink 1
18
13
5
14
4
11
7
Centrelink
Professional 1
23
19
4
19
4
18
5
Centrelink
Professional 2
14
11
3
11
3
14
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
500
226
620
106
696
30
726
AREA SOUTH WEST NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
19
7
12
19
0
19
0
Centrelink 3
158
99
59
148
10
157
1
Centrelink 2
495
374
121
426
69
491
4
Centrelink 1
7
6
1
6
1
7
0
Centrelink
Professional 1
19
16
3
15
4
15
4
Centrelink
Professional 2
17
13
4
14
3
16
1
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 2
1
1
2
0
2
0
Total
516
202
631
87
708
10
718
AREA SOUTH METROPOLITAN NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
13
4
9
13
0
13
0
AREA SOUTH METROPOLITAN NEW SOUTH WALES
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink 3
148
87
61
141
7
147
1
Centrelink 2
552
396
156
476
76
488
64
Centrelink 1
14
5
9
13
1
9
5
Centrelink
Professional 1
24
19
5
18
6
18
6
Centrelink
Professional 2
14
14
0
11
3
14
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
525
241
673
93
690
76
766
AREA PACIFIC CENTRAL
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
31
14
17
31
0
31
0
Centrelink 3
286
178
108
268
18
283
3
Centrelink 2
935
648
287
786
149
869
66
AREA PACIFIC CENTRAL
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink 1
31
22
9
24
7
12
19
Centrelink
Professional 1
35
32
3
30
5
27
8
Centrelink
Professional 2
21
19
2
17
4
20
1
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
913
427
1 157
183
1 243
97
1 340
AREA BRISBANE QUEENSLAND
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
28
12
16
28
0
28
0
Centrelink 3
258
142
116
239
19
258
0
Centrelink 2
969
642
327
845
124
914
55
Centrelink 1
82
65
17
71
11
19
63
Centrelink
Professional 1
41
31
10
26
15
33
8
AREA BRISBANE QUEENSLAND
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink
Professional 2
22
20
2
18
4
22
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
912
489
1 228
173
1 275
126
1 401
AREA CENTRAL & NORTHERN QUEENSLAND
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
1
0
1
0
1
0
Centrelink 4
24
15
9
23
1
22
2
Centrelink 3
180
117
63
171
9
178
2
Centrelink 2
498
371
127
442
56
435
63
Centrelink 1
20
16
4
16
4
6
14
Centrelink
Professional 1
27
23
4
19
8
19
8
Centrelink
Professional 2
13
11
2
11
2
12
1
Centrelink IT
0
0
0
0
0
0
0
AREA CENTRAL & NORTHERN QUEENSLAND
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 4
2
2
4
0
1
3
Total
556
211
687
80
674
93
767
AREA NORTH CENTRAL VICTORIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
1
0
1
0
1
0
Centrelink 4
25
8
17
25
0
25
0
Centrelink 3
249
153
96
225
24
249
0
Centrelink 2
910
577
333
731
179
873
37
Centrelink 1
35
22
13
28
7
24
11
Centrelink
Professional 1
30
26
4
19
11
23
7
Centrelink
Professional 2
24
19
5
17
7
24
0
Centrelink IT
1
0
1
1
0
1
0
Centrelink IT
Manager
0
0
0
0
0
0
0
AREA NORTH CENTRAL VICTORIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
806
469
1047
228
1 220
55
1 275
AREA SOUTH EAST VICTORIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
1
0
1
0
1
0
Centrelink 4
26
16
10
26
0
26
0
Centrelink 3
239
127
112
229
10
237
2
Centrelink 2
831
546
285
706
125
801
30
Centrelink 1
47
34
13
42
5
15
32
Centrelink
Professional 1
30
26
4
19
11
18
12
Centrelink
Professional 2
19
15
4
15
4
18
1
Centrelink IT
1
0
1
1
0
1
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
AREA SOUTH EAST VICTORIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
765
429
1 039
155
1 117
77
1 194
AREA WEST VICTORIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
24
6
18
24
0
24
0
Centrelink 3
254
119
135
241
13
254
0
Centrelink 2
802
519
283
681
121
745
57
Centrelink 1
33
23
10
29
4
13
20
Centrelink
Professional 1
37
29
8
26
11
31
6
Centrelink
Professional 2
20
13
7
17
3
19
1
Centrelink IT
1
0
1
1
0
1
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
AREA WEST VICTORIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
709
463
1 020
152
1 088
84
1 172
AREA WEST AUSTRALIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
36
14
22
34
2
36
0
Centrelink 3
297
181
116
265
32
295
2
Centrelink 2
1085
799
286
888
197
990
95
Centrelink 1
49
32
17
17
32
11
38
Centrelink
Professional 1
40
33
7
23
17
31
9
Centrelink
Professional 2
28
17
11
24
4
28
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
AREA WEST AUSTRALIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
1 076
460
1 252
284
1 392
144
1 536
AREA WEST AUSTRALIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
36
14
22
34
2
36
0
Centrelink 3
297
181
116
265
32
295
2
Centrelink 2
1085
799
286
888
197
990
95
Centrelink 1
49
32
17
17
32
11
38
Centrelink
Professional 1
40
33
7
23
17
31
9
Centrelink
Professional 2
28
17
11
24
4
28
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
AREA WEST AUSTRALIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Total
1 536
1 076
460
1 252
284
1 392
144
AREA SOUTH AUSTRALIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
1
0
1
0
1
0
Centrelink 4
40
13
27
40
0
40
0
Centrelink 3
309
166
143
285
24
309
0
Centrelink 2
967
651
316
755
212
929
38
Centrelink 1
34
18
16
25
9
19
15
Centrelink
Professional 1
36
31
5
27
9
31
5
Centrelink
Professional 2
29
21
8
23
6
28
1
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
901
515
1 156
260
1 357
59
1 416
AREA NORTH AUSTRALIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
12
7
5
12
0
12
0
Centrelink 3
81
50
31
77
4
80
1
Centrelink 2
232
181
51
218
14
217
15
Centrelink 1
24
20
4
23
1
6
18
Centrelink
Professional 1
8
8
0
8
0
5
3
Centrelink
Professional 2
6
5
1
6
0
6
0
Centrelink IT
0
0
0
0
0
0
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 0
0
0
0
0
0
0
Total
273
93
347
19
327
39
366
AREA TASMANIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink SES
1
0
1
1
0
1
0
Centrelink 4
19
5
14
18
1
19
0
AREA TASMANIA
Classification
TOTAL
Female
Male
FT
PT
Ongoing
Nonongoing
Centrelink 3
171
87
84
146
25
170
1
Centrelink 2
472
295
177
376
96
437
35
Centrelink 1
46
33
13
34
12
9
37
Centrelink
Professional 1
16
13
3
12
4
13
3
Centrelink
Professional 2
8
5
3
6
2
8
0
Centrelink IT
1
0
1
1
0
1
0
Centrelink IT
Manager
0
0
0
0
0
0
0
Centrelink IT
Technical
0
0
0
0
0
0
0
Centrelink
Public Affairs 1
0
0
0
0
0
0
0
Centrelink
Public Affairs 2
0
0
0
0
0
0
0
Centrelink
Public Affairs 3
0
0
0
0
0
0
0
Trainees/Cadets 1
1
0
1
0
1
0
Total
439
296
595
140
659
76
735
Employee numbers by various employment categories as at 30 June 2000.
Key to Centrelink staffing tables: FT—Full-time, PT—Part-time
Table 25: Senior Executive Service (SES) Information
SES STAFFING LEVELS AT 30 JUNE 2000
Total
Female
Male
Full Time
Part Time
SES Band 3
2
0
2
2
0
SES Band 2
6
2
4
6
0
SES Band 1
51
22
29
50
1
SES STAFFING LEVELS AT 30 JUNE 2000
All SES
Classifications
Total
Female
Male
Full Time
Part Time
59
24
35
58
1
(See Note 14, Financial Statements, page 165.)
INTER-AGENCY MOBILITY
Transfer from Other
Department/Agency
Commenced work in the APS
SES Band 3
1
0
SES Band 2
0
0
SES Band 1
1
0
All SES Classifications
2
0
INTER-AGENCY
MOBILITY
Within National
Support Office
National Support Office Area Management to
Within Area
to Area Management
National Support Office Management
0*
0
0
0
* No formal transfers occurred however a restructure of National Support Office in mid 2000 resulted
in changes to some team names and functions.
GAINS AND LOSSES BETWEEN 1 JULY 1999 AND 30 JUNE 2000
Appointed to SES
SES Band 1 x 1
Transfer from other Departments/Agencies
SES Band 1 x 1
SES Band
3x1
Temporary transfer from other
Departments/Agencies
Nil
Transfer to different Departments/Agencies
Nil
Retired or resigned
SES Band 1 x 1
Acting in SES for 3 months or more
SES Band 1 x 4
Table 26: Equal Employment Opportunity*
Key to Centrelink Equal Employment Opportunity (EEO) tables: EEO—Equal Employment
Opportunity; ATSI—Aboriginal and Torres Strait Islander people; PWD—People with a disability;
NESB1—Australians of (or from) diverse cultural and linguistic backgrounds, first generation;
NESB2—Australians of (or from) diverse cultural and linguistic backgrounds, second generation.
Note: Table contains full-time and part-time ongoing staff.
APPOINTMENT TO CENTRELINK BY EEO CATEGORY 1999–2000
Total
Female
ATSI
PWD
NESB1
NESB2
Area Hunter
NSW
3
3
1
0
0
0
Area East
Coast NSW
8
6
0
0
0
0
Area West
NSW
13
12
0
0
0
0
Area South
West NSW
43
35
6
1
0
1
Area South
Metropolitan
NSW
13
10
0
0
2
0
Area Pacific
Central NSW
and QLD
18
15
1
0
0
1
Area Brisbane
QLD
30
22
1
0
0
6
Area Central
and Northern
QLD
25
23
2
0
0
2
Area SouthEast VIC
48
32
1
2
1
3
Area NorthCentral VIC
14
9
2
0
1
1
Area West VIC
27
20
0
0
0
2
Area West
Australia
24
19
0
0
0
1
Area South
Australia
5
2
0
0
0
0
Area Tasmania
10
9
0
0
1
1
APPOINTMENT TO CENTRELINK BY EEO CATEGORY 1999–2000
Total
Female
ATSI
PWD
NESB1
NESB2
Area Northern
Australia
22
21
2
0
0
1
Call Centre
Network
807
634
10
6
1
24
National
Support Office
234
132
4
8
7
15
Total
Appointments
1999–2000
1 344
1 004
30
17
13
58
74.70
2.23
1.26
0.97
4.32
13 050
751
1 100
987
2 533
64.37
3.70
5.43
4.87
12.50
EEO groups as
% total
engagements
(ongoing
employees)
Ongoing
employees at
30 June 2000
20 272
EEO groups as
% total ongoing
employees
* Now referred to as Workplace Diversity.
EEO GROUPS AS % OF CLASSIFICATION GROUP
Classification
Group
Salary
Range
Female
ATSI
PWD
NESB1
NESB2
(%)
(%)
(%)
(%)
(%)
(%)
Centrelink SES
More than
$76 044
40.68
0.00
6.78
3.45
8.62
Centrelink 4
$56 283–
$76 043
43.46
0.41
4.53
2.72
10.38
Centrelink 3
$40 706–
$51 902
56.91
3.35
6.06
3.44
13.25
Centrelink 2
$32 745–
$40 705
70.20
4.19
4.76
4.48
11.50
EEO GROUPS AS % OF CLASSIFICATION GROUP
Classification
Group
Salary
Range
Female
ATSI
PWD
NESB1
NESB2
(%)
(%)
(%)
(%)
(%)
(%)
Centrelink 1
$15 245–
$31 881
69.70
2.48
8.94
3.26
8.62
Centrelink
Professional
$30 657–
$76 043
81.11
0.28
3.98
5.59
16.33
Centrelink IT
$35 342–
$76 043
23.61
0.00
3.00
22.22
15.78
Centrelink Public
Affairs
$37 655–
$77 340
47.06
0.00
11.76
0.00
13.33
Trainees/Cadets
$8 751–
$31 881
71.43
35.71
0.00
0.00
15.38
65.57
3.60
5.08
4.60
11.85
All Classifications
Figure 16: Staffing Profile as at 30 June 2000
Appendix v
Consultancy Services
Policy for Selection and Engagement of Consultants
Centrelink’s policy on the selection and engagement of consultants is based on the relevant
Commonwealth Procurement Guidelines/Circulars and Chief Executive Instructions.
It is Centrelink’s policy to restrict the use of consultants to circumstances where the required
expertise or services are unavailable when required from within the Australian Public Service, and the
task is short-term and discrete. In general, Centrelink’s requirements for consultancy services can be
identified against a number of broad categories which may include market research, statistical
information gathering and analysis, advertising and promotional campaigns, business analysis and
review, training and service delivery advice.
Selection Procedures
The method of selection of consultants is based on principles consistent with the procurement
methodology adopted for obtaining other goods and services and is predicated on the principles of
value for money and open and effective competition. Factors taken into account in the selection of
consultants include the extent of competition available in the market place, the complexity and the
estimated cost of the proposed consultancy, the available timeframe and the cost of approaching the
market and evaluating offers.
Centrelink considers that this is best achieved through a combination of public and restricted
tendering processes. Due to the nature of consultancy services required, there are some instances
where consultants may be engaged without a competitive selection process but this is usually limited
to instances where similar services have been provided to other Commonwealth agencies or where
the consultant may have provided the services previously and has a comprehensive understanding of
the objectives of the program.
In instances where a proposal has been made to confine an inquiry to a particular consultant, the
delegate must be satisfied that the method of procurement selected has been fully justified in
accordance with the relevant requirements under both Commonwealth and Centrelink procurement
policies, guidelines, Chief Executive Instructions and protocols.
Explanatory Notes
The following legend serves as an explanatory guide to the data contained in Table 27:
‘How Engaged’ Codes
P/T = Public Tender
R/T = Restricted Tender
Justification for Codes
A = Skills currently unavailable within the Agency
B = Requirement for collection of quantitative statistical information
C = Requirement for independent or impartial research/assessment by an independent organisation
D = Requirement for specialist/professional expertise
Summary
The total number of consultancy services contracts let during 1999–2000 was 132. Of these, 76 were
consultancies where the total contract value was $10 000 or greater and these are individually shown
in the table below. These consultancies are divided into two broad categories: General and Human
Resources.
An additional three market research consultancies with a value of greater than $1500 but less than
$10 000 have been included here, as required under section 311A of the Commonwealth Electoral
Act 1918 (see also I, page 209). The total dollar value of the three consultancies is $25 782.
The total dollar value of consultancy contracts greater than $10 000 let during the year is $5.03
million.
The total amount paid on all consultancy services contracts in 1999–2000 was $9.31 million. This
figure includes amounts for consultancy service contracts let in the preceding financial years that
were still active in 1999–2000.
Table 27: Consultancy services contracts let to the value of $10 000 or more in both General
and Human Resource categories during the year 1 July 1999 to 30 June 2000
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
Allstaff Australia
Pty Ltd
Preparation of
communication
strategies and
promotion of
Centrelink’s role
R/T
D
$101 088.00
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
$75 600.00
in the wider
community
Arplan
Assessment
and evaluation
of bids for
tender process
R/T
A, D
Box Hill Institute
TAFE
Workplace
assessment
R/T
D
Brightstar
Information
Technology
Group Pty Ltd
SAP Data
R/T
extract reporting
A
Standing Offer
Brightstar
Information
Technology
Group Pty Ltd
SAP consulting
in relation to
service based
costing project
R/T
D
$100 000.00
Computer
Corporation of
America (CCA)
Model 204
training for
National
Support Office
staff
R/T
A,D
Deloitte
Consulting Pty
Ltd
Advice on IT
infrastructure
outsourcing
P/T
C, D
$478 000.00
Deloitte
Consulting Pty
Ltd
Provision of
cost per service
for customer
using activity
based costing,
price
benchmarking
and fixed and
variable funding
P/T
A
$736 000.00
Deloitte
Consulting Pty
Ltd
Consultancy for
an improved
child care
R/T
D
$69 000.00
$33 643.00
Standing Offer
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
R/T
D
$25 600.00
provider
payment plan
Energy Efficient
Strategies Pty
Ltd
Audit of Telstra
lines
Enterprise
Marketing &
Research
Ascertain from
R/T
business people
the time taken
to complete
government
forms
A,C
$240 000.00
Eureka
Research
Analysis of
questionnaire
forms
A,C
$14 088.00
Interactive
Media Pty Ltd
Design of HTML R/T
prototype for
balanced
scorecard
A
$10 000.00
IPMS Pty Ltd
Review of
National
Support Office
accommodation
arrangements
R/T
A
$21 000.00
Jonson
Business
Consulting
Services
Development of
an integrated
framework for
Stakeholder
Research
P/T
A
$ 200 000.00
Mark Dignam
Research to
review the
operations of
Centrelink
business TV
unit
R/T
A,C
$20 000.00
Market Access
Communication
needs and
preferences for
youth and
R/T
A,C
$40 000.00
R/T
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
students
customers
Market Access*
Evaluate Telstra R/T
multimedia pay
phone trial
A,C
$59 000.00
Market Attitude
