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Annual Report 06–07
Output 1: Core Department—Performance—Improve the efficiency of service delivery agencies
Customer access
In 2006–07, the Core Department continued to coordinate improvements in customer access by co-locating related services. The rollout of Family Assistance Offices into all Medicare offices was completed, ahead of schedule, in November 2006. The new arrangement increases access to a range of family-related payments previously provided only through Centrelink and the Australian Taxation Office. In the 2006–07 financial year, around 653,000 customers benefited from this additional flexibility in service delivery.
The Core Department also coordinated a trial of flexible service delivery options involving Centrelink and Medicare. Centrelink made some seniors and carers services available through four Medicare sites:
- Port Macquarie, New South Wales;
- Box Hill, Victoria;
- Hillarys, Western Australia; and
- Marion, South Australia.
Medicare Australia delivered non-cash services through four Centrelink sites (Sutherland, New South Wales; Earlville, Queensland; Broome, Western Australia; and Launceston, Tasmania). There was no reduction in the services offered in the home agency site—for example, where non-cash Medicare services were offered in a Centrelink site, there was no reduction in the service available in the home Medicare office.
At the end of the initial six-month trial period, 31 March 2007, a total of 11,014 customers had conducted business under the flexible service delivery arrangements, including 42 per cent in Medicare offices and 58 per cent in Centrelink offices. The flexible services continue to be delivered in the trial sites with the results to inform future service delivery decisions.
In 2006–07, Centrelink call centre waiting times were reduced by more than 31 per cent, to an average of one minute and 50 seconds (from two minutes and 40 seconds in 2005–06).
The Core Department also worked with the agencies to reduce queuing times. These were reduced through successful management strategies. In 2006–07, 57.6 per cent of Centrelink customers rated the ‘length of time in a queue’ as either ‘good’ or ‘very good’ on their last visit to a Customer Service Centre. This is an increase from the 2005–06 result of 53.6 per cent.
Procurement
The Core Department and the six Human Services agencies continued to achieve efficiencies through joint procurement. In 2006–07, Human Services agencies collaborated to purchase a range of goods and services, including office stationery, personal computers, managed telecommunications services and legal advice. As in 2005–06, the joint purchasing power of the agencies achieved savings equivalent to around one per cent of their expenditure on external suppliers. This was achieved through clustered procurement arrangements and/or synergies and efficiencies achieved by joining existing contracts.
Property management
In 2006–07, the Core Department continued to assist property managers from the Human Services agencies to work together to leverage their combined assets and achieve efficiencies and benefits to service delivery through coordinated property procurement, co-location and management.
A major development in 2006–07 was the agreement between agencies to approach the market for a single property services manager. A single property services contract will result in greater integration and standardisation of administrative practices, and maximise strategic property alliances for Human Services agencies that choose to participate. The arrangement will also produce more timely outcomes for participating agencies, which will support business continuity and enhance customer service. Initially, Centrelink, Medicare Australia and CSA will participate in the single service provider arrangement.
Environmental performance
The Core Department also negotiated a new cooperative agreement on environmental performance with the Australian Greenhouse Office, representing a major milestone in reducing the environmental footprint of the Human Services property network. The environmental policies of Human Services agencies will now be embedded into business processes; for example, environmentally friendly leases will be sought and favoured where they are practical and cost effective.
Performance management
The Core Department closely monitored the functions, directions, corporate governance and financial positions of the Human Services agencies in 2006–07. The agencies reported regularly on performance issues, including audit reports and progress on policy implementation.
The Core Department also continued to monitor monthly achievements against the targets for absenteeism agreed to by its own staff and the staff of Human Services agencies in 2005–06. Reductions in unscheduled absences continued to be achieved across the portfolio in 2006–07, leading to significant productivity gains. Figure 10 shows a consistent improvement across Human Services agencies in the two reporting periods since the targets were established.

The Core Department continued to regularly brief the Minister on emerging issues and potential improvements to service delivery across the Human Services agencies.
