Fraud and compliance — a more strategic approach to addressing fraud and non-compliance
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Human Services | 0.5 | - | - | - |
| Department of Finance and Administration | 0.5 | - | - | - |
| Total | 1.0 | - | - | - |
The Government will provide $1.0 million in 2007-08 to develop and implement a more coordinated approach to managing social, health and welfare fraud and non-compliance, improving the effectiveness of the existing investment in the area.
This measure will include the establishment of a working group of officials to develop a more strategic approach to managing fraud and compliance efforts, including consideration of performance measurement, integration of compliance activity and strategies to reduce overpayments.
Fraud and compliance — Age Pension — additional assessments of the value of real estate assets
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Families, Community Services and Indigenous Affairs | -7.2 | -56.8 | -66.8 | - |
The Government will review the valuation of real estate assets owned by an additional 20,000 Age Pension recipients. This measure builds on the 2006-07 Budget measure, Fraud and Compliance – improved assessment of the value of real estate assets and includes the continuation of an education campaign to assist Age Pension recipients to understand their obligations under the Age Pension assets test arrangements.
This measure is expected to lead to savings of $133.2 million and will cost $2.4 million to administer, leading to net savings of $130.9 million over three years.
This measure includes funding for Centrelink of $0.7 million in 2007-08 and $0.5 million in 2008-09.
Fraud and compliance — Age Pension — data exchange with the United Kingdom
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | -0.6 | -1.1 | -0.6 | - |
| Department of Families, Community Services and Indigenous Affairs | -5.7 | -8.7 | -5.4 | - |
| Total | -6.3 | -9.8 | -6.0 | - |
| Related capital ($m) | ||||
| Department of Veterans’ Affairs | 0.1 | - | - | - |
The Government will establish data exchange arrangements with the Government of the United Kingdom to ensure the ongoing accuracy of Age Pension and Service Pension payments made to former United Kingdom residents now residing in Australia.
This measure involves funding for Centrelink of $4.6 million in 2007-08, $4.9 million in 2008-09 and $1.8 million in 2009-10. It also includes $72,000 in capital funding in 2007-08 for the Department of Veterans’ Affairs for IT system changes.
This measure is expected to lead to savings of $34.5 million and will cost $12.5 million to administer, leading to net savings of $22.1 million over three years.
Fraud and compliance — compliance reviews — continuation of expanded data matching
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Families, Community Services and Indigenous Affairs | - | - | - | - |
| Department of Education, Science and Training | - | - | - | - |
| Department of Health and Ageing | - | - | - | - |
| Department of Employment and Workplace Relations | - | - | - | - |
| Total | - | - | - | - |
The Government will continue data matching activities announced as part of the 2003-04 Budget measures Compliance reviews – expand data matching and asset reviews to identify incorrect payments and Compliance reviews – extend 2002-03 data matching pilot. These measures expanded data sources and increased the number of data matching reviews to improve the detection of incorrect payments.
This measure is expected to lead to savings of $372.3 million over three years and will cost $70.6 million to administer, leading to net savings of $301.7 million over three years. Provision for these net savings has already been included in the forward estimates.
This measure includes funding for Centrelink of $23.0 million in 2007-08, $23.3 million in 2008-09 and $23.5 million in 2009-10.
Fraud and compliance — consistent assessment of Family Tax Benefit
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Australian Taxation Office | -2.0 | -2.0 | -2.0 | - |
| Department of Families, Community Services and Indigenous Affairs | -36.5 | 5.0 | 4.7 | - |
| Total | -38.5 | 3.0 | 2.7 | - |
The Government will further develop the IT interface between Centrelink and the Australian Taxation Office (ATO) to address inconsistencies between Family Tax Benefit payment processing by Centrelink, Medicare Australia offices, and the ATO, which will result in fewer incorrect payments.
This measure is expected to lead to savings of $45.0 million and will cost $12.2 million to administer, leading to net savings of $32.8 million over three years.
