CENTRELINK ANNUAL REPORT 2005-06Contact officer

Comments and requests for further information are welcome, and may be directed to:

The Annual Report Project Manager

Centrelink Communication Division

PO Box 7788

Canberra Business Centre

ACT Australia 2610

Telephone: (02) 6284 6300

Email: marketing.mailbox@centrelink.gov.au

To obtain copies of this report

Limited copies of this report are available by telephoning 1300 367 676.

This annual report is available on the Centrelink website at:

www.centrelink.gov.au

© Commonwealth of Australia 2006

ISSN: 1441-4392

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca

Chapter 1Report of the Chief Executive OfficerI look at the year 2005–06 as one in which Centrelink performed well, meeting our day-to-day business expectations, contributing to the development of major new initiatives, and confi rming our capability to react decisively in times of crisis.

These achievements occurred against a background of fundamental change for the organisation, as Centrelink experienced its first full year of operation reporting to the Minister for Human Services.

The introduction of the Human Services Legislation Amendment Act on 1 October 2005 was a significant step towards implementing the changes to governance recommended by John Uhrig AC, in his report to the Government. From that date Centrelink’s Board of Management was abolished and, as Chief Executive Officer (CEO), I became responsible to the Minister for all aspects of Centrelink’s management and performance. I have established a framework of strategic committees and senior executive accountabilities to support me in achieving these performance expectations.

Centrelink’s new governance arrangements were reinforced by the Minister who provided his Statement of Expectations to me as the CEO. This document and my Statement of Intent in response are available to the public through Centrelink’s and the Department of Human Services’ (DHS) websites. They detail the Government’s expectations of Centrelink and our commitment to meeting

those expectations. As agreed in my Statement, I report to the Minister, through the Secretary of the Department of Human Services.

Achievements over the yearThe transition from the previous Board of Management to the new Centrelink governance arrangements was completed and consolidated over the year. More Efficient and effective linkages between DHS agencies are now occurring as a result of the involvement of DHS. Improving service levels is one of the Minister’s highest expectations and we have approached this on several major fronts.

The Government’s Welfare to Work agenda supports a significant investment in the Australian community, targeted to lift workforce participation and reduce welfare dependency. Centrelink prepared for this by ensuring that existing customers affected by the changes were informed well in advance and encouraged to voluntarily participate in the workforce.

Between July 2005 and 30 June 2006, Centrelink contacted almost 600 000 Parenting Payment and Disability Support Pension customers to offer Job Network referrals. More than 103 000 customers took up that option and were registered and referred. A substantial proportion of over 52 000 job placements for recipients of Disability Support Pension and Parenting Payment were made up from Centrelink referrals from these groups. This has made a significant contribution to the strength of the Australian labour market over the past year.

In partnership with Medicare Australia, we extended the availability of family assistance services through Medicare offices. These services range from information and advice through to online processing of benefi t payments. This has provided the Australian public with more choice about how and where they can access family assistance payments and services. With the extra 190 Medicare outlets, and the rest coming on line by December 2006, over 100 000 Australians have already exercised this choice.

Centrelink customers have reacted positively to self service options since the self service channels were established. From July 2005 to June 2006, more than 7.1 million transactions—that is, over 9 per cent of all Centrelink customer transactions—were undertaken via the internet or automated telephone self service. This online activity is complemented by significant numbers of transactions conducted by over 4500 business and community organisations on behalf of customers.

The value that Centrelink adds to the community rests not only on our day-to-day business performance, but also on the extraordinary efforts of Centrelink staff in times of major crisis. Unfortunately, we had to draw on this capability several times this year in response to emergencies. Staff responses to the effects of Cyclone Larry in north Queensland were outstanding. Formal recognition and thanks for the efforts of staff in assisting people affected in north Queensland were received from Dr Peter Shergold, Secretary of the Department of the Prime Minister and Cabinet.

Over the past 12 months Centrelink staff were also involved in assisting in responses to:

The Bali bombings—family liaison services were provided to Australians affected by the second bombing in Bali in October 2005, along with assistance with travel and related costs. Family Liaison Officers were also sent to Bali to provide support to the Australian families who attended the third anniversary of the 2002 bombing.

The London bombings—Family Liaison Officers were sent to London to provide support to the Australians affected.

Cyclone Larry—over 1000 Centrelink staff were mobilised to provide support to the victims of Cyclone Larry. During the peak of work, over 400 staff were directly involved on any day, with 120 staff operating within affected communities surrounding Innisfail. Over $160 million in payments were processed and 41 000 phone calls received.

Cyclone Monica—Centrelink staff had to use long range helicopters to access affected towns and properties in Cape York which were affected by floods. These staff made assessments, provided advice back to Canberra, and arranged support payments to affected residents.

Katherine floods—this was a great example of an integrated response. The Northern Territory Government and local non-government agencies all operated from the Katherine Centrelink office to provide a ‘one-stop-shop’ for fl ood victims who were given emergency payments and support.

Beaconsfi eld mine disaster—Centrelink operated a support service in Beaconsfi eld for the duration of the mine disaster.

East Timor medical evacuations—family liaison services were provided for non-Australians who were evacuated from East Timor to Australia for medical treatment, following the civil and political unrest that occurred in May 2006.

The importance of Centrelink’s role in responding to national emergencies has been recognised in the latest Federal Budget in which the Government has provided funding for the establishment of a National Emergency Call Centre (NECC). Centrelink will have the lead role in establishing, maintaining and operating the NECC. As the first point of contact for public enquiries, the NECC will enhance the Australian Government’s ability to respond rapidly to calls from the public and provide information following a major emergency.

While these emergency management examples stand out as world class, they should not overshadow the results achieved by people in Centrelink all over Australia on a daily basis.

Looking forwardWhile Centrelink prides itself on the ability to absorb change as shown by our performance in 2005–06, the next year will test us with fundamental shifts in expectations. New directions in mutual obligation associated with the Welfare to Work agenda will be the immediate challenge. I am confi dent that staff recognise the longer term benefits of participation to customers, given the exceptional labour demand in Australia associated with a strongly growing economy.

The proposed Australian Government health and social services access card is a major Government initiative for 2008 and beyond. I am pleased to report that along with DHS and other Human Services agencies, Centrelink played an important role in the research and preparation of the case for this initiative. In preparing for the card’s introduction, significant development work will be required in 2007–08 and together with DHS and the Access Card Lead Adviser, Centrelink will be heavily involved.

We will continue to strive to increase self service options for customers and to automate more and more of our dealings with business. This is central to meeting customer expectations and to improving effi ciency on behalf of the Government and its policy departments.

I would like to thank Centrelink staff for their contribution to our success over the 2005–06 year, particularly given the pace of change associated with government policy, systems redevelopments and internal business management arrangements. Staff should be particularly proud of the contribution they made towards increasing participation rates and the impact that this has had on the broader Australian economy. They should also be very proud of their response to a number of major emergencies, especially their response to Cyclone Larry.

Chapter 2Corporate OverviewBusiness ArrangementsCentrelink is a statutory agency under the umbrella of the Department of Human Services as prescribed in the Administrative Arrangements Order. The Department of Human Services operates within the Finance and Administration portfolio.

LegislationCentrelink was established to provide Australian Government services in accordance with service arrangements under the Commonwealth Services Delivery Agency Act 1997 (CSDA Act).

The CSDA Act was amended by the Human Services Legislation Amendment Act 2005 which commenced on 1 October 2005.

The Financial Management and Accountability Act 1997 sets out the Chief Executive Officer’s functions and responsibilities relating to Centrelink’s financial management.

Centrelink is an Australian Public Service organisation, and is staffed under the Public Service Act 1999. For more information on legislation affecting Centrelink see Appendix 3.

Funding arrangementsCentrelink’s revenue was provided through business partnership agreements or similar arrangements with policy departments. Funds were appropriated to the policy departments and paid to Centrelink in return for specified services.

Outcome and outputCentrelink had one government outcome: ‘Effective delivery of Australian Government services to eligible customers’, which was achieved through one output: ‘Efficient delivery of Australian Government services to eligible customers’.

Figure 1: Outcome and output structure

In 2005 Centrelink’s output and outcome were reviewed. Revised Output and Outcome Statements were endorsed by the Minister for Human Services and the Minister for Finance and Administration, and published in the Portfolio Budget Statements 2006–07. These revised statements will take effect from 1 July 2006.

Centrelink’s functionsCentrelink contributes to the social and economic outcomes set by government by delivering services on behalf of 25 policy departments and other organisations and agencies. Table 1 provides an overview of Centrelink’s business at a glance. Table 2 provides an overview of the structure of the Centrelink network. For a list of services that Centrelink provides, see Appendix 15, ‘Our services’ on page 218.

Table 1: Our business at a glance

Our dimensions 2005-06 2004-05

Service delivery points Over 1000 Australia-wide Over 1000 Australia-wide

Number of employees 26 564 25 312

Number of policy departments 25(a) 25(a)

Payments on behalf of policy departments $63.5 billion Approximately $63.09 billion

Mainframe online transactions Approximately 5.2 billion Approximately 5.2 billion

Mainframe web transactions Approximately 1 billion

Multi-platform (web and Interactive Voice Recognition (IVR))

Approximately 500 million

Our customers

Number of customers 6.49 million 6.48 million

Number of individual entitlements 9.89 million 9.98 million

Letters to customers 86.4 million 87.2 million

Home visit reviews 7712 6622

New claims granted 2.59 million 2.77 million

Successful phone calls 30.77 million(b) 32.68 million

Internet web page views 47.2 million 39.5 million

(a) State and territory housing authorities are counted as separate agencies. Centrelink also provides services on behalf of a number of other organisations and agencies.

(b) This is down 1.91 million from 32.68 million calls in 2004–05. The drop in successful calls canbe attributed to shifts between IVR and web self service transactions.

Table 2: Our network

Network Services 2005-06 2004-05

Customer Service Centres 316 316

Centrelink Agents 374 360

Rural Visiting Services In identified locations as required

Separate Specialist Service Centres 30 30

Call Centres 25(a) 26

Network Services 2005-06 2004-05

Veteran Information Services 15 15

Access Points 189 178

Area Support Offices 15 15

National Support Offi ce 1 1

Remote Area Service Centres 7 7

(a) Operations in one small call centre (less than 10 staff) were absorbed back into existing infrastructure with staff placed in Bunbury Call Centre and nearby.

Figure 2: Strategic planning and reporting framework

Strategic FrameworkStrategic planningCentrelink’s Strategic Directions set out the purpose, strategic themes, strategic priorities and core business processes for 2005–06. The Strategic Directions are the foundation for organisational, group, division and local area business planning, as shown in Figure 2.

Centrelink’s strategic priorities align the organisation’s activities and help achieve its purpose through strategic themes and core business processes. Progress against strategic priorities and themes is measured using Key Performance Indicators and reported through Centrelink’s balanced scorecard. These measures are fundamental to Centrelink’s performance. The Strategic Directions have a three-year outlook and a one-year focus. They are reviewed annually to reflect any changes resulting from government, ministers’, or policy departments’ directions.

Our purposeServing Australia by assisting people to become self-suffi cient and supporting those in need.

Our strategic themes Building confi dence in Centrelink

Strengthening our customer focus in line with government direction

Developing a networked organisation

Building capability for government

Demonstrating value for money.

Our strategic priorities Re-prioritise our work and resource allocation in terms of Strategic Direction

Align accountability and responsibility with authority

Provide costing for all services

Develop united leadership throughout Centrelink

Develop and implement our service delivery model

Communicate the Strategic Directions

Deliver the ‘work first’ and ‘pathways to work’ agenda.

Our core business processes Service delivery management

Governance

Relationship management

Change management

Information management

Staff capability.

Balanced scorecardThe balanced scorecard provides an overview of Centrelink’s business to the Centrelink Chief Executive Officer, Centrelink Executive and the Department of Human Services.

It provides a regular ‘health’ check for business and forecasts scenarios. This allows for pre-emptive action, minimising any adverse impacts on the organisation that may affect its ability to consistently deliver high quality service. It is used as a performance reporting and management tool, and assists with making Centrelink staff accountable for their performance.

Governance FrameworkGovernance changes—Human Services Legislation Amendment Act 2005Centrelink’s governance framework changed on 1 October 2005 with the commencement of the Human Services Legislation Amendment Act 2005 and the abolition of the Centrelink Board of Management.

Since then, the Chief Executive Officer has been solely accountable to the Minister, through the Secretary of the Department of Human Services, for Centrelink’s strategic, operational and financial management, and for ensuring Centrelink achieves its purpose: ‘Serving Australia by assisting people to become self-suffi cient and supporting those in need.’

Previously the Centrelink Board of Management was responsible for deciding Centrelink’s goals, priorities, policies and strategies, and ensuring that Centrelink’s functions were properly, Efficient ly and effectively performed. The Board was accountable to the Minister through the Chair. The Chief Executive Officer was, in turn, accountable to the Chair for managing all strategic and functional aspects of Centrelink’s operations.

Centrelink ExecutiveThe Executive supports the Chief Executive Officer (CEO) with setting Centrelink’s Strategic Directions and organisational priorities. The Executive comprises the CEO and seven of Centrelink’s most senior managers who report directly to him. They are:

Deputy Chief Executive Stakeholder Relationships (DCEO SR), accountable for leadership of relationships with key stakeholders, securing ongoing business for Centrelink, and meeting agreed policy department outcomes.

Deputy Chief Executive Customer Service Delivery (DCEO CSD), accountable for leadership of the consistent high quality delivery of customer services on behalf of policy departments.

Chief Information Officer (CIO), accountable for the successful operations of information technology (IT) systems which meet immediate and future needs, including IT elements of the Refresh Programme.

Chief Financial Officer (CFO), accountable for supporting the CEO in the discharge of financial and resource management responsibilities, including the provision of high quality financial, budgetary, environmental and property management, and for ensuring an effective and consistent legal capability.

General Manager People and Planning (GM P&P), accountable for leading Centrelink’s people capability, strategic planning, change management, and ministerial, parliamentary and executive services.

General Manager Audit and Risk (GM A&R), accountable for supporting the CEO by managing Centrelink’s internal audit and risk activities to meet legislative, corporate and stakeholder requirements, and assuring the CEO that Centrelink operates with appropriate financial management and internal controls.

General Manager Communication (GM C), accountable for managing Centrelink’s public reputation, corporate style and image, for Centrelink’s internal and external communication, and for the production and distribution of forms and publications, letter development and bulk mail.

Figure 3: The organisational structure as at 30 June 2006

Strategic Committee FrameworkThe Chief Executive Officer (CEO) chairs a regular meeting attended by members of the Executive and three general managers on a four-monthly rotation. This meeting is the peak committee of Centrelink’s Strategic Committee Framework.

There are eight other committees in Centrelink’s Strategic Committee Framework, each providing a key forum for high level collaboration, advice and review. With the exception of the Audit and Risk Committee (discussed below), members of the Executive chair each of the Strategic Committees, and each chair is accountable for the decisions of the committee over which they preside. Figure 4 shows the relationships between the committees, the Executive and the CEO.

Figure 4: Strategic Committee Framework

The Strategic Committees are:

Welfare to Work Committee, chaired by the Deputy Chief Executive Officer Stakeholder Relationships, monitors the implementation of the 2005–06 Budget initiatives known as Welfare to Work and promotes and facilitates collaboration towards that end.

People and Planning Committee, chaired by the General Manager People and Planning, supports the Chair in managing Centrelink’s people capability, strategic/corporate planning and reporting, change management activities, and ensuring all are aligned to current Strategic Directions.

Investment and Major Programs Committee, chaired by the Deputy Chief Executive Officer Customer Service Delivery, monitors and prioritises major programmes/projects, overseeing delivery of programme/project benefits, and monitors the effectiveness of the project management framework.

Information Technology Committee, chaired by the Chief Information Officer, oversees Centrelink’s IT planning and operations, and ensures that frameworks and controls are in place to assure the Executive of effective IT operation in support of Strategic Directions.

Service Delivery Performance Committee, chaired by the Deputy Chief Executive Officer Stakeholder Relationships, monitors service delivery performance and oversees alignment between policy department requirements and Centrelink’s service delivery.

Finance Committee, chaired by the Chief Financial Officer, oversees the development and implementation of the Centrelink Financial Plan, ensuring it conforms to relevant financial policies and procedures. The Finance Committee monitors Centrelink’s financial performance and obligations for financial reporting.

Customer Service Strategy Committee, chaired by the Deputy Chief Executive Officer, Customer Service Delivery, oversees key service delivery issues for Centrelink, including the development and implementation of a service delivery model.

An Audit and Risk Committee sits to one side within the Strategic Committee Framework. Established in accordance with the Financial Management and Accountability Act 1997, it provides independent assurance and assistance to the CEO on Centrelink’s risk, control and compliance framework, and its external accountability responsibilities. The Audit and Risk Committee differs from the other Strategic Committees in that:

it is chaired by an external independent member

its members may vote on decisions before the committee

it supports the CEO directly.

Chapter 3Our AccountabilityStrategic theme: Building confidence in CentrelinkHighlights for 2005–06 Centrelink reported a payment correctness result to the end of March 20061 of 95.5 per cent (see

page 26)

110 fraud investigation, fi eld operations were undertaken during the year and $34.7 million in savings and debts were identified (see page 28)

The Support the System that Supports You campaign resulted in more than 180 000 contacts from customers to update their circumstances (see page 27)

Over 50 000 claims for assistance were received for a range of payments, including one-off ex-gratia payments (see page 34).

DescriptionIn 2005–06, Centrelink administered $63.5 billion in programme payments or around 31 per cent of government outlays.

Centrelink is accountable for its actions within the framework of ministerial responsibility to the Government, the Parliament and the Australian public (Section 10(1) (e) of the Public Service Act 1999).

Centrelink’s accountability to the Australian Government is outlined in the Statement of Expectations from the Minister for Human Services, the Hon Joe Hockey MP to Centrelink’s Chief Executive Officer and prescribed under the Commonwealth Services Delivery Agency Act 1997 as amended by the Human Services Legislation Amendment Act 2005. Business partnership agreements are also in place with major policy departments—the Department of Employment and Workplace Relations; the Department of Families, Community Services and Indigenous Affairs; and the Department of Education, Science and Training.

The business partnership agreements detail joint outcomes, joint projects, and Key Performance Indicators and describe the relationships and accountability parameters between policy departments and Centrelink.

Business assurance arrangements are included in all key business agreements to provide assurance on the integrity of outlays and to identify risks and the control frameworks that mitigate those risks.

1 Results for the full financial year were not available at the time of publication of this report.

Strategic objectives Protect the integrity of outlays (see below)

Be valued by the Australian people (see page 32).

Protect the integrity of outlaysBusiness integrityCentrelink worked with the major policy departments, for whom we deliver payments and services, to identify changes to activities and processes that could assist customers, by preventing or reducing the extent of incorrect payments and debt. The intention is to improve customer service and enhance Centrelink’s ability to assure stakeholders that it is providing value for money in its administration of programmes.

This includes:

working with policy departments to develop an integrated set of Key Performance Indicators that recognise the prevention of incorrect payments as well as the detection and investigation of non-compliance

examining Centrelink’s interactions with customers to assess, on the basis of evidence, at what point our efforts should be concentrated to have best effect on payment integrity.

Business assuranceBusiness assurance is the process by which Centrelink confi rms it is meeting the performance expectations of government, policy departments, customers and other stakeholders. Through business assurance arrangements, Centrelink gives stakeholders confi dence that risks are managed for the successful delivery of payments and services, and that performance measures are accurate and reliable.

The Business Assurance Framework encompasses quality control and quality assurance based on:

agreement on how outcomes are measured

alignment and consistency of defi nitions of what is to be measured

the independence of quality assurance mechanisms from programme and line management

the need to consider both existing and emerging risks.

During 2005–06, business assurance continued to be provided to the Department of Families, Community Services and Indigenous Affairs under the terms of the Business Alliance Agreement 2004–08 and to the Department of Education, Science and Training (DEST), under the terms of the DEST/Centrelink Business Partnership Agreement 2005–08. Business assurance was also provided for the Department of Agriculture, Fisheries and Forestry.

In relation to the Department of Employment and Workplace Relations (DEWR), business assurance arrangements involved negotiating specifi c requirements under the 2005–06 business partnership agreement. Centrelink and DEWR reached an agreement on:

Key Performance Indicators and associated measurement methodologies

High level risks to DEWR programmes

The Assurance Expectations Matrices which detail the assurance requirements in relation to each high level risk.

EvaluationEvaluation is a fundamental component of Centrelink’s quality improvement processes, aimed at timely identifi cation of strengths, weaknesses and opportunities for improving internal activities. An evaluation programme is conducted during the financial year for the Centrelink Executive. Centrelink managers may also request evaluations.

The Centrelink Evaluation Handbook provides guidance on and sets the standards for evaluations undertaken within Centrelink by:

providing a clear consistent framework, focused on business and service objectives

ensuring evaluations in Centrelink are adapted to context and local circumstances, providing pointers to methods, resources and other sources of assistance

encouraging use of all sources of performance information in evaluations

encouraging learning from other evaluations

ensuring that evaluation fi ndings are used to improve processes and to inform decision making and strategic planning.

Signifacant evaluations during 2005–06 included:

Emergency management in CentrelinkThe evaluation found that Centrelink effectively and successfully provided emergency responses, and identified associated topics of interest with recommended improvements.

Senior Practitionersthe evaluation found considerable support in the Customer Service Delivery Network for the Senior Practitioner role, and that the role assists customer service and correctness of decisions. The evaluation recommended the continuation of the Senior Practitioner role.

Update Families Income Estimate ServiceThis service is the online system that families’ customers can use to estimate their annual income. The evaluation found that most customers who used the Update Families Income Estimate Service expressed high levels of satisfaction and there was no material difference in reconciliation of outcomes between users and non-users of the service.

Internal auditDuring 2005–06, the internal audit function delivered a range of audits. A number of audits had a greater scope and resource requirement than previously attempted such as:

Family Tax Benefit

Youth Allowance service delivery.

Resources committed to these audits reduced the overall number of audits completed in comparison to 2004–05.

The audits completed during 2005–06 covered:

Major human services’ initiatives, including Welfare to Work project assurance and Welfare to Work information technology projects’ probity

Service delivery programmes

Business and service delivery performance

Financial management and compliance

Information technology applications and projects

Administrative processes

Human resource management and processes.

Figure 5 shows the comparison of audit effort undertaken by the internal audit staff in 2004–05 compared with 2005–06. The decrease in audit product was due to staff turnover, training and mentoring of new staff.

Figure 5: Audit Activity Time Usage Comparison 2004–05 and 2005–06

Internal and external audit recommendations strengthen the quality and effectiveness of management control and contribute to continuous improvement. Management action in relation to audit recommendations is monitored and reported using the Centrelink Audit Monitoring System.

The internal audit function continued to support Centrelink management in its commitment to assisting, reacting to, and resolving external audit recommendations undertaken by the Australian National Audit Office (ANAO). The internal audit function reports management progress in resolving internal and external audit recommendations and other audit related matters to the Audit and Risk Committee.

The internal audit programme supports the broader assurance requirements of the Department of Education, Science and Training, the Department of Employment and Workplace Relations, and the Department of Families, Community Services and Indigenous Affairs. In April 2006, a joint agreement with these agencies established a common audit protocol to be imbedded in the respective business partnership agreements. The protocol supports cooperation in audit planning, reporting and other information requirements.

Centrelink continues to support staff in completing professional auditing qualifi cations and certifi cation, undergraduate and postgraduate studies at university, and courses provided by associated professional organisations.

Major internal audit achievements in 2005–06 included:

Further integration of risk based planning into audit tasks in the 2005–06 Audit Work Programme

Development of an in-house internal audit and New Auditor Training Course

successful engagement of three graduate auditors and two Indigenous cadets into the internal audit workforce

Improvement in the coordination of ANAO external audit activities within Centrelink.

Internal audit operational emphases during 2005–06 included:

Re-aligning to a financial year oriented Audit Work Programme

Continuing performance improvement across the internal audit function

Meeting policy department demands on the internal audit function.

Protective security

Physical security reviews 2005–06Security reviews were conducted in relation to customer aggression trends across a number of offices in Victoria and New South Wales.

As part of these reviews, the Protective Security Division of the Australian Federal Police examined the typical security environment of Customer Service Centres (CSCs). The reviews focused on identifying causal factors of both previous and possible future incidents of customer aggression at CSCs, and determining the ability of Centrelink to address and appropriately manage these incidents. The reviews also sought to identify issues that could reflect behavioural patterns of Centrelink customers in other sites across Australia. The review strategies assist staff to meet and manage security incidents that may occur as a result of changing trends.

Suspicious mailThe Protective Security Coordination Centre (part of Attorney-General’s Department) issued security alert bulletins in June 2005 concerning suspicious packages and mail items. All agencies were asked to ensure that they had appropriate measures in place to deal with suspect packages, including mail-handling procedures.

In July 2005, Centrelink purchased and deployed special equipment, designed to safely handle suspicious items. The equipment was issued to high-risk sites such as mail hubs and records management teams across Centrelink.

To reinforce to staff the need for vigilance and awareness when opening mail a poster titled ‘Handling Suspicious Mail’ was produced and issued to all Centrelink offices. In addition, a short presentation on suspicious mail was created with the assistance of Centrelink’s internal Business Television service and broadcast on a repeat basis.

Risk managementRisk management continues to play an important role in supporting corporate governance in Centrelink. Primarily, this involves providing assurance that risks to the achievement of organisational objectives are being identified, reported and managed.

In 2005, the organisation had a strong focus on Enterprise-wide Risk Management (ERM), aiming to improve the relationship between governance and management by drawing on risk assessment processes at all business levels.

The ERM focus included redrafting Centrelink’s Risk Management Framework to combine the risk management system with categorised organisational objectives. This focus enabled analysis and reporting of risks, based on Centrelink’s structure and primary business model.

In Centrelink, ERM means:

a top down and bottom up approach to risk management

management of risk occurs through all business functions

risk management is systematically and consistently applied

reporting of risk is reliable.

Performance of Centrelink’s risk management system is indicated by the:

establishment of a Chief Executive Instruction on Risk Management in 2005

redrafting Centrelink’s Risk Management Policy in 2005

updating risk management guidelines and procedures based on Australian and New Zealand Standard AS/NZS 4360

continuing improvements in business and project risk assessment

delivering accredited risk management training in both national and network environments

maintaining Centrelink’s benchmarked rating with Comcover.

While risk management continues to be further integrated into the business management systems and processes of Centrelink, specifi c areas for improvement in 2006 are to:

maintain a consistent approach to risk assessment in business plans, business cases and project plans

improve the integration of risk management into the Centrelink Governance Framework

increase the formal risk management accreditation issued by Centrelink

reinforce the relationships between risks and controls throughout the organisation

Support the accountability and authority vested in Centrelink’s managers.

Payment correctnessOne of the high level risks agreed with each of the three largest policy departments (in terms of their proportion of Centrelink’s business) was the integrity of social security outlays. A target for payment correctness was set at 95 per cent in order to demonstrate management of risk to the integrity of social security outlays. For the period to the end of March 2006 Centrelink reported a payment correctness result of 95.5 per cent.

Centrelink measures payment correctness through random sample survey reviews. The term payment correctness is defined as ‘the percentage of reviews without a dollar impact error based on information provided by the customer’. It is a measure of the correctness of Centrelink’s decision making and is determined by expressing the number of reviews with a Centrelink administrative error with a dollar impact as a percentage of the total number of reviews completed, and subtracting that number from 100. The payment correctness fi gure does not account for customer error or Centrelink errors that do not impact on a customer’s payment. It reflects the impact of Centrelink error on government outlays, rather than the proportion of customers correctly paid.

Fraud risk assessmentsTo confi rm that customers are receiving their correct entitlements, Centrelink’s compliance activities are specifi cally aimed at the prevention, detection and deterrence of incorrect payments and fraud. In accordance with the requirements of the Commonwealth Fraud Control Guidelines 2002, Centrelink has a Fraud Control Plan for 2006–08 based on current risk assessments for all major payments made on behalf of policy departments.

Compliance measuresThe techniques Centrelink uses to detect incorrect payments and fraud include:

identity checks

data-matching with information held by Centrelink or obtained from other agencies/ organisations

tip-offs provided by the public

inter-agency compliance activities

data analysis

Selecting customers for review based on their circumstances, duration of payments, or a specifi c event.

During 2005–06, Centrelink completed over four million reviews of eligibility and entitlement on behalf of the Department of Employment and Workplace Relations, the Department of Families, Community Services and Indigenous Affairs, and the Department of Education, Science and Training. As a result, there were 556 355 payment reductions identified (including either a cancellation or a decrease in payment). Savings to future outlays totalled $98.5 million a fortnight. As well, 486 254 debts were raised for recovery action valued at $445.3 million as a result of this review activity. (See Table 3)

Table 3: Centrelink review activity

Reviews completed Reduction in payment Fortnight savings Debts

Number Number % $ Number $

Total 4 010 773 556 355 13.9 98 536 848 486 254 445 277 273

Source: Integrated Review System.

In 2005–06, Centrelink progressed numerous compliance and review initiatives including:

a project to improve service profi ling by re-evaluating risk predictors that are applied to the implementation of current profi ling reviews

a number of initiatives related to expanding the scope and enhancing the effectiveness of data-matching

the Support the System that Supports You media campaign aimed at encouraging voluntary compliance

implementation of random sample surveys for Family Tax Benefi t and Child Care Benefi t and the New Apprenticeship Scheme, in addition to the existing random sample programmes

Enhancing the Integrated Review System to refi ne the way the results of review activity are reported.

Data-matching initiativesIn 2005–06, Centrelink undertook data-matching in accordance with the data-matching legislation. This included:

production of the annual report on the Data-matching Program

weekly transmission of data from the Department of Immigration and Multicultural Affairs

weekly transmission of data from state and territory departments of corrective services.

Support the System that Supports You campaignThe Support the System that Supports You campaign is a four-year, integrated marketing and communication campaign targeting non-compliant income support recipients and those most at risk of incurring a Centrelink debt. The aim of the campaign is to encourage income support recipients to notify Centrelink of any changes in their circumstances that could affect their payments and to raise awareness amongst taxpayers of the efforts being made on their behalf to ensure the integrity of the social security system.

The campaign started in September 2005 and to 30 June 2006 had resulted in more than 180 000 contacts from customers, and over 43 000 members of the public providing tip-off information about customers they suspect are not complying with their obligations. The campaign is funded to run until July 2008.

Fraud investigationDuring 2005–06, Centrelink consolidated its fraud investigation capabilities by moving down a path of specialist end-to-end fraud investigation capability. Centrelink takes a ‘whole of government’ approach to fraud detection and investigation. In accordance with the Australian Government Investigation Standards, Centrelink uses a range of measures to detect and investigate fraud. Activities include traditional desk based reviews and fi eld reviews. The measures also include joint fi eld operations involving the Australian Federal Police, the Australian Taxation Office, the Department of Immigration and Multicultural Affairs, and other Australian Government and state and territory government departments and agencies.

Typically, joint fi eld operations are used to pursue cash economy frauds. These include visiting business premises. To this end, specialist Officers dedicated to coordinating cash economy activity receive specialist operational training on legislative obligations and complex multi-agency operations.

In total, 110 cash economy investigations were undertaken during the year and $34.7 million in savings and debts were identified.

Dealing with identity fraudIdentity fraud involves the use of fi ctitious, created or assumed names by a person to claim payments to which they are not entitled. This frequently involves multiple fraudulent claims.

The methodologies used by fraudsters to evade Centrelink’s control measures are often sophisticated and their detection requires specialist skills and tools. An expert identity fraud detection team uses advanced computer investigation and detection techniques to combat this type of serious fraud.

Centrelink increased its focus on identity related fraud as a result of a 2003–04 Budget initiative on fraud detection. Cases of identity fraud were detected through the improved use of internal and external data and an increase in analyst and investigation resources in Area Fraud Investigation Teams. Extra cases were detected by the identity fraud intelligence analysts and investigators throughout the network. Where Centrelink obtained adequate evidence of serious fraud the cases were referred for consideration of prosecution action by the Commonwealth Director of Public Prosecutions.

Part of the Budget initiative also involved preventative programmes to increase staff awareness of the risk of identity fraud, particularly at the new claim stage. The implementation of mechanisms meant that Centrelink’s front line staff have direct access to identity fraud specialists. To minimise the risk of fraudulent claims Centrelink conducts extensive checks and has stringent proof of identity requirements.

Centrelink is a member of the OPAL Commonwealth Reference Group on Identity Crime chaired by the Australian Federal Police. The group meets quarterly to focus on operational issues affecting member agencies. It seeks to establish links and synergies between the operational works of the member agencies.

Australian Federal PoliceDuring 2005–06, the full complement of Australian Federal Police agents was in place in Centrelink fraud investigation teams. The 10 agents provide a significant enhancement to Centrelink’s investigative capabilities, sharing their expertise and increasing the professionalism, knowledge and effectiveness of Centrelink’s fraud investigations.