Research
Market test the
revised Youth
Allowance claim
package
R/T
A,C
$40 000.00
Market Solutions To undertake
survey gauging
service,
consistency of
advice and
office
presentation in
two areas
R/T
A,C
$15 000.00
Market Solutions Assistance for
Isolated
Children survey
R/T
A,C
$20 529.00
Matra Pty Ltd
Advice in
relation to
assessing the
value for money
aspects of
mainframe
software
R/T
D
$30 000.00
Matra Pty Ltd t/a
the Tennyson
Group
Review of
software
contracts
R/T
D
$33 000.00
Meta Group
Asia Pacific Ltd
Enterprise
architecture
strategies
R/T
D
$215 000.00
Millar Watson
Project
management
architectural
R/T
D
$20 700.00
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
and
construction
Millar Watson
Project
management
architectural
and
construction
R/T
D
$24 400.00
Millward Brown
Australia
Validation of ‘life R/T
events’
research with
Centrelink
customers and
the wider
community
D
$45 668.00
Millward Brown
Australia
Qualitative
research for
customer
charter annual
review
P/T
A, B, C
$28 250.00
Millward Brown
Australia
National
customer
satisfaction
research for
May 2000
P/T
A, B, C
$80 885.00
Millward Brown
Australia
Service delivery
model
R/T
A,C
$49 465.00
Myriad
Consultancy
Market research R/T
on customer
service in rural
and remote
areas
C
$9 700.00
New Focus
Marketing of
Centrelink’s
payment
deduction
service,
Centrepay
A,C
$147 000.00
R/T
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
Newton
Wayman Chong
Evaluate
customer
response to
intended
refinements and
simplification of
data on
statement style
letters
R/T
A
$14 948.00
Newton
Wayman Chong
Statement style
letters follow-up
R/T
A
$22 000.00
Newton
Wayman Chong
ABSTUDY
survey
R/T
A,C
$65 222.00
Novell
Consulting
Standing offer
for specialist IT
services
R/T
D
$170 000.00
OPTUS
Administration
Training
solution for the
Call Centre
network
P/T
A
Orima Research
Information
needs of
Disability and
Carer
customers
R/T
A,C
$37 800.00
Orima Research
Centrelink Call
Centre survey
R/T
A,C
$32 350.00
Orima Research
Market test
Family
Allowancev 18–
24 brochure
R/T
A
$19 780.00
Orima Research
Pre-test the
updated booklet
What to do
when someone
dies
R/T
A,C
$14 970.00
Standing Offer
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
Orima Research
Pre-test
Unzipped
magazine
R/T
A,C
$19 200.00
Orima Research
Pre-test
Disability
Connections
R/T
A
$7 682.00
Orima
Research*
Market test
government’s
savings bonus
initiative
R/T
A,C
$53 385.00
Performance
Mentors
Mentoring
program
R/T
D
Pricewaterhouse Crisis simulation R/T
Coopers
exercise and
crisis plans
A
$110 536.00
Pricewaterhouse Taxation advice, R/T
Coopers
project
management
assistance
A,D
$150 000.00
Professional
Impressions Pty
Ltd
Benchmarking
R/T
tours/workshops
D
$12 900.00
PSI Consulting
Replacement
Medical
Assessment
panel contracts
P/T
D
$27 800.00
PSI Consulting†
Rent Assistance R/T
review
A
$23 164.00
PSI Consulting†
Rent Assistance R/T
review
A
$27 000.00
PSR Software
Pty Ltd
Business
analysis of
technical
specifications
for performance
A
Standing Offer
R/T
$21 000.00
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
data
management
system
Qantas Airways
Ltd
Performance
management
and coaching
seminars
P/T
D
$15 000.00
Quadrant
Research
Pre-test Rural
News
R/T
A,C
$11 900.00
Quadrant
Research
Market test
Employment
Update—1999–
2000 editions
R/T
A,C
$44 100.00
Quadrant
Research
Pre test Student
Update
R/T
A,C
$8 400.00
Quasar
Professionals
Recruitment
service for I&T
personnel
R/T
A, D
$150 000.00
RAP Activities
Pty Ltd
Provision of
training
materials for
GST and train
the trainer
R/T
A,D
$149 000.00
Research
Advantage
Evaluate
statement of
circumstances
R/T
A,C
$26 632.00
Research
Advantage
Concept testing
new Families
imagery
R/T
A,C
$40 396.00
Roger Monk
Provision of
media liaison
services
R/T
A,D
$52 000.00
Rogers &
Jefferis
Provision of
structural
R/T
A
Standing Offer
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
engineering
services
Ross Begbie
Results through
people training
R/T
D
$29 780.70
Roy Morgan
Market test
Client Magazine
R/T
A,C
$15 000.00
Roy Morgan
Market test the
casual income
record—
employer
verified form
R/T
A
$11 200.00
Russell
Reynolds
Recruitment of
Chairman and
board member
R/T
A,C
Seranova
Develop new
prototype for
balanced
scorecard
R/T
C,D
$16 000.00
SMS Consulting
Group
SAP Data
R/T
extract reporting
A
Standing Offer
SMS
Consultancy Pty
Ltd
Risk
management
plan for
performance
data
management
system
R/T
D
$45 000.00
SMS
Consultancy Pty
Ltd
Project
management
and business
analysis in
relation to
performance
data
management
system
R/T
D
$97 500.00
$75 000.00
CONSULTANCY SERVICE
Consultant
Consultancy
Service
Provided
How
Engaged
Justification
Code
General
Human
Consultancies Resources
(Total Value)
Consultancies
(Total Value)
Sweeney
Research
Market test tax
reform
measures
P/T
A,C,D
$58 750.00
Sweeney
Research
Treating
doctor’s report
review
R/T
A,C
$13 850.00
Synerlogic
Microsystems
Pty Ltd
Specialist IT
services
R/T
D
$200 000.00
Team Systems
Pty Ltd
Design and
R/T
facilitate a team
building process
to accelerate
the process of
team formation
across the
recently
expanded
strategic
services team
D
$10 875.00
The Customer
Connection
Customer
service skills
R/T
A,D
$25 000.00
The Riches
Group
Leadership
training
R/T
A,D
$10 000.00
Upton Martin
Consulting
Preparation and
facilitation of
training courses
as requested
P/T
A
Standing Offer
Yann Campbell
Hoare Wheeler
(now Millward
Brown Australia)
National
customer
satisfaction
research for
November ’99
P/T
A, B, C
$78 600.00
Yann Campbell
Hoare Wheeler
Implementation
of new Rural
Call Centre
R/T
A
$56 660.00
* Funded by Electronic Service Delivery Team, DEWRSB and HIC.
* Financial responsibility shared between Centrelink $20 648.97, ATO $19 004.98, DVA $13 731.95.
† 50% of the consultancy funded by Department of Family and Community Services.
Appendix vi
Advertising and Direct Mail
This appendix outlines expenditure on payment to the value of $1500 or more made to advertising
agencies, direct mail organisations and media advertising organisations, in accordance with Section
311A of the Commonwealth Electoral Act 1918.
Any payments of $1500 and over made to market research organisations and polling organisations
are listed under Appendix v, Consultancy Services, page 201, in addition to reporting of other
consultancies.
Table 28: Advertising and Direct Mail Expenditure
PAYEE
AMOUNT
PURPOSE
AIS Media
$50 290
Advertising for Family Allowance for 16 to
24 year olds
AIS Media
$8 887
Ethnic press advertising for Welcome to
Centrelink
AIS Media
$14 950
Advertising for Pension Bonus Scheme
AIS Media
$7 290
Advertising for Rural Call Centre
Maryborough
AIS Media
$2 351
Advertising for Multimedia Payphones
AIS Media
$1 957
Advertising for ABSTUDY
AIS Media
$2 863
Advertising for Victorian Seniors Health
Card
AIS Media
$11 129
Advertising for Unzipped magazine
AIS Media
$9 815
Advertising for Rental Assistance
Payments of $1500 and over to media advertising organisations—master advertising agencies that
have placed Centrelink advertising in the media. This covers both campaign and non-campaign
advertising.
PAYEE
National Indigenous
Radio Service
AMOUNT
PURPOSE
$90 000
Radio programs targetting Indigenous
people
PAYEE
AMOUNT
PURPOSE
Radio for the Print
Handicapped
$40 411
General information for the print
handicapped
Special Broadcasting Service
$253 990
Provision of multicultural broadcasting
services
Independent & General
$76 520
Dissemination of Centrelink information to
the ethnic community
Payments of $1500 and over to advertising agencies and other agencies that have developed
advertising campaigns.Payments of $1500 and over to direct mail organizations.
PAYEE
AMOUNT
PURPOSE
PMP Communications
$875 098
Preparation and mailout of agency
material
(as sub-contractor to POL
Corporation)
$2 282 163
Preparation and mailout of Age Pension
News
Toll Logistics
$456 956
Preparation and mailout of agency
material
Chandler Direct Mail
$13 595
Preparation and mailout of agency
material
National Mailing and Marketing
$43 330
Preparation and mailout of agency
material
Canberra Mailing
$38 277
Preparation and mailout of agency
material
Salmat Mailing Services
$70 890
Preparation and mailout of agency
material
J S McMillan
$23 706
Preparation and mailout of agency
material
Bounty Services
$3 677
Preparation and mailout of agency
material
PMP Communications
Appendix vii
Privacy
Liaison with Privacy Commissioner
Centrelink has informal administrative arrangements in place with the Privacy Commissioner’s Office
which enable Centrelink to deal with complaints as efficiently as possible. These arrangements
resulted in the Privacy Commissioner’s Office deciding not to investigate six cases after making
preliminary inquiries under section 42 of the Privacy Act 1988. In addition, other cases were handled
more effectively.
Complaints Referred by the Privacy Commissioner
The Privacy Commissioner formally referred nine cases to Centrelink during 1999–2000 and after
receiving reports from Centrelink has finalised six cases under paragraphs 41(1)(a) or 41(2)(a) of the
Privacy Act 1988. Paragraph 41(1)(a) involves a finding that there has been no interference with
privacy while a dismissal of a complaint under paragraph 41(2)(a) is based on a finding that
Centrelink adequately dealt with the complaint.
Reports and Determinations by the Privacy Commissioner
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 1999–2000, the Privacy Commissioner did not issue any reports or
determinations under the above sections.
Under section 73 of the Privacy Act 1988, an agency may apply in accordance with the regulations for
a public interest determination under section 72 by the Privacy Commissioner about an act or practice
that breaches an Information Privacy Principle. Centrelink has not applied under section 73 to the
PrivacyCommissioner for any such determination.
Privacy Incident Statistics
Centrelink’s policy is to investigate all privacy incidents which include mailout errors, alleged privacy
breaches from the public and staff, auditing of computer accesses to detect unauthorised accesses
and any privacy incidents at Customer Service Centres and Call Centres. In 1999–2000 Centrelink
completed 1394 privacy incident investigations. These investigations resulted in only 33 per cent of
incidents being substantiated as a breach of privacy or confidentiality.
Table 29: Investigation Outcomes 1999–2000
FINALISED
SUBSTANTIATEDFAULT OF
SUBSTANTIATEDSUBSTANTIATED
EXTERNAL
WITHDRAWN
AGENCY
Number
1 394
471
8
915
%
100
33.8
0.6
65.6
Included in the privacy incidents investigated are cases of information fraud. The criterion used to
identify these cases includes the elements of benefit or financial gain. Thesecases are prosecuted
under the criminal sanctions imposed by provisions of the Social Security Act 1991, the Social
Security (Administration) Act 1999, Student Assistance Act 1973 and the Crimes Act 1914 in relation
to the unauthorised access to use or release of customer information. Criminal acts under these
provisions would generally come within the definition of fraud as defined by the Commonwealth Law
Enforcement Board in the ‘Best Practice for Fraud Control—Fraud Control Policy of the
Commonwealth’.
Information fraud may also occur with the unauthorised release of staff information or other agency
documents of a confidential or commercial-in-confidence nature where the above elements are
present.
There is a considerable difference between the number of complaints made and the number which
actually are proven to have substance. The use of Automatic Data Processing logging information
was used to assist in proving or disproving an allegation in 779 of the 1394 cases finalised in 1999–
2000.
Automatic Data Processing logging involves Centrelink retaining records of accesses by Centrelink
officers to the computer data bases. The use of Automatic Data Processing logging information in the
detection of breaches has provided investigation staff with a very accurate and positive investigative
tool. Centrelink is able to provide substantial evidence to determine the guilt or innocence of a staff
member who has allegedly breached a customer’s privacy. It also has the ability to substantiate to a
customer whether the customer’s privacy has been breached through an unauthorised or improper
access to customer records on payment systems.
Table 30: Types of Incidents Reported and number substantiated 1999–2000
TYPES OF INCIDENT REPORTED
1999-2000
NUMBER REPORTED
FINALISED INCIDENTS
SUBSTANTIATED
Information Privacy Principles 1–3
Privacy Act 1988
12
1
Information Privacy Principles 4–8
Privacy Act 1988
45
32
Information Privacy Principles 9–11
Privacy Act 1988
48
12
Unauthorised Access—Browsing
522
114
Unauthorised Disclosure—Browsing
395
39
Unauthorised Use
16
8
Mail House Error
55
49
Misdirected Mail—Officer Error
211
194
Soliciting Disclosure
10
2
Untrue Representations
12
2
Survey Related Incident
9
2
Other
81
16
Total Incidents Reported
1416
471
Of the 1394 investigations finalised during 1999–2000, criminal charges were laid in two cases
resulting in the officers being placed on Good Behaviour Bonds. Disciplinary action was undertaken
against 102 members of staff, resulting in these officers being either dismissed, fined, counselled or
having a warning letter issued to them. In other cases such as misdirected mail, feedback was
provided and procedures addressed to prevent a recurrence of the incident.
(See also Chapter 10, Corporate Governance, page 133.)
Appendix viii
Freedom of Information
Information Access
Release of Information Authorised by Law
Centrelink releases information to law enforcement agencies and missing persons agencies in the
public interest under ministerial guidelines issued in accordance with the Social Security Act 1991.
Centrelink also releases specific information to other government agencies in relation to jointly
administered programs. Details of this information are provided on claims and notices issued by
Centrelink under Information Privacy Principle 2 of the Privacy Act 1988.
Freedom of Information Practices and Procedures
Centrelink has instituted practices and procedures to improve the access of customers to their
records and documents. A wide range of personal information documents are made available to
customers outside the formal Freedom of Information (FOI) processes. This has provided a more
timely and effective service to customers.
Requests from customers for more detailed documents or those involving third party information are
still handled through the normal FOI processes. Decision making expertise and the necessary
delegations to make decisions under the Freedom of Information Act 1982 are usually held in
Centrelink Area Offices. This provides an effective and expert service to customers.
Each Customer Service Centre has a FOI contact officer, whose main duties include the release of
documents outside the formal FOI process, providing advice to customers on how to lodge a formal
FOI request, accepting requests, negotiating with customers about requests and providing access to
documents. Selected officers in each Area undertake reviews of FOI decisions.
The Privacy and FOI Team in National Support Office manages the FOI function and maintains
manuals and instructions. The team develops information guides and training packages for use in
Customer Service Centres.
Freedom of Information Request Statistics
During 1999–2000, 6297 requests for access to documents under FOI were received by Centrelink
and 6390 requests were answered. This figure includes unfinalised requests from 1998–99. A total of
440 remained outstanding at 30 June 2000. The figure of 6297 represents a decrease of 9 per cent
from the previous year.
Of the requests finalised in the period:





61 per cent resulted in full access to the requested records;
26 per cent resulted in part access to requested records;
10 per cent were refused access;
9 cases were transferred to other agencies; and
188 cases were withdrawn by the applicant.
Of those applicants granted access, 30 sought an amendment to documents which they believed
contained information which was incomplete, incorrect, out of date or misleading.
Of those requests for access under FOI which were finalised during the financial year, 69.5 per cent
were finalised within the 30 days permitted. A further 15.8 per cent were finalised within 60 days.
Under the exemption provision of the Freedom of Information Act 1982, Centrelink may refuse to
provide access to documents. The majority of exemptions claimed in 1999–2000 were to protect the
confidentiality/privacy of third parties or other customers.
Freedom of Information Reviews and Appeals
In the past year, 98 requests were received for an internal review where the applicant was not
satisfied with a decision about access. Of the reviews completed at the end of the year, there were 25
matters where access or part access was granted, and 65 where the original decision was affirmed.
Of those where the original decision was affirmed, 17 applicants requested a further review by the
Administrative Appeals Tribunal. The result of matters with the Administrative Appeals Tribunal was:


one case where the original decision was varied; and
Eight cases where the decision was dismissed.
Publication of Certain Documents and Information
Section 8 Freedom of Information Act 1982
Introduction
Section 8 of the Freedom of Information Act 1982 requires the publishing in the annual report of
agency statements concerning:





particulars of the organisational structure and functions indicating decision making powers
affecting members of the public;
arrangements for external input to the decision making process;
the categories of documents that are maintained by the Agency;
the facilities in place to assist members of the public to obtain access to documents of the Agency;
and
Information about the procedures in place to assist in providing members of the public access to
documents.
Organisational Structure and Functions Statement
Information about the structure, functions and organisation of Centrelink is provided in Chapter 9
Corporate Overview, page 116.
Arrangements for External Individuals and Agencies to Provide Advice to
Centrelink
Individuals or organisations outside Centrelink’s administration may express their views about its
policy formulation or about its administration of schemes.
This can be done by making representations to the Minister or the CEO or by being invited to serve
on committees, working parties or advisory bodies which are established to provide the Minister or
the CEO with advice on specific issues and programs.
Centrelink also receives comment and feedback on programs from various focus groups of
community members organised by external consultants or Centrelink officers.
Categories of Documents Maintained by Centrelink
Centrelink makes manuals, instructions and guidelines available on request for inspection and
purchase by the public. These can be purchased from Centrelink’s Online Reference Unit,
Tuggeranong Office Park, Box 7788, Canberra Mail Centre, ACT 2610.
Centrelink has also complied with its obligation under the Freedom of Information Act 1982 to
produce and update an index of all manuals and guidelines. The index is available for inspection at
an Australian Archives ‘Information Access Office’in all capital cities.
Documents in the Possession of Centrelink
Documents held by Centrelink may be categorised as:




separate records of decision making bodies such as agenda and minutes;
separate records of Cabinet matters, including Cabinet submissions and Cabinet minutes;
general correspondence and associated categories of documents according to subject matter; and
Documents maintained separately which relate to administrative functions, for example, finance
and personnel documents, assets listings and payroll records.
None of these documents are:



open to the public as part of the public register or otherwise, in accordance with an enactment
other than the Freedom of Information Act 1982, where that access is subject to a fee or other
charge;
available for purchase by the public in accordance with arrangements made by Centrelink, with
the exception of manuals, instructions or guidelines; or
Customarily made available to the public other than under the Freedom of Information Act 1982,
free of charge on request.
Centrelink officers make forms and leaflets relating to payments and other services freely available to
the public.
Facilities for Access to Documents
Centrelink Customer Service Centres have facilities for inspection of documents accessed under the
Freedom of Information Act 1982. Agency publications may also be inspected at these locations.
Information on these facilities can be obtained from the FOI Contact Officer in each Customer Service
Centre, the FOI Action Officer in each Area Office or from the Business Manager, Privacy and FOI
Team,in National Support Office.
Procedures for Gaining Access to Documents
All offices will provide, on request, access to some personal documents held by the office. This is
outside of the formal FOI process.
Applications for access to documents under the Freedom of Information Act 1982 must be made by
letter, statement or by completing a form. Centrelink has developed FOI request forms available in all
customer service delivery offices, to ensure that requests for access to documents are handled
quickly.
There are two forms. These are:


the form I want to access, or change my information about mewhich is used to request access via
photocopies or inspection or make changes to documents; and
The form I want to ask for a Review which is used by applicants to appeal against and request an
internal review of a decision about access to documents under Freedom of Information.
These forms have tear off leaflets that explain the FOI process and customer rights. These forms can
be filled out in the office, where a FOI Contact Officer is available to assist, or can be posted out on
request. Requests made under the Freedom of Information Act 1982 may be lodged at, or posted to,
any Centrelink office.
General enquiries about FOI may be directed to the FOI Contact Officer in any Centrelink Customer
Service Centre.
Appendix ix
Compliance Activity
Throughout the year a more focused approach to the prevention of fraud and the early detection of
incorrect payments to customers has been taken. The establishment of the Centrelink/ATO Special
Project Officers, the scope of feasibility studies currently being undertaken, and the extension of our
data-matching capability, all contribute to this preventative strategy.
During 1999–2000, Centrelink completed 2 288 810 reviews of eligibility and entitlement on behalf of
client agencies. These include 2 274 138 reviews of welfare payments for FaCS, and 1409 child care
service reviews. A total of 13 263 reviews were conducted for DETYA.
As a result of this review activity there were 260 054 instances where incorrect payments were
identified. FaCS payments were either reduced or cancelled on 254 634 occasions and reviews of
DETYA payments led to rate variations in 5420 cases.
Savings to future outlays for FaCS payments totalled $34.7 million a fortnight, and savings of $3.9
million for the year were identified for DETYA payments.
During 1999–2000, 338 249 debts were raised as a result of this review activity to the value of $301.9
million. Of these, 331 810 were FaCS debts worth $293.1 million and 6439 were DETYA debts worth
$8.8 million.
A total of 4023 cases were referred to the Director of Public Prosecutions for consideration of
prosecution action during 1999–2000, of which 3967 were FaCS cases and 56 were DETYA cases.
During 1999–2000, 2964 cases were prosecuted through the courts. Of these, 2935 cases were
prosecuted for FaCS fraud with a conviction rate of 98 per cent, and a further 29 cases were
prosecuted for DETYA fraud resulting in a conviction rate of 97 per cent.
Within these overall figures there were the following highlights:
With regard to FaCS payments:




The Data-matching Program continued its strong performance with five datamatching cycles
conducted in 1999–2000. This review activity resulted in the cancellation or reduction in the rate of
35 261 payments with 65 984 debts being raised. Savings to future outlays from these matches
totalled $1.9 million a fortnight and $75.7 million in debts were identified for recovery action.
Employment Declaration Form reviews resulted in the cancellation or rate reduction of 34 079
payments. These reviews achieved fortnightly savings to future outlays of $6.3 million and
identified debts totalling $123.4 million.
55 009 reviews were conducted from tip-offs received from the public resulting in 3911
cancellations to payment, with a further 10 602 rate reductions, and debts totalling $29.9 million
being identified.
There were 2881 convictions recorded for welfare fraud involving $27.1 million.
With regard to DETYA payments:


Data-matching of enrolment details with educational institutions resulted in 3564 cases of savings
to future outlays worth $2.5 million and 5556 cases of debts being identified to the value of $6.9
million.
There were 28 convictions recorded for fraud involving $176 426.
Report to Parliament
The Minister tables reports in Parliament every six months on review activity undertaken by
Centrelink of payments made on behalf of FaCS. This report and the press coverage it receives
increases the profile of the control activities being undertaken by Centrelink. This in turn helps ensure
that FaCS payments are only received by those who are entitled to them.
In line with the deterrence provisions of the Fraud Control Policy of the Commonwealth, giving
publicity to court cases of welfare fraud is also designed to create public recognition of the risks and
penalties involved in attempting to defraud the system and to encourage voluntary compliance.
Enhanced Investigation Initiative
Following a national tender process, Centrelink contracted 21 companies to provide surveillance
services on its behalf. Stringent privacy and security safeguards are in place to protect the
information passed to companies during the period of the review. Probity checks were also made of
the companies and their operatives.
In July 1999 Centrelink sent the first cases to the service providers. To the end of June 2000, a total
of 1446 cases were referred to providers. Of these, 1063 have been finalised resulting in a debt or
reduction in payment to 747 cases. Savings to future outlays as a result of cancellation or reduction of
payments total $4.2 million. Debts of $4 million have been identified for recovery action. The initiative
has a successful outcome in 70 per cent of cases and has a cost benefit ratio of 1:5.
The Enhanced Investigation Initiative has proven itself to be a success in providing evidence of
fraudulent activity, which would not have been collected if traditional investigation methods had been
used. It has proven that by using the evidence gathering power of this initiative, inroads can be made
into areas of welfare fraud, such as those associated with the cash economy.
The publicity associated with this initiative encourages voluntary compliance and further enhances
the integrity of the welfare system.
Outposted Centrelink Officers
In 1999–2000 funding was provided to support 23 full-time Centrelink/ATO Special Project Officers
within the ATO’s Branch Office structure. This initiative is designed to maximise the effectiveness of
inter-agency cooperation in terms of both program savings to Centrelink and debt prevention activity.
The role of these officers is to assess information about Centrelink customers that would otherwise
not be gained and, from this, to identify customers who may not be receiving their correct entitlement.
Information exchange is conducted with full regard for the legislative provisions in place in both
organisations including the Privacy Act 1988. The Centrelink officers have established a working
relationship with ATO field audit and intelligence teams focusing on designated cash economy
activities. The officers also undertake community activities in association with ATO staff in order to
identify non-compliance and encourage voluntary compliance.
The project has proved a success with savings and debts of $6.7 million identified.
Feasibility Studies for Further Data-matching
Funding was provided in the 1999 Federal Budget to conduct a feasibility study into data-matching
with the Australian Stock Exchange Clearing House Electronic Sub-Register System to detect cases
of undisclosed assets (share holdings) and State and Territory Superannuation Authorities to detect
cases of undisclosed superannuation payments.
Customers across all Centrelink payment types were matched. The feasibility studies have confirmed
the suitability of data to match with these agencies. The studies have also identified additional share
registry data sources separate to the Australian Stock Exchange as well as more centralized
superannuation information which is held by the ATO. An evaluation of both studies will be prepared
early in 2000–01.
Assets Review Pilot
Centrelink undertook a pilot focusing on undisclosed assets. The pilot was based on data-matching
information with the ATO and identified anomalies between details of properties advised to Centrelink
and those advised to the ATO. The pilot has addressed a risk that Centrelink customers may not be
fully disclosing assets which may affect their entitlement.
Specialist teams have been established in Brisbane and Adelaide to investigate these reviews.
The pilot identified $1.4 million in debts and savings to outlays.
Pilot of the NSW Missing Persons Unit
For some years the Privacy Team within Centrelink has been assisting the police and voluntary
agencies involved in searching for missing persons. In mid 1999 Centrelink was approached by the
National Missing Persons Unit asking that it assist in conducting a national search for long-term
missing persons.
The national pilot covered approximately 1500 persons and Centrelink was able to trace 10 per cent
of these people—a successful outcome. Some missing persons records date back to the 1940s.
Previously, searches of Centrelink customer records were conducted on a manual basis for each
missing person. This was seen to be a cumbersome process and a more efficient method was
needed. The Detection and Review Team conducted a trial electronic search using its data-matching
facilities and the concept proved to be both efficient and effective.
As a result of this success the National Missing Persons Unit asked Centrelink if it could conduct a
regular electronic search for long-term cases. The concept of an electronic national search was put to
and accepted by the National Police Consultative Group.
The pilot has since been extended to all State and Territory Police Missing Persons Units and in May
2000 a data-match was conducted on their behalf. The matched results have been returned to the
relevant Missing Persons Units where the cases will be followed up.
Debt-related Activity
Debt Identification, Raising and Recovery
During 1999–2000, 1 462 129 debts were raised with the value of $794.6 million. Of these, 1 440 326
were FaCS debts worth $778.34 million (including compensation matters). A total of 15 219 were
DETYA debts worth $13.39 million while an additional 6584 debts worth $2.87 million were raised on
behalf of other government agencies.
Refunds/repayments to Centrelink for 1999–2000 totalled $653.97 million. Of this, $640.99 million
was recovered against FaCS debts. An additional $2.14 million was recovered on behalf of other
government agencies and $10.84 million was recovered against DETYA debts.
Centrelink recovered a total of $119.78 million under the compensation recovery provisions of the
Social Security Act 1991 (included in the $640.99 million figure above).
Appendix x
Purchasing Activity
Up until 30 June 2000, Centrelink purchasing has operated in a devolved and geographically
dispersed purchasing network. Purchasing activities were primarily undertaken in three business units
within the Centrelink organisational structure:



National Support Office;
Area Support Offices; and
Customer Service Centres.
National Support Office
Centrelink currently operates a central procurement unit which conducts less complex purchasing
activities for much of the National Support Office. A proposal has been developed which will require
that all such purchases for the National Support Office be undertaken by that unit.
Purchasing is carried out in accordance with the Financial Management and Accountability Act 1996,
Centrelink Chief Executive Instruction (CEI) and the Commonwealth Procurement Guidelines Core
Policies and Principles. Purchases are made through the raising of Purchase Orders from the
Agency’s Financial Management Information System (Infolink) and through the Australian
Government Credit Card (Purchasing Card) for transactions less than $2000.
Customer Service Centres and Area Support Offices
Apart from the purchasing card, all purchasing activity from 1 July 2000 has been centralised to a
specialist purchasing unit in each Area Support Office. Some of these staff already have procurement
competencies and experience in purchasing. An initial purchasing training program was completed in
June 2000 to prepare staff for the transition to the new arrangements. Work is underway to
commence higher level competency assessment for all Area Support Office purchasing staff.
This restructure has reduced costs for training and has enabled targeted policy implementation. It
also has the added benefit of creating an identifiable and consolidated purchasing function in which,
staff may be able to develop specialist skills.
Purchasing Card Transactions
Centrelink has approximately 1072 purchasing cards, each of which can be used for purchases up to
$2000 in value. For the period 29 June 1999 to 30 June 2000 there were 20 096 individual
transactions with an aggregate value of approximately $4.7 million (an average of $233.94 per
transaction).
Complex Procurement Actions
For the more complex purchases (usually consultancies valued at over $30 000 and goods/services
valued at over $100 000), all requests regardless of where they originate throughout the Centrelink
network, are routed through the National Purchasing and Contracts Unit in the National Support
Office. That unit is staffed with experienced procurement and contracting specialists as well as an inhouse contracts lawyer and is tasked with developing and providing tender and contract
documentation and providing associated policy advice to project officers and delegates on key steps
in the tendering and contracting process.
The volume of referrals to the National Purchasing and Contracts Unit in the six months to 30 June
2000 as compared to the six months to 31 December 1999, has increased by 45 per cent. There is
recognition of the role of competitive tendering and contracting in contributing to Centrelink’s cost
efficient operation. The routing of complex work through the National Purchasing and Contracts Unit
allows a focus on these issues and affords the opportunity for value added from procurement
specialists.
New Chief Executive Instruction
On 1 July 2000 a new ‘Chief Executive Instruction’ on complex procurement was released online
located on CentreNet and is available to all staff. The new instruction includes:

reinforcement of the role of the National Purchasing and Contracts Unit in procurement and
contracting activity;




best practice guidance on all aspects of the purchasing and contracting function including
compliance with other government policies such as Affirmative Action, environmental purchasing
and industry development;
commitment to ANZ/SME (Australian New Zealand/Small and Medium Enterprises) suppliers
including a new policy that where all other evaluation considerations are equal, the ANZ product
will be purchased;
all tenders valued at $5 million or more to contain the Commonwealth’s ‘model industry
development criteria’; and
a focus on contract management through a chapter dedicated to that subject under the
sponsorship of the National Contracts Management Unit (responsible for the management of
Centrelink’s national contract managements).
Standard Documents
‘Standard Documents’ have been developed for tendering and contracting with the aim of improving
consistency and protection across the organisation. Centrelink is evaluating the potential for those
documents to be housed in a purpose built database designed to further improve the efficiency and
effectiveness of compiling the documents and also speed up the implementation of changes to them.
National Contracts
Centrelink has been increasing the number of national contracts primarily for support services such
as property management, travel, managed voice services, photocopying and desktop printers and
that trend is expected to continue.
These national contracts are subject to competitive tendering processes and managed by the
National Contracts Management Unit in the National Support Office. This strategic approach to
procurement in Centrelink is estimated to deliver significant savings and the benefits of the contracts
are maximized with fewer contractual problems.
Audits
Centrelink has undertaken a program of audits to monitor the purchasing function with further audits
planned in 2000–01.
Appendix xi
Customer Charter Statusand Customer Feedback Handling Report
Centrelink’s Customer Charter
Centrelink’s commitment to its Customer Charter was recognised when, in December 1999, it won
the silver award for ‘Excellence in Integrating Service Charter-driven customer service outcomes with
core business practices.’This was one of nine awards in three categories to Commonwealth agencies
that competed in the inaugural Service Charters—Awards for Excellence in Customer Service
scheme.
(See also Chapter 9, Corporate Overview, page 120 for details of other awards.)
Following its second annual review, the third edition of the Customer Charter was issued in
November 1999. The content of the Charter stood up very well to this round of consultation and
review, with customers saying that its content is still relevant and important to them. Customers
strongly supported the addition of a reference to the one-to-one service delivery approach introduced
in 1999 because they saw it as a service priority and its inclusion in the Charter would create an
image of a more personal approach to service.
To help raise awareness of the Customer Charter, a placemat version was developed and introduced
in late 1999. The Customer Charter Placemat contains the key elements of the Charter and is
intended to be displayed on the desktop of all customer service staff, facing the customer.
The Customer Charter was also made more accessible to customers whose first language is not
English. A Customer Charter Fact Sheet was created and translated into 24 languages and made
available to customers on Centrelink’s web site and to staff via the Intranet.
In March 2000, the third and most extensive annual review of the Customer Charter got underway. As
usual, the review process involved consultation with customers, community groups, client
departments and staff. The main focus for this review is possible inclusion of:



key service responsiveness standards (to complement the standards already included that
described the quality of the Centrelink service experience);
some general corporate information (e.g. a brief description of Centrelink, a list of client
departments, and the main methods of contacting Centrelink); and
an expanded section on customer appeal rights.
The fourth version of the Customer Charter is due to be released in September 2000.
Customer awareness of the Charter has risen by 4 per cent in the last year (from 8 per cent in May
1999 to 12 per cent in May 2000) but remains low. Further strategies are being either explored or
implemented to further embed the Charter into the business over the next year.
Customer Feedback
The Customer Charter encourages customers to provide feedback if they are happy or unhappy with
our service. The four main ways that customers provide feedback to Centrelink are by either:




phoning the Customer Relations Line on Freecall™1800 050 004;
completing a customer comment card (available at all Customer Service Centres);
completing an online customer comment card found at the Centrelink web site
(www.centrelink.gov.au); and
Speaking to any customer service officer in person.
Use of Feedback
Information from feedback on customer service is used in the following ways:




referring the feedback to the action officer concerned;
drawing the feedback to the attention of other staff;
improving and changing the way things are done; and
Feeding the response into Centrelink’s strategic planning and service improvement processes.
Feedback Activity
The instances of feedback (not including general information calls) requiring issues to be resolved
were much lower this year. This is because a large proportion of the 1998–99 feedback received
included ‘Call Centre Busy’ complaints. The number of Call Centre Busy complaints reduced
dramatically during 1999–2000 dropping as low as 193 in September (the previous year saw the
figure exceed 7900 in a single month).
In 1999–2000 there were 66 000 instances of feedback requiring issues to be resolved compared to
90 782 during the previous 12 months.
A high proportion of customer contacts received by the 1800 Customer Relations staff are general
information calls. Around 100 000 general information calls were received nationally. These calls
averaged around 8000 per month and were in addition to customer feedback contacts.
Average Time to Resolve Feedback
Most feedback was addressed and resolved at the ‘tier one’ level or source of the complaint and
within the standard for resolution at that level, which is two working days. During March and May
2000 the number of ‘tier two’ level complaints was higher than ‘tier one’ but these were also resolved
within the standard which is five working days.
Feedback System
Centrelink’s Customer Relations Line services are delivered nationally from 14 sites around the
country (most are based in Area Offices). All customer complaints, compliments, suggestions and
general information requests are recorded by Customer Relations staff onto a database at each site.
At the end of each month the feedback is collated nationally and refined ready for reporting.
Improvements to Service Delivery Made as a Result of Customer Feedback
Many improvements have been made as a result of customer feedback. Area South Australia for
example, received a number of calls from customers complaining that they had not been able to do
business with us on behalf of someone else. This was usually because their ‘permission to enquire’
had not been recorded on the customer’s record. After some investigation it was noted that
‘permission to enquire’was often overlooked by the customer service officer when recording customer
details as it was not placed in a prominent section of our various forms. The forms were subsequently
redesigned and the ‘permission to enquire’ section is now located at the signature block making it
much easier for the customer service officer to see and then enter onto the customer’s record.
The Four Most Common Complaints




disagree with assessment/decision
delay in processing
lack of respect/rude/unfriendly
information inaccurate/incomplete/ambiguous
The Four Most Common Compliments