This measure includes funding for Centrelink of $2.3 million in 2007-08, $4.8 million in 2008-09 and $4.6 million in 2009-10.
Fraud and compliance — consolidation and expansion of risk profile reviews for student payments
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Education, Science and Training | 1.3 | -0.5 | -1.8 | - |
The Government will maintain the number of reviews for full-time students in receipt of Youth Allowance and Austudy at current levels while consolidating the risk profile review process. Risk profile reviews will also be introduced for ABSTUDY which will minimise the risk of student debt as a result of incorrect payments or non-compliance with participation obligations.
This measure is expected to lead to savings of $4.9 million and will cost $3.8 million to administer, leading to net savings in student income support payments of $1.1 million over three years.
This measure continues arrangements announced in the 2002-03 Budget measure Compliance Package – prevention and detection, the 2003-04 Budget measure Youth and student assistance – restructured reviews, and the 2006-07 Budget measure Fraud and Compliance – expansion of risk profiled customer reviews.
This measure includes funding for Centrelink of $1.1 million per annum over three years from 2007-08.
See also the related expense measures titled Fraud and Compliance — Youth Allowance — continuation of restructures reviews of Jobseekers in the Human Services portfolio and National Disability Coordination Officer Programme in the Education, Science and Training portfolio.
Fraud and compliance — Disability Support Pension — continuation of enhanced reviews
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Employment and Workplace Relations | - | - | - | - |
The Government will continue face-to-face reviews of Disability Support Pension recipients who are at risk of being incorrectly paid as a result of not declaring changes in their circumstances. This measure continues arrangements announced in the 2003-04 Budget measure Disability Support Pensions – enhanced reviews.
This measure is expected to lead to savings of $101.7 million and will cost $13.4 million to administer, leading to net savings of $88.3 million over three years. Provision for these net savings has already been included in the forward estimates.
This measure includes funding for Centrelink of $4.4 million in 2007-08, $4.5 million in 2008-09, and $4.5 million in 2009-10.
Fraud and compliance — enhanced compliance for Special Rate Pension payments
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | -7.3 | -6.6 | -4.9 | - |
The Government will introduce a strengthened compliance arrangement for Special Rate Disability Pension recipients. The programme will include data matching of Special Rate Pension payments against company and business information held by the Australian Securities and Investments Commission and the Australian Taxation Office to ensure that these clients are receiving the level of benefit to which they are entitled.
This measure is expected to lead to savings of $21.7 million and will cost $2.8 million to administer, leading to net savings of $18.9 million over three years.
Fraud and compliance — expansion of veterans’ income support payment reviews
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | -1.4 | -3.6 | -5.6 | - |
The Government will expand the 2003-04 Budget measure Enhanced compliance programme for veterans in receipt of income support payments. The measure involves an additional 10,000 targeted reviews per year of the personal and financial circumstances of veterans who are at risk of receiving incorrect payments as a result of not declaring changes in their circumstances.
This measure is expected to lead to savings of $13.9 million and will cost $3.3 million to administer, resulting in net savings of $10.6 million over three years.
Fraud and compliance — identity fraud — continuation of improved and increased investigations
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Families, Community Services and Indigenous Affairs | - | - | - | - |
| Office of the Director of Public Prosecutions | - | - | - | - |
| Department of Employment and Workplace Relations | - | - | - | - |
| Department of Education, Science and Training | - | - | - | - |
| Department of Health and Ageing | - | - | - | - |
| Total | - | - | - | - |
The Government will continue the 2003-04 Budget measure Identity fraud – improving and increasing the number of investigations. This measure involves enhanced use of external and internal data sources which have been effective in detecting identity related fraud across all payment types.
It is expected to lead to savings in social welfare and health payments of $66.0 million and will cost $31.4 million to administer, leading to net savings of $34.6 million over three years.
This measure includes funding for Centrelink of $6.3 million in 2007-08, $6.4 million in 2008-09 and $6.4 million in 2009-10. Funding will also be provided to the Director of Public Prosecutions to assist in the prosecution of cases.