Financial transaction reportsFollowing legislative change and advanced technical training, Centrelink’s Fraud InvestigationbnTeams have had access to varying levels of financial transaction reports from the Australian Transaction Reports and Analysis Centre. These include:

significant cash transaction reports

international currency transfer instructions

international funds transfer instructions

suspect transaction reports.

Fraud Tip-off LineCentrelink assesses all information provided by the public (‘tip-offs’) as a way of identifying misuse of the income support system.

From public tip-offs received in 2005–06, Centrelink conducted 59 781 reviews of customer entitlements and 162 of child care organisations. This review activity resulted in 11 492 reduced payments and identified $125.6 million in savings and debts. The Support the System that Supports You campaign started on 4 September 2005 with progressive airing of television advertisements across Australia. This campaign contributed to an increase of 24 per cent in tip-offs received in the year. (For more information about the campaign see page 27.)

The investigation of tip-off information continues to build community confi dence in the integrity of the social security system. The public can phone the Australian Government Services Fraud Tip-off Line on 13 1524, visit or write to Centrelink with tip-off information, or access Centrelink’s Report a Suspect Fraud website at www.centrelink.gov.au. Tip-offs received via the website account for around 9 per cent of tip-offs received.

Prosecution referral activityIn 2005–06, Centrelink referred 3961 matters to the Commonwealth Director of Public Prosecutions for consideration of prosecution action in relation to the Department of Employment and Workplace Relations, the Department of Families, Community Services and Indigenous Affairs, and Department of Education, Science and Training payments (see Table 4). During the same period, the Commonwealth Director of Public Prosecutions prosecuted 2885 Centrelink cases for fraud with a conviction rate of 98 per cent.

Table 4: Centrelink prosecution activity

Prosecuted Dismissed Convicted Debt amount involved inconvictions ($)

Total 2885 54 2822 34336639

Six Nations fraud conferenceCentrelink representatives participated in the Six Nations Conference on Benefi t Fraud from 26–29 September 2005 in New Zealand presenting a paper on Centrelink’s Business Integrity Strategy. Other countries represented at the conference included the United States, Ireland, the United Kingdom, New Zealand and Canada.

Foreign Pension Data Exchange projectThe Detection and Prevention of Incorrect Payment Arising from Overseas Income, or Foreign Pension Data Exchange project, was announced as part of the 2005–06 Budget. The project aims to develop electronic data exchange processes with Centrelink’s agreement partners (excluding New Zealand). The exchanges will enable foreign pension rate increases (where countries provide a Consumer Price Index increase to their pensions either annually or six-monthly) to be automatically applied to a customer’s record, resulting in a reassessment of their Centrelink entitlement.

Malta was the first country to undertake data exchange followed by the Netherlands.

Germany will exchange data later in 2006, and data exchanges with Italy, Austria and Ireland are likely to occur in January 2007.

Debt managementDebt management is an integral part of Centrelink’s core business. Preventing, minimising and recovering customers’ debts accurately and quickly, while being sensitive to the customers’ circumstances, is central to achieving policy department and customer service goals. Centrelink places a strong emphasis on debt prevention as part of its service to customers and over the past year, work has continued on improving debt raising and recovery.

The Australian National Audit Office Report No. 04/2004–05 on Centrelink’s Management of Customer Debt included nine recommendations. All were agreed to by Centrelink, and were finalised. The Joint Committee for Public Accounts and Audit (JCPAA) invited Centrelink’s Senior Executive to discuss the audit report with the committee. A fi nal report was sent to the Chair of the JCPAA addressing the committee’s recommendations.

The National Debt Prevention Project involves the analysis of debt data and the impact of policy on specifi c customer groups, identifi cation of debt prevention opportunities and issues for specifi c customer groups, and identifi cation of ‘best practice’ debt prevention processes and products for specifi c customer groups. In 2006, the project will concentrate on reviewing strategies for customers who are studying or training, and Indigenous customers.

Debt Management Officers work to prevent, minimise and manage debts, playing a vital role within Centrelink and in the wider community. Critical to meeting Centrelink’s core business obligations, Debt Management Officers’ duties are to:

identify and initiate work practices aimed specifi cally at preventing or minimising debts

seek to continually improve customer awareness of their notifi cation obligations

coordinate information and outreach programmes within the community, with employers, and within Centrelink by publicising and marketing the benefits of debt prevention

implement or support implementation of targeted national debt prevention projects aimed at the major causes of preventable debt

monitor and report on local debt management performance such as debt raising and waiver activity, to ensure adherence to national guidelines

ensure all debt support tools and guidelines are available and used effectively

Develop and implement strategies to address the special requirements of employment associated with the 2006 Commonwealth Games in Melbourne.

Debt raisingIn 2005–06 Centrelink met its targeted percentage of debts raised as a proportion of the undetermined debt base. Table 5 shows debts raised during 2005–06.

Table 5: Debts raised during 2005–06

Types of debts Number of debts Amount raised ($ million)

Total debts raised including Family Assistance Office debts 2 255 418 1684

Debt recoveryIn 2005–06, Centrelink met its target for debt recovery and recovered $1221 million incustomer debts compared with $1165 million in 2004–05.

Centrelink offers customers a range of repayment options through Australia Post outlets, by phone, mail, over the internet or by direct debit.

When a customer is unable to pay a debt in full, Centrelink negotiates a repayment agreement that will recover the debt as quickly as possible without placing the customer in financial hardship. In certain circumstances, Centrelink may use the services of a contracted mercantile agent to contact a person and manage the debt.

Centrelink accepted the recommendation of the Australian National Audit Office Audit Report No. 04/2004–05 that debt recovery be conducted through specialised teams. Debt recovery staffs are trained in appropriate recovery methods.

Be valued by the Australian peopleThroughout the year Centrelink strengthened its partnerships with community organisations and their members by taking part in events and activities as outlined below. Centrelink’s involvement in these activities is received well by the community and the media.

Carers WeekFrom 16–22 October 2005, Centrelink worked with Carers Australia to promote Carers Week through the Centrelink network, acknowledging the important role carers play in the community and raising awareness of carer needs.

Community Budget broadcastThe 2006–07 Budget meant a number of changes for Centrelink. Together with the Department of Employment and Workplace Relations and the Department of Families, Community Services and Indigenous Affairs, Centrelink provided an opportunity for local community organisations to hear about Budget changes by hosting a live and interactive broadcast.

On behalf of the Department of Human Services, Centrelink invited representatives from over 1305 community organisations to participate through 76 Centrelink Customer Service Centres across Australia. Over 500 community representatives took part in the interactive broadcast.

The panel included the Minister for Human Services, the Hon Joe Hockey MP, the Minister for Families, Community Services and Indigenous Affairs, the Hon Mal Brough MP, and the Minister for Workforce Participation, the Hon Dr Sharman Stone MP who answered phone and fax questions from community organisations around Australia.

A transcript of the broadcast, together with a summary of questions and answers relating to the Budget broadcast, were posted to the Centrelink website at www.centrelink.gov.au

Emergency managementCentrelink’s Business Continuity and Emergency Management Framework provide a corporate governance structure, along with supporting processes and tools.

The framework helps Centrelink to prepare, respond promptly and assist in a community emergency or to manage an incident that threatens service delivery both in Australia and overseas.

Centrelink plays a key role in situations like this, and is one of a number of agencies committed to responding to the needs of people and communities devastated by natural disasters. A national strategy ensures that in emergencies or disasters, Centrelink can continue to provide its normal services to the community as well as extra assistance to the people most affected.

Policy departments continue to use and acknowledge Centrelink’s ability to respond quickly and effectively to emergencies. Centrelink brings together phone, counselling and processing capabilities, as well as liaising with local, state/territory and Australian Government departments and agencies. Centrelink’s contribution of ‘on site’ or ‘on phone’ services are highly regarded, particularly following responses in recent years to corporate collapses and natural or community disasters.

Asian tsunami tragedyCentrelink continued to deliver the Australian Government’s Tsunami Assistance Package, extending it to cover travel to the first anniversary of the disaster. Centrelink Social Workers provided personal support to those travelling to Thailand for the anniversary.

In addition to this, the Social Work Service continues to provide family liaison support to those families still in need of assistance. There are currently 41 Centrelink Family Liaison Officers throughout Australia who are working with 99 family members affected by the tsunami.

Bali 2005A number of bombs exploded on the evening of 1 October 2005 in Jimbaran Bay and Kuta Square in Bali. Centrelink played a key role administering the assistance package, and working with state and territory offi cials to provide assistance on request through arrangements at airports.

Centrelink provided assistance to Australians directly affected by bombings, and their family and friends. Centrelink delivered the Australian Government’s Bali Assistance Package via a processing team who administered the financial aspects of the government package.

In addition, Centrelink Social Workers provided personal support to those in Bali and to those injured and transported to Singapore. For several weeks after the initial disaster the Social Workers provided a targeted ‘meet and greet service’ for families returning from Bali and Singapore.

The Social Work Service continues to provide family liaison support for the families affected by this tragedy. There are currently 16 Family Liaison Officers working nationally with 70 family members. Newcastle in New South Wales was particularly affected by this disaster and Social Workers are working closely with the community to support the families residing in the area.

Bali 2002 third anniversaryThe Centrelink Social Work Service continues to work with families affected by the Bali 2002 bombings. There are currently 19 Family Liaison Officers nationally, working with 22 family members. The Bali hotline number is still available and occasional calls are still received by the hotline Social Worker.

Centrelink Social Workers were once again in Bali to support families who were attending the third anniversary commemorations.

Cyclone LarryOn 20 March 2006, Centrelink’s service delivery capacity to assist in emergency situations was vital in the wake of Cyclone Larry’s devastation of north Queensland. Centrelink played a key role in administering the assistance package announced by the Prime Minister, the Hon John Howard MP. Over 50 000 claims for assistance were received for a range of payments including one-off ex-gratia payments, grants to support businesses and farmers, income support for business owners and farmers and fuel excise relief. Centrelink provided hotline services via the Call Centre network and processing centres were set up in Cairns, Brisbane and Maryborough to administer the financial aspects of the government package. Centrelink Social Workers provided personal support to people affected.

Katherine floodsIn April 2006, Centrelink delivered emergency payments to households affected by the floods in Katherine, on behalf of the Northern Territory Department of Health and Community Services. Centrelink deployed extra staff, including Social Workers, to the Katherine

Centrelink Customer Service Centre, and were joined by Northern Territory Government and community organisations to support people affected by the floods.

London bombingsCentrelink played a key role in assisting Australians and their families and friends, who were directly, affected by the July 2005 London bombings. Centrelink delivered the Australian Government’s London assistance package via a processing team who administered the financial aspects of the package.

In addition, Centrelink operated the ‘London Assist’ hotline (including a free call from London), and Centrelink Social Workers provided personal support to those in London for several weeks after the initial disaster. A targeted ‘meet and greet’ service for families returning from London was also provided by Centrelink Social Workers.

The Social Work Service continues to provide a family liaison support service for the families still requiring this assistance. There are currently six Family Liaison Officers nationally, who are working with 10 family members.

Harmony DayOn 21 March each year Centrelink supports Harmony Day. This year Centrelink focused on organised activities encouraging community and joint Department of Human Services agency involvement. Harmony Day is an Australian Government initiative that provides an opportunity to celebrate cultural diversity and say ‘no’ to racism.

International Day of People with a DisAbilityIn 2005–06, Centrelink celebrated International Day of People with a DisAbility by holding events in communities around the country. The day is seen as a significant event within the disability community and an opportunity to celebrate and recognise the achievements of people with disabilities.

NAIDOC WeekFrom 7–14 July 2005, as part of its ongoing support and commitment to Australian Indigenous people, Centrelink joined in the NAIDOC (National Aboriginal and Islanders’ Day Observance Committee) Week celebrations. Centrelink staff around the country took part in a range of community events such as fl ag raising and cultural performances. For many Australian Indigenous people, this is one of the most important weeks during the year, providing an opportunity for Indigenous people to join together in celebration of the survival and continuation of their culture.

National Families WeekFrom 14–20 May 2006, Centrelink again supported National Families Week through its national network by promoting the week to local community organisations and coordinating or participating in local events. National Families Week is an annual celebration highlighting the critical role of families in Australian society. The theme for National Families Week 2006 was children aged 12 to 18 years and the important role of parenting.

National Child Protection WeekLocal Centrelink Customer Service Centres supported National Child Protection Week from 4–10 September 2005 by participating with local communities and organisations in events aimed at preventing child abuse and neglect.

Reconciliation WeekFrom 27 May to 3 June 2006, Centrelink celebrated Reconciliation Week. The theme for 2006 was ‘Take The Next Step’. Centrelink celebrated with an event, which included the Minister for Human Services, Reconciliation Australia, and senior executives from other Department of Human Services agencies. At the event Centrelink’s Statement of Commitment to Reconciliation was updated and re-signed.

Media coverageCentrelink worked closely with the media around the nation to raise awareness and educate the community about services, support, assistance and payments in every state and territory during 2005–06.

Initiatives to receive media attention included drought relief support, online services, Centrelink’s graduate recruitment programme, multicultural services, and the working credit scheme.

The media took particular interest in Centrelink’s payment review and fraud detection activities that complemented the Australian Government’s Support the System that Supports You campaign.

Centrelink’s involvement in emergency relief efforts including Cyclone Larry (Queensland), floods (Northern Territory and South Australia), bushfi res (New South Wales and Victoria), and terrorist bombings (London and Bali) also received prominent attention.

Chapter 4Our business andcommnity relationshipsStrategic themes: Developing a networked organisationHighlights for 2005–06 The number of customers using Centrepay increased to 253 826 (see page 46)

Centrelink now has agreements in place in all states and territories for assisting adult offenders in detention (see page 49)

During the 2006 Commonwealth Games, Centrelink worked closely with business and their representative bodies to reduce the need for Centrelink to contact them to verify the income of their employees (see page 52).

DescriptionDeveloping a networked organisation is about strengthening our ability to work with government and non-government organisations to achieve integrated outcomes for the Australian community. The aim is to Efficiently deliver services that require a long-term strategic focus and to be fl exible in meeting community needs and conditions.

Centrelink recognises the vital role of cooperation with other government and human services agencies, non-government organisations, service partners, and the community and business sectors in fi nding new ways to achieve the best possible assistance for customers.

Strategic objectives Connect with service partners and human services agencies so customers receive the right help

(see page 41)

Make it easy for business and the community sector to do business with Centrelink (see page 50).

Connect with service partners and human services agencies so customer receibve the right helpAustralian Government health and social services access cardCentrelink is participating with the Department of Human Services in the development of the Australian Government health and social services access card.

The Government is developing a health and social services access card to improve customer service delivery across participating government agencies. The introduction of the card will streamline upfront access to services and entitlements, making the system more Efficient , easier to use and less vulnerable to fraud. The introduction of the card will reduce the number of cards required by customers to access a range of government services.

Centrelink Academic Reassessment Transformation projectThe Centrelink Academic Reassessment Transformation (CART) project conducted a proof of concept trial, which began in August 2004. Using information technology, the project trialled the exchange of electronic data from educational institutions to Centrelink. The data exchange was sent either weekly or daily, and related to changes in student study loads that may affect the benefits students are eligible to receive. The data received allowed Centrelink to take actions earlier to reduce the risk of student debts and to ensure higher levels of participation.

Building on the success of the trial, the project was expanded to provide progressive coverage for all tertiary institutions. Universities and Technical and Further Education (TAFE) colleges were contacted and supplied with information on the CART process. From these contacts it is estimated that take up by educational institutions will see approximately 180 000 students in scope of CART by mid-June 2007.

The main drivers for the CART project are to reduce the risk of debt for student customers and support retention in study. Centrelink is able to have timely contact with students and provide advice and alternatives, which limits their debt risk and assists their completion of study.

CART has been fully endorsed by the Department of Education, Science and Training and the Australian Vice-Chancellors’ Committee, and is currently being rolled out to universities and TAFEs across Australia.

Community feedbackCentrelink has a strong focus on connecting with service partners and human services agencies so that customers receive the right help. Centrelink uses several mechanisms to gain feedback from the community sector. One mechanism is through a Community Sector Satisfaction Survey detailing how satisfied providers are with their working relationships with their local Centrelink Customer Service Centre.

The 2005–06 survey’s focus and timing was to receive preliminary feedback from the specifi c parts of the community sector important to Centrelink’s implementation of Welfare to Work prior to the July 2006 implementation. The first of a series of rolling surveys was conducted with the Job Network and Disability Employment Network, followed by organisations dealing with sole parents, then organisations dealing with customers with a disability, and emergency relief organisations.

Another mechanism is a national framework, which means local Officers can report and escalate community views.

Community reference groupsCentrelink has established a number of community reference groups nationally to gather input on and feedback about Centrelink’s service delivery. These community reference groups primarily comprise representatives from peak community and service delivery bodies.

Carers Service Delivery Reference GroupIn 2005–06, the Carers Service Delivery Reference Group provided valuable feedback on the production of Centrelink carer forms and publications. The aim of the group is to influence improvement in service delivery for carer customers and assist Centrelink in improving its communication to carers. This group includes representation from various carer organisations throughout Australia and also includes carer organisations representing multicultural, Indigenous, mental health and young carers. The group has met four times since its inaugural meeting in November 2003.

DisAbility Customer Service Reference GroupThe role of the DisAbility Customer Service Reference Group is to provide advice on all aspects of Centrelink’s service delivery to customers who have an illness, injury or disability, including how to improve the practices and quality of service provided by Centrelink staff.

Members represent various peak disability organisations including Women with Disabilities Australia, the National Indigenous Disability Network, the National Association of People Living with HIV/AIDS, the National Council on Intellectual Disability, the Australian Association of the Deaf, Welfare Rights, and Blind Citizens Australia. Generally, meetings are held twice a year, with a focus in 2006 on changes associated with Welfare to Work.

National Multicultural Reference GroupIn 2005–06, the National Multicultural Reference Group held its ninth meeting. Issues raised included the changes to employment policies and their effects on multicultural customers, as well as new compliance and case management processes, and settlement and employment issues for refugee arrivals from African countries.

The aim of the National Multicultural Reference Group is to enable Centrelink to consult with communities from diverse cultural and linguistic backgrounds. The group’s role is to provide advice and feedback to Centrelink on all aspects of service delivery to its multicultural customers. Significant issues are raised nationally with senior staff of Australian Government departments and agencies.

Older People’s Reference GroupMeetings of the Older People’s Reference Group are held regularly and provide Centrelink with the opportunity to discuss key messages and focus on strategic issues relating to service delivery. Policy concerns are referred to the relevant policy department to address. Some of the main topics covered in 2006 included Centrelink customers transferring to Age Pension, Centrelink’s communication strategy for seniors, and implications of the Welfare to Work initiatives for Age Pension customers.

Centrelink established the Older People’s Reference Group in March 2002 to facilitate communication with peak bodies and customer groups and to improve Centrelink’s services to its senior customers.

Participation Community Reference GroupThe role of the Participation Community Reference Group is to provide advice to Centrelink on its service delivery as well as supporting arrangements for Welfare to Work. Representatives include Families Australia, National Welfare Rights, the National Council for Single Mothers and their Children, the Australian Federation of Disability Organisations, and the Mental Health Council of Australia. In the lead up to the Welfare to Work implementation, the group met approximately every six to eight weeks.

Multicultural Advisory CommitteesCentrelink consults quarterly with multicultural communities at both state and local level through its Multicultural Advisory Committees, which are operational in most states, territories, and regions with a high multicultural population. During the year, members of the committees have shown particular interest in employment issues and extra services for families. Federal Budget initiatives also generated considerable interest and requests for information.

Department of Human Services Cross Agency Multicultural GroupDuring 2005–06, Centrelink initiated discussions between the six Department of Human Services agencies to share expertise in delivering multicultural services and explore the possibility of joint work. The group agreed to look at the feasibility of a common multicultural customer charter for which each agency can commit, and is exploring ways to share resources.

Implementing the Charter of Public Service in a Culturally Diverse SocietyThe Department of Immigration and Multicultural Affairs Access and Equity Annual Report 2005 relates to progress in implementing the Charter of Public Service in a Culturally Diverse Society. Centrelink remains a leading agency in terms of its multicultural programmes and achievements against the Key Performance Indicators of the Access and Equity reporting framework, scoring a 100 per cent of relevant performance indicators both 'met' and 'met well'.

National Welfare Rights NetworkThe National Welfare Rights Network has played an important role in providing feedback and valuable input on improving Centrelink’s service delivery, particularly for the most vulnerable customers.

Centrelink and the National Welfare Rights Network have developed an ongoing and productive relationship, working closely in a formal and informal basis at local and national levels. The National Welfare Rights Network also contributes to Centrelink’s Participation Community Reference Group, DisAbility Customer Service Reference Group, and Multicultural Reference Group.

Lifting Remote Area ExemptionsThe Department of Employment and Workplace Relations (DEWR), the Office of Indigenous Policy Coordination (OIPC) and Centrelink have worked with community and other government stakeholders to lift Remote Area Exemptions through a phased approach.

Oversight for this process is through a Group on Indigenous Participation incorporating representation at the Deputy Secretary or equivalent level from DEWR, OIPC, the Department of Families, Community Services and Indigenous Affairs, and Centrelink. Remote Area Exemptions are being progressively removed as agreed by deputy secretaries.

Remote Area Exemptions are not applicable to activity tested income support recipients living in remote locations if they have access to a local labour market, or a vocational training course, or a labour market programme, or alternative arrangements for participation. In such circumstances, recipients will be subject to participation requirements.

Online channel for approved child care servicesAn online channel for approved child care services to transmit data required to calculate family entitlement to Child Care Benefi t became available in September 2005. The progressive rollout of the online service offers all approved child care services a more streamlined and secure option to transmit customer data to the Family Assistance Office.

Odyssey House model partnershipsOdyssey House Victoria is a residential rehabilitation programme for people with life controlling issues (such as drug, alcohol and gambling addictions). Over 500 Centrelink customers receive service from Odyssey House, and these customers can nominate this organisation to act on their behalf. As a nominee, Odyssey House can access Centrelink services on behalf of their clients, and this process is often part of creating a new life for people with life controlling issues.

In 2005, Odyssey House and Centrelink signed a ground breaking partnership agreement to enable the electronic exchange of data. This capability has made access to services more convenient and reliable for both organisations and, most importantly, for our shared customers.

Following the success of the Odyssey House model, Centrelink has been working to enhance this capability to enable a wider range of nominee third party organisations to conduct transactions on behalf of customers in need.

YP4—Assisting homeless job seekersYP4 is a trial service delivery approach designed to assist young homeless job seekers. The trial, supported by the Australian Government (through the Department of Families, Community Services and Indigenous Affairs and Centrelink) and the Victorian Government, aims to determine whether streamlining a range of services and programmes can result in better housing and employment outcomes for unemployed young people who do not have a suitable home.

The trial involves four community organisations:

Hanover Welfare Services (auspice agency)

The Brotherhood of St Laurence

Melbourne City Mission

Loddon Mallee Housing Services.

Centrelink Victoria is supporting YP4 by acting as a ‘gateway’ to the programme through sites at Frontyard, Cheltenham, Frankston and Bendigo. The role of the staff at these sites involves:

identifying potential participants

checking the eligibility of potential participants and ensuring consent forms are signed

providing relevant information to participants and the YP4 organisation

Assigning participants to appropriate groups within the programme.

Centrelink Social Workers are also working with participants to assist in the evaluation of the trial.

CentrepayThe number of current Centrepay participating organisations increased from 12 714 in 2004–05 to 13 870 in 2005–06. Of these, 4579 business and community based organisations receive their payment information and undertake their financial reconciliation electronically with the rollout of the Centrepay electronic data transfer facility.

The number of customers using Centrepay increased from 202 952 in 2004–05, to 253 826 in 2005–06.

During 2005–06, changes to Centrepay arrangements meant that customers could use Centrelink’s self service web facilities to arrange new deductions and vary or cancel existing ones. Customers can still do their deductions via Call Centres or by submitting a deduction form to Centrelink or their service provider.

Future directions for Centrepay include promoting it as a means to achieve financial stability, including supporting people on their pathway to work.

Centrepay is a direct, bill paying service offered to customers receiving payments from Centrelink. Customers continue to use Centrepay as a way to manage their fi nances better by having regular amounts deducted from their Centrelink payments.

Deductions are paid directly to participating organisations to cover living expenses such as private rent, electricity, gas, phone and education, and to repay no-interest loans from community organisations.

Centrepay for Indigenous communitiesCentrepay continues to deliver a number of innovative solutions in several Indigenous communities, developed through partnerships with parents, community organisations, state and territory governments, and the Department of Education, Science and Training.

One of the successful outcomes of 2006 is the use of Centrepay to support local nutrition programmes. These programmes were set up in more than 40 schools to ensure students have adequate nutrition. Parents are able to use Centrepay to ensure their children can access food at school through the programme. This Centrepay option will continue into 2006–07 while customer demand for this service exists.

Centrelink Confi rmation eServicesThe Centrelink Confi rmation eServices (CCeS) are internet based facilities used by government agencies, businesses and community organisations that require online validation of customer details.

The process offers the customer greater convenience when applying for concessions and services.

As at 30 June 2006, 678 contracted organisations were using CCeS and carried out

17 123 748 transactions compared with 30 June 2005, an increase of 64 per cent.

Transaction fees were abolished from 1 July 2005 to encourage organisations to take up the service. The effect of this incentive is to maximise the potential effectiveness and effi ciencies in providing information used to assist mutual customers achieve better outcomes. Associated benefits include reduced queue numbers and average wait times, as well as speedier access to other benefits from service providers. CCeS supports the protection of government outlays, up to date information to third parties, and accurate assessment of customer eligibility to concessions and housing.

In October 2005, Centrelink added a new online Income Confi rmation service, used to transfer customers’ income and payment details directly to registered organisations. This service forms part of the integrated CCeS suite of products, which includes:

Customer Confirmation of a Centrelink or Department of Veterans’ Affairs customer’s entitlement status to receive a concession

Income Confirmation for Centrelink customer

Superannuation Confirmation to assist in determining the early release of a customer’s superannuation.

Future directions for CCeS include:

enabling customers to obtain their own online confi rmation statement via Centrelink’s self service web facility (Customer Portal)

Working with Australian Government and state and territory government departments and agencies to offer a whole of government approach to concessional data through online services.

Community Development EmploymentCentrelink administers the Community Development Employment Program (CDEP) on behalf of the Department of Employment and Workplace Relations (DEWR) and the Torres Strait Regional Authority (TSRA).

Approximately 35 000 DEWR and 1800 TSRA CDEP placements were available in 2005–06.

Centrelink continues to work closely with DEWR to implement new CDEP guidelines for 2006–07, including lifting of the Remote Area Exemption and compulsory registration and referral to the Job Network.

Drought assistance

Drought Relief CounsellorsCentrelink Drought Relief Counsellors were established in 2005–06 as an initiative of the Department of Agriculture, Fisheries and Forestry (DAFF). Ten full-time positions were created to assist farm families with information relating to:

the Australian Government’s Drought Assistance payments and services

the completion of the associated forms

The links to other government programmes and services such as Farm Help and the Financial Counselling Service.

Drought Relief Counsellors provide assistance with existing drought relief measures, and also work in partnership with DAFF’s Rural Financial Counsellors to extend the Government’s assistance packages. An important by-product of the work of the Drought Relief Counsellors has been the links created between local community organisations and the subsequent support networks established beyond Australian Government financial assistance.

Drought Relief Counsellors cover areas identified as ‘high need’ across south western Queensland, most of New South Wales, and significant parts of Victoria and South Australia. Appointed by Centrelink, the Drought Relief Counsellors have proved a valuable, and in many cases a vital connection between the Australian Government and Australia’s farming families. Drought Relief Counsellors were supported by Centrelink Psychology Services who developed and delivered a mental health awareness and skill building workshop in March 2006.

Exceptional Circumstances certifi catesIn response to the Australian National Audit Office Drought Assistance Audit tabled in June 2005, Centrelink worked with DAFF to meet audit recommendations regarding the administrative procedures for issuing Exceptional Circumstances (EC) certifi cates. From 1 October 2005, Centrelink issued ECs for all new and existing declarations. This work was previously completed by state rural adjustment authorities.

As the drought continued in many parts of Australia, Centrelink also continued to provide extensive assistance to drought affected farmers. In 2005–06, the Australian Government announced extensions to approximately 20 existing EC declared areas. In addition, one new prima facie area was declared.

The key challenge for 2006–07 will be to assist DAFF in drought recovery efforts, as farmers and rural communities rebuild after prolonged drought.

Social Work responseIn areas described as having ECs, the Department of Families, Community Services and Indigenous Affairs has provided funding for Centrelink Social Workers to offer counselling, support and referral to individuals and families affected by the drought. Centrelink Social Workers have also assisted with community capacity building activities in these areas.

Services for prisonersWith the signing of a protocol agreement in South Australia in July 2005, Centrelink now has agreements in place in all states and territories to deliver services to adult offenders in detention.

The first review of an existing protocol agreement was conducted in New South Wales, with the revised agreement signed in April 2006. The main enhancement to the agreement was the inclusion of arrangements for delivering services to offenders on legal orders in the community (that is, probation and parole).

A national training module was developed for staff who visit prisons to assist offenders who will become Centrelink customers on their release. The training focuses on occupational health and safety issues and appropriate measures to remain safe and well while working in the prison environment.

Centrelink Psychologists have provided outreach services to some prisons. This service includes assessment immediately prior to release, to facilitate a smooth transition to participation and/or referral to appropriate participation assistance.

Rent Deduction SchemeThe Rent Deduction Scheme allows Centrelink customers living in public housing to have their housing related payments such as rent, loans and arrears deducted from their Centrelink payments and sent directly to the relevant housing authority.

The scheme is voluntary and provides customers with an easy way to manage their government housing payments, while helping to prevent rental arrears, debts and evictions. All state and territory housing authorities use the deduction scheme and the number of customers using this service continues to increase. In 2005–06, 279 209 customers used the scheme, an increase of 4.2 per cent from 2004–05.

In 2006, the scheme was extended to assist tenants in Aboriginal housing, managed by state and territory housing authorities, to receive their Rent Assistance entitlements.

Make it easy for business and the community sector to do business with CentrelinkBusiness GatewayCentrelink’s Business Gateway was established in December 2004, bringing together a number of major Centrelink services for business and Centrelink staff trained to understand business needs.

Centrelink’s Business HotlineThe Centrelink Business Hotline is a national contact centre dedicated to making it easier for employers to do business with Centrelink. The hotline is operated by skilled staff from diverse industry backgrounds who understand the needs of business. The hotline staff provide advice and information about Centrelink and how it can assist employers. Each month hotline staff handle up to 12 000 incoming calls and more than 6000 incoming faxes.

The hotline also provides an Information Reporting Helpdesk to assist third party organisations, as well as Centrelink staff, involved with a number of electronic information reporting initiatives. The helpdesk assists with the registration of organisations, password management and electronic fi le transfers. It is the first point of contact if an organisation experiences any diffi culty participating in the

arrangements. Currently the helpdesk provides support to 16 initiatives involving more than 1000 external organisations, for example:

Centrepay—a service that allows Centrelink customers to pay bills through regular and manageable deductions from their Centrelink payments (see page 46)

Rent Deduction Scheme—a service that allows customers in government housing to have their housing payments deducted automatically from their Centrelink payment and sent directly to the relevant authority (see page 49)

Customer Confi rmation Services—services that allow businesses to receive confi rmation of a Centrelink customer’s entitlement to concessions. Many businesses and authorities use eligibility for a Centrelink concession card, such as the Pensioner Concession Card, as a main way of establishing eligibility for their concessions (see page 47)

Income Confi rmation Services—services that enable organisations to receive customer payments and income and assets details, so that eligibility for government programmes and subsidies can be determined (see page 47)

Superannuation Confi rmation Services—services that allow superannuation providers to confi rm online with Centrelink a customer’s eligibility for early release of their superannuation payments (see page 47)

Tasmanian Assistance Services—services that deliver the Tasmanian Freight Equalisation Scheme, the Bass Strait Passenger Vehicle Equalisation Scheme, and the recently reinstated Tasmanian Wheat Freight Scheme, on behalf of the Department of Transport and Regional Services (see page 96).

Census 2006With the census due to be conducted by the Australian Bureau of Statistics (ABS) in August 2006, and around 40 000 people expected to be employed to conduct the census, Centrelink worked closely with the ABS to reduce the amount of paperwork required to verify the earnings of customers employed specifi cally for the census.

Centrelink established processes to ensure the ABS is only sent an employment verifi cation request in special circumstances. The ABS was provided with around 40 000 payslip envelopes and ‘How to Avoid a Debt’ brochures to include in their recruitment pack, which will be given to all prospective census employees. This will ensure that those people employed as census collectors and supervisors, who are also receiving a Centrelink payment, are aware of their obligations to report their income, and are provided with a place to keep payslips for Centrelink.

Listening to feedback from the business sectorCentrelink continues to conduct regular business sector research, which highlights suggestions for improvement to the forms and letters sent by Centrelink to businesses. The research also aims to understand the attitudes of businesses towards Centrelink requests and the time taken to complete these requests.

