CENTRELINK ANNUAL REPORT 2003 – 04Contact officerComments and requests for further information are welcome, and may be directed to:

Corporate Communication Manager

Centrelink Communication, Media & Marketing

PO Box 7788

Canberra Business Centre

ACT AUSTRALIA 2610

Telephone: (02) 6284 6300

Email: marketing.mailbox@centrelink.gov.au

To obtain copies of this reportLimited 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, 2004

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 available from the Department of Communications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Intellectual

Property Branch, Department of Communications, Information Technology and the Arts,

GPO Box 2154, Canberra ACT 2601 or posted at http://www.dcita.gov.au/caa

5 November 2004

The Hon Joe Hockey

Minister for Human Services

Parliament House

CANBERRA ACT 2600

Dear Minister

I have pleasure in presenting to you Centrelink’s Annual Report for the year ending

30 June 2004.

The report has been prepared as required under subsection 40(1) of the Commonwealth Services Delivery Agency Act 1997. Subsection 40(2) of the Act requires you to cause the report to be laid before each house of Parliament within 15 sitting days of that House after the day on which you receive the report.

This report is presented to you as an acknowledgement of the perseverance and hard work of the staff of Centrelink in ensuring the highest quality of service is delivered to the people of Australia during a period of unceasing pressure from welfare reform and technical innovation.

Yours sincerely

Elizabeth Montano

ACTING CHAIR OF THE BOARD

BOARD OF MANAGEMENT – CHAIR

Box 7788 Canberra Business Centre ACT 2610

Telephone (02) 6212 0051

Facsimile (02) 6212 0488

About this reportThis annual report is to inform Parliament (through the Minister for Family and Community Services), other stakeholders and the community about Centrelink’s performance in delivering Australian Government payments and services. The report is the principal accountability mechanism between government and Centrelink.

Centrelink reports on achievement against performance targets set out in the Family and Community Services 2003–04 Portfolio Budget Statements and Portfolio Additional Estimates Statements. These performance targets identify five key priorities for Centrelink: our accountability, our community and business relationships, our customers, our staff, and our efficiency and effectiveness. These priorities are the subjects of Chapters 3 to 7.

Centrelink measures its operational performance through a Balanced Scorecard. The scorecard monitors our performance against our targets, demonstrates value in the expenditure of public money, and supports a culture of continuous improvement. Along with the Future Directions 2003–2006, the Balanced Scorecard is Centrelink’s primary reporting tool.

Chapter 1: The year in reviewThe Chair of the Board and the Chief Executive Officer examine significant challenges and achievements of the past year, and present the outlook for 2004–05.

Chapter 2: Corporate overviewIncludes our organisational structure, corporate governance, the services we deliver, and arrangements for external scrutiny.

Chapter 3: Our accountabilityIncludes reports on the implementation of welfare reform, performance delivering client services, our customer privacy and security, and the management of fraud and debt strategies.

Chapter 4: Our business and community relationshipsDetails the development of our business and community sector relationships, and the measures undertaken to foster these partnerships across Centrelink.

Chapter 5: Our customersExamines the ways in which Centrelink is responding to customer needs, and the initiatives, strategies and activities that underpin our response.

Chapter 6: Our peopleFocuses on Centrelink staff and Agents, and how they are supported to achieve our business objectives.

Chapter 7: Our efficiency and effectivenessExamines the effectiveness of our budget management, including details of Centrelink outlays and how funding is used to maximise service delivery. Chapter 7 also examines the efficiency of our business processes.

Chapter 8: Financial statements

Chapter 9: AppendicesWe would like to thank the many Centrelink employees who contributed to this annual Report

THE YEAR INREVIEWCHAPTER ONEReport of the ChairmanThe past year has been busy for our staff, as Centrelink moved further away from its traditional role of just providing benefits towards an increased focus on social outcomes and economic participation.

In delivering new and ongoing Australians Working Together initiatives in particular, Centrelink is providing the support and encouragement unemployed customers need to achieve the best participation outcomes. The initiatives have also laid the foundation for a more personalised and responsive support framework for working age people.