The Review of the Corporate Governance of Statutory Authorities and Office Holders (Uhrig review) identified in its report a number of initiatives and policy opportunities for the Government to consider with a view to improving the performance of statutory authorities. The review indicated that a number of statutory authorities would benefit from greater clarity in the definition of their purpose, direction and objectives. To assist the relationship between government, portfolio departments and statutory authorities, it was recommended that Ministers issue a Statement of Expectations to statutory authorities within their portfolio where the Minister has a role in providing direction.
In accordance with the recommendations of the Uhrig review, to ensure that the Minister’s expectations were well understood and met, statements of expectations and intent were in place for Centrelink, Medicare Australia and Australian Hearing during the year. The Core Department also continued to coordinate quarterly reporting to the Cabinet Implementation Unit on key measures being implemented across the Human Services Portfolio.
Agency performance audit and risk management
The Core Department’s external audit and risk management activities continued to focus on:
- providing responses to Australian National Audit Office (ANAO) reports that relate to Human Services agencies; and
- examining and analysing all ANAO performance audits, identifying common themes and lessons to be applied as better practices within Human Services agencies.
These activities, when combined with other regular reports and executive meetings, provide the Core Department with the opportunity to proactively manage potential issues in a timely way. The strategic monitoring of additional mechanisms for external scrutiny, such as reports by parliamentary committees, enhances the Core Department’s capacity to ensure relevant learnings are taken up across the Human Services Portfolio.
Positioning Human Services agencies to respond quickly to national disasters
Through its membership of the Australian Government Disaster Recovery Committee (AGDRC), the Core Department provided input to planning for, and management of, the impacts of and recovery from disasters and critical incidents.
The Core Department and the Department of Families, Community Services and Indigenous Affairs jointly chair the National Emergency Call Centre (NECC) Subcommittee of the AGDRC. When implemented in July 2007, the NECC will allow 7,000 call centre operators, from five provider agencies, to answer calls made to a single disaster hotline in the event of a disaster or emergency of national significance. This will be supported by systems that provide coordinated, real-time information to the public and enable the collection and exchange of information between the public and relevant government authorities.
the Minister for Human Services, Louise Stokes,
Barry Haase MP and Leonie Plant
In 2006–07, the Core Department convened the NECC Operational Steering Committee to provide operational and technical expertise regarding the implementation of a NECC capability. If the NECC is activated, a number of agencies in the Human Services Portfolio—Centrelink, Medicare Australia and CSA—will make a direct contribution to the operation of the NECC.
The Core Department worked with portfolio agencies to build capacity to respond to major emergencies. In 2006–07, agencies contributed to a number of Australian Government emergency responses, including the evacuation of Australians from Lebanon in July 2006, the responses to tropical cyclones George and Jacob in Western Australia in March 2007, and the response to flooding in the Hunter Valley and Central Coast of New South Wales in June and July 2007.
Since November 2006, the Core Department has been supporting Centrelink’s mobile drought assistance services for drought-affected areas across Australia through the Drought Assistance campaign. The mobile services involve three ‘Drought Buses’ travelling to drought-affected communities, with a primary focus on providing better access to services for communities that do not have a Centrelink Customer Service Centre. Each bus is staffed by employees of Medicare Australia and Centrelink and includes a social worker and rural service officers.
In their eight months of operation, the buses have delivered information, advice, drought assistance and other support services to rural, regional and remote areas in New South Wales, Victoria, Queensland, Western Australia and South Australia. The buses have visited more than 260 towns, travelled more than 60,000 kilometres and provided advice and information to more than 8,000 potential and existing customers.
In June 2007, with cross-agency cooperation within and external to the portfolio, the Murray–Darling Basin Assistance and Referral Line was established to assist irrigators who face reduced water allocations and other drought-affected members of rural communities. The telephone assistance line is supported by cooperation between agencies within the Human Services Portfolio and other Australian Government agencies.