The research showed that:

businesses are highly satisfi ed with the contact they have with Centrelink through the Centrelink Business Hotline and that there was a strong interest in conducting business with Centrelink electronically

there was an overall reduction in the time taken to complete some Centrelink forms as a result of changes made in the first half of 2005

businesses are particularly interested in fi nding out more about what Centrelink has to offer businesses and the type of assistance available to them

accessing legislative information and forms online was popular

Interest in e-business remained strong, and businesses generally acknowledged the benefits of improved effi ciency with the provision of online information.

Voluntary workCentrelink plays a role in approving organisations for voluntary work, as well as encouraging customers to contribute to their communities by becoming involved in volunteering. Centrelink works in conjunction with Volunteering Australia, which is contracted by the Department of Employment and Workplace Relations to provide people with volunteering opportunities.

Working with business during the 2006 Commonwealth GamesWith the Melbourne 2006 Commonwealth Games employing over 30 000 people and using 20 000 volunteers, Centrelink worked closely with business and their representative bodies to reduce the need for Centrelink to contact them to verify the income of their employees.

Centrelink provided employers with payslip envelopes for new staff, or staff who worked extra hours during the games. Employers were encouraged to distribute payslip envelopes and other debt prevention products to employees, to ensure that customers were aware of their obligations to report their income to Centrelink.

Centrelink also promoted the Business Hotline’s phone, fax and email services to support employers with Centrelink paperwork during the games and provided employers with access to the Employment Separation Certifi cate as an online form.

Through industry representative bodies, such as the Victorian Employers’ Chamber of Commerce and Industry, Centrelink was able to include articles in industry based newsletters to promote the ‘Less Paper Work for Employers’ campaign to member businesses and employers.

Chapter 5Our CustomerStrategic theme: Strengthening our customer focus in line with government directionTop level resultTable 6: Customer satisfaction with Centrelink services

TargetResult for 2005–06(%)

Customer satisfaction with Centrelink services of 87 per cent (that is, 87 per cent of ‘Family and Child Care’; ‘Seniors, Carers and Rural’; and ‘Working Age Participation’ customers surveyed) who rate the overall quality of service received on their last visit to a Centrelink Customer Service Centre or phone call to a Call Centre as either ‘very good’ or ‘good’

87.1

Figure 6: Overall customer satisfaction with last contact with Centrelink, 2003–04 to 2005–06

This figure depicts the percentage of customers who rated the overall quality of people, services and information as either ‘very good’ or ‘good’ on their last visit to a Customer Service Centre or phone call to a Call Centre for the specified financial year. In 2005–06 changes were made to the index for calculating overall customer satisfaction. In previous years the index focused on channels of service delivery. However, in 2005–06 this index changed to focus on Centrelink’s Business Lines. Due to these changes, the 2005–06 result should not be directly compared to previous fi nancial year results. Appendix 6 contains additional information.

Source: Customer Service Centre Satisfaction Survey and Call Centre Satisfaction Survey, DBM Consultants.

Highlights for 2005–06 RapidConnect launched in September 2005 to connect eligible job seekers to the Job Network

within two days (see page 60)

A Work for the Dole Pilot was conducted between March and October 2005 (see page 60)

During 2005 Centrelink’s Self Service Strategy was developed and implemented (see page 63)

Preparation for the launch of Welfare to Work on 1 July 2006 (see page 58).

DescriptionCentrelink’s customers are the 6.49 million people who, through Centrelink, access government products and/or services designed to assist them in building and sustaining their independence. In 2005, after a review of our operations and the service delivery network, a business line model was introduced and staff and customer service delivery is categorised as:

Working Age Participation

Families and Child Care

Seniors, Carers and Rural

Business Integrity.

The aim of the business line model is to enhance consistency and improve performance of service delivery. (For more information about the business line model see page 80)

Whether those seeking assistance from Centrelink face particular barriers such as speaking a language other than English as their first language, living in a remote community, being in a crisis situation, dealing with substance addiction, or supporting someone with an illness or injury, Centrelink seeks to offer solutions that reduce the complexity of accessing government services. It is the role of

Centrelink staff to work with and understand customers’ circumstances and to connect customers with the right programme, or combination of programmes that respond to their needs.

Centrelink continues to focus on service delivery arrangements that are tailored to customer needs, expectations and preferences. Centrelink recognises that these can typically be characterised as:

Just let me do it—when it is more convenient for the customer, and there is minimal risk to government outlays, customers should be able to use self service (for example, the internet, natural language speech recognition)

Help me—when a customer may be able to conduct their business partially using self service, but also requires personal assistance to achieve a positive outcome

Relate to me—when there is a need for a service approach that provides a ‘personfocused solution’ based on a good understanding of the customer’s circumstances and needs at the time (for example, customers requiring intensive assistance to achieve workforce participation).

Strategic objectives Deliver the Welfare to Work agenda (see page 58)

Respond to customers' needs and expectations consistent with government policy (see page 61).

Deliver the Welfare to work agendaWelfare to WorkThe Welfare to Work measures, announced in the 2004–05 Budget, meant significant change to the work of Centrelink. These changes related to policies and programmes being implemented from 1 July 2006. The programmes are administered mainly by the Department of Employment and Workplace Relations (DEWR), but also by the Department of Families, Community Services and Indigenous Affairs (FaCSIA), the Department of Education, Science and Training (DEST) and the Department of Human Services (DHS). The changes represent an investment of over $600 million in Centrelink over four years, affect 43 per cent of current Centrelink information technology (IT) systems and involve adjustments to current processes as well as new business.

A Centrelink taskforce was set up to oversee and coordinate the range of required Welfare to Work activities within the organisation. Work involving IT was overseen separately by the Welfare to Work IT Programme Office. The Taskforce worked with relevant Centrelink business teams and their policy department counterparts to clarify policy details and systems requirements for individual measures. The Welfare to Work Taskforce supported Centrelink’s involvement in a robust whole of government governance process led by DEWR.

The initiative required a significant level of new interactions between the IT environments of Centrelink, DEWR, FaCSIA, DEST and the Department of Immigration and Multicultural Affairs. To facilitate the key interaction between DEWR and Centrelink systems, a governance model for interdepartmental collaboration was implemented to ensure risk was effectively handled and that IT capabilities underpinning the initiative were delivered in an integrated and effective manner. A programme of joint systems development and testing between DEWR and Centrelink was instituted to ensure successful inter-agency delivery of IT capability.

Internal Centrelink governance for Welfare to Work included an Executive Committee, chaired by the Deputy Chief Executive Officer, Stakeholder Relationships, and a National Key Stakeholders Committee meeting held monthly, that served as an important information exchange forum. A strong risk assessment strategy and project assurance framework underpinned management of the

programme. The Taskforce’s fortnightly newsletter and intranet site kept staff up to date with progress and issues.

Given the scope of changes, the training programme was significant and delivered in the following four stages over seven months:

change management training

core skills training

policy training

Technical training.

All effort was made to train staff that have face-to-face contact with working age customers by 1 July 2006. Training will continue on an ongoing basis throughout 2006. Staff assisting non-working age customers also received overview sessions.

A targeted mailout from March 2006 to approximately two million working age customers, explained the impact of the changes and updated customers on other existing products.

Recognising that many Centrelink customers may contact community groups to seek clarifi cation about the reforms, a community pack was developed with information about the changes, including support services, scenarios, an explanation of terms, and questions and answers. Centrelink’s Call Centres also supported enquiries arising from DEWR’s media campaign.

A new compliance framework will start on 1 July 2006 replacing the current breaching regime. To support this new framework, centralised work units in each Centrelink area were established. A feature of these units is a closer working relationship with employment service providers at the local level.

The provision of the new Job Capacity Assessments is a new area of business for Centrelink. Extra specialists, such as Psychologists, Social Workers, Occupational Therapists and Physiotherapists were recruited to support the delivery of over 50 per cent of the total expected assessments in 2006–07. These staff will also supply appropriate pre-vocational interventions under the new Job Capacity Account.

Consultations with the community sector on Welfare to WorkCentrelink undertook a series of consultations about various aspects of Welfare to Work service delivery design and implementation. The consultations with representative groups from the community sector occurred via community reference group meetings conducted by Centrelink, as well as through some specifi c consultations. Participants responded positively about their ability to contribute to shaping the design and content of Centrelink processes and products.

The various reference groups provided input and feedback about the proposed processes and workfl ows, how they might affect customers, issues relating to training of staff, and the language used in communicating the new initiatives to customers and the community.

Further consultation also provided Centrelink with valuable input about improvements to letters and relevant factsheets and the proposed content of staff training packages.

Some of the community sector representatives involved included:

National Council for Single Mothers and their Children

Mental Health Council of Australia

Brain Injury Australia

National Ethnic Disability Alliance

National Association of People Living with HIV/AIDS

Australian Federation of Disability Organisations

National Welfare Rights

Sole Parents Union

Federation of Ethnic Communities Australia

Council on the Ageing.

Parents and Employment GuideVersion three of the Parents and Employment Guide was released in October 2005. The guide supports Centrelink’s Customer Service Advisers in the promotion of participation and Welfare to Work. It includes information on:

recent changes to Parenting Payment

the full range of services provided by Centrelink

‘Looking for work’ and other community resources available to parents.

From 1 July 2006, a range of Welfare to Work communication products will supersede this guide.

Work for the Dole PilotThe Work for the Dole Pilot is a joint DEWR and Centrelink initiative for Parenting Payment customers. The pilot was conducted between March and October 2005 in seven Centrelink Areas to trial two Work for the Dole referral processes—the current referral process via the Job Network and direct referral to Community Work Coordinators. The pilot’s aim was to develop local area strategies and understand how best to engage and retain Parenting Payment recipients in Work for the Dole activities. This included identifi cation of best practice in relation to referral techniques and service delivery, and the most suitable activities for this customer group.

RapidConnectCustomers are assessed through Centrelink’s First Contact Service Offer. Those customers who are job seekers may then move to the RapidConnect category.

RapidConnect was launched in September 2005 to connect eligible job seekers to the Job Network within two days. It was further advanced with the passage of legislation in December 2005, formally requiring activity tested job seekers to link with the Job Network before they would be eligible for income support. These customers must attend an interview with a Job Network member before they can access income support.

Since the introduction of RapidConnect, monthly average referrals of job seekers to employment service providers, including the Job Network, within two working days of their first contact with Centrelink have ranged from 85 per cent to 90 per cent. Data shows that making an initial appointment with a Job Network provider within two days of the initial contact with Centrelink greatly improves the attendance rate of job seekers at that appointment. This allows the job seeker to access employment assistance faster and reduces non-attendance issues for Job Network members.

Rapid ConnectionDuring 2005–06, Centrelink increased focus on promoting the benefits of working to working age customers, in preparing for the implementation of Welfare to Work. Emphasis was placed on offering Parenting Payment and Disability Support Pension customer’s voluntary referrals to employment assistance when appropriate.

From 1 July 2005 to 30 June 2006, Centrelink had almost 600 000 successful contacts with Parenting Payment and Disability Support customers to offer a voluntary referral, and from these, made over 103 000 successful registrations and referrals to the Job Network.

Rapid Connection strategies include offering Parenting Payment and Disability Support Pension customers a voluntary referral to employment assistance at all appropriate face-to-face contacts and through Call Centres. In 2005–06, Centrelink also conducted several Parenting Payment expos to provide customers with an opportunity to discuss their personal circumstances, with the aim of linking them with the most appropriate employment service providers and educational institutions.

A significant number of the 52 500 successful job placements for Disability Support Pension and Parenting Payment recipients between July 2005 and May 2006, as reported by the Department of Employment and Workplace Relations, were made up from Centrelink referrals for these customer groups.

Respond to customer’s’ needs and expectation consistenet with government policyCall CentresCentrelink Call comprises 25 Call Centres within the Call Centre network that deliver a range of government services and payments to Centrelink customers. Centrelink Call also provides specifi c services for customers in remote and regional Australia, for Indigenous customers, and for customers whose first language is other than English. Centrelink Call Canberra provides operational, financial, human resources and technical support.

Call Centre accessIn 2005–06, Centrelink Call Centres successfully handled around 30.77 million calls. Around 23.07 million callers spoke with a Customer Service Adviser, with an overall customer satisfaction rating of 87 per cent for 2005–06. The remainder of the calls were handled through self service applications.

Figure 7: Call Centre successful calls

During the year, the average length of calls remained consistent at around 492 seconds, an increase of 1 per cent on the 2004–05 figures.

Figure 8: Call Centre average length of calls

In 2005–06, the average speed of answer was 160 seconds, a 16 per cent decrease from 2004–05. The 2005–06 result is within Centrelink’s target of 210 seconds.

Figure 9: Call Centre average speed of answer

CorrespondenceIn 2005–06 Centrelink handled 3147 items of ministerial and priority correspondence on behalf of the Minister and Centrelink’s Chief Executive Officer.

In March 2005, a new agreed performance standard was set by the Department of Human Services, with all responses for the Minister’s signature needing to be fi nalised within 12 calendar days.

Customer Service CharterThe Customer Service Charter is Centrelink’s commitment to quality service. It details the service standards customers can expect and how customers can provide feedback to Centrelink. The new

Customer Service Charter was developed after an extensive consultation process to gather views of customer groups (including Indigenous and multicultural customers and those customers who are disadvantaged or at risk of disadvantage), community agencies, peak community bodies, Centrelink staff, and government agencies (including the Department of Human Services, policy departments, and the Commonwealth Ombudsman’s Offi ce).

The Australian National Audit Offi ce, in its 2005 Audit Report on Centrelink’s Customer Service Charter, recommended that Centrelink review its existing Service Charter to include measurable service standards to better inform customers of the level of service to expect; and to provide an improved basis for measuring, monitoring and reporting its performance against those standards. Centrelink agreed with the recommendations and reviewed the Service Charter accordingly.

Centrelink will report internally and externally against the new service charter standards.

Centrelink self serviceCentrelink self service has acted as a catalyst for change, having had a significant impact on the way Centrelink approaches service delivery. During 2005, Centrelink’s Self Service Strategy was developed and commenced. The strategy was designed to map out a way to optimise the benefits that can be delivered to Centrelink customers through self service. It outlines Centrelink’s approach to increasing activity in the self service channel, through technological and product improvements, targeted marketing strategies, customer awareness, and staff training.

Implementation of the Self Service Strategy accelerated a range of key business initiatives that included:

an expansion of the range of self service options, to provide customer convenience and ease of use. This is achieved by enhancing security measures and implementing new online options that allow customers to conduct more business through self service online and over the phone, for example: online claims for families, increased automated telephone options, and facilities for customers to view and update some of their details online without the need to speak to a Customer Service Adviser.

increasing self service awareness and take up through targeted marketing and promotion initiatives involving customers and the broader community

development of clear evaluation and performance criteria to improve current services and complement Centrelink’s existing service delivery channels

exploring opportunities to collaborate with intermediaries, to raise awareness of Centrelink services

integrating and enhancing training and business support for Centrelink staff, to increase awareness of self service and the broader online government environment

Exploring alternative options for on site facilities to access self service in Centrelink and third party organisations.

Self service and the 2006 Commonwealth GamesThe promotion of Centrelink self service was a key priority during the 2006 Commonwealth Games. Centrelink used this opportunity to raise awareness about the range of services and service delivery options available to customers, community and business.

In conjunction with various initiatives associated with the Queen’s Baton Relay and Job Expo series conducted during the 2006 Commonwealth Games, Centrelink established an online services showcase in Melbourne during March. The showcase featured an interactive display of Centrelink

online services and broader Department of Human Services’ agency information. The showcase also featured a series of Go Online Workshops for more than 220 representatives from third party organisations and intermediaries. The showcase was launched by the Minister for Human Services, the Hon Joe Hockey MP, on 24 February 2006.

Self service and studentsCentrelink has concentrated efforts on managing peak demand periods. Traditionally, Centrelink’s workload increases considerably from November through to April each year, due to demand for processing of student claims for Austudy payment and Youth Allowance. During this period more than 43 per cent of all student claims for the year are lodged by customers for processing.

A significant number of strategies were implemented to promote the online channel for youth and student customers. These strategies were underpinned by ‘Student Online’ undertaken in conjunction with the Department of Human Services. Further activities included:

Centrelink website enhancements

extra marketing and communication activities involving a national radio and print media focus

enhanced staff awareness and training

Collaboration with educational institutions to promote self service.

Self service promotionsIn March 2006 Centrelink commenced a project to promote the use of self service channels (Interactive Voice Recognition (IVR) and web) to all customers. The project placed Self Service Advisers in offices and provides personal computers and IVR phones to targeted offices, as well as helpdesk facilities.

The Self Service Adviser role is designed exclusively to promote self service, assist customers in the registration process, and demonstrate the use of IVR and web services. There are approximately 160 Self Service Advisers across the Centrelink network. The project will continue until 30 June 2007.

Early results show that there has been a increase in the number of customers registered for self service, as well as the number of transactions completed.

Centrelink AgentsCentrelink has a network of over 560 Agents and Access Points in rural, regional and remote Australia, which provide customers in and around communities with access to phone and fax services, free of charge, to conduct their Centrelink business.

The 563 sites comprise:

183 Community Agent sites in remote areas (including 50 new sites which were part of the Agents Expansion Project)

eight Indigenous Access Points in remote areas

191 operational Agent sites in rural locations—an increase of one site in the past year

181 Access Point sites in rural locations, an increase of 15 sites in the past year.

Centrelink is continuing to rollout broadband internet capability to its network of Agents Australia wide. To complement the introduction of this high speed access that may encourage the take up of Centrelink self service options, new computers were rolled out to the Agent network.

Family assistanceAs of the end of March 2006, Centrelink successfully delivered:

Family Tax Benefi t Part A annual supplement payment of up to $613.20 per child to approximately 1.75 million families

Family Tax Benefi t Part B annual supplement payment of up to $300 per eligible family to approximately 1.4 million families

a special one-off payment of up to $600 per child to approximately 260 000 families.

Family assistance and Medicare shortened claim formFrom 31 March 2006, a shortened four-page customer claim form became available to cover a range of family assistance payments and Medicare related assistance. The new form replaces a 32-page family assistance form and Medicare form and includes:

Maternity Payment

Maternity Immunisation Allowance

Family Tax Benefi t

Medicare Newborn Child Enrolment

Medicare Safety Net registration

Medicare Child Immunisation registration with the Australian Immunisation Register.

Assisting families to reduce the risk of overpaymentDuring 2005–06 Centrelink introduced a number of strategies to assist families reduce the risk of being overpaid:

20 000 families considered at high risk of overpayment of Family Tax Benefi t were contacted to provide assistance with estimating income, information about how the family assistance programme works, and their choices regarding reporting of income estimates

Since 1 January 2006, family assistance debt recovery has been improved. Faster repayment of debts has been negotiated with families owing more than $3000 in Family Assistance for more than 12 months. Recovery rates for family assistance reconciliation debts will also increase from 1 July 2006, with an increase from $20 and $40 per fortnight to $30 and $60 per fortnight respectively

Approximately 1.4 million families received a letter during May 2006 giving them the choice to provide their own income estimate or, alternatively to adopt one that is calculated for them by the Family Assistance Office.

HomelessnessCentrelink’s response to homelessness ensures an integrated service approach to customers who are homeless, or are at risk of homelessness. Centrelink is involved in a diverse range of activities to improve service delivery to people who are homeless, recognising the unique needs of this customer group. A variety of programmes and initiatives are in place to assist customers access income support, which will enable them to stabilise their accommodation and enhance their opportunities to participate in work, education and social aspects of life.

Centrelink Community OfficersThere are approximately 100 Centrelink Community Officers (CCOs) who provide services to people who are homeless. CCOs assist customers who have diffi culties in accessing mainstream Centrelink services and require alternative approaches. The key element in the CCO approach is to provide out-services, for example at rehabilitation centres, psychiatric hospitals, prisons, hostels, refuges, drop in centres and organised meeting places.

Centrelink Homelessness Contact OfficersCentrelink Homelessness Contact Officers, located in Centrelink Customer Service Centres, Call Centres and Customer Service Support Centres, have a special interest in and a level of knowledge and expertise on issues of homelessness. They possess a thorough understanding of social issues that may impact on individuals and families. In the local setting, they provide support and information to other staff when dealing with customers who are homeless.

Household Organisational Management Expenses (HOME) Advice ProgramThe HOME Advice Program is a partnership between Centrelink Social Work Services, the Department of Families, Community Services and Indigenous Affairs, and designated community agencies. The programme uses an early intervention approach in the prevention of family homelessness. It operates in eight Centrelink Customer Service Centres, one in each state and territory. The aim of the programme is to provide early intervention and prevention services by engaging families who face diffi culties in maintaining their accommodation, due to a range of personal, family and/or financial circumstances.

Designated Centrelink Social Workers work with community agencies to provide support to families in maintaining secure, appropriate and safe accommodation. The community organisations assist in resolving accommodation issues, assisting with budgeting and financial matters, providing support and counselling to families, developing pathways to training and employment, and providing information and facilitating referrals to other services.

Improving service deliveryCentrelink is committed to improving the quality and consistency of its service and providing more service delivery choices for the Australian public. This mirrors the expectations of the Australian Government and the Department of Human Services and supports one of the objectives of IT Refresh, to provide a platform for improved online delivery of services and an infrastructure that can be used by other government agencies.

The principles guiding Centrelink’s approach to service delivery strategy are convenience, integration, access, equity and value for money. To achieve these objectives, Centrelink has:

analysed and managed customer demand across all Centrelink’s service delivery channels, expanding what is already a well developed capability in the call network

optimised the use of the self service channel, to manage times of peak customer demand

applied a dynamic costing model, to improve the evidence base for channel costs, which can guide decision making

improved the quality and accessibility of business intelligence about customers, to inform our business decisions

developed the standard service delivery model, to describe the service offers available in each service delivery channel

Introduced Business Line management, to provide a consistent service offer to all customers.

Application of the service delivery strategy and associated service delivery framework and model will ensure continued Efficient and effective service delivery of Centrelink services across Australia.

Indigenous Servicing StrategyCentrelink’s Indigenous Servicing Strategy underpins its Statement of Commitment to Reconciliation and guides its Indigenous operations. The strategy was developed in 2000 to provide a framework to identify issues arising in the external and internal environment for the benefi t of Indigenous Centrelink customers. It also provides a focus on strengthening partnerships with key stakeholders, Indigenous communities and policy departments and reviewing access and delivery of Indigenous services. Some noteworthy achievements over the past fi ve years include:

implementation and expansion of the Remote Area Service Centres

further expansion of Centrelink’s Indigenous Community Agents and Access Points

a National Indigenous Employees Plan, designed to improve the employment circumstances and future prospects of Centrelink’s Aboriginal and Torres Strait Islander peoples

implementation of Centrelink’s Indigenous Scholarship Programme, to assist ongoing Indigenous employees gain qualifi cations that will develop their potential and increase their career prospects

achievement of identified priority goals.

An updated Indigenous Servicing Strategy has been developed for 2006–09, to build further on past achievements and reflect the organisation’s current Strategic Directions.

Indigenous servicesCentrelink, policy departments and other agencies work in practical ways with Indigenous people and their communities to achieve integrated services to improve economic and social participation for Indigenous Australians.

Indigenous Customer Service Advisers work directly with Indigenous customers to access Centrelink services. They deliver appropriate participation outcomes and a full range of services in a way that meets their needs. They are able to negotiate and facilitate service options and improve the number and quality of services delivered. By working with customer service staff, businesses, communities, and government agencies it is possible to identify the barriers to participation.

Indigenous Service Officers (ISOs) lead teams to facilitate appropriate participation and income support outcomes for Indigenous customers. ISOs work within Centrelink, and with businesses, community providers and government, to facilitate appropriate participation and income support outcomes for Indigenous customers. They work with Centrelink staff to develop strategies to resolve and improve customer outcomes, and provide advice and assistance to Centrelink staff on strategies that are sensitive and culturally appropriate. They ensure effective communication with Indigenous customers and communities, encourage access, and promote self service and channel choice for services offered by Centrelink and other agencies. When strategies are developed for the delivery of new business to customers, ISOs ensure that Centrelink staff understand the local geographical and cultural diversities and their impact on Indigenous people.

Remote Visiting Teams travel to remote areas throughout Australia to service those customers who do not have direct access to Centrelink programmes and services due to their location.

National Indigenous CoalitionThe National Indigenous Coalition is the key advisory group for Centrelink operations relating to Indigenous issues. It is the internal governance mechanism responsible for identifying Indigenous service delivery issues and developing strategies and initiatives to enhance service delivery.

The National Indigenous Coalition meets three times a year to discuss strategic issues of importance to Indigenous Australians and provides input to Centrelink’s management and business directions.

In 2005–06, National Indigenous Coalition members participated in the first Indigenous cross agency meeting involving Department of Human Services agencies and provided extensive input from an Indigenous perspective to the Welfare to Work Taskforce.

Remote Area Service CentresCentrelink has seven Remote Area Service Centres in the following locations:

Queensland (Qld)—Yarrabah, Western Cape (Weipa), and northern peninsula area (Bamaga)

Western Australia (WA)—Laverton, Halls Creek and Newman

Northern Territory (NT)—Tiwi.

Three further sites are being progressively implemented in Meekatharra (WA), Fitzroy Crossing (WA), and Yuendumu (NT).

The main aim of the centres is to improve the delivery of Australian Government services to remote communities, particularly indigenous customers. The centres provide an important face-to-face delivery point, and assist to improve customer awareness of income support requirements, reduce debt levels, and motivate recipients to participate in education, training and employment.

Statement of Commitment to ReconciliationTo mark the fi fth anniversary of the Statement of Commitment to Reconciliation, Centrelink held a ceremony celebrating the achievements of the past fi ve years. Among the first of its kind for Australian Government departments, the statement outlines Centrelink’s commitment to working in practical ways with Aboriginal and Torres Strait Islander peoples and their communities, policy departments and other agencies, to achieve integrated services to improve economic and social outcomes for Indigenous Australians. The ceremony included a representative from Reconciliation Australia.

One highlight of the ceremony was the presentation of a plaque to the Chief Executive Officer of Centrelink, Jeff Whalan, by the National Manager of the Indigenous Services Branch. The plaque recognised the traditional owners of the land and was distributed to each Area Offi ce, Customer Service Centres and Call Centres.

An updated Statement of Commitment to Reconciliation was signed in May 2006 during Reconciliation Week. Represented at the ceremony was the Minister for Human Services, departmental and agency senior executives, the Department of Human Services Indigenou Ambassador and local community groups. Each agency signed their own Statement of Commitment to Reconciliation.

Department of Human Services’ Cross Agency Indigenous TaskforceIn September 2005, the Minister for Human Services, the Hon Joe Hockey MP; Secretary of the Department of Human Services (DHS), Patricia Scott; and Centrelink’s Chief Executive Officer, Jeff Whalan travelled to north Queensland and the Northern Territory to observe service delivery arrangements for Indigenous customers in remote Australia. Following the visit, a taskforce was formed with representatives from each Human Services agency. The taskforce was directed to work on a number of service delivery initiatives designed to improve access to health and welfare services for Indigenous customers, particularly in remote Australia. Centrelink coordinates the taskforce on behalf of DHS.

Cross DHS agency service delivery measures started in December 2005 when Centrelink’s Indigenous Call Centre in Palmerston (Northern Territory) began providing basic information about Medicare Australia, Australian Hearing, CRS Australia and the Child Support Agency to customers

calling from within the Northern Territory. A ‘warm transfer’ arrangement was initiated, providing customers with direct phone access to these four agencies at the customer’s or Centrelink Customer Service Adviser’s request. A warm transfer involves the Centrelink Customer Service Adviser (CSA) connecting with another DHS agency while thecustomer is still on the line.

Another feature established as a result of cross DHS agency cooperation is the ability for the CSAs from the Indigenous Call Centre to remain on the phone with the customer and the receiving agency. In this way, the CSA can assist with any language or communication barriers the customer may have.

From April 2006, the cross DHS agency service offer through the Indigenous Call Centre network was expanded to include customers calling from Western Australia and Queensland, ensuring customers across northern Australia receive improved access to DHS agencies.

During 2005–06, the Indigenous Call Centre offered approximately 800 customers a warm transfer to Medicare Australia, Australian Hearing, CRS Australia and the Child Support Agency.

To improve the cross DHS agency face-to-face service channel, Centrelink Customer Service Centres (CSCs) and Remote Area Service Centres (RASCs) in Queensland, the Northern Territory and Western Australia now provide services to customers on behalf of Medicare Australia and Australian Hearing. These services were progressively rolled out from

December 2005 and include:

assistance to customers, on behalf of Medicare Australia, to complete enrolments, change of name and address, requests for new or replacement cards, and general information

Assistance to customers, on behalf of Australian Hearing, to replace hearing aid batteries, provides a return and collection service for faulty hearing aid equipment, and provide general information.

In 2005–06, 18 CSCs and RASCs in Queensland, the Northern Territory and Western Australia provided Australian Hearing services and 13 of those offices also provided access to Medicare Australia services. In addition, visiting services to remote Indigenous communities were coordinated at the local level through DHS cross agency working groups.

Agencies worked and travelled together wherever possible, providing a new level of holistic service for customers living in remote Australia.

Future directions for Centrelink include continued collaboration with DHS agencies and communities across remote Australia to build on further opportunities for cross DHS agency cooperation and community collaboration.

DHS Indigenous Ambassadors ProgrammeThe Department of Human Services (DHS) Indigenous Ambassadors Programme was initiated by the Minister for Human Services, the Hon Joe Hockey MP, in September 2005.

At present there are two Indigenous Ambassadors—Rugby League legend, Arthur Beetson and Olympic athlete, Kyle Vander-Kuyp. More Ambassadors will be joining the programme in the future.

The role of the Ambassadors is to visit and talk face-to-face with Aboriginal and Torres Strait Islander peoples around Australia. Their visits help build awareness of Australian Government services and provide valuable insight into how these services are accessed at the ground level. For more information, visit Centrelink’s website at www.centrelink.gov.au and look under ‘Indigenous Programmes’ from the ‘Indigenous Australians’ section.

Telstra Message BoxIn 2005–06, the Telstra Message Box was rolled out throughout the Centrelink network. The Telstra Message Box is a service available to homeless or transient people living in Australia. A voicemail

box is allocated to enable individuals to contact family and friends. Message box holders are able to retrieve their messages free of charge. Access to this service is available on request by individuals at their local Customer Service Centre.

Multicultural services

Multilingual Call—‘we speak your language’The Multilingual Call Centre currently receives and handles an average of 41 452 calls a month, with an average waiting time of around 154 seconds. During 2005–06 call traffi cincreased by about 16 per cent on the previous year.

Centrelink Multilingual Call was created to provide a phone service for multicultural customers. The service has nearly 180 bilingual Customer Service Advisers who assist customers conduct their business in their own language over the phone.

Centrelink Multilingual Call is an integral part of Centrelink’s strategy to deliver quality services to customers who require language assistance. Working with contracted interpreters, Centrelink provides a ‘gateway’ to services for customers and potential customers who speak over 200 different languages.

The Multilingual Call Router Interactive Voice Recognition (IVR) application is a speech enabled IVR service for customers contacting the Call Centre. It allows Centrelink’s multicultural customers to ‘speak’ the language service they require through the use of phonetically identified language selection using Australian English grammar. The caller is then routed to the appropriate language skilled Customer Service Adviser for assistance.

This application has improved service to Centrelink’s multicultural customers, who are able to indicate the language service required at the beginning of their interaction with Centrelink without contacting a staffed reception point. It also identifi es English language callers, notifi es them that this is a ‘language’ service only, and prompts them to call the 13 number applicable to their benefi t. This facility within the Multilingual Call Router application has reduced customer wait times, as ‘language’ customers are not competing with callers in the queue who have called Centrelink Multilingual Call inappropriately.

In 2005–06, the Centrelink Multilingual Call Centre hosted a range of visitors from both Australian and overseas organisations interested in exploring ways of improving their service delivery to customers who require language assistance—refer to Appendix 11.

Breaking down language barriersCentrelink has developed a range of communication strategies to meet the information needs of multicultural customers:

more than 100 translated publications

six printed booklets available in up to 34 languages, which provide an overview of information for newly arrived migrants and refugees, people who are looking for work, families, retirees, young people and students, people who have an illness or disability, and carers

online printable translated factsheets on a range of topics

News for Seniors, a quarterly publication, translated into 16 languages and available online

fortnightly SBS radio broadcasts with national coverage in excess of 95 per cent of mainland Australia, and distributed to 114 community radio stations covering more than 570 radio programmes

weekly editorials syndicated to 44 national multicultural newspapers in 28 languages

the journey, a quarterly newsletter distributed to over 1300 community agencies across Australia, providing valuable and timely information on Australian Government programmes affecting multicultural customers

Welcome to Centrelink CD-ROM, an introductory audiovisual presentation of payments and services available in nine new and emerging languages

free interpreting services

Centrelink Multilingual Call, which enables customers to speak to a Centrelink Officer in their preferred language.