Provision for this funding has already been included in the forward estimates.
Fraud and compliance — improved reporting of changes in income of people receiving Centrelink payments
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Employment and Workplace Relations | -4.2 | -16.0 | -16.5 | - |
The Government will enhance the job placement information in Centrelink’s systems to ensure Centrelink staff request updated reports of earnings from people who have recently been placed into employment by providers of employment services. This is expected to result in earlier reporting of changes in the income of people in receipt of Centrelink payments.
This measure is expected to lead to savings in Newstart Allowance, Parenting Payment and Youth Allowance of $39.3 million over three years and will cost $2.7 million to administer, leading to net savings of $36.6 million over three years.
This measure includes funding for Centrelink of $1.3 million in 2007-08, $0.8 million in 2008-09 and $0.7 million in 2009-10.
Fraud and compliance — Parenting Payments — continuation of enhanced profiling capacity
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Employment and Workplace Relations | - | - | - | - |
The Government will continue face-to-face reviews of people receiving Parenting Payment who are at risk of being incorrectly paid as a result of not declaring changes in their circumstances.
This measure, which continues arrangements announced in the 2003-04 Budget measure Parenting Payment – enhanced profiling capacity to ensure correct payment, is expected to lead to savings of $39.7 million and will cost $9.2 million to administer, leading to net savings of $30.5 million over three years. Provision for these net savings has already been included in the forward estimates.
This measure includes funding for Centrelink of $3.0 million in 2007-08, $3.0 million in 2008-09 and $3.1 million in 2009-10.
Fraud and compliance — preventing carer payment debt
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Families, Community Services and Indigenous Affairs | -3.6 | -12.1 | -12.1 | -12.4 |
The Government will strengthen the effectiveness of the existing review framework for recipients of Carer Payment and Carer Allowance by adopting more targeted reviews that focus on those who are at risk of receiving incorrect payment. This will consist of approximately 42,000 face-to-face and phone reviews to be conducted each year, in place of the paper-based reviews currently undertaken.
This measure is expected to lead to net savings of $40.2 million over four years.
The cost of this measure will be met from within the existing resourcing of Centrelink.
Fraud and compliance — residency eligibility validation system for payments and concessions
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Centrelink | 20.6 | 20.6 | 8.1 | 5.6 |
| Department of Employment and Workplace Relations | 0.1 | -1.3 | -1.3 | -1.3 |
| Department of Education, Science and Training | - | -0.4 | -0.4 | -0.4 |
| Department of Families, Community Services and Indigenous Affairs | -10.3 | -4.9 | -10.2 | -10.4 |
| Total | 10.4 | 14.0 | -3.8 | -6.5 |
| Related capital ($m) | ||||
| Centrelink | 0.2 | 0.1 | - | - |
The Government will develop a real-time link between Centrelink and the Department of Immigration and Citizenship. This link will allow Centrelink to confirm residence and visa-related eligibility requirements before granting social welfare payments and concessions. The link will also automatically update client records for departures from and returns to Australia and changes to residency status to determine ongoing eligibility for social welfare payments and concessions.
This measure will cost $55.4 million to administer and lead to savings of $41.0 million over four years, and further ongoing savings beyond the forward estimates.
This measure includes capital funding of $0.2 million in 2007-08 and $0.1 million in 2008-09 for Centrelink IT system enhancements.
Fraud and compliance — rolling random sample survey programme — continuation and expansion
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Families, Community Services and Indigenous Affairs | 4.5 | 4.3 | 4.3 | - |
The Government will continue the use of random sample surveys for Age Pension, Carer Payment and Carer Allowance recipients and will expand the use of these surveys for Family Tax Benefit and Special Benefit customers.