The 2002-03 financial year saw the introduction of Personal Advisers. In 2003-04, their numbers increased and I am pleased that they are now helping a wider range of customers.

Centrelink is continuing to build closer connections with the community and this year saw the launch of Community Connect. As a shared resource with the community sector, Community Connect is about developing more collaborative working arrangements with community based service providers. We are finding that an important outcome of this approach to community involvement is increased assistance to help customers participate in and engage more productively with their communities.

During the year, Centrelink demonstrated its capacity to respond quickly to communities in need through the delivery of high quality services. We continued to provide much-needed support in rural and regional communities, particularly to Australian farmers, on behalf of the Australian Government. Our work included drought assistance support, delivery of the Sugar Industry Reform package, and delivery of the Farm Help program to assist farmers in considering their long-term viability in agriculture.

The 2003–04 financial year also saw the introduction of IT Refresh. This innovative five-year program will lead to significant improvements in the service delivery to Centrelink’s customers. It will also mean that Centrelink can continue to build on its existing core computer systems and that we can offer customers more choices in accessing Centrelink services.

In March 2004, the Minister appointed Mr David Deans to the Board, to replace Mr David de Carvalho who resigned during the year. As a new Board member, I would like to welcome Mr Deans to the Board and acknowledge his wide-ranging skills and experience, particularly when it comes to issues affecting mature age Australians. I would also like to thank my fellow Board members for their valuable contributions, including their work as chairs and members of the various Board committees.

I would like to take this opportunity to extend my sincere appreciation to Sue Vardon and her management team for their dedication and leadership over the past year in particular, but also over the last four years during my term as Chairman of the Board at Centrelink.

Finally, a big thank you goes to all Centrelink staff for the wonderful job they do in assisting and supporting customers and their communities across Australia.

John Pascoe AO

Chairman of the Board

Report of the Chief Executive OfficerEvery year Centrelink experiences significant change as it fulfils its charter to Government to bring convenience to the citizen and roll through major reforms. This year was no exception. It is a credit to the public service that whatever challenge we are given by way of government policy initiative, we are able to deliver. Our people are used to change and I am always inspired by the creative ways they find to do our work better or faster or smarter. This year we have seen a significant increase in our connections to other agencies and community groups at the local level. Even though we are a large agency, for many people it is at the local level we are best known and have the greatest chance to work with others to assist our customers move forward in their lives.

We were established as the Commonwealth Services Delivery Agency in 1997 and our value to government has been that we now operate on behalf of 25 agencies. This year we agreed to deliver call centre services on behalf of the Australian Electoral Commission for the 2004 Federal election. We continue to deliver a wide range of services to the people of rural and regional Australia including Exceptional Circumstances Payment and additional drought assistance measures. We are often the only Government agency left in some smaller towns and we intend to stay there.

We met most of our Client Department’s Key Performance Indicators this year. The few that we did not meet have been targeted for 100 per cent achievement in the next year.

Protecting the integrity of outlaysCentrelink is responsible for the expenditure of $60.1 billion of Australian Government funds as it implements the initiatives designed to deliver income support to individuals experiencing various transitions in their lives. These payments come with clear boundaries and Centrelink staff have a responsibility to make correct decisions and to help citizens keep information about their circumstances up to date.

During the year, ensuring the integrity of outlays by controlling fraud and incorrect payments continued to be a major priority. To confirm that customers are receiving their correct entitlements, Centrelink’s compliance activities are specifically aimed at the prevention, detection and deterrence of payments and fraud. We have prepared fraud risk assessments and fraud control plans and have in place appropriate fraud prevention, detection, investigation, reporting and data collection procedures and processes that meet the specific needs of Centrelink and comply with the Commonwealth Fraud Control Guidelines.

The Getting it Right strategy has had a very positive effect over recent years. We have increased our technical training and this year introduced the position of senior practitioner to inject significant expertise at the local level. This position complements other technical specialists, particularly the role of Complex

Assessment Officers. Improvements have been made to the computer-based reference suite, which outlines the rules around payments.