Language servicesCentrelink manages a national panel of 2400 contract interpreters who assist staff to communicate effectively with customers.

During 2005–06, Centrelink provided the following language services:

55 775 pre-booked on site interpreter appointments

24 894 pre-booked phone appointments

27 932 ‘on demand’ phone interpreter requests

Translation of 4192 customers’ personal documents.

Sessional interpreter services, sourced through a contract provider, are currently provided in 34 languages for an average of 2442 hours per week in 64 Centrelink Customer Service Centres where demand for language assistance is high.

Working with multicultural customers and communitiesOver the past year, Centrelink has collaborated widely with many communities, government and non-government agencies to improve service delivery and outcomes for customers from diverse cultural and linguistic backgrounds.

Service delivery was enhanced with a number of initiatives including:

a profi le of rural customers, to identify the need for increased targeting of multicultural service delivery strategies

an Interactive Voice Recognition system established by Centrelink Multilingual Call, to reduce customer waiting times and increase capacity to respond to smaller language groups

regular meetings with the Department of Immigration and Multicultural Affairs to collaborate in solutions to settlement related issues

timely online access to Tax File Numbers, in collaboration with the Australian Taxation Office, to ensure refugee families receive family assistance in a timely manner

a review of the refugee servicing model to accommodate changes related to Welfare to Work

a range of profi les of refugee communities to assist with better service delivery

an African Liaison Unit to assist with service delivery to refugees and their families and to develop close links with African refugees and their advocates to improve dealings with Centrelink

a project to investigate family breakdown in African communities in central north Queensland, and service delivery issues for African communities in South Australia

The development of communication and training products.

Psychology servicesThe Centrelink Psychology Service is a network of over 380 Psychologists (234.7 full-time equivalent) across the national Centrelink network of over 400 offices.

Approximately 7 per cent of Psychologists employed by Centrelink have a minimum of six years academic training and hold a Masters or PhD in Psychology. All are registered with their state/territory health professional registration board.

In 2005–06, Centrelink Psychologists provided professional clinical assessments for 150 000 customers (an average of 636 assessments for each full-time staff, representing a productivity standard of over 70 per cent).

Centrelink Psychology Services assist Centrelink’s most vulnerable and ‘at risk’ customers.

A Centrelink Psychologist may be able to:

assist a customer identify or clarify what they need to do to improve their ability to gain and keep employment, to increase their level of participation, and to improve their personal situation in general

Refer customers to relevant programmes, Centrelink services and/or other resources in the community to gain assistance.

Psychologists have expertise in assisting customers with mental health disorders, substance abuse disorders, multiple and severe barriers to participation and behavioural problems, and intellectual, cognitive or learning disorders. In preparation for Welfare to Work implementation, Centrelink Psychology Services developed and delivered professional training to the Centrelink Job Capacity Assessors. This incorporated the professional principles and framework of professional practice, along with supervision guidelines and quality assurance.

From 1 July 2006, Centrelink Psychologists, Social Workers, Occupational Therapists and Physiotherapists will deliver Job Capacity Assessments.

Social Work servicesThe Centrelink Social Work Service has approximately 450 Social Workers working in over 300 locations around Australia—in Centrelink Customer Service and Call Centres, in both metropolitan and rural areas. The Social Workers provide high quality professional counselling, support and referral services to customers in crisis, and/or to customers with complex problems, many of which can be longstanding.

311 244 referrals were made to Centrelink Social Workers this year. They assisted, for example:

young people without adequate family support

people affected by family breakdown or domestic violence

people who were homeless or at risk of homelessness

customers in crisis

people who were out of the workforce for a long time, and who required extra assistance in meeting participation requirements

People with complex issues, including substance abuse, mental health issues, and/or diffi culties with family or other relationships.

In addition to their professional assessment and intervention with customers, Social Workers also contributed to staff training, provided case consultancy and guidance to staff on customer issues, and

responded to requests for assistance in disaster recovery. For examples of social work involvement in disaster recovery, see ‘Emergency management’ on page 32. To ensure that Centrelink has a ready, responsive group of Social Workers (particularly for off shore work), selected Social Workers participated in specifi c training to enhance their knowledge and skills in disaster recovery.

The Social Work Service also improved its service delivery approach, in response to the Welfare to Work changes (from 1 July 2006). This model is designed to ensure the most vulnerable customers who are at risk of not meeting their participation requirements have ready access to a Social Worker.

In addition, the Social Work Service has been active in providing suicide awareness training, in working with people affected by the drought, contributing to social work education (for example, by providing fi eldwork placements for social work students), and undertaking specifi c project work with at risk young people.

Student Financial Supplement SchemeIn the 2005–06 Budget, the Australian Government announced a change to administration arrangements for the repayments of outstanding student loans under the now closed Student Financial Supplement Scheme. Contractual arrangements between the Australian Government and the Commonwealth Bank of Australia ceased on 1 December 2005. At this time, the Australian Government bought back all outstanding Student Financial Supplement Scheme loans held by the bank.

From 1 December 2005, people who want to make voluntary repayments or discuss their loan details do so through Centrelink. The new arrangements have not altered the terms of the existing contracts, but have relocated responsibility for loan administration.

Student Online ClaimsStudent Online Claims enable customers to lodge claims for student payments online.

Implemented in April 2005, Student Online Claims allows students to access Centrelink’s secure website and provide details via a web application to claim Youth Allowance and Austudy. In June 2005, Student Online Claims were extended to allow New Apprentices access to these claims.

The overall capability draws on work undertaken by IT Refresh and was expanded during 2005–06 to offer online claims for payments to families.

Claims submitted online result in a significant reduction in the number of contacts between Centrelink and the customer during the claiming process. This assists the Centrelink service delivery network to better manage heavy workloads during the peak new claim processing period for students, which runs from November to April each year and provide better quality assistance to customers with more diffi cult/complex issues.

Customer Account OnlineAs part of Centrelink’s Self Service Strategy, Customer Account Online provides a facility where customers are able to view and update a range of their data via the internet. By opening up access to a broader range of services through the online channel, Centrelink customers are given more choices and convenience.

Customer feedbackCentrelink receives customer feedback, both solicited and unsolicited, through many sources including Centrelink’s Customer Relations Units, Customer Service Advisers, customer satisfaction

surveys, community groups and peak bodies, the business sector, external review bodies such as the Social Security Appeals Tribunal and the Ombudsman’s Offi ce, and customer advocacy groups such as Welfare Rights.

Customer feedback received through these sources is used to:

identify and resolve service delivery problems

improve the customer’s experience in dealing with Centrelink

contribute to Centrelink business planning and performance reporting

inform future customer service design

Inform policy development.

Centrelink conducted a complaints culture survey (in conjunction with the Society of Consumer Affairs Professionals and TMI Services P/L) to assess the level of Centrelink staff satisfaction with Centrelink’s complaints handling system. Results from this survey, including comparisons with results from best practice organisations, are being used to develop a strategy to enhance Centrelink’s service complaints management.

Audit of Centrelink’s customer feedback systemsIn 2005–06, work continued in response to recommendations from the Australian National Audit Office’s performance audits of Centrelink’s customer feedback systems.

Five audit reports, containing a total of 44 recommendations, were tabled in Parliament in March 2005. The response to these recommendations was a major programme of work in the later part of 2004–05 and throughout 2005–06. A body of work is continuing in relation to the 44 recommendations. For example, Centrelink undertook a full review of customer feedback systems from September 2005 to January 2006. This review considered how customer feedback is gathered, reported and used, and made a series of recommendations on how the programme could be further improved to provide better information to support both service recovery and service delivery design and improvement.

Once implemented, these recommendations will deliver:

improved coordination of, and clearer accountability for, customer research

better alignment of Centrelink’s internal and external reporting and information structures

an integrated customer feedback recording and reporting system

improved capacity to gather and analyse feedback on Centrelink’s self service facilities

The ability to use Centrelink’s major rolling survey programme to explore a greater range of service delivery issues to support major change and ongoing service delivery improvement.

Customer Relations UnitsCentrelink’s network of Customer Relations Units (CRUs) is a key element in its service recovery arrangements. CRUs provide a point of contact through which customers can give feedback to Centrelink, including complaints, compliments, suggestions and requests for general information. Customers can provide this feedback through several channels:

by phone on the Freecall™1800 050 004 Customer Relations Line

online through the Centrelink website

through Tell Us What You Think customer comment cards

By personal contact with Centrelink staff.

In 2005–06, Centrelink CRUs recorded 208 807 customer contacts, compared with 211 327 in 2004–05. This is a decrease of approximately 1.2 per cent. Of these contacts:

133 365 were general enquiries

38 175 were complaints and there were a further 29 971 Call Centre busy contacts (out of approximately 31 million calls handled each year)

5034 were compliments

1303 were tip-offs

231 were Intent to Claim contacts

728 were suggestions.

General enquiries made up 63.87 per cent of contacts received by CRUs. These enquiries covered many aspects of Centrelink business (for example, opening hours, service availability, Office addresses and phone numbers), as well as matters relating to other government departments, businesses and community organisations.

Complaints (including Call Centre busy contacts) made up 32.64 per cent of all contacts received through CRUs in 2005–06. Depending on the nature of the complaint, remedies provided to customers extended from an apology, correction to a customer’s record or a review of a customer’s claim, through to arrangements for an interview or specialist follow up support in more complex cases.

As a proportion of total complaints in 2005–06, Centrelink received more service related complaints (about the quality of service in areas such as a delay in payment) than meritbased complaints (relating to the correctness or reasonableness of decisions in relation to, for example, payment eligibility).

The top five complaint categories by volume of complaints were:

unacceptable service

disagreement with legislation/policy

Centrelink advice misleading/incorrect

delay in new claim

Customer record incorrect.

Data from customer feedback, including complaints, are regularly provided to Business Lines in Centrelink to inform planning and service improvement strategies. Centrelink uses the data to identify feedback trends that might signal systemic issues requiring a service delivery and/or policy response. For example, feedback from customers through the Customer Relations line is used to identify opportunities to improve processes to notify customers of changes to their payment arrangements, and to improve communication processes to inform customers of their entitlements.

Based on the complexity a three tier scale is used to classify contacts, with 90 per cent of complaints having to be resolved within the specifi ed time standard. Tier 1 contacts must be resolved in one working day, Tier 2 within three working days, and Tier 3 within fi ve working days (see Table 7). In 2005–06, Centrelink’s overall performance against the three tiers was 90.76 per cent of complaints resolved within standard. Timeliness of complaints handling met performance targets for resolution of Tier 1 and 2 complaints. However, resolution of Tier 3 complaints fell 8.6 per cent below the 90 per cent timeliness target due to an increase in more complex complaints requiring extra time for resolution.

Table 7: Customer and community complaint outcomes

Key Performance Indicators—internal measures 2005-06 2004-05

Key Performance IndicatorTarget

(%)

Result

(%)

Target

(%)

Result

(%)

Proportion of Tier 1 complaints finalised within one working day 90 99.88 90 90.90

Proportion of Tier 2 complaints finalised within three working days 90 91.01 90 93.16

Proportion of Tier 3 complaints finalised within five working days 90 81.40 90 94.52

Customer surveysCentrelink continues to monitor the quality of service delivery through a suite of regular surveys. These surveys not only help to ensure a continuing focus on improving customer service, but also identify emerging customer needs and preferences. Over the year, these surveys captured the views of around 79 600 customers. See Appendix 6 for information to assist with interpretation of the customer survey programme data outlined in this chapter.

The Community Attitudes Survey assesses the Australian community’s perceptions about Centrelink, including both customers and non-customers, 18 years and over. This survey gathers data on overall familiarity with Centrelink and its services and how it is perceived in the general community. This information is utilised for multiple purposes, including understanding of what infl uences community perceptions of Centrelink and further understanding customer satisfaction data.

Centrelink’s national customer survey is conducted annually and focuses on customers’ global evaluation of Centrelink. The key objectives of this survey include:

examining customer perceptions of Centrelink’s corporate image and reputation, as key drivers of customer satisfaction with the organisation as a whole

monitoring the overall quality of Centrelink’s service deliveryfi ve

Gauging customers’ views on key and emerging issues (for example, service delivery options).

Two extra surveys focus on the overall quality of service offered by the two main service delivery channels. These surveys examine customer perceptions of the quality of service provided the last time they phoned a Centrelink Call Centre or visited a Centrelink Customer Service Centre. Results, published internally each month, are used to monitor performance at the local level.

When necessary, extra research is commissioned to monitor the quality of service delivery. This typically occurs when a greater level of detail is needed in relation to service delivery issues highlighted in the suite of regular surveys. Two extra surveys focus on the overall quality of service offered by the two main service delivery channels. These surveys examine customer perceptions of the quality of service provided the last time they phoned a Centrelink Call Centre or visited a Centrelink Customer Service Centre. Results, published internally each month, are used to monitor performance at the local level.

When necessary, extra research is commissioned to monitor the quality of service delivery. This typically occurs when a greater level of detail is needed in relation to service delivery issues highlighted in the suite of regular surveys.

Community attitudesCentrelink’s community attitudes survey indicates that favourability towards Centrelink has increased marginally with 54 per cent of those surveyed in June 2006 reporting their overall opinion of Centrelink was either ‘very favourable’ or ‘mainly favourable’. The biggest difference in the latest survey is an increase in favourability of opinion among Centrelink customers, from 67 per cent in December 2004 to 72 per cent in June 2006.

The major infl uences on people’s impression of Centrelink remained consistent over the last two surveys, and included direct contact with Centrelink as a customer (61 per cent), family and friends (41 per cent), and stories or interviews on television (37 per cent). Of the four in 10 people who recalled stories or interviews in the media about Centrelink (41 per cent), just over a quarter (25 per cent) indicated their overall opinion of Centrelink had become more favourable as a result.

There was a very high level of awareness that Centrelink provides assistance during life changes. This was true whether the assistance described was for those who had a baby, became separated or widowed (90 per cent), became seriously ill or disabled (89 per cent), or were studying or training (84 per cent). A considerable number were also aware that Centrelink provides a wide range of government services in one place (79 per cent), and that Centrelink refers people in crisis to community groups (75 per cent). There was a significant increase in awareness that Centrelink is responsive to events in the local community such

as natural disasters, closure of major sources of employment, or other crisis situations. This awareness increased to 51 per cent in 2006, up from just 34 per cent in 2004.

The incidence of having internet access is higher among non-Centrelink customers (80 per cent) than Centrelink customers (59 per cent). Close to six in 10 (58 per cent) of all respondents had used the internet and around 74 per cent had used an automated phone service to conduct business in the past.

Customers’ global evaluation of CentrelinkIn the December 2005 annual survey, 82 per cent rated the overall quality of Centrelink’s people, services and information as either ‘very good’ or ‘good’. The result has remained stable since 2003.

Figure 10: Overall quality of Centrelink service(a)

(a) The percentage of customers who rated Centrelink’s overall quality of service as ‘very good’ or ‘good’.

Source: Centrelink national customer satisfaction survey, Millward Brown and DBM Consultants.

Customer satisfaction by targeted business lineRatings for the overall quality of service during a customer’s last contact are not evenly distributed between business lines and some key demographics. Table 8 highlights the variation in ‘very good’ and ‘good’ ratings for a customer’s last visit to Centrelink or contacted a Call Centre during 2005–06.

Table 8: Customer satisfaction by targeted business line and key demographic

Business line Result %

Family and Child Care 86.0

Seniors, Carers and Rural 90.7

Working Age Participation 84.6

Demographic

Indigenous 81.2

Diverse cultural and linguistic background 83.3

(a) The percentage of surveyed customers who rate the overall quality of service at their last contact as either ‘very good’ or ‘good’. Note: The results for Indigenous and Diverse Cultural and Linguistic Background (DCALB) customers are based on a relatively small sample of customers. 4634 Indigenous customers participated in the Customer Service Centre and Call Centre surveys. 8408 DCALB customers participated in the Customer Service Centre and Call Centre surveys. The published results reflect the views of surveyed Indigenous and DCALB customers who rated the overall quality of service at their last visit to a Customer Service Centre or phone call to a Call Centre as ‘very good’ and ‘good’.

Centrelink will continue to focus on improving the service experience for all business lines and key demographics with a particular focus on areas below 86 per cent.

Eight key areas of focusAnalysis of data reported by customers in Centrelink’s customer survey programme over a number of years has shown that there are eight areas in which our customers have told us we need to improve.

1. Staff capability—attitude and knowledge

2. Promptness and consistency of service delivery

3. On-paper communication

4. Management of mistakes

5. Aligning future service delivery arrangements with customer expectations and preferences

6. Access to and integration of services

7. The Centrelink Customer Service Centre environment

8. Working with our customers and the broader community to achieve positive outcomes.

For recent survey results against each of these eight key areas of focus, see Appendix 9. While a number of these results are extremely positive, improvements still need to be made in a number of areas.

In 2005–06 Centrelink undertook a number of initiatives to improve performance in relation to the eight areas:

Implementing business lines—in early 2005 Centrelink undertook a review of its internal operations, including an examination of arrangements in the service delivery network. As a result, a business line model was implemented, defi ning customer groups as Working Age Participation; Families and Child Care; and Seniors, Carers and Rural. Staffi ng and customer service delivery is arranged along these business lines and a fourth business line, Business Integrity. This model enables Centrelink to deliver services consistently

Implementing a Standard Service Delivery Model—this model aims to enhance the consistency of service delivery across the Centrelink network by prescribing the range of services available to customers in each channel of service delivery

Improving demand forecasting—Centrelink will analyse and manage customer demand across all service delivery channels, expanding on the well developed capability in the Call Centre network

Focusing on workforce capability—Centrelink recognises that our leaders are a driving force in the successful delivery of the Government’s Welfare to Work measures. In addition to the comprehensive training package received by customer-facing staff, a tool kit has been developed to support leaders to engage employees, support them through Job Transition, and foster an environment that delivers Welfare to Work

Developing improved staff tools—Centrelink is implementing the single user workspace for staff. The aim of this initiative is to make available customer information and information technology tools via a single access point, thus gaining effi ciencies.

Research partnership with Novell Pty Ltd and the University of MelbourneAn example of extra customer research conducted in 2005–06 was the Centrelink Customers of the Future research partnership between the University of Melbourne, Novell Pty Ltd and Centrelink. This partnership was established to explore how emerging concepts in interaction design could be used to make online contacts with Centrelink more engaging, informative and convenient. In addition, Centrelink used this opportunity to explore whether the interactive possibilities of the internet could assist customers to understand Centrelink services and the options available to assist them from welfare to work.

The project focused on development and testing of a web based prototype, which uses a ‘scenario planning’ approach to make online interactions more interactive and engaging for users. Designed to assist customers of working age to understand their workforce

participation options, the project was tested at the university’s IDEA laboratory by Centrelink customers aged over 55 years who were looking for work and had limited experience of using the internet. Positive feedback was received about the prototype, with customers seeing it as a useful tool for planning their return to work.

The partnership capitalised on the benefits achieved for government through research collaborations with the academic and private sectors.

Having validated the applicability and potential benefits of this approach, Centrelink plans to refi ne the prototype based on customer feedback, and to explore the possibilities of using this approach as the basis for building Centrelink’s ability to use the internet as a more effective channel of communication with its customers.

Freedom of informationAccessSection 8 of the Freedom of Information Act 1982 (FOI Act) requires an Australian

Government agency to publish information about:

the way it is organised, its functions, decision making, and other powers it has that affect the public

arrangements for public participation in the agency’s work

The document categories that are held by the agency and how the public can access documents.

Personal documentsCentrelink can release documents outside the formal FOI process and can give advice on how to lodge a formal FOI request. Customer Service Advisers receive training on consulting with individuals about requests and providing access to documents. It is Centrelink policy that when a Centrelink customer requests information about their record, the FOI charge is not applied.

Requests from individuals for more detailed documents or those involving third party information are still handled through the formal FOI processes.

StatisticsDuring 2005–06, 13 817 requests were received, a 5.6 per cent increase over the previous year. Taking into account cases pending from the previous year, 14 028 cases were fi nalised with the following outcomes:

applicants withdrew 322 requests before decisions on access were made

full access was granted in 10 498 cases

part access was allowed in 1931 cases

access was refused in 1277 cases

No cases were transferred to other agencies.

Privacy of customer records

Privacy protectionTo conduct its business, Centrelink collects a large amount of personal information about its customers. To protect this information, Centrelink has a strong privacy culture, which enables the community to have confi dence that personal information is safe.

The foundation of Centrelink’s privacy culture is the legal obligation to comply with the Privacy Act 1988 and the confi dentiality provisions in other legislation that Centrelink administers, for example, the Social Security (Administration) Act 1999.

Centrelink’s commitment to maintaining the privacy and security of all personal information it holds ensures that its data are protected from unauthorised access, use or disclosure.

Privacy investigationsCentrelink Privacy Officers examine all matters that may result in a privacy breach and investigate all privacy incidents, including mailout errors and alleged privacy breaches. Incidents were reported by Centrelink management, staff, customers, the Commonwealth Ombudsman, Members of Parliament or Senators, or the Office of the Federal Privacy Commissioner.

Centrelink also audits employee access to customers’ computer records to detect any unauthorised entry, and continues to enhance this capability by using advanced data matching and analysis techniques. In 2005–06, Centrelink Privacy Officers finalised 1267 investigations of 1267 reported incidents (see Table 9).

Of the enquiries fi nalised in 2005–06, 426 incidents (see Tables 9 and 10) were substantiated as breaches of privacy/confi dentiality. Eighteen per cent related to employees entering into a confl ict of interest situation in breach of the Australian Public Service Code of Conduct.

Table 9: Reported incidents

Year Incident reported

Investigations finalised Number proven % Proven

2005—06 1267 1267 426 34

2004-05 1333 1297 422 32

Table 10: Privacy breaches

Privacy incidents proven by breach type 2005-06 2004-05

Misdirected mail 162 123

Mail house 6 3

Browsing:

access disclosure use

100

14

5

165

21

2

Information Privacy Principle (IPP) 4 Storage and security (including self service options) 30 34

Conflict of interest 75 4

Untrue representations

Other 2 28

IPPs 9–11 Disclosure (due to breakdown in procedures) 22 29

IPPs 5–8 Access and accuracy 8 6

Soliciting 1 2

IPPs 1–3 Collection 1 3

Total 426 422

There were 162 substantiated mail errors attributed to administrative error, which was a slight increase from 2004–05. There were also six substantiated mail house errors involving a technical error in production.

Office of the Privacy CommissionerCentrelink has a close working relationship with the Office of the Privacy Commissioner, enabling complaints to be quickly referred for investigation and response, resulting in a better service for the complainant.

In 2005–06, four open cases carried over from the previous financial year. Another two new cases were opened with the office, bringing the total to six cases for the year. Centrelink finalised three cases and, as at 30 June 2006, three cases were still open.

The Office of the Privacy Commissioner may issue a report or declaration under sections 30 and 52 of the Privacy Act 1988 regarding Centrelink. These statutory reports and determinations enable the Privacy Commissioner to report directly to a minister and to make a decision either to dismiss or to substantiate a complaint. During 2005–06, the Privacy Commissioner did not issue any reports or determinations under these sections.

Merit reviewsCentrelink provides information about seeking a review or an appeal of decisions made under the Freedom of Information (FOI) Act at Centrelink and on the website at www.centrelink.gov.au

Applicants can use the, I want to ask for a review form to request an internal review of a decision or to appeal against a Centrelink decision concerning access to documents. The form includes a leafl et that explains the FOI process and customer rights.

During 2005–06, 102 requests were received for an internal review. Of the reviews completed at the end of the year, 42 requests resulted in grant of access or part access, and 52 resulted in affi rmation of the original decision to deny access. Two cases were withdrawn and eight cases are pending.

The Administrative Appeals Tribunal received 29 new applications for review and had 15 cases pending from the previous year. Case status for 2005–06 is:

six cases—original decision affi rmed

three cases—set aside by consent

one case—heard and set aside

one case—varied

10 cases— dismissed

one case–no jurisdiction

five cases–original decision withdrawn

17 cases—pending.

Centrelink Authorised Review Officers (AROs) undertake merit reviews of decisions on entitlements. Centrelink also responds to applications for review by the Social Security Appeals Tribunal (SSAT) and the Administrative Appeals Tribunal (AAT) (see Table 11).

Table 11: Merit reviews applications

Review type 2005-06 2004-05

AROs 37 780 35 262

SSAT 7 945 7 865

AAT 1 802(a) 1 640(b)

(a) 1542 lodged by customers, 260 by the Secretaries of policy departments.

(b) 1541 lodged by customers, 99 by the Secretaries of policy departments.

Timeliness performance targets for AROs are:

75 per cent of all reviews to be completed within 28 days

95 per cent of reviews where a customer has no income to be completed within 14 days.

Response requirements for SSAT applications for review are:

applications lodged at Centrelink must be sent to the SSAT within seven days

A statement of the fi ndings of fact, referring to the evidence, and reasons for the decision under review, together with every relevant document, must be sent to the SSAT within 28 days.

Similarly, Centrelink must lodge a statement of the fi ndings of fact referring to the evidence and reasons for the decision under review, together with a copy of every relevant document, with the AAT within 28 days. Centrelink aims to lodge these documents on or before the 21st day.

Table 12: Merit reviews timeliness

Key Performance Indicators—internal measures Target (%) 2005-06(%) 2004-05(%)

ARO all reviews within 28 days 75 68 75

ARO ‘no income’ reviews within 14 days 95 94 94

SSAT applications sent within 7 days 100 84 80

SSAT documents sent within 28 days 100 99 99

AAT documents lodged within 28 days 100 95 96

Table 13: Merit reviews outcomes

Review type Unchanged decisions Changed decision

2005-06 2004-05 2005-06 2004-05

AROs68%

(25 601)

68%

(23 637)

32%

(11 781)

32%

(11 018)

SSAT69%

(5 225)

68%

(5 161

31%

(2 300)

32%

(2 464)

AAT—Customer applications81%

(1 123)

83%

(1 344)

19%

(260)

17%

(282)

AAT—Secretary applications51%

(52)

49%

(52)

49%

(49)

51%

(55)

The decisions most commonly challenged at all stages of merits reviews are:

recovery of debts, including Family Tax Benefi t reconciliation debts

refusal of Disability Support Pension as the customer is not medically eligible

date of commencement and increases in payments

Refusal of payments during compensation preclusion periods.

Commonwealth OmbudsmanA valuable measure of the satisfaction of Centrelink’s customers with the service they receive is the number and type of complaints they make to the Commonwealth Ombudsman’s Office.

In 2005–06, the Commonwealth Ombudsman’s Office received 73331 complaints from Centrelink customers. This is a decrease on the number of complaints received, which last year was 7699. There were 7378 cases fi nalised during the course of the year and the Ombudsman’s Office investigated 2021 cases.

Customer compensationDuring 2005–06, Centrelink received 2659 claims for customer compensation under Legal Liability and Compensation for Detriment Caused by Defective Administration schemes. In total, 1272 successful or partially successful claims were approved during the year.

In 2005–06, Centrelink continued in an advisory capacity to the Department of Finance and Administration in relation to Act of Grace claims. In 2005–06, 76 Act of Grace claims were received. The Department of Finance and Administration approved 38 claims during 2005–06.

1 Figure provided was the latest available from the Ombudsman’s Offi ce at time of production of this report.

Chapter 6Our people and capabilityStrategic theme: Building capability for GovernmentHighlights for 2005–06 Introduction of a new performance management system (see page 101)

Certifi cation of a new workplace agreement—Centrelink Agreement 2006–2009 (see page 101)

Continued improvement in employee availability (see page 103)

Job redesign and training in preparation for Welfare to Work (see page 100)

Launching of Centrelink’s Alumni Program on 9 December 2005 (see page 110).

DescriptionA major factor affecting employee performance and retention is the level of engagement of employees. Engaged employees are those who identify with and act to promote their organisation’s objectives. In November 2005 the Centrelink's Staff Poll measured staff engagement through questions relating to:

overall satisfaction with Centrelink

motivation for the work

commitment to Centrelink

Willingness to advocate Centrelink as a place to work.

This year’s result for staff satisfaction (66 per cent) is in line with 2004–05 results (67 per cent). It is within the 5 per cent variation from target advised as statistically acceptable.

Continued polling on employee engagement will help managers to focus their strategies and actions on providing a workplace that supports business directions and employees.

Having the infrastructure, technologies and resources in place gives Centrelink the capability to deliver existing services and respond to emergencies.

Strategic objectives Responding to government direction (see page 91)

Creating an environment that enables staff to work safely and productively (see page 100)

Building a culture that values leadership, collaboration and development (see page 103).

Responding to government directionBusiness arrangements with policy departments

Australian Electoral CommissionIn May 2006, the Australian Electoral Commission and Centrelink collaborated to trial an electoral information and registration service for Indigenous Australians. Two remote communities (Lajamanu and Galiwinku) were selected to participate in the trial, which was designed to take advantage of Centrelink’s remote services capability in delivering whole of government service outcomes.

The trial will operate for three months and may lead to further or expanded collaborative initiatives involving Indigenous Australians.

Department of Agriculture, Fisheries and ForestryCentrelink and the Department of Agriculture, Fisheries and Forestry operate under a Business Partnership Agreement. The agreement aims to ensure that desired outcomes are achieved for government, farmers and rural and regional communities with respect to programmes that Centrelink delivers on the department’s behalf.

During 2005–06, Centrelink continued to deliver the Farm Help—Supporting Families through Change Programme; Drought Assistance Package including Exceptional Circumstances Relief Payment and Prima Facie Interim Income Support; Dairy Type Grants; the Environmental Management Systems Incentive Programme; the Sugar Industry Reform Programme; and the Citrus Canker Assistance Package.

Centrelink and the Department of Agriculture, Fisheries and Forestry (DAFF) implemented a Business Partnership Agreement (BPA) in June 2005 for the delivery of DAFF programmes. The BPA includes four Key Performance Indicators (KPIs).

These KPIs include requirements that:

payments are made in a timely manner

products and services are delivered with high levels of correctness

management information is provided in a timely manner

Customers are satisfi ed with the quality of Centrelink’s people, services and information.

Table 14: Department of Agriculture, Fisheries and Forestry revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

16 507 4 100

Department of Education, Science and TrainingCentrelink’s strong and productive relationship with the Department of Education, Science and Training (DEST) continued during 2005–06, through the DEST–Centrelink 2005–08 Business Partnership Agreement (BPA). Centrelink continued to work with DEST and the Department of Employment and Workplace Relations, ensuring opportunities to promote education pathways to work under the Welfare to Work legislation.

Centrelink achieved all Key Performance Indicators (KPIs) described in the BPA. KPIs were amended by DEST, in consultation with Centrelink, to reflect new portfolio responsibilities arising from the 2004 Machinery of Government changes including Youth Allowance and Austudy payments. Centrelink continued to exceed the targets set for the number of referrals to departmental programmes such as the Language, Literacy and Numeracy Programme and the New Apprenticeships Access Programme.

Table 15: Department of Education, Science and Training revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

115 226 16 100

Department of Employment and Workplace RelationsCentrelink and the Department of Employment and Workplace Relations (DEWR) implemented a transitional Business Partnership Arrangement (BPA) for the period 2005–06 to implement the 2004 Machinery of Government changes, which substantially increased the amount of business that Centrelink delivers on behalf of DEWR.

In recognition of major changes scheduled for 1 July 2006 in relation to the implementation of the Government’s Welfare to Work initiatives, Centrelink and DEWR agreed on an ‘interim’ BPA for 2005–06.

Of the 14 KPIs Centrelink achieved all but two of them. They were KPI 2.1: Timeliness of New and Continuation of Claims for Income Support and KPI 4.2: Accuracy of Referrals to Job Network. In regard to KPI 2.1, Centrelink achieved all but one component, falling short of the Parenting Payment (Single) timeliness standard by 1 per cent. In regard to KPI 4.2, Centrelink missed achieving the target by only 1 per cent. Significant improvement was demonstrated in the second six months.

A feature of the 2005–06 BPA was its emphasis on the cultural change required to implement the Welfare to Work initiatives. This involved joint site visits by DEWR and Centrelink to Centrelink Customer Service Centres and Call Centres to assess the delivery of programmes. A partnership programme between DEWR, Centrelink and the Job Network also enhanced effective communications during the preparation for Welfare to Work. Key performance indicators in the BPA were focused to reflect Centrelink’s contribution to the achievement of ‘Efficient and effective labour market assistance’ and ‘increased workforce participation’, through:

the accurate, timely and Efficient assessment for initial and ongoing income support

the accurate, timely and Efficient assessment for referral to appropriate service

the rapid and accurate connection and reconnection to appropriate services

Compliance with income support and service requirements.

In 2005–06, Centrelink and DEWR also negotiated a three-year BPA to start on 1 July 2006.

Table 16: Department of Employment and Workplace Relations revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

896 555 14 86

Department of Families, Community Services and Indigenous AffairsIn 2006, discussions began in relation to renewing the Business Partnership Agreement between Centrelink and the Department of Families, Community Services and Indigenous Affairs (FaCSIA) to reflect more fully the Administrative Arrangement Orders of 2004 and 2006 changes in the Machinery of Government. This agreement will be signed in October 2006.