This measure, which builds on the 2002-03 Budget measure, Compliance Package — assurance, research and development, is expected to lead to savings of $11.1 million and will cost $24.3 million to administer, leading to net costs of $13.2 million over three years. While the measure involves net costs directly, the surveys provide valuable information that enables better targeting of the Government’s compliance programmes, thereby delivering further savings indirectly. The measure also provides an ongoing assessment of the accuracy of income support payments.
This measure includes funding for Centrelink of $8.0 million in 2007-08, $7.1 million in 2008-09 and $7.2 million in 2009-10.
Fraud and compliance — transfer of death registration information
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Veterans’ Affairs | .. | -0.1 | -0.1 | - |
| Department of Education, Science and Training | -0.1 | -0.1 | -0.1 | - |
| Department of Employment and Workplace Relations | -0.4 | -0.4 | -0.4 | - |
| Department of Families, Community Services and Indigenous Affairs | -5.6 | -6.6 | -6.8 | - |
| Total | -6.0 | -7.2 | -7.4 | - |
| Related capital ($m) | ||||
| Department of Veterans’ Affairs | 0.1 | - | - | - |
The Government will create a data link between the State and Territory Registries of Births, Deaths and Marriages, Centrelink and the Department of Veterans’ Affairs to allow the transfer of death registration data on a daily basis. This will help ensure adjustments to payments are made, and that the Bereavement Payment process is initiated, in a more timely and efficient manner. It will also minimise debts and reduce the risk of identity fraud.
This measure builds on the pilot Daily Electronic Transfer of Information Project, which was part of the 2005-06 Budget measure, Debt Prevention Research and Development.
This measure is expected to lead to savings of $22.8 million and will cost $2.3 million to administer, leading to net savings of $20.5 million over three years.
This measure includes funding for Centrelink of $0.8 million in 2007-08, $24,000 in 2008-09 and $22,000 in 2009‑10. It also includes $0.1 million in capital funding in 2007-08 for the Department of Veterans’ Affairs for IT system changes.
Fraud and compliance — verification of earnings to improve the accuracy of payments
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Employment and Workplace Relations | 2.4 | -1.8 | -3.9 | - |
| Department of Families, Community Services and Indigenous Affairs | .. | .. | .. | - |
| Total | 2.4 | -1.8 | -3.9 | - |
The Government will introduce measures to encourage people on income support to present documentation that verifies their earnings when they report to Centrelink each fortnight. This is expected to improve the accuracy of reported earnings, and reduce overpayments and debt detection by periodic income reviews.
This measure is expected to lead to savings of $5.9 million over three years and will cost $2.5 million to administer, leading to net savings of $3.4 million over three years.
This measure includes funding for Centrelink of $2.3 million in 2007-08.
Fraud and compliance — Youth Allowance — continuation of restructured reviews of job seekers
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Employment and Workplace Relations | - | - | - | - |
The Government will continue reviews of 17,000 Youth Allowance (other) recipients each year. The reviews identify Youth Allowance (other) recipients who are at risk of being incorrectly paid as a result of not declaring changes in their circumstances.
This measure, which continues arrangements announced in the 2003-04 Budget measure Youth and student assistance – restructured reviews, is expected to lead to savings of $9.4 million and will cost $3.1 million to administer, leading to net savings of $6.3 million over three years. Provision for these net savings has already been included in the forward estimates.
This measure includes funding for Centrelink of $0.9 million per annum over three years from 2007-08.
See also the related expense measure titled Fraud and compliance — consolidation and expansion of risk profile reviews for student payments in the Human Services portfolio.
Other measures in the Human Services portfolio
Centrelink — drought assistance buses
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Centrelink | 4.5 | 4.3 | - | - |
The Government will provide $11.0 million over three years (including $2.2 million in 2006-07) for mobile Centrelink services to improve access to Australian Government support and assistance for people in regional and remote areas, particularly those affected by drought.
Delivery of these services will occur through the deployment of three vehicles fitted out to create mobile offices and will include the installation of satellite, IT and telephony equipment. These mobile services will provide a single point of access to Government initiatives and referral to appropriate state and local services throughout regional and remote Australia. Additional rural service officers will be recruited and trained to staff these mobile offices and provide further support in drought declared areas.
