Labor presides over $8 million Age Pension bungle
THE HON PAUL FLETCHER MP
Shadow Minister for Government Services and the Digital Economy
Shadow Minister for Science and the Arts
Manager of Opposition Business in the House
SENATOR MARIA KOVACIC
Deputy Opposition Whip in the Senate
Senator for New South Wales
The Albanese Labor Government’s incompetent administration of Services Australia has been exposed again, with fresh evidence revealing a multimillion-dollar bungle involving overpayments made to thousands of Age Pension recipients.
Under questioning by Senator Kovacic in Senate Estimates in February, officials at Services Australia said that the agency had waived 2,651 Age Pension debts to a total value of $8,000 (as of 31 January 2024).
However, in an extraordinary admission, the agency since clarified that the correct value is $8 million.
Shadow Minister for Government Services Paul Fletcher said the shocking error is further proof that Services Australia is a mess and in need of reform.
“This error is unacceptable and raises serious concerns about Services Australia’s competence and capacity,” Mr Fletcher said.
“There should never have been an overpayments shemozzle, but for the agency to get the figures so wrong is embarrassing and worrying.
“This revelation adds to the woes impacting the Age Pension, with the latest data showing it takes 78 days on average to process an Age Pension claim as at 31 December 2023, compared to 33 days for the 2021-22 financial year.
“To help improve Services Australia’s performance, I repeat my calls for there to be a root and branch review of this vital agency.”
Revelations about the bungle further expose the Albanese Labor Government’s dreadful record on transparency.
The Opposition first uncovered the bungle via an internal government briefing document obtained through Freedom of Information laws last year. The FOI request was initially refused by Services Australia because Minister Shorten’s office refused to comply with requests for consultation.
“The hapless Minister for Government Services Bill Shorten is yet to say anything publicly about this debacle and has instead chosen to hide behind his agency media handlers,” Mr Fletcher said.
“It’s unacceptable that Bill Shorten continues to routinely block the routine release of information, most recently having failed to comply with two Senate resolutions ordering the Minister to release new data on claims processing wait times.”
Senator Kovacic noted that with thousands of records yet to be reviewed, Services Australia cannot dismiss the potential for escalating costs in this multi-million-dollar debacle.
“At the Senate Estimates hearing, it was revealed that 540 current and 5,000 former customers' records have not been evaluated, suggesting this $8 million error could further increase,” Senator Kovacic said.
“Such significant errors are unacceptable at any time, but even more so amidst a cost-of-living crisis, where this prolonged resolution has an even more significant impact on limited household budgets. Rather than the efforts to withhold this information from Australians, this government should be focusing on actually delivering better outcomes.”
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