Centrelink and FaCSIA continue to work collaboratively to deliver successful government outcomes on a broad range of issues affecting Australian society and the living standards of communities, families and individuals.

Centrelink delivers a range of programmes and services on behalf of FaCSIA. The measure of the success of these programmes and services reflects the reporting requirements of government through outcomes and outputs. Prescribed indicators for each output group and outcome are:

accuracy of programme outlays

effective customer servicing and support, and

Customer and community knowledge of FaCSIA programmes and Centrelink services.

Table 17: Department of Families, Community Services and Indigenous Affairs revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

1 192 294 3 100

Department of Foreign Affairs and TradeThe Australian Passport Information Call Centre started operations within Centrelink on 1 July 2000. Centrelink administers the Call Centre on behalf of the Department of Foreign Affairs and Trade (DFAT). The centre provides information on passport related matters to members of the public over the phone and via the department’s website. The Centre operates seven days a week, Monday to Friday between 8.00 a.m. and 8.00 p.m., and weekends and public holidays between 8.30 a.m. and 5.00 p.m. The contract for the provision of the Call Centre services was put out to tender in October 2005. Centrelink has re-tendered as service provider and is currently negotiating a new Memorandum of Understanding to cover a three-year period from July 2006 with the option for an extra two years.

In the year 2005–06, the Call Centre handled 1.28 million calls, replied to 83 000 emails and issued 229 000 forms. The nine service standards were consistently achieved each month.

The Call Centre successfully implemented the Passport Act changes in July 2005, the busiest time of year for passport enquiries, while continuing to meet service standards for all other business. The changes applied greater security provisions to the application and renewal of passports and lengthened the duration of most enquiries. The Call Centre also played a role in the introduction of the biometric passport in October 2005 and from May 2006 was involved in the trial of an appointment system for passport offices.

Table 18: Department of Foreign Affairs and Trade revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

2839 9 100

Department of Health and AgeingFrom 1 June 2005, as part of the Government’s Fairer Assets Testing initiative, Centrelink conducted asset testing on behalf of the Department of Health and Ageing (DoHA) for people who intend entering residential aged care.

Under the new arrangements, Centrelink determines the value of a customer’s assets and assesses whether they are eligible for government assistance with their residential aged care accommodation costs (as a concessional or assisted resident).

During 2005–06, Centrelink continued processing income assessments for aged care residents on behalf of DoHA, to assist them to determine residential care fees. The Business Partnership Agreement between Centrelink and DoHA includes the following performance indicators:

automatic matching of resident data against social security pension records

manual matching of resident details against social security pension records

obtaining and providing assessed income information for self-funded retiree residents

from January 2006, obtaining and providing assessed asset information for prospective residents.

Centrelink met the manual matching and self-funded retiree targets. In relation to the automatic matching target, performance met the target for 11 months. For the month of April 2006 where the performance target was not met, system issues were experienced with host department services that affected Centrelink’s ability to achieve performance targets.

Table 19: Department of Health and Ageing revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

13 479 3 97.2

Department of Human ServicesChild Support AgencyIn May 2006, Centrelink and the Child Support Agency (CSA) completed a staggered national rollout of an initiative allowing mutual customers to enquire about both child support and Family Tax Benefi t with just one phone call. This was implemented after a successful trial and evaluation of this joint CSA/Centrelink initiative.

Medicare AustraliaFrom 1 July 2005, a phased rollout began to extend Family Assistance Office (FAO) processing to Medicare Australia sites. This project has already increased FAO service delivery by the Medicare Australia network, providing customers with a broader range of service access points and choice.

Initially, the rollout included an evaluation period of three months to assist in the decision making process for the longer term strategy. Rollout to remaining sites began in October 2005 and will be completed by December 2006. Centrelink provided training during the project, and provides ongoing support and quality assurance checking assistance to Medicare Australia staff.

Department of Industry, Tourism and ResourcesCentrelink and the Department of Industry, Tourism and Resources operate under a Memorandum of Understanding.

During the later part of 2005–06, Centrelink started to deliver the Cyclone Larry Business Assistance Fund. The fund was set up to support businesses, including farmers. The Cyclone Larry Business Assistance Fund provides urgent financial assistance by way of tax free grant funding to small and home based businesses, including farmers and tourism operators, who were adversely impacted by Cyclone Larry in north Queensland in March 2006. The Cyclone Larry Business Assistance Fund assists small and home based business people and farmers with expenses associated with, for example, re-stocking, replanting, re-establishment and clean up assistance.

Table 20: Department of Industry, Tourism and Resources revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

704 Not applicable Not applicable

Department of Transport and Regional ServicesOn behalf of the Department of Transport and Regional Services (DoTARS), Centrelink provided a Call Centre service to support the Maritime Security Identifi cation Card initiative. As one of a number of security reforms to Australia’s maritime security capability, the card will become compulsory for all maritime industry employees from 1 January 2007.

The Call Centre service received 437 enquiries about the issue of the Maritime Security Identifi cation Card as a direct response to several education campaigns initiated by the department. The service operated between October 2005 and February 2006.

On behalf of DoTARS Centrelink administers the Tasmanian Freight Equalisation Scheme, Tasmanian Wheat Freight Equalisation Scheme, and the Bass Straight Passenger Vehicle Equalisation Scheme.

Tasmanian Freight Equalisation SchemeTotal assistance paid for 2005–06 was $91.94 million.

The Tasmanian Freight Equalisation Scheme was introduced on 1 July 1976 to address the freight cost disadvantage experienced by Tasmanian industries due to the state’s separation by sea from the other mainland states. The scheme provides assistance to shippers of eligible goods that are transported by sea between Tasmania and the Australian mainland.

Tasmanian Wheat Freight SchemeFor 2005–06, funding for the Tasmanian Wheat Freight Scheme(TWFS) was capped at $1.05 million, and assistance was payable at the rate of $20.65 per tonne. The rebate is paid to bulk wheat shippers who have paid the sea freight costs. Assistance payments may not exceed the shipper’s total freight costs per tonne.

During 2005–06 financial years no claims for TWFS assistance for shipments were received. (Claims must be lodged within 90 days of shipment.)

The TWFS was established to subsidise the cost of bulk wheat transported from the Australian mainland to Tasmania by sea. The scheme operates by paying a rebate against the sea freight costs of eligible bulk wheat shipments.

Bass Strait Passenger Vehicle Equalisation SchemeTotal assistance paid during 2005–06 was $31.090 million.

The Bass Strait Passenger Vehicle Equalisation Scheme was introduced on 1 September 1996 to reduce the cost of transporting passenger vehicles across Bass Strait. The scheme provides a rebate against the fare charged by a ferry operator for an accompanied passenger vehicle or caravan

travelling by sea across Bass Strait. Ferry operators claim reimbursement of the rebate from Centrelink on a monthly basis.

The agreement includes KPIs measuring performance in relation to timeliness of claims, efficiency of processes, service delivery standards, accuracy of assessments and customer compliance.

Table 21: Department of Transport and Regional Services revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

918 6 100

Department of Veterans’ AffairsCentrelink and the Department of Veterans’ Affairs (DVA) successfully implemented the measure—Improve Integrity of Age Pension/Service Pension Identity Registers. The new procedures prevent any dual payments and issue of concessions cards between Centrelink and DVA. The measure prevents debts from occurring and ensures payments are correctly recorded and up to date.

Centrelink continued to support the delivery of the Veterans’ Information Service under the Memorandum of Understanding. The services are offered in eight regional Centrelink Customer Service Centres in New South Wales, six Centrelink Customer Service Centres in Queensland, and at Mt Gambier in South Australia.

Three Veteran Agent services were successfully implemented at the District Council of York Peninsula, the Southern York Peninsula Community Centre, and at Naracoorte Work Options.

In a joint initiative, Centrelink continues to provide Customer Confi rmation that allows organisations, such as utility companies and local councils who give concessions to certain DVA customers to use the internet to confi rm a customer’s concessional status.

Table 22: Department of Veterans’ Affairs revenue and performance summary

Revenue($’000) Number of KPIs KPIs met (%)

551 Not applicable Not applicable

TechnologiesIT Refresh is a fi ve year programme aimed at improving government service delivery by providing technology to support self service options.

Information technology (IT) security and IT Refresh capabilityThe IT Refresh Programme is working to:

provide a platform for improved online delivery of services

reduce the risk of service compromise due to the ageing of the systems

ensure that doing business with government is made easier and less costly for organisations in the public, private and community sectors

provide an infrastructure that can be used by other government agencies

Deliver departmental and administrative savings.

The IT Refresh capability has been used in a number of Centrelink projects.

For external usersCentrelink’s fl exible IT system allows customers to register for self service either directly via the internet, at a Centrelink Customer Service Centre, or over the phone.

To improve security as well as enhance privacy, an evaluation of speaker verifi cation technology was completed in November 2005. A trial of this technology began in June 2006.

Centrelink has also worked with the Australian Taxation Office (ATO) in a business authentication trial for organisations that access online services. The trial allows organisations, which are joint customers of the two agencies to use the ATO digital certifi cate to access both Centrelink and ATO online services.

For internal usersCentrelink is upgrading its internal security services that support staff access and authentication by:

progressively replacing its ageing Security Access Management System application and supporting IT platform with a new enterprise-wide provisioning system for the management of access and authentication

re-designing the back-end security authentication services for internal system access by staff to make use of open standard, commercial, off-the-shelf products

evaluating a contactless smartcard solution to provide logical system access, staff identifi cation and integrated building access

Acquiring intrusion prevention technology to strengthen the protection of Centrelink’s electronic gateway.

Innovative online service deliveryCentrelink continues to explore the use of Information and Communications Technology (ICT) to enhance the reach and effectiveness of services available to customers and business in a viable and sustainable way.

The range of internet and automated telephony services offered to customers continues to grow with more than 49 online options available by the end of 2005–06, compared with 30 available in 2004–05. In addition, Centrelink continues to provide a range of services for business that enable direct data interchange. Centrelink’s self service capability is underpinned by IT Refresh technology.

Centrelink’s primary self service delivery channels are:

self service provided to customers and business in the form of phone and web based technologies

Business-to-business systems that allow automatic updating of customer records when, for instance, circumstances change or the customer requests a service from a third party.

Centrelink customers have reacted positively to these service options, demonstrating a gradual increase in take up since the self service channels were established. For the period July 2005 to June 2006, approximately 9 per cent of all Centrelink customer transactions were undertaken via the internet or automated phone self service. The online activity is complemented by signfi cant numbers of transactions conducted by over 4500 business and community organisations on behalf of customers.

The services offered are mainly information and general enquiry services. However, demand to access administrative transactions that enable customers to update their Centrelink record or claim for services online is growing rapidly.

In 2005–06, Centrelink customers conducted more than 6.59 million self service transactions via a secure logon process to view and monitor their own Centrelink records without the assistance of a

Customer Service Adviser. Customers undertook more than 5.02 million activities including updating personal details, advising Centrelink of changes in circumstances, reporting earnings, updating family income estimates and checking payment details.

Local Liaison OfficersCentrelink has 151 Local Liaison Officers (LLOs) who provide assistance and information to 121 Members of Parliament and 32 Senators. All contacts from Members of Parliament or Senators are to be actioned within two working days of the initial contact.

Centrelink has handled 4262 contacts with 99.6 per cent meeting the timeliness standards for 2005–06.

Over the past 12 months, ‘local learning’ meetings were held within each electorate with Department of Human Services counterparts, helping to strengthen local arrangements. Two interactive Business Television broadcasts were held—one in November 2005 hosted by the Chief Executive Officer, Jeff Whalan, and the other on 30 March 2006 hosted by the Secretary, Department of Human Services, Patricia Scott to mark the first anniversary of the LLO Programme.

Local Liaison Officers provide a contact point between the Office of a local Member of Parliament or Senator and the Department of Human Services agencies. This initiative continues to improve information, services and support provided by Centrelink to Members of Parliament and Senators. The relationship is a very effective and productive means of providing a service to our customers and other key stakeholders in the community.

Multicultural trainingTo enhance the ability of Centrelink staff to respond to customers from diverse cultural and linguistic backgrounds, the Multicultural Services Branch undertook a number of training activities in 2005–06.

A Multicultural Learning Needs Analysis was developed to identify training needs across the Centrelink network, and develop a learning strategy for Multicultural Service Officers (MSOs) to implement in each area in conjunction with relevant Business Teams.

Induction training for MSOs was redeveloped and successfully delivered to 16 MSOs. The induction course can be organised in a group setting or undertaken as self paced learning.

A multicultural training module was developed to assist with employment related matters due to the Welfare to Work changes. The module aims to increase the capability of staff in providing culturally appropriate services to customers.

Creating an environment that enables staff to work safely and productivelyWorkforce planningWorkforce planning is the continuous process of shaping the workforce to ensure capability for delivering organisational objectives now and in the future. The Australian Public Service Commission (APSC) and the Australian National Audit Office (ANAO) maintain an interest in Australian Public Service agencies’ workforce planning efforts. Centrelink’s new Workforce Planning Framework is aligned with APSC and ANAO recommendations.

In addition to providing a range of workforce data to managers and human resource practitioners, workforce planning is an integral part of the Centrelink business planning cycle. Business priorities are examined for ‘mission critical’ skills, and managers then work with human resource consultants to

implement targeted workforce strategies to provide those skills. In 2005–06, this work focused on National Support Office branches and divisions. In 2006–07, this approach will be extended to the Centrelink network.

A number of national workforce strategies were also developed during 2005–06, including the Succession Management Implementation Guide and the Employee Attraction Policy.

Job redesign and training for Welfare to WorkCentrelink undertook the People and Jobs Project to ensure that Centrelink staff, particularly those with a service delivery role, were prepared to take on the key responsibilities required to implement the Government’s Welfare to Work policies.

A key component of the project redesigned customer-facing jobs to meet the requirements of the changing business processes. This resulted in the development of the Customer Service Adviser and Senior Customer Service Adviser roles to deliver services to working age customers. The positions are defined by detailed job statements and capability requirements, and are supported by recruitment documentation, performance management measures and learning and development opportunities.

A policy and technical skills training programme for customer service network staff engaged in delivering Welfare to Work initiatives was designed and implemented in 2005–06. The programme focused on building the capability of frontline staff in the Working Age Participation Business Line and on addressing cultural, change management and core skills, as well as policy and technical learning needs.

Tailored learning for National Support Office staff was also delivered to ensure all staff have a sound understanding of the Welfare to Work initiatives and their impact on Centrelink's priorities and focus.

Employment conditionsEmployment conditions negotiated between Centrelink and staff are contained in certified agreements or individual Australian Workplace Agreements (AWAs).

A new certifi ed agreement, the Centrelink Agreement 2006–2009, was negotiated and came into force on 23 January 2006. It replaced the Centrelink Development Agreement 2003–2005 that notionally expired on 1 October 2005.

The Centrelink Agreement 2006–2009 is between Centrelink, the Community and Public Sector Union, the Media, Entertainment and Arts Alliance and the Professional Officers Association (Victoria) under Section 170LJ of the Workplace Relations Act 1996.

Key areas for this agreement were:

remuneration

changes to some leave arrangements

introduction of a new performance management system

more fl exibility for salary sacrifi ce and school holiday care arrangements

creation of an Employee Consultative Forum

Simplifi cation of agreement provisions and administrative arrangements.

Australian Workplace Agreements can support added fl exibility in many aspects of workforce arrangements. Internal arrangements for AWAs were reviewed to ensure that:

options provided by legislation and government policy are available to all employees

agreements are negotiated with reference to individual employee preferences and the business outcomes to be achieved

Remuneration is clearly linked to performance.

(For more information about AWAs, see Appendix 2.)

Balancing work and lifeCentrelink employees have access to a range of conditions and services to help them maintain an appropriate balance between work obligations and life commitments, especially in times of diffi culty.

The following initiatives included in the Centrelink Agreement 2006–2009 provided further support:

changes to recreation leave arrangements, which encourage each employee to have at least a two-week break from work every year

Expansion of the School Holiday Care Allowance, which is now available for up to eight weeks in a calendar year for child care for school age children during any school holiday period.

Performance managementThe new Performance Management System aligns employee performance with Centrelink Strategic Directions and reinforces the contribution individual performance makes to organisational achievement.

This Performance Management System:

applies to all employees

ensures rigour, consistency and professionalism in performance assessment

outlines what will be rewarded, what is important and what is expected, including behaviours consistent with the Australian Public Service Values and Code of Conduct

Provides salary advancement to employees achieving the required leadership and business outcomes.

Achievements to date include development of:

certifi ed agreement and AWA clauses, policy and guidelines to establish and support the system

an online Performance Management System for employees and managers

support materials and a comprehensive performance management intranet site for employees and managers

Core work outcomes and performance measures for most Centrelink network roles.

Health and safetyCentrelink actively seeks to identify, adopt and develop best practice in health and safety management to reduce the social and financial cost of occupational injury and illness.

Centrelink’s Occupational Health and Safety (OH&S) policy, OH&S Agreement and Workplace Health and Safety Plan provide the framework for improving workforce availability and injury management performance and for reducing workplace injuries and Centrelink’s workers’ compensation premium.

Centrelink has reduced its workers’ compensation premium, with significantly fewer workers’ compensation claims across all injury types. Contributions to this outcome include:

improved early intervention performance

focusing prevention activities on key injury risks

improved performance measurement

Promotion of OH&S capability.

OH&S and injury prevention activities undertaken in 2005–06 included:

providing health assessments and programmes, including individual programmes and broader health surveys

providing enhanced training programmes in customer aggression management

improving our safety investigation capability

improving awareness of common health issues, especially mental health and wellbeing

improving the skills of our managers to identify and address employees’ health issues

developing a psychological health strategy

promoting employees’ awareness of OH&S requirements

facilitating programmes to increase personal activity levels, such as ‘10 000 steps’ programme

undertaking projects to improve ergonomic practice

Trialing alternative early intervention models to assist employees.

The information required by Section 74 of the Occupational Health and Safety

(Commonwealth Employment) Act 1991 is included in Appendix 12.

Increasing employee availabilityCentrelink’s Positive Attendance Project saw an increase in employee availability. Levels of employee absences due to illness, injury, caring and other personal reasons remained constant for several years before 2005–06. The drivers of employee absences were determined and strategies introduced to encourage higher attendance levels. This resulted in an initial and ongoing success in reducing absenteeism. The result for the 2005–06 financial years was an average of 14.09 days absence per full-time equivalent employee (FTE). This is a reduction of 1.57 days absence per FTE from 2004–05, when the average was 15.66 days.

Building a culture that values leadership, collaboration and developmentTop level result2006–06 target staff satisfaction rate 70 per cent

Staff satisfaction rate achieved 66 per cent

Figure 11: Staff satisfaction with work, November 2002 to November 2005

Staff PollEmployee feedback is valued and the Staff Poll is conducted to obtain views on a range of matters including the effectiveness of staff related strategies.

The 2005–06 Staff Poll was undertaken in November 2005 in a new format. The poll covered existing areas of staff satisfaction and commitment, with extra information gathered about engagement and leadership.

In line with previous polls, the participation rate was approximately 70 per cent of employees.

Table 23 shows responses to four statements and provides links between Staff Poll results and Centrelink balanced scorecard key performance indicators. In comparison with previous results, the higher results from the November poll indicate an increasing level of employee engagement.

Table 23: Staff Poll trends

Staff poll November 2005

Nov2005

Jun2005

Nov2004

MedianBenchmark

Nov2005

Jun2005

Nov2004

Medianbenchmark

Positive (%) Negative (%)

Your team leader/manager provides good leadership—this refers to the person who supervises your daily work

(In the November 2005 poll, this was—‘My immediate supervisor listens and responds appropriately to me’.)

79 70 70 63 10 12 12 15

At work, you have opportunities to learn and develop yourself

62 58 59 54 20 20 20 22

You receive regular feedback about your work

61 60 60 42 19 19 19 33

You understand Centrelink’s purpose and how it applies to your work

90 87 88 61 2 3 3 14

LeadershipExisting leadership development initiatives were reviewed over the year and the Centrelink

Leadership Development Framework was revised to:

integrate generic and role specifi c development

include more options for preparing managers for leadership roles

Provide a stronger focus on coaching.

To December 2005, the national leadership development programmes, targeting Business Managers and Senior Executives, were delivered (see Table 24), comprising:

capability appraisal and feedback

executive coaching

a residential intensive workshop

Peer partnering.

Table 24: National leadership development programme participation

2002-03 2003-04 2004-05 2005-06 Total

SES 15 28 20 7 70

Non-SES 23 166 165 80 434

Totals 38 194 185 87 504

Centrelink continued its support for the Australia and New Zealand School of Government, by sponsoring fi ve places on the Executive Masters of Public Administration Program and two places on the Executive Fellows Program.

The aim of these programmes is to enhance the breadth and depth of policy and management skills in the public sector. So far, 22 managers have been placed in the Public Administration Program and six Centrelink Senior Executives have participated in the Fellows Program.

Table 25: Centrelink Australia New Zealand School of Government program participants

Program Number of participants 2005-06

Executive Masters of Public Administration Program 5

Executive Fellows Program 2

The Australian Rural Leadership Foundation was established to identify, develop and support highly effective leaders in rural and regional Australia. The foundation’s leadership programmes are funded through scholarships provided by a wide range of government, industry and corporate sponsors.

Recognising the challenges for leaders in rural and regional areas, Centrelink sponsored a foundation scholarship for a Centrelink employee. The successful candidate, from a rural town in South Australia, started the foundation’s part-time study course that is to be completed in 2007.

In 2005–06 Centrelink also sponsored places on Australian Public Service wide programmes targeting senior leadership development (see Table 26).

Table 26: Succession program participation

Program Number of participants 2005-06

Career Development Assessment Centre

Leading Australia’s Future in Asia (LAFIA China and Indonesia)

12

1

Leading Australia’s Future in Asia (LAFIA Pacifi c) 1

Cranlana 1

The Future Summit 2006 2

Team leader developmentA series of 56 two-day residential workshops were conducted throughout Australia in January, February and March 2006 for 1467 employees from leadership teams across 335 sites.

The workshops focused on improving ‘operational fundamentals’ such as queue management, resource capacity and capability, and improving customer satisfaction. The workshops resulted in the development of operational action plans to address any issues.

An internal audit of all team leader modules and programmes was undertaken in 2005–06 to identify duplicated or outdated content and to provide more consistent delivery methodology and equity of opportunity. In 2006–07, the new programme will address development needs, including the transition from Centrelink 2 to Centrelink 3 roles and succession from Centrelink 3 to Centrelink 4.

Collaboration and development

Whole of government learning programmesWhole of government learning programmes have been developed in conjunction with the Department of Human Services, the Department of Employment and Workplace Relations, the Department of Education, Science and Training, and the Department of Families, Community Services and Indigenous Affairs to train staff in all agencies and interested external bodies (for example, the Job Network) on the implementation of major government initiatives such as Welfare to Work. Based on existing Centrelink learning content, these overview programmes were released in early May 2006.

The overview programmes have proven to be a useful tool for Centrelink employees and ensure consistent messages across all agencies. The 45 learning programmes of around 20 minutes are self paced online e-learning products that are fl exible enough to be incorporated into facilitated training. If the concept proves successful, the topics covered can be expanded over time.

Inbound ProgrammeThe major objectives of the Inbound Programme are to connect network, Call Centre and Area Support Office employees to the political environment which shapes corporate decision making and to ensure these employees are well briefed on Centrelink’s current focus and the future direction.

The Inbound week brings Centrelink Officers from each of the Areas, including Centrelink Call, to National Support Office for a fi ve-day intensive programme. During the residential week, members of the Centrelink Executive and various subject experts engage participants in strategic presentations. The participants undertake and complete specifi cally designed projects, which they present to an executive panel at the conclusion of the week.

The Inbound Programmes are specifi cally designed for Customer Service Centre and Call Centre Managers, Centrelink staff 30 years of age and under, and specialists, such as Social Workers and Centrelink Psychologists.

Outbound ProgrammeThe Outbound Programme takes Centrelink employees from National Support Office into Area Support Offices, Customer Service Centres and Call Centres to experience Centrelink’s business and customer interaction at a local level. Stakeholders from other government and non-government agencies also participate in the Outbound Programme in partnership with Centrelink staff.

The visits are specifi cally tailored to meet participants’ nominated objectives. In 2005–06 there was particular focus on Senior Executive Service outbounds, which aimed to strengthen collaborative relationships and network understanding across the organisation.

Nationally recognised qualifi cationsCentrelink continues to provide employees with the opportunity to complete nationally recognised qualifi cations that support job roles within the organisation. The following table shows qualifi cations issued during 2005–06.

Table 27: Nationally recognised qualifi cations

Code Qualification name Number issued

BSB10101 Certifi cate I in Business 8

BSB20101 Certifi cate II in Business 8

BSB30101 Certifi cate III in Business 2

BSB40101 Certifi cate IV in Business 304

BSB50101 Diploma of Business 2

BSB51004 Diploma of Business (Frontline Management ) 23

BSZ40198 Certifi cate IV in Assessment and Workplace Training 232

CHC41402 Certifi cate IV in Community Services (Information, advice and referral) 108

ICT40102 Certifi cate IV in Customer Contact 36

ICT40599 Certifi cate IV in Telecommunications (Call Centres) 1

PSP40499 Certifi cate IV in Government (Fraud Control Investigation) 120

PSP40599 Certifi cate IV in Government (Fraud Prevention/detection) 90

PSP41504 Certifi cate IV in Government (Investigation) 2

PSP41404 Certifi cate IV in Government (Statutory Compliance) 0

Code Qualification name Number issued

PSP50104 Diploma of Government 18

PSP50499 Diploma of Government (Fraud Control Investigation) 14

PSP51704 Diploma of Government (Investigation) 22

BSB51504 Diploma of Project Management 80

PSP50599 Diploma of Government (Fraud Control Prevention/Detection) 5

CHO50799 Diploma of Community Services (Disability Work) 1

BSA50197 Diploma of Business (Administration) 1

DiversityAs Centrelink’s customers cover the full spectrum of Australian life and society, Centrelink’s workforce should reflect and be sensitive to this diversity. Actions to sustain workplace diversity and ensure compliance with relevant legislation and regulations are ongoing and the more significant activities undertaken are outlined below.

Indigenous employeesCentrelink’s National Indigenous Employees Plan 2005–2008 guides actions for:

providing greater employment opportunities for Indigenous Australians

assisting Indigenous employees to fulfi l their career goals through the provision of development and learning opportunities

ensuring Indigenous employees receive appropriate support

Increasing our understanding of the identity and experience of Indigenous Australians and reflecting this awareness in our internal and external service delivery.

Scholarships offered under the Centrelink Indigenous Cadetship and Scholarship Programme, assist Indigenous employees to gain tertiary level qualifi cations and develop their career potential. Fifteen Indigenous employees graduated in 2005–06, with qualifi cations in disciplines such as Social Work, Psychology, Education, Business, Sociology, Arts and Commerce.

Cadetships offered under the National Indigenous Cadetship Project conducted by the Department of Employment and Workplace Relations (DEWR) assist Indigenous students undertaking their first undergraduate degree. As part of this project, 15 cadetships were made available in 2005–06.

Traineeships offered under the DEWR Indigenous Australian Contract Management Trainee Programme to provide school leavers with sustainable career pathways in contract management.

Two employees were sponsored by Centrelink as Indigenous Community Volunteers to support implementation of projects identified by Indigenous communities under Council of Australian Governments initiatives. These volunteers were involved in projects for the Billabong Aboriginal

Corporation in the Australian Capital Territory and the Amata Indigenous Community PY Ku Centre in South Australia.

Table 28: Centrelink Indigenous Scholarship and Cadetship programs

Program Recruited in 2005

Recruited in 2006

Currently studying

Graduated in 2006

Scholarships 11 8 19 11

Cadetships 4 7 13 5

Total 15 15 32 16

Department of Human Services Cross Agency Indigenous Employment Action AgendaIn October 2005 the Department of Human Services (DHS) Cross Agency Indigenous Taskforce was created to examine and improve service delivery and employment outcomes for Aboriginal and Torres Strait Islander peoples within DHS agencies. Centrelink is the coordinating agency for the DHS Indigenous Employment Taskforce.

The key employment areas of focus articulated by the Secretary of DHS and endorsed by the Minister were the development of joint strategies and activities in four key employment areas:

best practice in attracting and recruiting Indigenous Australians

Indigenous cadets, graduates and trainees

retention and career advancement strategies

Appropriate training for DHS employees who deal with Indigenous customers and employees.

Achievements to date include:

implementing Indigenous employee plans across DHS agencies

developing Indigenous measures for internal and external recruitment practices and policies

continuing to develop the DHS cross agency Aboriginal and Torres Strait Islander cross cultural training and starting the rollout of stage one

holding the first DHS Cross Agency Indigenous Employees Conference (in New South Wales)

establishing a number of DHS cross agency Aboriginal and Torres Strait Islander employee networks

introducing process designs for joint cadetships

making a DHS agencies’ commitment to offer 22 Indigenous cadet placements, 46 traineeships and 23 graduate places

Creating an internal scholarship ‘menu’ to assist agencies with a range of options that will help employees in their career pathways.

Focus on youth

Graduate ProgrammeCentrelink’s Graduate Programme plays a key role in developing employee capability. In past years, this programme focused on graduates from Information Technology disciplines. In 2005–06, 150

graduates were recruited under this programme—100 with degrees in Information Technology and another 50 from the following disciplines:

Accounting and Finance

Arts and Humanities

Business and Commerce

Communication and Media

Human Resources

Psychology

Social Work

Statistics.

Selection for the Graduate Programme is highly competitive. In the 12 months, Graduate Programme participants receive tailored training, and mentor support and many participated in work placement rotations. At the conclusion of the graduate year, participants are well positioned for leadership roles in Centrelink.

Young Professionals Development ProgrammeUnder the Young Professionals Development Programme, Centrelink offers younger employees (30 years and under) the opportunity to take part in development opportunities as a recruitment and retention initiative. The programme includes:

Centrelink Exchange Programme—employees take part in a workplace exchange programme for up to six months. In 2006–07 the focus will be on internal rotations and exchanges.

YouthLink—provides learning and development opportunities, participation in corporate projects and a chance to network with young Centrelink employees and senior managers around Australia.

Institute of Public Administration Australian Young Professionals Network—a forum for young professionals to exchange ideas and innovations in the public sector and to participate in special interest activities.

National Youth AwardsNational Youth Week offers a chance for Centrelink to recognise the innovation and creativity of young Centrelink employees and the way Centrelink serves young people in the wider community. Centrelink’s Youth Awards showcase the breadth of talent in the organisation. The work performed by award recipients recognises the multifaceted ways that Centrelink is able to tailor services to the needs of local communities and the specifi c circumstances of individuals.

Centrelink’s Chief Executive Officer, Jeff Whalan and Deputy Chief Executive Officer, Carolyn Hogg presented 19 employees from across Australia with their awards at a ceremony in Canberra.

Mature Age StrategyCentrelink’s Mature Age Strategy includes several initiatives to recognise and value the contribution of mature age employees; provide fl exible employment options to achieve a work/life balance and facilitate phased retirement from full-time work.

In April 2006, the Preparing for Retirement from Full-time Work Programme was conducted for National Support Office employees aged 45 years and older. The programme focus is thorough preparation for retirement from full-time work and addresses life and career planning and health, legal, superannuation and financial issues. It also promotes the benefits of the Alumni Program (see

below). Programme resources are now available across Centrelink. These resources provide for fl exible programme delivery and include video and DVD resources, contact lists and written reference material. The programme promotes the option of a phased retirement and ways for mature age employees to continue to contribute to Centrelink.

Alumni ProgramThe Centrelink Alumni Program was launched on 9 December 2005 and enables former employees to remain involved with Centrelink. It also means that Centrelink can use their skills and experience through short-term employment opportunities that may become available. As at 30 June 2006 there were 483 members of the Program.

People with disabilitiesThe Commonwealth Disability Strategy is about removing barriers and enabling the full participation of people with disabilities. In Centrelink, a range of policies and procedures ensure that the strategy’s principles are applied. In 2005–06:

6.1 per cent of all Centrelink employees identified as having a disability

the DisAbility Coalition and the Employees with DisAbilities Network continued

International Day of People with a DisAbility was promoted

Access to web based applications for people with a disability was provided and promoted.

A pilot Work Experience Program for Technical and Further Education Students with Disability within the Illawarra region was developed and will start on 3 July 2006.

Centrelink also contributed to the Australian Public Service (APS) Management Advisory Committee report on employment of people with disabilities in the APS.

For more information about Centrelink’s activities to support people with a disability and compliance with the Disability Discrimination Act 1992, see Appendix 7.

Internal awardsCentrelink recognises special achievements of its employees and internal awards presented in 2005–06 are listed below.

Centrelink National AwardsCentrelink National Awards celebrate outstanding business achievement. A winner, highly commended and commended awards were selected from over 100 nominations in the following categories:

Ross Divett Memorial Award

Customer Service Awards

Change Management Award

Building Networks Award

Responsiveness to Government Award

Process Improvement Award.