Centrelink rural call centres — continuation of funding
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Families, Community Services and Indigenous Affairs | - | - | - | - |
The Government will provide $33.1 million over four years to continue funding Centrelink’s two rural call centres, in Port Augusta in South Australia and Maryborough in Queensland. These rural-specific call centres provide information and advice on Centrelink services to many rural and regional customers.
This measure includes funding to Centrelink of $8.2 million in 2007-08, $8.2 million in 2008-09, $8.3 million in 2009‑10, and $8.4 million in 2010-11. Provision for this funding has already been included in the forward estimates.
Efficiencies in service delivery agencies
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Centrelink | 1.5 | -13.3 | -13.5 | -13.6 |
| Department of Human Services | - | -0.5 | -0.7 | -0.7 |
| Medicare Australia | - | -6.7 | -6.8 | -6.8 |
| Department of Education, Science and Training | -2.2 | -2.3 | -2.4 | -2.6 |
| Department of Families, Community Services and Indigenous Affairs | -9.5 | -9.9 | -10.4 | -11.0 |
| Department of Employment and Workplace Relations | -13.3 | -14.0 | -14.7 | -15.4 |
| Total | -23.5 | -46.8 | -48.6 | -50.1 |
Efficiencies have been identified in Centrelink, Medicare Australia and the Child Support Agency that will lead to savings of $168.9 million over four years.
Savings will be achieved from efficiencies in Medicare Australia and Centrelink head offices, the establishment of a shared services centre for financial and human resource processing, and from Centrelink clients utilising self‑service channels, such as automated phone communication and internet secure login.
As Centrelink’s variable costs are funded through its policy departments, the Centrelink-related funding provided to the Departments of Employment and Workplace Relations, Families, Community Services and Indigenous Affairs, and Education, Science and Training, has been reduced accordingly.
Human Services — additional funding
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Human Services | 3.0 | 3.0 | 3.0 | 3.0 |
The Government will provide $12.0 million over four years to the Department of Human Services to meet ongoing operational expenses associated with its role to improve Australian Government service delivery.
Medicare Easyclaim access points — continuation of funding
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Medicare Australia | - | - | - | - |
The Government will provide $9.9 million over three years to continue the operation of 600 Medicare Easyclaim access points, including in rural and remote pharmacies, post offices, shops and Rural Transaction Centres.
These facilities were established to provide Australians living in rural and remote Australia who do not have access to a Medicare office, with better access to Medicare services.
Extension of this measure until 2009-10 will enable the access points to be reviewed following the introduction of electronic claiming of Medicare rebates through the EFTPOS network.
This measure involves funding of $5.3 million in 2007-08, $3.7 million in 2008-09 and $0.9 million in 2009-10. Provision for this funding has already been included in the forward estimates.
Murray-Darling Basin — additional servicing support for farmers
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Centrelink | 5.4 | 4.6 | - | - |
The Government will provide $10.0 million over two years to provide additional support to farmers in the Murray‑Darling Basin.
This support will comprise a Murray-Darling Basin drought assistance hotline, an additional eight Centrelink Rural Services Officers and an additional 15 Centrelink Social Workers. It will also establish a small service-delivery unit to coordinate a whole-of-government response to the drought in the southern Murray-Darling Basin.
See also the related expense measure titled Murray-Darling Basin — Additional Rural Financial Counsellors in the Agriculture, Fisheries and Forestry portfolio.
Murray-Darling Basin — providing drought support information to farmers
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Human Services | 1.0 | 1.0 | - | - |
The Government will provide $2.0 million over two years to conduct a communications campaign to raise awareness and provide information to farmers about Government drought support programmes in the Murray‑Darling Basin.
See also the related expense measure titled Murray-Darling Basin — Additional Rural Financial Counsellors in the Agriculture, Fisheries and Forestry portfolio.