friendly/helpful/respectful
went out of way to help
Centrelink services are excellent
efficient
Links to Customer Feedback System
In conjunction with the Social Security Appeals Tribunal Centrelink has established a facility to link
the tribunal with the Customer Feedback System. This enables tribunal members to provide feedback
on service delivery issues which may come to their attention but which are not strictly relevant to the
decision of a customer appeal.
Some Centrelink advocates took part in a pilot project conducted by the Administrative Appeals
Tribunal, the early results of which indicate a significant reduction in the time taken to resolve
disputes about entitlements. The advocacy team involved will continue to work within the shorter
timeframes achieved for the pilot project and Centrelink is studying the possible application of the
project elsewhere, with the cooperation of the tribunal.
Appendix xii
Customer Satisfaction Performance Table
Centrelink undertakes a comprehensive customer satisfaction research program. Overall, customer
satisfaction has remained stable over 1999–2000.
Table 31: Overall Satisfaction (As measured by various Customer Satisfaction Surveys)
NOV 1999
MAY 2000
%
%
Overall Quality of Centrelink (including people,
services and information)*
70.0
66.0
Overall Level of Service by Customer Service
Centres (including quality of people, services
and information)†
77.1
77.2
Overall Level of Service by Call Centres
(including quality of people, services and
information)‡
69.7
70.1
Overall Level of Service by International
Services (including quality of people, services
and information)§
95.5
94.0
Overall Level of Service by Visiting Service
(including quality of people, services and
information)†
N/A
79.7
Overall Level of Service by Community
Agent/Agency (including quality of people,
services and information)†
N/A
83.9
Centrelink staff overall*
78.0
77.0
Sources
* National Customer Satisfaction Survey (Millward Brown Australia).
† Customer Service Centre Customer Satisfaction Survey (Roy Morgan Research).
‡ Call Centre Customer Satisfaction Survey (Roy Morgan Research).
§ International Services Customer Satisfaction Survey (Roy Morgan Research).
Appendix xiii
Customer Charter Performance Tables
Key
A-CSC Customer Satisfaction Survey.
B-Call Centre Customer Satisfaction Survey.
C-International Customer Satisfaction Survey.
D-National Customer Satisfaction Survey.
Table 32: Customer Charter Performance for the Customer Service Network
We will help you
by:
A
A
B
B
C
C
D
D
Nov ’99
May ’00
Nov ’99
May ’00
Nov ’99
May ’00 Nov
’99
May
’00
*
*
*
*
*
*
58.0
59.0
*
*
*
*
*
*
73.0
73.0
8.2
8.0
18.0
18.0
*
*
*
*
65.8
67.2
59.1
61.1
*
*
*
*
*
*
*
*
*
*
92.0
91.0
*
*
*
*
*
*
8.0
9.0
1. Making it easy
to access
government
services delivered
by Centrelink
– Overall, how
easy is it to
access
government
services provided
by Centrelink?*
2. Offering you a
package of
services and
products that can
help you with what
is happening in
your life
– How much did
the package
offered help you?*
3. Providing or
referring you to
other services you
may need
– Were you
referred to other
services? (% said
YES)
– Handling of
referral
4. Having one
person familiar
with your situation
who can be your
on going point of
contact to help
you with business
you can’t do over
the phone:
A
A
B
B
C
C
Nov ’99
May ’00
Nov ’99
May ’00
Nov ’99
May ’00 Nov
’99
May
’00
*
*
*
*
*
*
81.0
81.0
– Yes
73.2
73.5
87.8
86.5
52.2
86.5
*
*
–No
15.3
14.3
7.9
8.2
18.9
8.0
*
*
– Communications
skills listening
76.3
76.9
77.5
78.4
95.5
95.5
*
*
79.9
80.1
82.4
83.0
98.0
97.0
*
*
80.1
80.6
79.0
79.0
94.5
96.0
*
*
– Staff friendliness
80.4
80.1
80.8
80.5
96.5
95.0
*
*
– Staff helpfulness
61.3
61.7
59.0
58.5
77.1
89.0
*
*
We will help you
by:
D
D
– Satisfied with
the service
Of one-to-one
contact?*
– Yes
– No
5 Making an
appointment for
you to visit us or
for us to phone
you at a time that
suits you
– How would you
rate the
appointment
system on: how
well the time and
date suited you?*
6. Identifying
ourselves when
we talk with you
– Did staff identify
themselves to
your satisfaction?
7. Listening
carefully to what
you say to us
8. Being friendly,
helpful, respectful
and sensitive to
your individual
needs
A
A
B
B
C
C
Nov ’99
May ’00
Nov ’99
May ’00
Nov ’99
May ’00 Nov
’99
May
’00
74.3
74.2
73.3
75.7
94.1
94.0
*
*
70.0
71.2
67.0
68.4
84.1
89.1
*
*
63.0
63.4
61.4
62.2
88.0
88.0
*
*
*
*
*
*
*
*
73.0
65.0
63.7
63.8
77.8
77.1
93.0
94.0
*
*
21.2
19.8
31.7
31.2
27.9
43.0
*
*
58.4
58.0
59.2
61.8
76.8
89.5
*
*
telephone services *
*.
*
*
*
*
71.0
66.0
– Letters overall*
*
69.7
70.1
*
*
*
*
We will help you
by:
D
D
–Way staff treated
you
– Understands
customers’ needs
9. Explaining the
things you need to
know
– Communication
skills—explaining
10. Providing
accurate and
consistent
information that is
easy to
understand
– Accuracy of
information
– Consistency of
information
– Information that
is easy to
understand*
11.Giving you
prompt and
efficient service
– Staff speed and
efficiency
12.Fixing mistakes
– Purpose of last
visit/call to
fix a mistake
– Rating of
mistake resolution
13. Improving our
letters and
*
We will help you
by:
A
A
B
B
C
C
D
D
Nov ’99
May ’00
Nov ’99
May ’00
Nov ’99
May ’00 Nov
’99
May
’00
74.0
73.2
75.0
74.1
88.1
94.5
*
– Telephone
service overall*
14. Making it clear
what you need to
do
– Explaining what
you need to do
*
Glossary
Explanation of terms used in the Report
‘Life events’: A ‘life event’is a significant change that affects a person, family or community, which
causes people to approach Centrelink for assistance. They include experiences such as having a
baby, looking for a job, planning for retirement or arriving to settle in Australia.
‘One-to-one’: ‘One-to-one’refers to Centrelink’s new service delivery model, under which every
customer has one main customer service officer who manages all the business that a customer
cannot do over the phone.
Outcomes: The results the Government expects to achieve in a particular area.
Outputs: The goods and services an agency produces to contribute to the achievement of outcomes.
Explanation of acronyms and abbreviations used in the Report
AASW
Australian Association of Social Workers
AAT
Administrative Appeals Tribunal
ABA
Australian Bankers’Association
ACM
Accelerated Claimant Matching
AEC
Australian Electoral Commission
AFFA
Department of Agriculture, Fisheries and Forestry Australia
AGL
Australian Gas and Light Company
AIC
Assistance for Isolated Children
AM
Member of the Order of Australia
ANAO
Australian National Audit Office
APS
Australian Public Service
ARO
Authorised Review Officer
ATM
Automated Teller Machine
ATO
Australian Taxation Office
ATSI
Aboriginal and Torres Strait Islander Commission
BHP
Broken Hill Proprietary Company Limited
BSPVES
Bass Strait Passenger Vehicle Equalisation Scheme
CDEP
Community Development Employment Project
CD-ROM
Computer Disk-Read-Only Memory
CEO
Chief Executive Officer
CEPS
Centrelink Education Payments System
CPSU
Community and Public Sector Union
CSA
Child Support Agency
CSDA
Commonwealth Services Delivery Agency
CTC
Competitive Tendering and Contracting
DETYA
Department of Education, Training and Youth Affairs
DEWRSB
Department of Employment, Workplace Relations and Small Business
DFAT
Department of Foreign Affairs and Trade
DIMA
Department of Immigration and Multicultural Affairs
DOCITA
Department of Communications, Information Technology and the Arts
DoFA
Department of Finance and Administration
DoTRS
Department of Transport and Regional Services
DRP
Disaster Relief Payment
DVA
Department of Veterans’Affairs
ECRP
Exceptional Circumstances Relief Payment
EEO
Equal Employment Opportunity
EMG
Emergency and General Assistance Payment system
EFTPOS
Electronic Funds Transfer at Point of Sale
ESAS
Education Student Assistance Scheme system
FaCS
Department of Family and Community Services
FAO
Family Assistance Office
FFRS
Farm Family Restart Scheme
FIS
Financial Information Service
FMA
Financial Management and Accountability
FMIS
Financial Management Information System
FOI
Freedom of Information
FT
full-time
FTE
full-time equivalent
GIC
Government Information Centre
GST
Goods and Services Tax
HA
State and Territory Housing Authorities
HACC
Home and Community Care Health Department of Health and Aged Care
HIC
Health Insurance Commission
HR
Human Resource
IFSW
International Federation of Social Workers
I&T
Information and Technology (group or team)
IT
Information Technology (system or application)
JET
Jobs, Education and Training
MIFS
More Intensive and Flexible Services
MOU
Memorandum of Understanding
MP
Member of Parliament
NESB
non-English speaking background (or diverse cultural and linguistic background)
NSW
New South Wales
NT
Northern Territory
OH&S
Occupational Health and Safety
PBS
Portfolio Budget Statements
PC
personal computer
PT
part-time
PWD
person with a disability
QLD
Queensland
RAS
Remote Access Services
REMOVE
Reduced Employment Moving Test
RTC
Rural Transaction Centre
SA
South Australia
SAP
Software Application Product
SBS
Special Broadcasting Service
SES
Senior Executive Service
TAS
Tasmania
TFES
Tasmanian Freight Equalisation Scheme
TIGERS
Trials of Innovative Government Electronic Regional Services
TILP
Team and Individual Learning Plan
TSG
Tasmanian State Government
USA
United States of America
VIC
Victoria
WA
Western Australia