The winners of the Ross Divett Memorial Award, the most prestigious category, were the employees and teams who were responsible for an inspiring and high quality organisational response to people in need following the 2004 Asian tsunami.

Australia Day Achievement AwardsIn 2006, 109 individuals and teams were recognised for their achievements. Recipients were presented with either certifi cates or Australia Day Achievement Medallions from the National Australia Day Council at special awards ceremonies conducted throughout Centrelink. The following two award recipients are examples of outstanding dedication to service:

Rapid Connect Team—this team established a new, collaborative method of working within government to implement government initiatives, and they led the way with implementation of the first phase of Welfare to Work. The team has been instrumental in facilitating major cultural change among Centrelink Customer Service Advisers, and the team’s work has attracted excellent feedback from the network and customers.

Members of the Department of Families, Community Services and Indigenous Affairs/ Centrelink Hartley Lifecare Ability Cycle Challenge team—over the past fi ve years, employees participating in the Hartley Lifecare Ability Cycle Challenge have promoted Centrelink’s commitment to community business partnerships, corporate volunteering and healthy lifestyles. The team has raised more than $270 000 for disability–carer relief in the Canberra region. The partnerships developed by the team through the Cycle Challenge highlight the benefits of government, business and community sectors working together.

Chief Executive Officer’s Service AwardsCentrelink’s Chief Executive Officer (CEO) Service Awards represent length of service in the Australian Public Service (APS). They are awarded to Centrelink employees who have unbroken APS service from 20 years onwards. During the year, 305 CEO Service Awards were presented to Centrelink employees.

External awards

Public Service MedalEach year Centrelink submits nominations for the prestigious Public Service Medal for outstanding public service, awarded twice a year as part of the Queen’s Birthday and Australia Day Honours List. On Australia Day 2006, Public Service Medal awards were presented for outstanding public service in the provision of emergency assistance to the victims of the Lower Eyre Peninsula bushfi res and their families.

2005 Prime Minister’s Employer of the Year AwardsOn 1 December 2005, Mirrabooka Customer Service Centre received one of the Prime Minister’s Employers of the Year Awards. These awards recognise excellence in the employment of people with disabilities.

2005 YOGIE AwardSponsored by the ACT Department of Disability, Housing and Community Services, the YOGIEs recognise excellence in youth. The Centrelink Community Unit, Area South West, was presented with the Innovation in Practice Award. This award recognises a service/ organisation or programme that has demonstrated exceptional ‘thinking outside the square’, effecting change and improvements in service delivery to and outcomes for young people.

Chapter 7Our efficiency and effectivenessStrategic theme: Demonstrating value for moneyHighlights for 2005–06 Achieved an $11.2 million operating result (see page 123)

Maintained a positive cash position during the year, with a closing balance of $217.5 million1 (see page 124)

Centrelink Funding Model endorsed by Government in the 2004–05 Federal Budget provided a return of $45.6 million due to a decrease in customer generated workloads (see page 123)

Enhanced existing controls frameworks including revision to the Chief Executive Instructions and review of delegation authorities to Centrelink Officers (see page 118)

Further progress on achievements already made as part of the IT Refresh Program (see page 124)

In March 2006 a portal targeted at families customers successfully released (see page 125)

Approximately 2400 information technology changes released across all system environments (see page 125).

DescriptionFunded by the Australian Government through business partnership agreements or similar arrangements with policy departments, Centrelink needs to ensure its internal business processes meet stakeholder and government expectations.

Centrelink has improved effi ciency through implementation of cost management and sound budgetary controls, such as increased information technology capability, collaborative purchasing, tendering and contracting arrangements, and effective resource management.

The strategic objectives in this chapter demonstrate Centrelink’s focus on improving the efficiency and effectiveness of services.

1 Cash includes the cash receivable from the Offi cial Public Account, which is held at call on behalf of Centrelink by the Department of Finance and Administration.

Strategic objectives Ensure the best service offer at the best price (see below)

Manage resources effectively, Efficient ly and ethically (see page 119).

Ensure the best service offer at the best priceConsultancy servicesTo deliver government services effectively Centrelink sometimes requires specialist consultancy services when particular skilled expertise is needed, suffi cient expertise is unavailable in the agency, or independent advice is required.

The engagement of consultants is carried out in accordance with the requirements of the Commonwealth Procurement Guidelines and Centrelink’s Chief Executive Instructions.

Centrelink uses the information published by the Department of Finance and Administration in its Guidance on Identifying Consultancies for Annual Reporting Purposes, July 2004 to distinguish between consultancies and non-consultancy contracts for annual reporting purposes.

During 2005–06, 63 new consultancy contracts were entered into, involving total actual expenditure of $2 404 225. In addition, fi ve ongoing consultancy contracts were active during 2005–06 financial year, involving total actual expenditure of $966 011.

Appendix 5 includes all consultancy contracts let by Centrelink during 2005–06 with a value of $10 000 or more. For total expenditure on consultancy contracts for the current and previous two financial years, see Table 29.

Table 29: Expenditure on consultancy services

Financial year Total consultancy service expenditure ($)

2003-04 8 516 086

2004–05 9 072 403

2005–06 3 370 236

Competitive tendering and contractingSince its establishment in 1997, Centrelink has market tested and outsourced a significant number of its corporate services and other functions—see Appendix 4 for more information.

Exempt contractCentrelink has no contracts or standing offers that were exempted from publication in the Purchasing and Disposal Gazette.

PurchasingCentrelink has performed its purchasing function in accordance with the Commonwealth Procurement Guidelines, which were revised in January 2005. Centrelink amended its Chief Executive Instructions to reflect the revised guidelines, and established an online procurement training course to educate its network purchasing staff about the new requirements.

Along with the Department of Human Services (DHS) and its agencies, Centrelink examined possible new, shared tendering and contracting arrangements for all of its new major procurements. Shared tendering across DHS and the agencies is expected to lead to reduced tendering costs, and improved prices because of greater economies of scale. One example of such collaboration has been the establishment of a General Management Services panel of 57 fi rms providing access to expertise and experience across 13 corporate disciplines.

Formal interagency consultation processes now operate at the beginning of all new major tender exercises, and a growing number of joint tenders are planned for release to the market in 2006–07 and beyond.

As part of a strategy, DHS and its agencies are coordinating their buying power to make joint purchases and savings. One example of this is shared information technology (IT) support services between Centrelink and CRS Australia.

On 26 March 2006, CRS Australia’s IT support services were successfully transitioned to Centrelink.

IT infrastructure upgradesA number of infrastructure upgrades and replacements were performed to meet critical business need, including for Welfare to Work.

The mainframes were upgraded under the renegotiated contract called OIO (Open Infrastructure Offering), and the fi le and print server upgrades were completed. In all, 8500 of Centrelink’s aged personal computers were replaced and Storage Area Network, Mainframe Direct Access Storage Device and TAPE Infrastructure enhanced.

Strategic Cost ManagementThe Strategic Cost Management (SCM) Framework within Centrelink has been further refi ned during 2005–06. SCM is based on a systems-based approach through which mainframe and other transactional data are captured then linked to the customer service staff effort and associated costs. Further improvements to the accuracy and completeness of this data have been made in 2005–06.

Strategic Cost Management provides:

the basis for the construct of the transactional variable component of the Centrelink Funding Model as agreed by government

management information that assists in internal cost and quality performance measurement, and

Alignment of internal budget distributions with the Centrelink Funding Model.

Strategic Cost Management output cost data aids the effectiveness of Centrelink’s corporate, comparative reporting framework and provides information to support the costing of Centrelink’s service channels. The SCM methodology is being progressively updated to contribute to the maintenance of the currency and accuracy of the Centrelink Funding Model.

Manage resources effectively, efficiently and ethicallyCustomer Account Start UpThe Customer Account Start Up process reuses customer data already held by Centrelink. This has produced significant improvements, including shorter claim processing and improved data quality. The process was rolled out nationally in September 2005 to support the RapidConnect initiative. The tool was built following trials of the Customer Account Start Up processes for Parenting Payment (March 2004), Newstart Allowance and Youth Allowance (October 2004), and for processing New Apprentice claims (March 2005).

The Customer Account Start Up process enables a Centrelink Customer Service Adviser to process claims with a customer either face-to-face or via the phone. The Start Up process can be used in Centrelink Customer Service Centres or Processing Centres. Where data is collected over the phone,

the subsequent face-to-face interview is more Efficient , allowing the Customer Service Adviser to focus on the customer and the participation aspects of their relationship with Centrelink.

There are, on average, 75 000 Customer Account Start Up claims each month and with the First Contact Service Offer, the new processes provide a more complete service to the customer, while supporting implementation of the Government’s Welfare to Work initiatives.

Centrelink User Centred DesignA key aim for Centrelink is to ensure software applications designed for use by staff and customers are user friendly, Efficient and able to deliver benefits. Centrelink User Centred Design (UCD) ensures a quality user experience by promoting interactive design principles and methods, and by providing design consultancy to projects involved in the development of web applications. These principles are also applied to managing the application presentation standards and standards framework for Centrelink.

User Centred Design aligns the business objectives of the organisation with the needs of application users, to maximise effi ciency, usability, accessibility, conformity and satisfaction. As a key element of its government service delivery framework, Centrelink understands the importance of developing consistent and standardised staff and customer applications. To achieve this, UCD is responsible for keeping pace with emerging best practice and whole of government requirements provided by the Australian Government Information Management Office.

Defence Signals Directorate gateway certifi cationTo meet expanding electronic business requirements for effective service delivery, Centrelink is completing the design, building and commissioning of dual, high availability, electronic gateways at both of its data centres in 2005–06. The dual gateway design supports online business continuity by automatic failover of gateway services in the event of service outages

in one of the gateways.

The Australian Government Information and Communications Technology Security Manual require Australian Government agencies to have their external gateways certified yearly in accordance with the Defence Signals Directorate’s Gateway Certifi cation Guide. As well, Australian Government Information Management Office policy requires certifi cation of gateways to maintain connection to FedLink.

Centrelink gateways achieved provisional certifi cation under the Infosec-Registered Assessor Programme to the PROTECTED level in May 2006.

As Centrelink grows its online business the need for secure and flexible external gateways is a necessary requirement.

IT Refresh—year threeIT Refresh is a $312 million, fi ve-year programme announced in the 2002–03 Annual Budget. IT Refresh is developing new Centrelink technical capabilities to:

provide a platform for improved online service delivery

ensure that doing business with government is made easier and less costly for organisations in the public, private and community sectors

deliver savings in departmental and administered costs

reduce the risk of service compromise or failure due to ageing of existing systems

Provide an infrastructure that can be used by other government agencies.

The first two years of the programme focused on improving and upgrading Centrelink’s infrastructure to support online capabilities. The focus towards the end of the programme is on delivering those online services to customers, government and business.

To ensure that doing business with government is made easier and less costly for organisations in the public, private and community sectors, IT Refresh has worked to increase system availability and capacity so customers can access Centrelink internet services whenever they choose. New hardware and software platforms were deployed to support extra self service options; and high level security access and controls for customers and business, protect customer records, guard privacy, and prevent misuse of the system and information.

IT Refresh contributes to information sharing and integrated service delivery across government departments and agencies, and third party participation contributes to savings in departmental and administered costs.

IT Refresh enables the transfer of high volumes of information between applications and organisations that form the government’s service delivery network. This allows enhanced storage and validates and protects the integrity of customer, government, transaction and performance information. Improved data capacity, memory, performance and processing speed focus on providing faster, easier and more efficient access to information.

Ethics and valuesCentrelink has undertaken a number of initiatives to enhance its ethical culture.

Executive AdviserIn April 2006, Centrelink contracted an Executive Adviser to advise senior executives on ethics. His work assists Centrelink in ensuring our decisions are informed and we operate with integrity and comply with the Australian Public Service (APS) Values and Code of

Conduct. The Executive Adviser also provides direction for the Enhancing Ethical Culture Project to develop an ethics framework and handbook that supports the strategic theme of Building confi dence in Centrelink.

Internal fraud and ethicsCentrelink is committed to supporting staff in complying with the APS Values and Code of Conduct within an ethical workplace culture. This environment is promoted through a range of fraud prevention and control initiatives including:

planning for fraud control

conducting fraud prevention and ethics training

developing proactive detection programmes

Investigating matters of potential fraud and misconduct.

Cases involving suspected breaches of the APS Values and Code of Conduct are reported through various confi dential reporting methods available to staff and the public. All cases are managed and investigated by suitably experienced and qualifi ed Centrelink staff. These qualifi cations include the Advanced Diploma of Government (Fraud Control Management) and Diploma of Government (Fraud Control Investigation). All staff are internationally recognised as Certifi ed Fraud Examiners.

Table 30: Centrelink’s framework for preventing and addressing internal fraud

Prevent Detect Investigate Deter

What framework and infrastructure is in place?

Financial Management and Accountability Act Public Service Act and Regulations Commonwealth Fraud Control Guidelines Audit and Risk Committee People and Planning Division Internal Fraud and Ethics Section Fraud and Debt Management Branch Privacy and Information Access Network

Internal Fraud and Ethics Section Fraud and Debt Management Branch Employee reporting and protection policy Public reporting Public Service Act and Regulations Information Technology (IT) capabilities—for example, datamatching and analysis External Scrutiny—for example, media, Parliament, administrative tribunals, Ombudsman, Australian National Audit Office

Commonwealth Fraud Control Guidelines Australian Government Investigations Standards Public Service Act and Regulations Qualifi ed and trained investigators with national and international accreditation

Commonwealth Fraud Control Guidelines Public Service Act and Regulations Commonwealth Director of Public Prosecutions (DPP) Offence provisions under various Acts and Regulations

How does Centrelink go about it ?

Biennial fraud control plan Pre-employment screening programme, including police checks for employees Security clearances where appropriate Management and staff skilling Coordinated awareness campaigns Process controls—delegation procedures and requirements, separation of duties Integrity assurance

Executive oversight Biennial fraud control plan Reporting facilities established, including phone hotline Control testing and analysis Audit trails built into computer systems Use of intelligence to detect areas of risk, data mining and analysis Undertake integrity assurance projects Collaborate with other Australian

Internal Fraud and Ethics Section coordinates and investigates all complaints and alleged occurrences of fraud Fraud and Debt Management Branch investigates all allegations of staff programme payment fraud Investigations are carried out by qualifi ed investigators Suspected misconduct managed by

Communication strategy to reinforce requirements and raise fraud awareness

Refer all appropriate cases of criminal conduct to the Australian Federal Police and DPP for action Refer all appropriate cases of staff misconduct to be investigated as suspected breaches of the Australian Public Service Code of

Operating resultCentrelink reported an operating result of $11.2 million for 2005–06. This equates to 0.5 per cent of total 2005–06 income of $2.3 billion. Consistent budgetary restraint, which was exercised throughout 2005–06, contributed to this sound result.

Revenue adjustments included a return to government of $45.6 million under the Centrelink Funding Model for reduced customer workloads in line with the workload reconciliation principle of the funding model.

Table 31: Centrelink’s operating result 2005–06 and 2004–05

2005-06 $’000 2004-05 $’000

Income 2 318 313 2 251 734

Expenses –2 307 136 –2 224 737

Operating result 11 177 26 997

Note: 2004–05 comparative fi gures have changed to reflect compliance with Australian Equivalents to International Financial Reporting Standards.

RevenueCentrelink’s revenue is primarily derived from policy departments with which Centrelink has business partnership agreements. Centrelink provides services on behalf of more than 25 departments. Significant additions to revenue include $116 million for Federal Budget, including $73 million for government’s Welfare to Work programme and $35 million for 2005–06 Additional Estimates (including $10 million for drought assistance).

Table 32: Revenue to Centrelink from services 2005–06

Sources of revenue $’ 000

Department of Families, Community Services and Indigenous Affairs 1 192 294

Department of Employment and Workplace Relations 896 555

Department of Education, Science and Training 115 226

Department of Agriculture, Fisheries and Forestry 16 507

Department of Health and Ageing 13 479

Other client revenue 24 254

Total revenue from services 2 258 315

(a) Excludes $60.0 million in revenue comprising software credits available under a contractual agreement ($56.4 million), resources received free of charge ($3.1 million), direct appropriations received from government ($0.250 million) and asset adjustments ($0.250 million).

Table 33: Summary of resources

Budget(a) 2005–06 $’000

Actual 2005–06 $’000

Budget(b) 2006–07$’000

Price of outputOutput: Efficient delivery of AustralianGovernment services to eligible customers

Revenue from government (Appropriation) for departmental output

250 250 636 936(c)

Revenue from other sources 2 303 329 2 318 063 1 922 178

Total price of output 2 303 579 2 318 313 2 559 114

Total revenue for outcome (Total price of output) 2 303 579 2 318 313 2 559 114

Equity injection 56 524 56 524 95 237

Total capital for Agency 56 524 56 524 95 237

Staffing years (number) 22 900 23 094 25 285

(a) Portfolio Budget Statements 2006–07 Estimated Actual Result for 2005–06

(b) Portfolio Budget Statements 2006–07 Budget for 2006–07.

(c) Includes direct appropriation from government for Centrelink Funding Model Infrastructure—$548 million, implementation of the Australian Government’s health and social services access card—$87 million, for Compensation for Detriment Caused by Defective Administration—$0.25 million, and $2 million for other minor Budget measures.

Balance sheet and cash flowCentrelink’s financial position is strong and has improved from the previous year, with the value of total assets exceeding total liabilities by $231.2 million. Cash available at the end of the financial year, including cash held at the Offi cial Public Account, was $217.5 million.

Centrelink invested $132.1 million in fi xed assets during the year. This was mainly for leasehold improvements ($19.5 million), infrastructure, plant and equipment ($43.5 million) and internally developed software ($68.9 million).

Improved online delivery of servicesThe online component of the IT Refresh Programme gives Centrelink the ability to deliver more services online to customers, business, community organisations, and Centrelink staff.

The online systems and technology of IT Refresh enabled:

new and existing Family Tax Benefi t customers to claim online for Maternity Payment, Maternity Immunisation Allowance, and Family Tax Benefi t for newborns

phone and internet self service, including facilities for customers to register online without staff assistance

the exchange of information and the ability to process transactions between business and Centrelink more Efficient ly and at a lower cost

Staff to access information in one place, so that relevant and current information needed to assist customers can be found easily and quickly, and allow groups of customers to report income and activities without having to visit a Centrelink office.

Customer PortalAn example of IT Refresh improved online services is the Customer Portal, which acts as an entry point for customers to access Centrelink’s web based information. The portal was developed with input from Centrelink customers and aims to make it easier to access personal information and services while continuing to ensure privacy and security.

March 2006 saw the first release of the portal to a targeted group of families customers enabling them to:

view and update family income estimates

estimate the amount of family assistance that may be available

Advise Centrelink of changes in circumstances such as non-lodgement of a tax return or return to work.

The success of the initial release of the Customer Portal created a solid foundation to build more portal capabilities, which will extend access to online information and services for all of Centrelink’s customers.

The introduction of portal technology also puts Centrelink in a position to apply the same approach to the development of extra portals for use by businesses and community organisations.

IT systems and software

IT release managementIn 2005–06, Centrelink released approximately 2400 IT changes across all system environments. This continued the trend in recent years, increasing the number of system changes by 5 to 10 per cent per year. Eight major IT system releases were introduced (four quarterly and four mid-range) in addition to numerous minor weekly and daily releases.

These items brought new and enhanced capabilities to the IT infrastructure underpinning Centrelink’s business operations. Preparation and planning prior to each release, as well as close monitoring of performance in the period following each release, ensured issues were handled quickly and the impact on service delivery was minimised.

The introduction of improvements to Centrelink’s release management processes, procedures and tools through IT Service Management (an IT Refresh funded project) provided a means to manage future increases in system releases more effectively and Efficient ly.

During 2006–07, these system releases will be essential for government initiatives such as Welfare to Work and Budget measures, including family’s assistance and Better Service, Better Compliance, and the groundwork for the Access Card and grant letters. System releases will also continue to extend and improve self service products and services (via the internet and phone).

Network server replacementDuring the last quarter of 2005, all Domino, Windows and Netware servers in the Centrelink network were successfully upgraded. The new servers have provided productivity and performance enhancements and contributed to improvements in Centrelink’s reliable and supported operations network.

Single User WorkspaceThe Single User Workspace (SUW) has been developed to deliver greater effi ciency for ‘whole of customer’ service delivery and to support new initiatives such as Welfare to Work. It achieves this by putting in place an easy to use, consistent and fast interface between customer service staff and the computer based tools used to assist customers.

The SUW makes customer information and IT tools available in one convenient place on Centrelink staff computers. The first stage, delivered by 30 June 2006, provides the tasks to support Welfare to Work.

Single User Workspace builds on previous Centrelink initiatives such as Business Process Re-engineering, Customer Update and Customer Account. It takes into account various reviews and audits that supported the need for a more consistent and integrated process.

The integrated functions within SUW work at a considerably higher speed than present customer service tools and platforms. Across the initial development period, staff who used SUW provided positive feedback about ease of use and time saving perspectives.

Testing servicesHaving one of the largest and most complex IT operations in Australia, Centrelink makes a considerable investment in the acquisition, development and implementation of software applications. To ensure quality and stability of what is released into the production environment, dedicated test teams provide assessments on the level of quality expected from software awaiting release.

A highlight for 2005–06 was the joint testing programme developed by the Department of Employment and Workplace Relations and Centrelink to facilitate the implementation of Welfare to Work.

Centrelink testing of IT capabilities for the delivery of the Welfare to Work initiative required approximately 370 extra staff to meet the short-term demand for skilled testers. This staffs were sourced from existing contract providers, Centrelink Alumni, Centrelink service delivery network staff and the Centrelink Application Services Panel.

Centrelink also engaged the services of IBM through the Application Services Panel to independently test three business components for Welfare to Work. This was to better address the periodic surges in capacity demand for testing. This strategy was very successful and Centrelink will continue to use external testing services in the future as demand, timeframes and budgets allow.

Joint testing environments were further developed by the Department of Education, Science and Training, the Department of Immigration and Multicultural Affairs and Centrelink, which allowed testing of the departments’ systems that require linked IT capabilities. The successof current and future inter-agency IT capabilities will rely on continued expansion and development of collaborative testing arrangements.

Also during 2005–06, as part of IT Refresh Programme, achievements in Testing Capability Projects included:

implementing ‘production like’ controls on testing infrastructure, based on an up to date inventory of infrastructure and better incident, change and release management

Introducing a system that automates test record selections, enabling tests to be carried out more Efficient ly and cost effectively. The automated system also improved the current test case management process by removing manual intervention and reducing the time required to generate test environments.

Property managementCentrelink maintains a leased portfolio of 425 sites occupying 540 830 square metres. The property portfolio comprises 316 Centrelink Customer Service Centres (CSCs), 25 Call Centres, 30 other customer service sites, 35 sites housing National and Area Support staff, and 18 storage and other sites.

Leasing and facilities management services are provided for the portfolio by Jones Lang LaSalle. In 2005–06, Office lease and associated costs, including those for the portfolio, were $197.72 million.

Management of the property portfolio focused on providing accommodation to meet the needs of a constantly changing service delivery environment. This required offices to be well located, within reach of customers, and in a good quality environment in which to deliver government services.

During 2005–06, nine CSCs were relocated to enable better access for customers to Centrelink services, six CSCs were amalgamated into three centres, and one Call Centre was relocated. In an ongoing programme to increase customer and staff amenity, 18 CSCs were refurbished to current standards. The public contact areas in a further 20 CSCs were upgraded including Centrelink’s corporate branding and marketing products to improve the appearance of offices and provide customers with improved facilities and access to Centrelink information. In total, $21.06 million was spent on capital improvements in 2005–06.

New CSCs were established at two locations—Fitzroy, Victoria and Stanthorpe, Queensland.

A new Student and Youth Service Centre opened in Bendigo, Victoria and a new Retirements Service Centre was established in Perth, Western Australia.

Centrelink also provided staff housing in remote locations where a suitable rental market did not exist, sometimes in the form of transportable homes. Centrelink owns 30 such residences. In 2005, Centrelink entered an agreement with a developer to design, construct and lease a new 40 000 square metre Office building so that the National Support Office can be located in the Tuggeranong Town Centre precinct in the Australian Capital Territory. The new building is expected to be ready for occupation in early 2008.

User Assurance CentreThe User Assurance Centre (UAC) collects user feedback, both from customers and staff, to assist in developing products and processes. Initially, the UAC was created as a Centrelink capability, but more recently provides services to ‘sister’ agencies within the Department of Human Services and to other government departments.

Through the UAC, Centrelink can assess the relevance and useability of electronic and paper based products, tools and processes by having customers and staff provide feedback in the controlled and impartial UAC environment.

The core of this activity is undertaken in the Centrelink Useability Laboratory located in Adelaide. This facility supports observation, recording, measurement and evaluation of products at various stages of development—a capability that contributes greatly to the development of high quality tools, processes and practices for use by staff and customers alike.

The UAC also provides user centred evaluation and development of learning packages. For example in 2005–06, UAC staff played a major role in the development of the Job Capacity Assessment learning package on behalf of the Department of Human Services.

During 2005–06, the UAC provided user centred evaluation services for:

Medicare Australia, about donation questions on the Medicare Claim Form

Medicare Australia and Centrelink, about the new combined Medicare and Families’ claim form and process

The Australian Government Information Management Office about the ‘Connected Government’ website developed for the public service.

Chapter 8FinancialChapter 9AppendicesAppendix 1: Australian National Audit Office activityCentrelink contributes to the social and economic outcomes set by government by delivering services on behalf of policy departments. In many cases Australian National Audit Office (ANAO) audit recommendations include Centrelink’s policy departments, and refer to Centrelink’s relationship with those departments. In all cases Centrelink has agreed to work with policy departments to discuss ANAO recommendations in the context of the relevant business partnership agreements, or similar arrangement. The ANAO issued a number of audits during 2005–06 involving Centrelink (see Table 34). Centrelink agreed to all recommendations (some with qualifi cation) and is currently addressing those recommendations. Details of the audits are available at the ANAO website at www.anao.gov.auTable 34: ANAO audits tabled 2005–06

ANAO audits Subject ANAO report number Date table

Random sample survey (within Centrelink) Report 43 of 2005–06 31 May 2006

Integrity of electronic customer records Report 29 of 2005–06 15 February 2006

Management of net appropriation agreements Report 28 of 2005–06 31 January 2006

Reporting of expenditure on consultants Report 27 of 2005–06 30 January 2006

Forms for individual service delivery Report 26 of 2005–06 25 January 2006

Green Office procurement Report 22 of 2005–06 22 December 2005

Design and implementation of ESC 3 Report 6 of 2005–06 18 August 2005

Continuing ANAO auditsIn addition to the ANAO audits tabled in 2005–06, Centrelink contributed to a number of audits that will continue after 30 June 2006. These are:

random sample survey (within Centrelink)

salary packaging administration in the Australian Public Service

Complex Assessment Officers

project management in Centrelink

Family Tax Benefi t

Business support process audit—outcomes and outputs.

ANAO liaison—major Centrelink achievementsDuring the year, Centrelink achieved:

a coordinated contribution by divisions and branches to the ANAO’s audit activities

Systematic monitoring of implementation of recommendations from ANAO audit reports.

Appendix 2: Australian Workplace AgreementsAustralian Workplace Agreements (AWAs) offer Centrelink fl exibility in managing its workforce arrangements.

Non-Senior Executive Service Australian Workplace AgreementsAs at 30 June 2006, 677 non-Senior Executive Service (SES) employees were on AWAs. Table 35 below shows the salary range for non-SES AWAs in 2005–06.

Table 35: Non-Senior Executive Service staff on AWAs

Classification Annual salary range

Centrelink 4 (APS Executive 1 and 2 or equivalent $70 257 to $135 932

Centrelink 3 (APS 5 and 6 or equivalent) $54 088 to $98 500

Centrelink 2 (APS 3 and 4 or equivalent) $40 479 to $53 557

Non-SES employees whose AWAs were approved prior to 15 June 2005 are generally entitled to performance pay, subject to meeting performance measures. Performance pay is usually paid at a rate of 4 per cent of salary per year. Table 36 below shows the total amount of performance pay for non-SES employees on AWAs in 2005–06.

Note: AWAs that have been approved since 15 June 2005 do not contain performance pay, but rather provide for salaries to be adjusted annually, based on assessed levels of individual performance.

Table 36: Total amount of performance pay for non-SES staff on AWAs

Classification Aggregated amountNumber of employees receiving performance pay

Average bonous paid per employee

Centrelink 4 (APS Executive 1 and 2 and equivalent)

$1 069 522.36 340 $3145.65

Centrelink 3 (APS 5 and 6 and equivalent) $20 869.68 10 $2086.97

Total $1 090 392.04 350 $3115.41

Senior Executive ServiceThe remuneration arrangements for all SES employees are provided through AWAs. As at 30 June 2006, 88 SES employees in Centrelink were covered by AWAs. Salaries are determined by the Chief Executive Officer and are broadly within three bands representing three classifi cation levels. Table 37 outlines the salary range for each classifi cation.

Table 37: Salary range against SES classifi cations

Classification Salary range

SES Band 1 $114 000 to $137 927

SES Band 2 $143 391 to $166 901

SES Band 3 (a)

a) SES Band 3 salaries have not been included, as they will enable identifi cation of individual employees’ package due to the small number of employees at that level.

Centrelink SES employees have been entitled to performance pay subject to meeting performance measures. The performance pay is generally paid at a rate of 4 per cent of annual salary per year. Table 38 shows the total amount of performance pay for SES employees in 2005–06.

Note: During 2005–06, the majority of SES employees have moved onto a new AWA framework which provides for annual individual performance based salary advancement, rather than performance pay.

Table 38: Total amount of performance pay for SES in 2005–06

Classification Aggregated amountNumber of employees receiving performance pay

Avereage bonus paid per employee

SES Band 1 $142 007.12 66 $2151.62

SES Band 2 $33 095.61 11 $3008.69

SES Band 3 $16 976.00 2 $8488.00

Total $192 078.73 79 $2431.38

Table 39 outlines the composition of SES in 2005–06.

Table 39: Composition of SES in 2005–06 as at 30 June 2006

Classification Total Female Male Full-time Part-time Ongoing Non-ongoing

SES Band 1 69 29 40 69 Nil 69 Nil

SES Band 2 16 7 9 16 Nil 16 Nil

SES Band 3 3 2 1 3 Nil 3 Nil

Total 88 38 50 88 Nil 88 Nil

These figures relate to the number of Senior Executive employees. They do not include employees on temporary performance.