As a result, payment accuracy (including both Centrelink, the Department of Family and Community Services and customer responsibility) is now at 96.8 per cent. Individual and family circumstances change continually. Keeping the payments correct is a challenge, and our customers can sometimes forget to keep their Centrelink records up to date. This contributes in large part to the 3.2 per cent difference. We have undertaken to work with the Department of Family and Community Services to help our customers remember to tell us when things change.

When Centrelink was established we introduced a question into the customer satisfaction survey that asked customers if their last contact with Centrelink had been to fix a mistake. About 25 per cent of customers responded yes to this. Our analysis of this response highlighted a number of reasons, including: that they had failed to inform us of changes; that there was no mistake but the customer thought there may have been; that Centrelink was still waiting for information from the customer to enable us to process their payment; that the customer wished to contest the policy guidelines; or, that we had coded incorrectly. Five years later, this number had reduced to 15 per cent but covered a similar range of reasons.

We decided to dig more deeply into this 15 per cent and find the reasons so we could reduce this figure further. Unfortunately, the resulting research received some negative publicity and created headlines about Centrelink ‘mistakes’. This was most unfortunate particularly as it was based on a significantly incorrect assumption. The ‘mistakes’ referred to were of the type outlined above. Much to our concern, the story was picked up by many media channels without a complete understanding of the whole story.

One of the problems of public administration is to remain open to self scrutiny knowing that the results of the self examination will be on the public record. This is as it should be but also demonstrates the high level of accountability of the public sector.

Supporting Participation outcomesThis year we introduced Business Briefings to the organisation—a cascade presentation where every supervisor presented substantial and consistent content to our staff over a three-week period. We received positive feedback following the first briefing, which highlighted the contribution Centrelink makes to the Government’s Participation policy and stressed that everyone had a contribution to make. The briefing resulted in many conversations concerning how we could improve our participation activities and added new depth to our culture.

In 2002–03, a new category of customer service officer known as Personal Advisers was introduced. Additional Personal Advisers joined Centrelink this year bringing the total number working in Customer Service Centres to more than 680. We know that Personal Advisers have made a significant impact on the lives of our customers through the stories we hear of how they have provided confidence, inspiration and information to people who need help to get back into the workforce. We are pleased with the success of this program.

Providing more flexible service for business, customers and governmentChannel management that is the selection of the most appropriate channel for business delivery— whether face to face, by telephone, electronically, via self service or as a printed product— has been a feature of this year’s activity. Two initiatives have helped increase the options for our citizens.

First, we developed a Natural Voice Response Service and an Internet-based product for the government initiative, Working Credit. Approximately 145 000 people per fortnight have used these services to keep us informed of their earnings and we have been able to very effectively continue to pay them in accordance with the respective income tests that determine their payments.

Second, the substantial investment in our information and technological infrastructure known as IT Refresh increased the industrial strength of our computer systems and gave us the capability to broaden our self service offerings.

The substantial Australian Government initiatives to make new payments to families and carers in this year’s Budget were a significant test of all our applications development capabilities and our organisations were able to deliver on these at very short notice. This was a significant achievement both for our National Support Office and all parts of our network.

We have had a technological breakthrough with our first electronic connections to business. Centrelink is now able to receive earnings data on a regular basis directly from employers. This has meant that people on Disability Support Pensions who are working can have their earnings advice sent directly to Centrelink without the concern of having to contact Centrelink themselves each fortnight. This improves our ability to pay people correctly and to prevent debts.

Over the year, even as a number of new services came on line, others were already in development for introduction early in the new year. It is anticipated that people will find useful, for example, the capacity to view their financial circumstances on line, a service that is due for release in early July 2004.

The young people of Australia have indicated, through our customer satisfaction surveys, that they appreciate the additional online services that Centrelink is now providing.