Appendix 3: Commonwealth legislation affecting CentrelinkEnabling legislationCommonwealth Service Delivery Agency Act 1997

Human Services Legislation Amendment Act 2005

Legislation conferring functions on CentrelinkA New Tax System (Bonuses for Older Australians) Act 1999

A New Tax System (Family Assistance and Related Measures) Act 2000

A New Tax System (Family Assistance) (Administration) Act 1999

A New Tax System (Family Assistance) (Consequential and Related Measures) Act 1999

A New Tax System (Family Assistance) Act 1999

Aged Care Act 1997

Child Care Act 1972

Child Care Payments Act 1997

Child Care Rebate Act 1997

Child Support (Assessment) Act 1989

Child Support (Registration and Collection) Act 1988

Commonwealth Services Delivery Agency (Consequential Amendments) Act 1997

Disability Discrimination Act 1992

Disability Services Act 1986

Employment Services Act 1994

Family Assistance Legislation Amendment (More Help for Families—One-off Payment) Act 2004

Farm Household Support Act 1992

Gift Duty Assessment Act 1941

Health Insurance Act 1973

Hearing Services Administration Act 1997

Income Tax Assessment Act 1936

Income Tax Assessment Act 1997

National Health Act 1953

Social Security (Administration) Act 1999

Social Security (International Agreements) Act 1999

Social Security (Rewrite) Transition Act 1991

Social Security Act 1991

Social Security Legislation Amendment (One-off Payments for Carers) Act 2005

Student Assistance Act 1973

Veterans’ Entitlements Act 1986

Compliance legislationCrimes Act 1914

Data-matching Program (Assistance and Tax) Act 1990

Financial accountabilityA New Tax System (Fringe Benefits) Act 2000

A New Tax System (Goods and Services Tax Transition) Act 1999

A New Tax System (Goods and Services Tax) Act 1999

Auditor-General Act 1997

Bankruptcy Act 1966

Criminal Code Act 1995

Financial Management and Accountability Act 1997

Fringe Benefits Tax Act 1986

Fringe Benefits Tax Assessment Act 1986

Lands Acquisition Act 1989

Taxation Administration Act 1953

People managementAge Discrimination Act 2004

Disability Discrimination Act 1992

Equal Employment Opportunity Act 1987

Equal Opportunity for Women Act 1999

Human Rights and Equal Opportunity Commission Act 1986

Long Service Leave (Commonwealth Employees) Act 1976

Maternity Leave (Commonwealth Employees) Act 1973

Occupational Health and Safety (Commonwealth Employment) Act 1991

Public Employment (Consequential and Transition) Amendment Act 1999

Public Service Act 1999

Racial Discrimination Act 1975

Safety, Rehabilitation and Compensation Act 1988

Sex Discrimination Act 1984

Superannuation (Productivity Benefi t) Act 1988

Superannuation Act 1922

Superannuation Act 1976

Superannuation Act 1990

Superannuation Guarantee (Administration) Act 1992

Workplace Relations Act 1996

Administrative lawActs Interpretation Act 1901

Administrative Appeals Tribunal Act 1975

Administrative Decisions (Judicial Review) Act 1977

Copyright Amendment (Moral Rights) Act 2000

Copyright Act 1968

Federal Court of Australia Act 1976

Freedom of Information Act 1982

Judiciary Act 1903

Ombudsman Act 1976

Privacy Act 1988

GeneralArchives Act

Auditor General Act

Commonwealth Electoral Act 1918

Electronic Transactions Act 1999

Environment Protection and Biodiversity Conservation Act 1999

Appendix 4: Competitive tendering and contractingTable 40: Outsourced functions (a)

Category Nature of activity Outcome of competitive tendering and contracting Period and value

Human Resources Recruitment Panel of 14 providersThree years

Total value $26.4m

SES recruitment Panel of four providersTwo years

Total value $3.2m

Occupational health and safety in several areas

15 providers across Australia

12 months

Total value $176 000

Employee Assistance Program

27 providers across Australia

12 months

Total value $4.95m

Surveillance services 15 providers across Australia

12 months

Total value $7.13m

Removalist broker Toll Transport Pty LtdFive years

$3.1m

Work capacity and medical Assessments Panel of seven providers

Three years

$12.7m

(transferred to Department

of Employment and

Workplace Relations—

April 2005)

Property

Lease administration (including new leases, lease renewal, lease termination, rent reviews and negotiating sub-leasing) Property occupancy expense bill paying

Building inspections, routine and planned maintenance, minor new works Accommodation management services Building security services

Jones Lang Lasalle Australia Pty Ltd Five years $17m

Office Travel administration Qantas Airways Ltd Three years $60m

Category Nature of activity Outcome of competitive tendering and contracting Period and value

Servicesservices

(includes Centrelink staff and student airfares booked by Qantas Business Travel)

Printing copying and publishing Stream Solutions Pty Ltd Five years $125m

Office machine services—Multi Functional Devices

Fuji Xerox Australia Pty Ltd Three years $13.5m

Distribution (courier) services Panel of seven providers Three years Total

value $7.8m

Press clipping services Media Monitors Australia Pty Ltd

Three years $260 000

Fleet management services Lease Plan Australia Ltd

Six years $73.2m (includes cost of lease of vehicles)

Valuation services Australian Valuation Offi ceFive years $69.5m Memorandum of Understanding

Other Internal audit Panel of 10 providers Three years Total value $5.5m

Debt recovery services Panel of two providers Two years $16m

Translation services for publications Panel of four providers Four years Total

value $360 000

Translation services relating to customer benefits—ad hoc

Panel of 285 providers

Ongoing term

Total value $250 000 per

Annum

Interpreting services— sessional

On Call Interpreters and Translators Agency Pty Ltd Two years $9.8m

Interpreting services—ad hoc Panel of 2200 providers Ongoing term Total

value $4m per year

Legal services Panel of seven providers 4 years Total value $19.5m

Category Nature of activity Outcome of competitive tendering and contracting Period and value

Business TV production Optus Networks Pty Ltd 5 years $6.3m

Agent services

183 rural agents

181 rural Access Points

191 Rural Agents and

13 Indigenous Access Points

12 months Total value $8.2m

(a) Some entries on this listing incorporate the initial contract with the options to extend as one term. Centrelink may exercise its right not to take up the option to extend and not incur the associated extra cost of the extension.

Appendix 5: Consultancy contracts let during 2005–06 of $10 000 or greaterThe following legend serves as an explanatory guide to the data contained in Table 40:

(a)Explanation of selection process terms drawn from the Commonwealth Procurement Guidelines (January 2005):

Open Tender (OT): A procurement procedure in which a request for tender is published inviting all businesses that satisfy the conditions for participation to submit tenders. Public tenders are sought from the marketplace using national and major metropolitan newspaper advertising and the Australian Government AusTender internet site.

Select Tender (ST): A procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders. Tenders are invited from a shortlist of competent suppliers.

Direct Sourcing (DS): A form of restricted tendering, available only under certain defined circumstances, with a single potential supplier or suppliers being invited to bid because of their unique expertise and/or their special ability to supply the goods and/or services sought.

Panel: An arrangement under which a number of suppliers, usually selected through a single procurement process, may each supply property or services to an agency as specifi ed in the panel arrangements. Tenders are sought from suppliers that have pre-qualifi ed on the agency panels to supply to the government. This category includes standing offers and supplier panels where the consultant offers to supply goods and services for a pre-determined length of time, usually at a pre-arranged price

(b) Justifi cation for decision to use consultancy:

A—skills currently unavailable within agency

B—need for specialised or professional skills

C—need for independent research or assessment

Table 41: All consultancy contracts let during 2005–06 with a value of $10 000 or greater

Reference number

Consultant name Description Contract

price $Selection process Justification

SODS05/0548- 0001

Alliance Consulting Group Pty Ltd

General management services— change management

35 640 Panel A

CONS05/0381 Anthony Stuart Blunn

Review of data matching processes 45 000 DS A

SODS03/1189- B-0001 Biometix Pty

Ltd

Advice on authentication

systems—December 2005–July 2006

311 425 DS A

SODS03/1189- C-0001

Biometix Pty Ltd

Advice on authentication systems—June 2006–July 2007

127 600 DS A

SODS03/0712- A-0001

Courage Partners Pty Ltd

Analysis and advice on service delivery—1 July 2005–30 June 2006

38 500 OT B

SODS03/0712- A-0002

Courage Partners Pty Ltd

Analysis and advice on service delivery—additional work 9 March 2006–30 June 2006

44 460 OT B

CONS06/0338David Caple and Associates

Identify and mitigate physical stress factors in call centres

28 050 DS B

CONS06/0033 David DeansAdvice to Centrelink Welfare to Work Strategic Committee

72 273 DS C

CONS05/0387Deloitte Touche Tohmatsu

Plan and review implementation of a new programme

79 794 ST A

CONS05/0398

Deloitte Touche Tohmatsu formerly C/- Stormont Deloitte Touche Tohmatsu

Advice on IT architecture 343 200 ST A

Reference number

Consultant name Description Contract

price $Selection process Justification

CONS05/0625 DFD.Com Pty Ltd

Advice to Centrelink Customer Service Strategy Committee

79 500 DS C

DOAS05/0626 DFD.Com Pty Ltd

Advice to Centrelink Service Delivery Performance

Committee

79 500 DS C

SODS02/1596- D-0013

Fujitsu Australia Ltd

Strategic planning advice 19 503 DS B

SODS05/0571- 0001

Fujitsu Australia Ltd

General management

services—strategic planning— 21 March 2006–12 May 2006

53 020 Panel B

SODS05/0571- 0002

Fujitsu Australia Ltd

General management

services—strategic planning— 11 April 2006– 19 June 2006

122 100 Panel B

SODS05/0571- 0003

Fujitsu Australia Ltd

General management

services—strategic planning— 15 May 2006–26 June 2006

41 910 OT B

CONS06/0018 Graeme John Freedman

Advice on security access and authentication technologies and standards—December 2005– June 2006

71 000 Panel B

CONS06/0310 Graeme John Freedman

Advice on security access and Authentication technologies and standards—June 2006 – June 2007

233 200 DS B

SODS05/0576- 0001

Hay Group Pty Ltd

General management services— strategic planning

198 000 Panel C

CONS06/0089 Hinds Advice and review of 300 000 OT B

Reference number

Consultant name Description Contract

price $Selection process Justification

Workforce Research Pty Ltd

organisational cultural change programme

CONS05/0440Hugh Watson Consulting Pty Ltd

Functional review and advice on Centrelink division

66 967 DS C

CONS06/0060Hugh Watson Consulting Pty Ltd

Functional review and advice on Centrelink outposted units

51 563 DS C

CONS05/0492 ICTPro Pty Ltd

Data warehouse strategic review 44 000 DS B

CONN06/0004 Insight SRC Pty Ltd

Organisational climate survey 12 000 ST B

CONS06/0070 Michael John Roche

Consultancy services to

Centrelink’s Investment and Major Programs Committee

79 500 DS C

DOAS06/0169Mike Goldstein and Associates

Undertake a process review of IT Refresh 80 000 DS A

EXTS06/0063Morison Consulting Pty Ltd

Consultancy services to Centrelink’s Finance Committee

79 500 DS B

EXTS06/0090Morison Consulting Pty Ltd

Consultancy services to

Centrelink’s Audit and Risk Committee

79 500 DS B

DOAS05/0274 Nous Group Pty Ltd

Provide recommendations on the service delivery network model and review

33 690 DS B

SODS05/0588- 0001

Nous Group Pty Ltd

General management services— strategic planning—March 2006- April 2006

50 026 Panel B

Reference number

Consultant name Description Contract

price $Selection process Justification

SODS05/0588- 0003

Nous Group Pty Ltd

General management services— strategic planning—April 2006- May 2006

13 000 Panel B

CONS05/0551 Oliver Winder Pty Ltd

Chair of Centrelink’s Audit and Risk Committee

79 500 DS C

EXTS06/0160Pearlwise Pty Ltd T/A Skildum_Reid

Consultancy services for

Centrelink’s Nationa

Sponsorship Programme

21 000 ST B

CONS06/0300 Peoplebank Australia Ltd

Analysis and recommendations for customer records systems upgrade

73 480 DS A

SODS06/0128- 0001

Peter Kennedy

Development of an ethics strategy, framework and

integrity action plan

38 720 DS B

SOXS04/0837- 0001

Phoenix IT&T Consulting

Pty Ltd

Advice and support for IT procurement 61 380 DS B

SODS05/0595 - 0001

Price Waterhouse Coopers

General management services— change management (general)

231 000 OT B

SOXS04/0838- 001

PSI Consulting Ltd

Review of Centrelink's IT

contract management processes

38 500 Panel B

CONS06/0235 Savv-e Pty Ltd

Development of e-learning modules to support programme implementation—28 April 2006- 12 May 2006

103 200 ST A

CONS06/0386 Savv-e Pty Development of E- 30 000 DS B

Reference number

Consultant name Description Contract

price $Selection process Justification

Ltd

learning modules for a new programme implementation—21 June 2006- 30 June 2006

CONS06/0396SMS Consulting Group Ltd

Review and report on cost sharing arrangements between Commonwealth agencies

12 867 DS B

ITCS06/0279

SMS Management and Technology Ltd

Review of a Centrelink IT system 99 000 ST B

DOAS05/0628 Surote Pty Ltd

Consultancy services to

Centrelink’s IT Committee

79 500 DS C

SOXS04/0462- B-0001

Terranovate Group PTY LTD

Advice to the inter-agency Refresh Steering Committee

237 600 ST B

CONS06/0171 TMI Services Pty Ltd

Advice on development of service recovery management strategy

21 500 DS B

SODS04/0640- A-0001

UniQuest Pty Limited

Assist Centrelink to improve staff recruitment, induction and training processes

21 278 OT C

EXTS05/0353 University of Canberra

Research and development of a dynamic micro simulation

model

82 500 DS C

SOXS04/0810- 0002

University of Canberra represented

Consultancy services to prepare Area Profi le Reports based on

45 455 DS B

Reference number

Consultant name Description Contract

price $Selection process Justification

by the National Centre for Social and Economic Modelling

the Customer Service Project Model

SOXS04/0810- 0003

University of Canberra represented by the

National Centre for Social and Economic Modelling

Consultancy services to

prepare Welfare to Work impact scenarios based on the Customer Service Project Model

50 000 DS B

CONS06/0009University of Technology Sydney

Advice and analysis on data mining services

50 000 DS C

SODS04/0974- 0002

University of Western

Australia

Literature review in the field of Business Integrity

20 020 Panel C

ITCS06/0265Value Creation Group Pty Ltd

Business plan development 60 000 DS A

SODS05/0606- 0001

Value Creation Group Pty Ltd ATF The Value Creation Group Unit Trust

General management services— strategic planning

84 763 Panel B

SODS05/0606- 0002

Value Creation Group Pty Ltd ATF Trading as The Value Creation Group Unit Trust

General management services— corporate governance

87 500 Panel C

CONS06/0184 Vision Provision of online 10 000 DS B

Reference number

Consultant name Description Contract

price $Selection process Justification

Australia—

Accessible Information Solutions

accessibility consultancy services

ITCS06/0182Xamax Consultancy Pty Ltd

Privacy impact assessment of new security and identifi cation technologies

64 000 DS B

CONS05/0526Yellow Edge Performance Architects

Development of strategic human resources plan

79 200 ST B

TOTAL 4 695 381

Appendix 6: Customer and Community Satisfaction Survey ProgrammeMarket research companies conduct all of these surveys. Participation in surveys conducted for Centrelink is voluntary. The market research company provides Centrelink with an aggregated report of results, ensuring that no individual responses can be identified and that no individual will ever be identified in the research results provided to Centrelink. Research companies are given customer details (such as name, gender, main payment type, address, and phone number). Phone interviews are conducted with current customers aged 16 years or older but exclude those:

with a silent phone number

with a mobile phone only or no phone

in prisons, hospitals, hostels or nursing homes

who do not want to participate in research

Who may have special privacy needs.

Customers who have declined to participate in research are excluded for a 12-month period, and those who completed the survey are excluded for the next four months. A quota (or ceiling) is used to ensure that customers from a single payment type do not overwhelm the sample. Survey results are weighted to reflect the views of the customers within the respective survey populations.

The national customer survey is run each year, with a random selection of around 1300 current customers. All major customer segments are represented in the survey. To ensure that a good cross section of customers is achieved, there is a quota of

120 completed interviews for each customer segment, except rural payments where there is a quota of 100 completed interviews. As this means that some segments are under or over represented compared with their incidence in the population at large, responses are weighted to reflect the actual representation of each customer segment in the total Centrelink customer population. Recent contact with Centrelink is not a requirement to participate in the survey. The survey measures perceptions of

overall service quality and tests performance against a range of image attributes and service elements that customers have identified as important.

The response rate for this survey was 26 per cent.

The Centrelink Customer Service Centre (CSC) customer satisfaction survey targets customers who have recently visited a CSC and measures their perceptions of the quality of service they received on that occasion. The survey is run continuously, completing around 62 000 interviews each year. The target is 200 completed interviews for each CSC. Results are weighted by offi ce, to reflect the actual distribution of customers who visit each individual CSC. The sample used to draw these interviews may incorrectly include a number of customers who state they did not attend a particular Office on a particular day; this group of customers are then not interviewed in the survey.

The response rate for this survey was 47 per cent.

The Call Centre customer satisfaction survey targets a random selection of current customers who have recently phoned Centrelink and measures their perception of the quality of service they received on that occasion. This survey is run continuously, completing around 13 000 interviews a year. The target for each business line in the Call Centre is 250 interviews. Results are weighted to the number and type of customers who have phoned a Call Centre in the period.

The response rate for this survey was 53 per cent. The community attitudes survey is conducted by phone with people aged 18 years or over who are randomly selected from the Telstra electronic White Pages. The survey provides a general indication of Centrelink’s image, familiarity and favourability within the broader community. Members of the public who are not aware of Centrelink are excluded from participating in the survey at the initial screening stage. Forty per cent of the 1224 respondents interviewed in June 2006 identified themselves as Centrelink customers, of which the majority were in receipt of Age Pension (31 per cent), Family Tax Benefi t (16 per cent), and Disability Support Pension (11 per cent). Results are weighted back to the Australian population aged 18 years and over who are aware of Centrelink, and by gender within age and within location (using data from the Australian Bureau of Statistics).

The response rate was 20 per cent.

Top Level Customer Satisfaction resultThe 2005–06 Top Level Customer Satisfaction Result is measured by weighted targeted business lines through the Customer Service Centre and Call Centre rolling Customer Satisfaction Survey results.

Calculation Rule: (A/100*33.33) + (B/100*33.33) + (C/100*33.33)

Measure Item A = Family and Child care Business Line index % of customer satisfaction with Centrelink services

Measure Item B = Seniors, Carers and Rural Business Line index % of customer satisfaction with Centrelink services

Measure Item C = Working Age Participation Business Line index % of customer satisfaction with Centrelink services.

In 2003–04 and 2004–05 Top Level Customer Satisfaction Results were measured by weighted combination of Call Centre and Customer Service Centre Customer Satisfaction survey results.

Calculation Rule: (A + B)/2

Measure Item A = Weighted positive Customer Service Centre customer satisfaction results

Measure Item B = Weighted positive Call Centre customer satisfaction results.

In 2005–06 Centrelink aligned the Customer Service Centre survey methodology more closely with the Call Centre survey methodology. When this changed methodology is applied to previously published CSC survey results for the 2003–04 and 2004–05 financial years, the impact is an increase in overall satisfaction from 84.1 per cent to 84.4 per cent in the 2003–04 financial year and an increase in overall satisfaction from 84.1 per cent to 84.3 per cent in the 2004–05 financial year. Top Level Customer Satisfaction results therefore increase by .15 per cent in 2003–04 and .1 per cent in 2004–05. These slight increases are not reflected in the ‘Overall Customer Satisfaction with Last Contact with Centrelink, 2003–04 to 2005–06’ Figure 6 at the start of Chapter 5. This fi gure reflects previously published results.

Appendix 7: Disability Discrimination Act 1992 reportingThe Disability Discrimination Act 1992 (DDA) covers disability issues in relation to the administration of Australian Government laws and programmes and the provision of goods, services and facilities. The Commonwealth Disability Strategy provides the background for Australian Government organisations to ensure that their policies, programmes and services are accessible to people with disabilities. Centrelink’s people policies and guidelines meet the requirements of the DDA and the needs of people with disabilities.

As an employer, Centrelink ensures that:

employment policies and procedures comply with the DDA

staff training and development programmes include relevant information about the needs of people with disabilities, as members of the community, as clients and as staff; and that they are accessible to people with disabilities

agency recruiters and managers apply the principle of ‘reasonable adjustment’

employment of people with disabilities includes capacity to support the needs and abilities of the individual

Workplace strategies support the employment of people with disabilities.

AchievementsAchievements in 2005–06 included development of a pilot Work Experience Program for Technical and Further Education (TAFE) Students with Disability within the Illawarra Region will start on 3 July 2006. In conjunction with TAFE Illawarra and CRS Australia, the pilot programme offers a four-week training course and work experience programme for TAFE students with disability. The programme includes training in Office administration skills and customer service skills and the opportunity to develop skills working in a team environment in the Australian Public Service. The programme enables students with disability to gain meaningful work experience that will provide them with the capacity to compete for other roles on merit.

In 2005–06, a Disability Awareness Training Programme was developed and delivered to Centrelink employees about the needs of people with disability as members of the community and as customers.

During the year, Centrelink also contributed to the Australian Public Service (APS) Management Advisory Committee report on employment of people with disability in the APS. This included providing information on Centrelink’s employment practices and coordinating focus groups for employees who identified as having a disability. Among other issues, the focus groups explored the reasons why some employees do not disclose their disability, and provided feedback on recruitment practices and the work environment. The responses from these focus groups will also assist in the development of an updated Centrelink Disability Action Plan.

The DisAbility Coalition has recently revised its terms of reference and continues to meet on a regular basis.

Future directionsFuture directions for Centrelink’s commitment to employees with disabilities include:

evaluation of the work experience pilot programme and possible extension to other areas and agencies

development of the updated Centrelink Disability Action Plan

Continued review and development of learning resources and programmes to ensure they meet the needs of employees with a disability.

Appendix 8: Ecologically sustainable development and environmental performanceThis section reports on Centrelink’s ecologically sustainable development and environmental performance during 2005–06 under Section 516A of the Environment Protection and Biodiversity Conservation Act 1999.

In June 2005, Jeff Whalan, Centrelink’s Chief Executive Officer, reaffi rmed Centrelink’s commitment to ecologically sustainable development by signing the revised Centrelink Environmental Policy Statement. The statement covers Centrelink’s operations throughout Australia and is available on the Centrelink website at www.centrelink.gov.au

Centrelink Environmental Management SystemIn January 2005, Centrelink began to develop a corporate Environmental Management System (EMS) based on the requirements of the Australian New Zealand Standard AS/NZS 14001:2004. As a result of the EMS development, Centrelink has focused on its primary areas of impact on the environment, which are:

energy use

greenhouse gas emissions

waste to landfi ll

Consumption of natural resources (including water and paper).

Environmental programmes were developed around building an environmentally aware business culture; and developing and implementing specifi c environmental impact reduction programmes for property and facilities management, information and communications technology, vehicle fl eet management, printed information products and office consumables. These initiatives are outlined in Centrelink’s Environmental Management Plan.

Sustainable business practicesCentrelink made progress in 2005–06 with integration of environmental impact considerations into key business planning and service delivery processes.

Environmental risk management was integrated as standard business practice into the corporate project planning process

To support sustainable resource management, Centrelink issued an Eco-Efficient Chief Executive Instruction, which directs staff to consider environmental impact and value for money in all procurements. The instruction was applied in major information technology procurement activities and is being integrated into standard procurement operating procedures.

Environmental initiatives, which complemented the objectives and targets outlined in the Environmental Management Plan were incorporated in the organisation’s 2005–06 business plans.

Environmental training and awarenessAs part of the initiative to build an environmentally aware business culture, Centrelink strengthened its programme of environmental training and awareness during 2005–06. A Centrelink Environmental Stewardship training video was developed to promote Centrelink’s environmental stewardship principles to new employees via employee induction programmes. During the year 450 employees attended environmental training.

To support the operation of Centrelink’s EMS and implementation of environmental initiatives, Centrelink has a network of 285 volunteer environmental ‘champions’. This network shares environmental best practice via newsletters, national teleconferences and an annual Environmental Champion Coordinator conference.

Centrelink’s first internal Environmental Performance Report was published in May 2006. It provides Centrelink staff with an insight into the environmental objectives that Centrelink has achieved.

Energy useSince March 2003, Centrelink has worked with AGL Energy Services to develop and implement an innovative energy management programme. Since the programme began, energy audits have been conducted at 240 Centrelink offices. These audits have identified the potential for cost Efficient energy saving upgrades such as re-lamping with tri-phosphor or quad-phosphor lighting and implementing security/access controls. Rollout of these energy conservation measures started in a number of Centrelink sites. Results are already showing that since the energy conservation measures were introduced the sites have recorded an average reduction of 10 per cent in electricity consumption.

Centrelink energy consumption data for 2005–06 are still being consolidated; however,

Centrelink reduced its overall annual energy consumption by 7310 gigajoules during 2004–05 (available in the current Energy Use in the Australian Government’s Operations 2004–05 reports).

Greenhouse gas emissionsCentrelink joined the Greenhouse Challenge in October 2004. This initiative involves a programme of greenhouse gas emission reductions across a range of activities based on the key business focus areas covered by the Centrelink Environmental Policy Statement.

Light and power usage is a major contributor to Centrelink’s greenhouse gas emissions. Centrelink recently entered an agreement to purchase 25 per cent ‘green balance’ power within 178 Centrelink Customer Service Centres, with emissions offset under the Australian Government’s Greenhouse Friendly™ Program.

Centrelink’s fl eet of vehicles also contribute to greenhouse gas emissions. Centrelink developed a number of initiatives in 2005–06 to reduce greenhouse gas emissions from fleet management practices. The size of the vehicle fl eet was reduced from 1117 to

1019 vehicles during the year and 42 per cent of pool fl eet vehicles had a Green Vehicle Guide rating of 10.5 or greater, exceeding the Australian Government target of 28 per cent for agency vehicle fl eets in 2005–06.

Centrelink has encouraged Area Office fl eet managers to subscribe their fl eet vehicles to the Greenfl eet emissions offset programme. At 30 June 2006, 89 per cent of Centrelink’s fl eet had subscribed to Greenfl eet, resulting in a Centrelink specifi c tree planting.

The arrangement is for 11 000 trees to be planted in Victoria on 4 September 2006 on behalf of Centrelink to abate greenhouse gas emissions—equivalent to a reduction in greenhouse gas emissions of 2800 tonnes of carbon dioxide.

A sustainable business practice has been introduced in Centrelink to use ethanol/petrol blended fuels where possible in the vehicle fl eet. All new vehicles leased after 1 July 2006 must be able to operate on E10 ethanol/petrol blended fuels.

At a ‘Greening of Centrelink’ event in May 2006 Centrelink’s Chief Executive Officer was presented with two certifi cates from Greenfl eet and AGL for its contribution to offsetting greenhouse gas emissions.

Paper useCentrelink is continuing to replace paper based methods of providing information to customers and stakeholders with online tools. In 2005–06, Centrelink transferred approximately 5 per cent of printed forms to an online environment, making a total of

65 per cent of all forms now available online.

Centrelink is also continuing to reduce the amount of paper it uses within its offices. Paper consumption data for Centrelink’s National Support Office during 2005–06 demonstrated a 16 per cent reduction, which can be attributed in part to the rollout of double sided printing as the standard default setting for Centrelink’s personal computer network.

Waste management and recyclingCentrelink has introduced strategies to minimise waste generation in its building design and construction techniques. Tuggeranong Office Park has adopted a zero waste to landfi ll policy for all internal office redesign. The Office park uses modular partition components for all internal Office construction. This means components can be moved and placed in storage and reused when needed.

During the year, waste audits were undertaken at Tuggeranong Office Park and in two sites within the office network. The audits are currently being analysed to support the development and implementation of a new National Waste Management Strategy.

Sustainable property managementCentrelink continued to promote sustainable environmental management of its properties, upgrading its Building Performance Specifi cations and leasing documents to achieve a 4.5 star Australian Building Greenhouse Rating (AGBR) for all newly constructed buildings and, where possible, a 3.5 star rating for new leased premises.

In October 2005, development started on a 40 000 square metre national headquarters building in Tuggeranong with a 4.5 star AGBR. Ecologically sustainable development principles were incorporated in the design, including:

water conservation measures such as a grey water recycling system, rainwater and stormwater recycling, a 50 per cent solar hot water system, a dual fl ush toilet system, and tap sensors to reduce water wastage

waste reduction, by using precast concrete panels and innovative slab construction

low toxicity materials in Office furniture and use of recycled materials

energy conservation measures, such as a smart metering system, energy Efficient T5 lamps, automated lighting controls, and double low energy solar performance glazing throughout the facility

contractual arrangements with the landlord to have the building EMS certifi ed to Australian New Zealand Standard AS/NZS 14001 and acceptance by the landlord of rental offsets should it not achieve an annual 4.5 star ABGR or water effi ciency targets.

Appendix 9: Eight key areas of focusRecent survey results against each of Centrelink’s eight key areas of focus are outlined in the tables below.

Table 42: Staff capability—attitude and knowledge

Attribute Result

Centrelink staff behave with honesty and integrity 89% Strongly Agree/Agree

The way Centrelink staff treat you in terms of being polite and friendly 87% Very Good/Good

Centrelink staff treat customers fairly and equally 80% Strongly Agree/Agree

Centrelink staff are skilled and knowledgeable about business 78% Very Good/Good

Centrelink staff take responsibility to solve your issues 78% Strongly Agree/Agree

Centrelink staff care about you and want to help you 74% Strongly Agree/Agree

Table 43: Promptness and consistency of service delivery

Attribute Result

Centrelink staff do what they say they will do 82% Strongly Agree/Agree

Centrelink values your time 60% Strongly Agree/Agree

Centrelink serves you promptly and does not make you wait too long 58% Very Good/Good

You get the same answer if you ask different staff the same question 52% Strongly Agree/Agree

Table 44: Better on-paper communication

Attribute Result

Ease of understanding Centrelink letters 80% Very Good/Good

Accuracy of Centrelink letters 79% Very Good/Good

Ease of understanding how much you are entitled to receive in terms of payments and services

67% Very Good/Good

Ease of fi lling out Centrelink forms 62% Very Good/Good

Table 45: Management of mistakes

Attribute Result

A customer’s payments will not be affected in any way if they make a complaint 76% Strongly Agree/Agree

You know how to have a decision about your payments reviewed 74% Strongly Agree/Agree

Centrelink is prompt and Efficient at resolving mistakes 65% Strongly Agree/Agree

Ease of being able to make a complaint to Centrelink about its service 63% Strongly Agree/Agree

Table 46: Aligning future service delivery arrangements with customer expectations and preferences

Attribute Result

Centrelink gives you choices about the ways you can contact them 90% Strongly Agree/Agree

Table 47: Access to and integration of services

Attribute Result

Your Centrelink Office is located in a place that is convenient and easy for you to get to 84% Strongly Agree/Agree

You can usually do business with Centrelink at a day and time that suits you 80% Strongly Agree/Agree

Centrelink is an easy organisation to deal with 67% Strongly Agree/Agree

Table 48: Improvements to the Customer Service Centre environment

Attribute Result

Length of time in queue 53.6% Very Good/Good

Table 49: Working with our customers and the broader community to achieve positive outcomes

Attribute Result

Centrelink puts people in contact with other appropriate services that it does not provide itself

71% Strongly Agree/Agree

Centrelink provides services and assists people to identify options that will help them get a job 69% Strongly Agree/Agree

Appendix 10: Equity and diversityLegendF = Female

M = Male

I = Indigenous Australian (Aboriginal, Torres Strait Islander or both Aboriginal and Torres Strait Islander)

D = People with disabilities

L = People whose first language is a language other than English or who speak English and another language(s)

N = Non-ongoing

O = Ongoing

Table 50: Equity and diversity groups

Total F M I D L

O N O N O N O N O N O N

Area Brisbane 1853 110 1314 77 539 33 57 1 84 0 92 3

Area Central and Northern QLD

803 119 634 100 169 19 124 8 57 0 47 5

Area East Coast NSW 1135 39 749 29 386 10 24 0 70 0 218 1

Area Hunter NSW

1144 43 862 34 282 9 47 0 78 0 32 2

Area North Australia 443 16 340 11 103 5 92 2 17 0 29 1

Area South Australia 1487 54 1022 39 465 15 36 2 106 0 151 1

Area South Metro NSW 841 99 608 74 233 25 17 1 42 3 291 57

Area South West NSW 805 36 599 31 206 5 40 0 43 0 47 1

Area South East Victoria

1125 68 786 44 339 24 11 0 70 1 173 0

Area West Australia 1153 138 1121 99 432 39 73 3 104 1 153 2

Area Pacifi c Central 1555 104 1111 82 444 22 94 4 109 3 86 1

Area West NSW 748 29 545 22 203 7 14 0 40 0 224 2

Area West Victoria 1155 37 777 27 378 10 24 0 59 0 133 0

Area Tasmania 896 90 578 70 318 20 40 0 63 0 60 1

Call Centre Network 4950 8 3813 7 1137 1 96 0 205 0 247 0

National Support Office

3550 147 1716 76 1834 71 51 1 177 0 448 3

Total employees 25339 1225 17433 870 7906 355 859 22 1419 9 2686 82

Table 51: Equity and diversity separations

Total F M I D L

O N O N O N O N O N O N

Area Brisbane 120 64 80 48 40 16 2 0 3 0 9 3

Area Central and Northern QLD

69 94 43 78 26 16 8 6 6 2 4 3

Area East Coast NSW 94 22 62 15 32 7 4 0 6 0 17 0

Area Hunter NSW 81 64 62 52 19 12 4 2 5 1 1 2

Area North Central Vic 85 43 53 26 32 17 3 1 13 0 11 3

Area North Australia 56 31 43 22 13 9 11 2 4 0 4 0

Area South Australia 81 35 53 18 28 17 4 0 9 0 3 0

Area South Metro NSW 44 57 24 35 20 22 2 0 4 2 18 16

Area South West NSW 85 27 61 22 24 5 4 1 8 0 6 2

Area South East Victoria

93 18 64 13 29 5 2 0 12 0 12 0

Area West Australia 166 129 117 102 49 27 25 2 21 2 16 1

Area Pacifi c Central 115 115 73 85 42 30 10 6 11 5 8 1

Area West NSW 60 35 37 24 23 11 0 0 6 1 13 1

Area West Victoria 73 47 52 34 21 13 5 0 5 0 10 0

Area Tasmania 37 81 23 66 14 15 1 1 2 1 4 1

Call Centre Network 743 13 555 8 188 5 29 1 28 0 26 0

National Support Offi ce

326 77 154 50 172 27 9 1 24 4 38 4

Total separations 2328 952 1556 698 772 254 123 24 167 18 200 37

Table 52: Equity and diversity commencements

Total F M I D L

O N O N O N O N O N O N

Area Brisbane 137 149 99 104 38 45 4 2 0 0 5 8

Area Central and Northern QLD 24 200 21 170 3 30 2 16 0 1 0 8

Area East Coast NSW 75 51 53 40 22 11 2 0 0 0 7 1

Area Hunter NSW 82 82 69 67 13 15 0 2 0 1 3 2

Area North Central Vic 107 121 83 70 24 51 0 1 1 2 3 1

Area North Australia 69 32 59 21 10 11 9 2 0 0 4 1

Area South Australia 11 88 9 61 2 27 0 2 0 1 2 1

Area South Metro NSW 18 172 16 121 2 51 0 1 0 4 2 74

Area South West NSW 115 49 87 41 28 8 3 1 1 0 7 1

Area South East Victoria 65 75 52 48 13 27 1 0 0 0 2 1

Area West Australia 93 193 69 141 24 52 3 4 2 0 5 2

Area Pacifi c Central 47 128 38 102 9 26 0 5 0 2 1 2

Area West NSW 57 46 44 34 13 12 0 0 2 0 4 0

Area West Victoria 74 72 56 51 18 21 1 0 1 0 4 0

Area Tasmania 21 116 13 89 8 27 1 0 0 0 4 3

Call Centre Network 1511 9 1174 7 337 2 29 0 9 0 47 0

National Support Offi ce 348 198 164 115 184 83 6 3 5 1 65 7

Total commencements 2854 1781 2106 1282 748 499 61 39 21 12 172 117

Appendix 11: International visits to CentrelinkTable 53: International visits

Date Delegation Areas of Interest

July 2005 Sweden—Parliamentary committee delegation

Liverpool Call Centre Health and culture of Indigenous people

July 2005 Korean delegation Area South Metro Social Work

July 2005 China—Ministry of Labour and Social Security

Tuggeranong Customer Service Centre— Centrelink’s service delivery model

July 2005Thailand—Ministry of Social Development and Human Security

Liverpool Call Centre Implementation of social security reforms

August 2005 Thailand—Thammasat University

Northern Beaches Customer Service Centre— Centrelink’s service delivery model

August 2005 Malaysia—Employees Provident Fund

Woden Customer Service Centre—customer service delivery

August 2005China—Shanghai Ministry of Labour and Social Security Bureau

Placements in Area Brisbane and National Support Office—customer service delivery

September 2005 China—welfare workersGlen Waverly Customer Service Centre— Social Work services

October 2005 China—Ministry of Finance Business briefi ng by Area

West Victoria

October 2005 Thailand—Ministry of LabourSydney and Melbourne—service delivery for mature age customers

October 2005 Samoa—Office of Cabinet

Call Centre management

Centrelink Education Network

Family and Community Services Library

Multicultural services

Marrickville Customer Service Centre

November 2005 New Zealand—Ministry of Social Development

Management and implementation of major change programmes

November 2005 Korea—Ministry of LabourParramatta Customer Service Centre—Centrelink’s service delivery model

November 2005 Sweden—Research Service of the Swedish Parliament

Welfare to Work Braddon Customer Service Centre—Centrelink’s service delivery model

December 2005 China—Shanghai Labour and Social Security Bureau Overview of Centrelink

December 2005 Korea—Ministry of Health and Welfare Liverpool Area Offi ce

December 2005 IndonesiaStudy tour, Maroubra Customer Service Centre— Centrelink’s service delivery model

December 2005 China—Hong Kong Ministry of Social Welfare

Delivery of employment services through the Job Network

December 2005China—Shanghai Labour and Social Security

BureauStudy tour, Centrelink overview

February 2006Organisation for Economic Co-operation and

Development

Welfare to Work and service delivery

March 2006 Germany–German Ministry of Delivery of income support

Labour and Social

Affairs

payments, and

interaction with Job Network members

March 2006 Japan—Ministry of Health, Welfare and Labor Centrelink and Job Network

April 2006China, Shanghai—Ministry of Labour and Social

Security delegation

Social security legislation, compliance, performance management, and labour market issues

April 2006

New Zealand—Regional Commissioner for Social Development, Work and Income

Strategies for assisting sole parents, people

with disabilities and the use of professionals/

psychologists

May 2006 Hong Kong–Social Welfare Advisory Committee

Policies and practices of family welfare and

domestic violence in Australia

May 2006Netherlands—Parliamentary Commission on

Employment and Social Affairs

Interactions with customers prior to Job Network, Welfare to Work, and payment process

May 2006 South Africa—Umsobomvu Youth Fund

Youth focused assistance and policy

Appendix 12: Occupational Health and Safety (Commonwealth Employment) Act 1991 reportingIn accordance with subsection 16(3) of the Occupational Heath and Safety (Commonwealth Employment) Act 1991 (OH&S Act), Centrelink’s current agreement with the Community and Public Sector Union (CPSU), covers the election of health and safety representatives (HSRs) and sets out the roles and responsibilities of all managers/team leaders, employees, HSRs, O&HS committees and the CPSU.