Centrelink now has six Remote Area Service Centres, and a further six are due to roll out over the next few years. The key feature of this Australians Working Together initiative is that centres are staffed by Indigenous people from the local community. Local staff are very effective in finding appropriate service delivery solutions, particularly in the area of Participation.

Demonstrating that we provide value for moneyIn 2002–03, the Boston Consulting Group report demonstrated that Centrelink had a good record in providing value for money. The Group recommended areas for additional attention and identified that we could increase shared servicing in certain non-customer areas. Whilst Centrelink has many examples of specialist processing centres, we decided to increase the scale of our activity and so increase appropriate consolidation. Concurrent with this action, we decided it was timely to consolidate the call and customer service networks and Deputy CEO Business; Paul Hickey designed and began the implementation of the Centrelink Service Delivery Network.

We are reporting a $6.3 million surplus for 2003–04 which is pleasing. Since its formation, Centrelink has earned $12.8 billion in revenue and managed its expenses to within $6.7 million of its total revenue stream.

Centrelink’s ongoing financial position remains sound with $195 million in cash available at the end of the reporting year.

We faced a dilemma with our expert system. It became too expensive to develop the system as we would have wished, but we still value it in principle. We closed the main project but used the investment we had put into it to contribute to self service delivery.

Forming Alliance 2004In 2003–04, we officially formed the new Alliance 2004 agreement with our main client, the Department of Family and Community Services. Reflecting a stronger and more workable relationship, Alliance 2004 recognises the shared responsibility of both organisations in achieving government outcomes. Given the success of this new partnership arrangement, we are hoping to implement similar approaches with our other client agencies during 2004–05.

Thank youWe are as always indebted to our Board members, particularly our Chair John Pascoe AO, for their special contributions through the subcommittees of the Board and for their individual counsel from time to time. They often bring a different perspective to the issues we face and always a great deal of wisdom.

Centrelink is assisted in its work by many reference groups of community members who give us feedback about how a government agency such as ours can communicate better with people.

We appreciate the business we receive from our client departments. We thank our colleagues in central agencies, particularly the Australian Public Service Commission and the Department of Finance and Administration, for their readiness to listen to our challenges and help where they can.

Centrelink staffs have won many local and national awards during the year. This year, for the second time running, a Centrelink Call Centre (Perth) won the top industry award for a Call Centre over 50 seats and we won the International ‘Best Innovative Speech Recognition Solution’ award for the Report Employment Income Natural Language Speech Recognition Product.

There can be no greater debt of gratitude than that which I owe to the staff of Centrelink who, everyday, go out of their way to help the people of Australia and to implement the policies of the Australian Government. All over Australia I see and hear stories of their enthusiasm and creativity and determination to make a difference.

Sue Vardon AO

Chief Executive Officer

CORPORATE OVERVIEWCHAPTER TWOBUSINESS ARRANGEMENTSCentrelink is a statutory authority within the Family and Community Services portfolio.

Other agencies in the portfolio are the Department of Family and Community Services (FaCS), the Child Support Agency (CSA), the Social Security Appeals Tribunal and the Australian Institute of Family Studies.

LegislationCentrelink operates under the Commonwealth Services Delivery Agency Act 1997 (CSDA Act), which gives Centrelink responsibility for the provision of Australian Government services in accordance with specified service agreements.

As an Australian Public Service (APS) organisation, Centrelink is subject to the Financial Management and Accountability Act 1997 (FMA Act) and is staffed under the Public Service Act 1999.

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

Outcome and outputCentrelink has one government outcome: ‘Effective delivery of Commonwealth services to eligible customers’. The outcome is supported by the output: ‘Efficient delivery of Commonwealth services to eligible customers’.

The outcome and output reflect Centrelink’s role of delivering specified outputs on behalf of client agencies. Centrelink’s five corporate goals and the Government’s priorities provide the framework for achieving our output and outcome.