Investigations conductedComcare conducted:

seven investigations assessing the management of manual handling injury and occupational overuse syndrome risks or reviewing the outcomes of previous investigations

two investigations after Centrelink referred provisional improvement notices for investigation

One investigation into a reportable incident.

Notices issuedOne improvement notice and two provisional improvement notices (PINs) were issued in accordance with the OH&S Act. One PIN was cancelled by the investigator and the other was withdrawn by the health and safety representative.

The improvement notice was issued by an investigator to improve the management of body stressing risks at Hurstville Customer Service Centre. The improvement notice was complied with and the investigation closed.

Table 54: Notices issued

Type of notice Number

Notices given to Centrelink under section 29 of the Act—Provisional Improvement Notices 2

Notices given to Centrelink under section 47 of the Act—Improvement Notices 1

Total 3

Table 55: Incidents notified to Comcare

Type of notice Number

Serious personal injury 18

Prescribed incapacity (30 or more working days or shifts)

18

3

Dangerous occurrence 88

Total 109

Appendix 13: Organisational chart—list of positions and incumbents as at 30 June 2006

Chief Executive Officer Jeff Whalan

Deputy Chief Executive Officer, Customer Service Delivery Mandy Ritchie

General Manager Customer Service Design and Implementation Norman Walker

General Manager Customer Service Delivery Grant Tidswell

General Manager Customer Service Strategy Natalie Howson

Chief Information Officer John Wadeson

General Manager IT Planning and Refresh Louise Tucker

General Manager Core Business IT Systems Tuan Dao

General Manager Corporate IT Systems Eija Seittenranta

Chief Financial Officer Karel Havlat

General Manager People and Planning Sheryl Lewin

General Manager Audit and Risk Bob McDonald

General Manager Communication Hank Jongen

Deputy Chief Executive Officer Stakeholder Relationships Carolyn Hogg

General Manager Employment Disability and Education Paul Conn

General Manager Business Integrity Phil Richardson

General Manager Families, Seniors, Rural and Community Darryl Alexander

General Manager Welfare to Work Taskforce Greg Divall

General Manager Access Card Brendan Sargeant

Customer Service Delivery

Area Brisbane Paul McNae

Area Central and North Queensland Peter Searston

Area East Coast New South Wales David Walsh

Area Hunter Louise Hamilton

Area North Australia Barbara Causon

Area North Central Victoria Kate Hay

Area Pacifi c Central Lyn Agnew

Area South Australia Mary Kosiak

Area South Metro New South Wales Vicki Buchanan

Area South West New South Wales Peter Gillies

Area Tasmania Robert Williams

Area West New South Wales Gillian Long

Area West Victoria Chris Nunan

Area Western Australia Ben Agius

Service Delivery Coordination Brian Small

Call Centres John Dorian

Call Centres Peter Bickerton

Emergency Management Projects Mark Wellington

Customer Service Design and Implementation

Business Process Design Graham Maloney

Service Delivery Support Brian Silkstone

Working Age Participation Peter Doutre

Families and Child Care David Batchelor

Rural and Cross Payments Annette Drury

Business Integrity Paul Goodwin

Customer Service Strategy

Channel Integration and Support Tony Gargan

Self Service Strategy Robin Salvage

Customer Experience Brian Catto

Social Work Services Peter Humphries

Psychology Services Ruth Freeman

IT Planning and Refresh

Technology Strategies Trevor Smallwood

Infrastructure Architecture (Specialist) Peter Gunning

Applications Architecture (Specialist) Steve Crisp

IT Demand and Capability Brian Richardson

Core Business IT Systems

Business Systems Operations Lian Tee

Better Service Projects Luke Woolmer

Testing and Release Management Julie Fursman

Corporate and Data Services Helen Austin

Corporate IT Systems

Infrastructure Operations Sarbjit Sidhu

Infrastructure Projects Glenn Archer

Corporate and Web Based Projects Helen Skrzeczek

Database Operations, Application and Telephony Platforms Kevin Parsons

Security and Information Protection Pat Fegan

Financial Management and Business Support

Contracts and Procurement Chris Welburn

Budgeting and Management Accounting Frank Startari

Financial Management and Services Brad Clark

Property and Environmental Management Colin Parker

Project Coordination Elaine Ninham

Legal Services Brendan Jacomb

Audit

Evaluation and Audit Simon Moore

Communication

Communication and Marketing Vacant

People and Planning

Workplace Relations and Employment Policy Peter Cotterill

Workforce Capability Michele Kane

Organisational Learning and Development Paul Cowan

Planning and Change Management Malcolm Wright

Ministerial, Parliamentary and Executive Support Jenny Teece

Business Integrity

Business Integrity Strategy John Sims

Compliance and Review Catherine Rule

Fraud and Debt Management Sheldon White

Performance and Information Gabrielle Davidson

Employment Disability and Education

Employment Services Moya Drayton

Disability Services Pam Saunders

Education and Training Michelle Cornish

Working Age Requirements Rilka Macainsh

Family Seniors and Community

Family and Child Care Services Dennis Mahony

Seniors, Carers and Means Test Cheryl-Anne Moy

International Services Robert Williams

Rural and Cross Payments Services Jo Gaha

Multicultural Services Peter Rock

Indigenous Services Katrina Fanning

Community Sector Relationships and Business Liaison Marcia Williams

Welfare to Work Taskforce

Case Management Vicki Beath

Access Card Business Vacant

Access Card IT Vacant

Appendix 14: Our people—all Centrelink employeesThe figures in Table 56 below represent the total number of all Australian Public Service employees within Centrelink as at 30 June 2006. They include employees on paid and unpaid leave and employees on temporary performance at a higher level (see also Average Staffi ng Levels in the annual Financial Statements, on page 168).

The fi gures in Table 39 represent the composition of SES in employment as at 30 June 2006. Centrelink Area Offices and the Call Centres have identified SES positions with the remainder located in National Support Office.

LegendF = Female

M = Male

F/T = Full-time

P/T = Part-time

O = Ongoing

N = Non-ongoing

I = Indigenous Australian (Aboriginal, Torres Strait Islander or both Aboriginal and Torres Strait Islander)

D = People with disabilities

L = People whose first language is a language other than English or English and another language(s)

SES = Senior Executive Service

IT = Information Technology

Table 56: All Centrelink non-SES employees

Total F M F/T P/T O N

Centrelink 4 1738 911 827 1644 94 1720 18

Centrelink 3 5852 3666 2186 5202 650 5786 66

Centrelink 2 16 281 12 137 4144 12 183 4098 15 448 833

Centrelink 1 410 253 157 322 88 245 165

Passport Information Service Operator 47 36 11 10 37 21 26

rainees/Cadets 33 21 12 33 0 30 3

Centrelink Professional 2 382 299 83 314 68 375 7

Centrelink Professional 1 828 705 123 648 180 739 89

Centrelink IT Manager 406 87 319 392 14 403 3

Centrelink IT Technical 16 1 15 16 0 15 1

Centrelink IT 409 99 310 399 10 406 3

Centrelink Public Affairs 4 6 5 1 6 0 6 0

Centrelink Public Affairs 3 19 14 5 15 4 17 2

Centrelink Public Affairs 2 23 18 5 20 3 18 5

Centrelink Public Affairs 1 11 7 4 11 0 7 4

Total 26461 18259 8202 21215 5246 25236 1225

Table 57: National Support Office

Total F M F/T P/T O N

Centrelink 4 1163 596 567 1087 76 1150 13

Centrelink 3 1200 693 507 1067 133 1156 44

Centrelink 2 261 177 84 230 31 212 49

Centrelink 1 40 18 22 38 2 16 24

Trainees/Cadets 25 16 9 25 0 25 0

Centrelink Professional 2 23 17 6 21 2 23 0

Centrelink Professional 1 4 4 0 4 0 4 0

Centrelink IT Manager 404 87 317 390 14 401 3

Centrelink IT Technical 16 1 15 16 0 15 1

Centrelink IT 400 96 304 390 10 398 2

Centrelink Public Affairs 4 6 5 1 6 0 6 0

Centrelink Public Affairs 3 19 14 5 15 4 17 2

Centrelink Public Affairs 2 22 17 5 20 2 17 5

Centrelink Public Affairs 1 11 7 4 11 0 7 4

Total 3594 1748 1846 3320 274 3447 147

Table 58: Call Centre network

Total F M F/T P/T O N

Centrelink 4 114 60 54 112 2 114 0

Centrelink 3 609 443 166 549 60 608 1

Centrelink 2 4184 3273 911 2869 1315 4181 3

Centrelink 1 5 5 0 5 0 3 2

Centrelink Professional 2 27 21 6 20 7 27 0

Centrelink Professional 1 19 18 1 17 2 17 2

Total 4958 3820 1138 3572 1386 4950 8

Table 59: Area Brisbane, Queensland

Total F M F/T P/T O N

Centrelink 4 43 22 21 41 2 43 0

Centrelink 3 440 278 162 397 43 436 4

Centrelink 2 1323 971 352 1073 250 1246 77

Centrelink 1 41 29 12 38 3 26 15

Centrelink Professional 2 32 26 6 27 5 32 0

Centrelink Professional 1 75 61 14 66 9 62 13

Centrelink IT Manager 6 3 3 6 0 2 0

Centrelink IT 6 3 3 6 0 2 0

Centrelink Public Affairs 2 1 1 0 0 1 1 0

Total 1963 1391 572 1650 313 1853 110

Table 60: Area Central and North Queensland

Total F M F/T P/T O N

Centrelink 4 31 23 8 30 1 29 2

Centrelink 3 202 133 69 187 15 199 3

Centrelink 2 613 510 103 506 107 515 98

Centrelink 1 21 17 4 18 3 12 9

Centrelink Professional 2 14 12 2 12 2 14 0

Centrelink Professional 1 38 36 2 31 7 34 4

Total 922 734 188 787 135 803 119

Table 61: Area East Coast, New South Wales

Total F M F/T P/T O N

Centrelink 4 30 18 12 27 3 30 0

Centrelink 3 259 153 106 226 33 259 0

Centrelink 2 791 535 256 600 191 757 34

Centrelink 1 14 8 6 9 5 14 0

Centrelink Professional 2 20 15 5 19 1 20 0

Centrelink Professional 1 60 49 11 49 11 55 5

Total 1174 778 396 930 244 1135 39

Table 62: Area Hunter, New South Wales

Total F M F/T P/T O N

Centrelink 4 38 24 14 35 3 37 1

Centrelink 3 303 199 104 242 61 302 1

Centrelink 2 777 615 162 555 222 747 30

Centrelink Professional 2 13 12 1 13 0 13 0

Centrelink Professional 1 56 46 10 42 14 45 11

Total 1187 896 291 887 300 1144 43

Table 63: Area North Central, Victoria

Total F M F/T P/T O N

Centrelink 4 36 17 19 34 2 36 0

Centrelink 3 285 173 112 243 42 283 2

Centrelink 2 950 626 324 733 217 876 74

Centrelink 1 21 13 8 13 8 13 8

Centrelink Professional 2 23 18 5 18 5 23 0

Centrelink Professional 1 68 59 9 57 11 64 4

Centrelink IT 1 0 1 1 0 1 0

Total 1384 906 478 1099 285 1296 88

Table 64: Area North Australia

Total F M F/T P/T O N

Centrelink 4 28 12 16 28 0 27 1

Centrelink 3 118 87 31 116 2 117 1

Centrelink 2 268 218 50 240 28 258 10

Centrelink 1 13 8 5 11 2 9 4

Trainees/Cadets 5 2 3 5 0 5 0

Centrelink Professional 2 12 12 0 10 2 12 0

Centrelink Professional 1 15 12 3 14 1 15 0

Total 459 351 108 424 35 443 16

Table 65: Area South Australia

Total F M F/T P/T O N

Centrelink 4 41 19 22 40 1 41 0

Centrelink 3 412 254 158 345 67 411 1

Centrelink 2 974 705 269 678 296 936 38

Centrelink 1 26 11 15 20 6 13 13

Centrelink Professional 2 33 27 6 26 7 31 2

Centrelink Professional 1 55 45 10 34 21 55 0

Total 1541 1061 480 1143 398 1487 54

Table 66: Area South Metro, New South Wales

Total F M F/T P/T O N

Centrelink 4 22 12 10 22 0 22 0

Centrelink 3 174 115 59 157 17 174 0

Centrelink 2 653 479 174 532 121 571 82

Centrelink 1 30 21 9 27 3 18 12

Centrelink Professional 2 15 14 1 11 4 14 1

Centrelink Professional 1 46 41 5 38 8 42 4

Total 940 682 258 787 153 841 99

Table 67: Area South West, New South Wales

Total F M F/T P/T O N

Centrelink 4 18 15 3 17 1 17 1

Centrelink 3 197 125 72 181 16 195 2

Centrelink 2 549 429 120 433 116 519 30

Centrelink 1 24 17 7 22 2 24 0

Centrelink Professional 2 18 13 5 12 6 18 0

Centrelink Professional 1 35 31 4 27 8 32 3

Total 841 630 211 692 149 805 36

Table 68: Area South East, Victoria

Total F M F/T P/T O N

Centrelink 4 31 23 8 29 2 31 0

Centrelink 3 228 142 86 214 14 226 2

Centrelink 2 769 549 220 595 174 739 30

Centrelink 1 73 39 34 66 7 48 25

Centrelink Professional 2 21 15 6 18 3 21 0

Centrelink Professional 1 69 62 7 46 23 58 11

Centrelink IT 2 0 2 2 0 2 0

Total 1193 830 363 970 223 1125 68

Table 69: Area West Australia

Total F M F/T P/T O N

Centrelink 4 30 16 14 30 0 30 0

Centrelink 3 381 236 145 344 37 379 2

Centrelink 2 1142 864 278 866 276 1028 114

Centrelink 1 30 20 10 19 11 16 14

Centrelink Professional 2 39 29 10 35 4 39 0

Centrelink Professional 1 69 55 14 56 13 61 8

Total 1691 1220 471 1350 341 1553 138

Table 70: Area Pacifi c Central, Northern New South Wales and Southern Queensland

Total F M F/T P/T O N

Centrelink 4 41 22 19 41 0 41 0

Centrelink 3 409 273 136 372 37 407 2

Centrelink 2 1050 775 275 800 250 989 61

Centrelink 1 45 32 13 16 29 15 30

Centrelink Professional 2 39 32 7 27 12 36 3

Centrelink Professional 1 75 59 16 62 13 67 8

Total 1659 1193 466 1318 341 1555 104

Table 71: Area West, New South Wales

Total F M F/T P/T O N

Centrelink 4 24 12 12 24 0 24 0

Centrelink 3 159 107 52 141 18 159 0

Centrelink 2 531 394 137 425 106 506 25

Centrelink 1 4 2 2 2 2 3 1

Centrelink Professional 2 20 14 6 19 1 20 0

Centrelink Professional 1 39 38 1 33 6 36 3

Total 777 567 210 644 133 748 29

Table 72: Area West Victoria

Total F M F/T P/T O N

Centrelink 4 25 11 14 25 0 25 0

Centrelink 3 242 133 109 226 16 242 0

Centrelink 2 832 585 247 624 208 799 33

Centrelink 1 2 1 1 2 0 1 1

Centrelink Professional 2 23 16 7 18 5 22 1

Centrelink Professional 1 68 58 10 50 18 66 2

Total 1192 804 388 945 247 1155 37

Table 73: Area Tasmania

Total F M F/T P/T O N

Centrelink 4 23 9 14 22 1 23 0

Centrelink 3 234 122 112 195 39 233 1

Centrelink 2 614 432 182 424 190 569 45

Centrelink 1 21 12 9 16 5 14 7

Passport Information Service Operaor 47 36 11 10 37 21 26

Centrelink Professional 2 10 6 4 8 2 10 0

Centrelink Professional 1 37 31 6 22 15 26 11

Total 986 648 338 697 289 896 90

Appendix 15: Our servicesThe services listed below are the policy department outcomes delivered by Centrelink to support its outcome and output.

Department of Agriculture, Fisheries and Forestry Citrus Canker Assistance Package (Output 3)

Dairy Type Grants (Output 1)

Drought Assistance Package including Exceptional Circumstances Relief Payment and Prima Facie Interim Income Support (Output 2)

Environmental Management Systems Incentives Program (Output 1)

Farm Help (Output 2)

Sugar Industry Reform Program 2004 (Output 3)

Department of Education, Science and Training• Community Development Employment Project Participant Supplement (Output 3.1)

Department of Employment and Workplace Relations

Outcome 1—Efficient and Effective Labour Market AssistanceWorking Age payments (Output 1.1)• Working Age payments and compliance (Output 1.1.1)

Labour market programme management and delivery (Output 1.2) Information, referral and support services (Output 1.2.1)

Employment services (Output 1.2.2)

Indigenous employment programmes (Output 1.2.3)

Mutual obligations initiatives (Output 1.2.4)

Employment preparation services (Output 1.2.5)

Outcome 2—Higher Productivity, Higher Pay Workplaces1

Workplace Relations Policy and Analysis (Output 2.1)

Workplace Relations Implementation (Output 2.2)

Outcome 3—Increased Workforce Participation

Working age policy (Output 3.1) Working Age policy legislation (Output 3.1.1)

Research and evaluation (Output 3.1.2)

Labour market strategies (Output 3.2) Labour market analysis (Output 3.2.1)

Industry and labour supply strategies (Output 3.2.2)

Community Development Education Management (Output 3.2.3)

Department of Families, Community Services and Indigenous Affairs Age Pension (Output 3.1)

Assurance of Support (Output 1.1)

Bali Assistance Package (Output 1.1)

Bereavement Allowance (Output 3.1)

Carer Allowance (Output 3.3)

Carer Payment (Output 3.3)

Centrelink Multilingual Call (Output 1.1)

Child Care Benefi t (Output 3.3)

Child Support Registrations (Output 1.3)

Commonwealth Seniors Health Care Card (Output 3.1)

Community Agents Program (Output 2.2)

Community Partnerships Agreement (Output 2.2)

Concession Cards (Output 3.1)

Crisis Payment (Output 3.6)

Cyclone Larry Income Support for Farmers and Small Business (Output 5.1)

Cyclone Larry Fuel Excise Subsidy (Output 5.1)

Double Orphan Pension (Output 3.1)

Family Tax Benefi t (Parts A and B) (Output 1.3)

Financial Information Service (Output 3.1)

Language services including interpreting and translating (Output 3.2)

Jobs Education and Training (JET) Child Care Fee Assistance (Output 3.3)

Lump Sum and Telephone Allowance Advances (Output 3.1)

Marriage Like Relationships (Output 3.7)

Maternity Immunisation Allowance (Output 3.1)

Maternity Payment (Output 3.1)

Multicultural Service Officer Program (Output 1.1)

Nominee Arrangements (Output 3.1b)

Pension Bonus Scheme (Output 3.1)

Pension Loans Scheme (Output 3.1)

Pharmaceutical Allowance (Output 3.1)

Reconnect Program (Output 1.2)

Remote Area Allowance (Output 2.1)/Remote Area Allowance (Output 3.1)

Rent Assistance (Output 2.1b)

Retirement Assistance for Farmers (Output 3.1)

Seniors Concessions Allowance (Output 3.1)

Special Benefi t (Output 3.6)

Special Employment Advance (Output 3.1)

Telephone Allowance (Output 3.1)

Utilities Allowance (Output 3.1)

Widow B Pension (Output 3.1)

Wife Pension (Output 3.1)

Department of Health and Ageing Commonwealth Carelink Program in Western Australia (Output 3.2)

Income Assessment of Residential Aged Care Fees (Output 3.1)

Medicare Safety Net (Family Tax Benefi t Customer Validation) (Output 2.1)

Pharmaceutical Benefits Scheme (Concession Validation) (Output 2.1)

Department of Immigration and Multicultural Affairs• Assurance of Support (Output 1.1)

Department of Industry, Tourism and Resources• Cyclone Larry Business Assistance Fund (Output 5.1)

Department of Veterans’ Affairs Defence Force Income Support Allowance (Output 1.2)

Veterans’ Information and Community Support Services in selected Centrelink sites (Output 4.1)

Torres Strait Regional Authority• Community Development Employment Project Participant Supplement (Output 3.1)

Other services

International foreign pension access and assessment

international agreements

Portability of payments.

Appendix 16: Purchasing activity and contract managementTable 74: Advertising and direct mail expenditure

Payee Amount ($) Purpose

HMA Blaze 8178 Advertising related to the sugar industry

HMA Blaze 27688 Advertising related to the New Apprentice Scheme

HMA Blaze 238859 Advertising related to the Financial Information Service

HMA Blaze 23155 Advertising related to the Indigenous Cadetship Programme

HMA Blaze 55063 Advertising related to the 2006 Commonwealth Games

HMA Blaze 73585 Advertising related to ‘Have You Heard’ campaign

HMA Blaze 106124 Advertising related to Call Centre opening

HMA Blaze 94954 Advertising related to the Graduate Recruitment Programme

HMA Blaze 9994 Advertising related to Centrepay

HMA Blaze 1453033 Advertising related to Centrelink

Table 75: Payments $1500 and over made to advertising agencies and agencies with advertising campaigns

Payee Amount ($) PurposeIndependent and General Pty Ltd

52 229 Dissemination of Centrelink information to the ethnic community

National Indigenous Radio Service

10 640 Advertising for the Indigenous community

RPH Australia 38 407 Advertising for the print handicapped

Special Broadcasting Service

370 780 Provision of multicultural broadcast services

Table 76: Payments $1500 and over made to direct mail organisations

Payee Amount ($) PurposePMP Communications

454 541 Preparation and mailout of agency material

Stream Solutions 766 016 Preparation and mailout of agency material

Hermes Precisa Pty Ltd

1 345 730 Preparation and mailout of News for Seniors

Hermes Precisa Pty Ltd

1 191 768 Preparation and mailout of agency material

Note: All figures in the above tables are GST exclusive.

Table 77: Payments $1500 and over to marketing research organisations

Payee Amount ($) PurposeColmar Brunton Social Research 26 900 Market research related to identifying an effective staff

spokesperson for use in information strategies

DBM Consultants 1 105 939

Market research related to Centrelink Call Centre and Customer Service Centre customer satisfaction; Better Service Initiative; National Customer Satisfaction; and Actions on Australian National Audit Office recommendation

Eureka Strategic Research 78 970

Market research related to website redevelopment testing; letters testing and evaluation of Financial Information Service seminars

Mark Dignam and Associates 83 830

Market research related to staff research about the corporate wardrobe, and about time boxes in Centrelink forms

Market Access Consulting and Research

166 786

Market research related to the development of the Welfare to Work information products; to exploring Business Television usage with staff, and to a review of letters production

Market Solutions 125 709 Market research related to the Customer Portal design development, and to improving customer letters

Newton Wayman Chong and Associates

356 470

Market research related to Centrelink Agents and Access Points; Centrelink self service take up; of the SU19 self service trial; marketing makeover evaluation; and staff and customer attitudes to self service and online claims

Quantum Market Research 40 186 Market research related to understanding more about

Centrelink audiences

Synovate 141 243 Market research related to key text testing, and to the Customer Service Centre audit programme

Woolcott Research 117 260 Market research related to communication with families’

customersWorthington Di Marzio 40 873 Market research related to testing News for Seniors

Centrelink also managed research with the following companies for the Department of Human Services and Hearing Australia on a full cost recovery basis.Newton Wayman Chong and Associates

38 635Market research related to testing the ‘Have you Heard?’ communication strategy for Indigenous Australians for Hearing Australia

Quantum Market Research 125 000

Market research related to the Smart Technologies and Services project forthe Department of Human Services

Appendix 17: Salary overviewThe following table shows Centrelink’s range of job classifi cations and salaries.

Table 78: Employees covered by the Centrelink Agreement 2006–09

Employee type Number

SES 0

Non-SES 25 796

Table 79: Salary ranges for employees covered by the Centrelink Agreement 2006–09

Classification Annual Salary Range ($)

Centrelink 4 70 527–95 286

Centrelink 3 51 008–65

Centrelink 2 41 032–51 007

Centrelink 1* 31 832–39 948

Centrelink Australian Passport Information Service Operator 36 025–44

Centrelink Professional 2 70 527–95 286

Centrelink Professional 1 38 414–63

Centrelink IT 44 286–95 286

Centrelink Public Affairs 4 92 201–96 913

Centrelink Public Affairs 3 74 193–89 942

Centrelink Public Affairs 2 57 385–67 227

Centrelink Public Affairs 1 47 185–54 088

Centrelink Graduate Trainee 37 988–39 948

Centrelink Customer Service Trainee 33

Centrelink Administrative Trainee 10 966–24 819

Centrelink Cadet—full-time study 10 807–17

* Junior rates apply:

under 18 years –60%

at 18 years –70%

at 19 years –81%

At 20 years –91%.

Appendix 18: Supplement—Annual Report 2004–05, correction of material errorsThe following page reference relates to the 2004–05 Annual Report:

Page ii, in the address block has Canberra Business Centrelink, this should have read Canberra Business Centre.

Page 131, paragraph eight, Self Service, states ‘Families now have self-service access to an increasing range of options—for example, families can now apply for Family Tax Benefi t over the internet.’ The correct text should have read ‘Families can now update their income estimates, view their payment and current child care details, and claim for approved child care and update their details.’

Page 296, Index, refers to ‘Usability laboratory on page 39’. There was no reference to ‘Usability Laboratory’ on page 39.

List of shortened formsAAT Administrative Appeals Tribunal

ABS Australian Bureau of Statistics

ACT Australian Capital Territory

AGBR Australian Building Greenhouse Rating

ANAO Australian National Audit Office

APS Australian Public Service

APSC Australian Public Service Commission

ARO Authorised Review Officer

AS/NZS Australian and New Zealand Standard

ATO Australian Taxation Office

AUSTRAC Australian Transaction Reports and Analysis Centre

AWA Australian Workplace Agreement

CART Centrelink Academic Reassessment Transformation

CCeS Centrelink Confi rmation eServices

CCO Centrelink Community Officer

CDEP Community Development Employment Program

CEO Chief Executive Officer

CFO Chief Financial Officer

CIO Chief Information Officer

CPSU Community and Public Sector Union

CRU Customer Relations Unit

CSA Child Support Agency

CSC Customer Service Centre

CSDA Commonwealth Services Delivery Agency

DAFF Department of Agriculture, Fisheries and Forestry

DASD Direct Access Storage Device

DCALB Diverse Cultural and Linguistic Background

DCEO-CSD Deputy Chief Executive—Customer Service Delivery

DCEO-SR Deputy Chief Executive Officer—Stakeholder Relationships

DDA Disability Discrimination Act

DEST Department of Education, Science and Training

DEWR Department of Employment and Workplace Relations

DFAT Department of Foreign Affairs and Trade

DoHA Department of Health and Ageing

DHS Department of Human Services

DoTaRS Department of Transport and Regional Services

DPP Commonwealth Director of Public Prosecutions

DS Direct Sourcing

DT Direct Tender

DVA Department of Veterans’ Affairs

EC Exceptional Circumstances

EMS Environmental Management System

ERM Enterprise-wide Risk Management

FaCSIA Department of Families, Community Services and Indigenous Affairs

FAO Family Assistance Offi ce

FOI Freedom of Information

GM A&R General Manager—Audit and Risk

GM C General Manager—Communication

GM P&P General Manager—People and Planning

HOME Household Organisational Management Expenses

HSR Health and Safety Representatives

ICT Information and Communications Technology

IPP Information Privacy Principle

ISO Indigenous Service Officer

IT Information Technology (system or application)

IVR Interactive Voice Recognition

JCPAA Joint Committee for Public Accounts and Audit

KPI Key Performance Indicator

LAFIA Leading Australia’s Future in Asia

LLO Local Liaison Officer

MP Member of Parliament

MSIC Maritime Security Identifi cation Card

MSO Multicultural Service Officer

NAIDOC National Aboriginal and Islanders’ Day Observance Committee

NECC National Emergency Call Centre

NSW New South Wales

NT Northern Territory

OH&S Occupational Health and Safety

OIO Open Infrastructure Offering

OPIC Office of Indigenous Policy Coordination

OT Open Tender

PINS Provisional Improvement Notices

RASC Remote Area Service Centre

Qld Queensland

SAN Storage Area Network

SES Senior Executive Service

SSAT Social Security Appeals Tribunal

ST Select Tender

SUW Single User Workspace

TAFE Technical and Further Education

TSRA Torres Strait Regional Authority

TWFS Tasmanian Wheat Freight Scheme

Vic Victoria

UAC User Assurance Centre

UCD User Centred Design

WA Western AustraliaCO001.0610