FIGURE 1: OUTCOME AND OUTPUT STRUCTURE

Centrelink functionsCentrelink contributes to the social and economic outcomes set by government by delivering services on behalf of 25 client agencies. These cover a wide range of outputs in the form of products and services. For the full range of products and services provided by Centrelink, see Figure 2 (page 14). Table 2 (below) shows the span of Centrelink’s network, which allows the widest possible choice of access to all Australians.

TABLE 1: OUR BUSINESS AT A GLANCE

Our dimensions 2003–04 2002–03

Service delivery points

wide

Over 1000 Australia-Over 1000 Australia-wide

Number of employees 25 448 27 137

Number of client agencies 25(a) 25(a)

Payments on behalf of client agencies

$60.1 billion

Approximately $60.1 billion Approximately $55.3

billion

Mainframe online transactions

4.4 billion

Approximately 4.4 billionApproximately 4.2 billion

Number of customers 6.5 million 6.3 million

Letters to customers 90.6 million 94 million

Home visit reviews 9 280 10 247 9 280 10 247

New claims granted 2.8 million 3 million 2.8 million 3 million

Successful telephone calls 28.0 million 25.6 million 28.0 million 25.6 million

Internet web page views 32.6 million 27.7 million 32.6 million 27.7 million

(a) State and territory housing authorities are counted as separate agencies.

TABLE 2: OUR NETWORK

Network services 2003–04 2002–03

Customer Service Centres 321 320

Centrelink Agents 349 331

Rural Remote Visiting ServicesIn identified locations

as required

In identified locations

as required

Separate Specialist Service Centres 29 25

Call Centres (a) 26 27

Veteran Information Services 14 14

Access Points 159 144

Area Support Offices 15 15

National Support Office 1 1

Remote Area Service Centres 6 3

(a) Two Call Centres operating across separate sites combined at one location in 2004.

FIGURE 2: OUR SERVICESNote: Numbers in brackets relate to client agencies’ respective outputs as outlined in 2003-04 Portfolio Budget Statements.

Attorney-General’s Department Family Law and Regional Law Hotline (Output 1.3)

Department of Agriculture, Fisheries and Forestry Dairy Exit Program (Output 1)

Drought Assistance Package(a) (Output 2)

Small Business Interest Rate Relief Program(b) (Output 2)

Environmental Management Systems Incentives Program (Output 1)

Exceptional Circumstances Relief Payment (Output 2)

Ex-Gratia Payments for Farmers (Output 1)(c)

Farm Help (Output 2)

Sugar Industry Assistance Package (Output 1)(c)

Sugar Industry Reform Program 2004 (Output 3)(c)

a) in conjunction with FaCS

b) in conjunction with the Office of Small Business, Department of Industry, Tourism and Resources

c) in conjunction with the Department of Finance and Administration

Department of Education, Science and Training ABSTUDY (including Living Allowance and Incidental Allowance) (Outputs 1.2 and 2.1)

ABSTUDY Pensioner Education Supplement (Outputs 1.2 and 2.1)

Assessment Subsidy for the Disadvantaged Overseas Trained Professionals Programme and the Bridging for Overseas Trained Professionals Loan Scheme (Output 3.3)

Assistance for Isolated Children (including Distance Education Allowance, Second

Career Counselling Programme Referrals) (Output 2.3)

Basic Information Technology Skills for Older Workers Programme (Output 2.3)

Career Information Centres (Output 2.3)

Disabled Apprentice Wage (Output 2.2)

Home Allowance and Board and Additional Board Allowance (Output 1.2)

Improving Information Technology Skills for Older Workers Programme (Output 2.3)

Jobs Pathway Programme (Output 2.3)

Jobs Pathway Programme Referrals (Output 2.3)

Language, Literacy and Numeracy Programme (Output 2.3)

National Office of Overseas Skills Recognition (Output 3.3)

New Apprenticeships (Output 2.2)

New Apprenticeships Access Programme (Output 2.2)

New Apprenticeships and New Apprenticeship Centres (Output 2.2)

New Apprenticeships Incentives Programme (Output 2.2)

Student Financial Supplement (Loans) Scheme for ABSTUDY customers (Output 2.1)

Department of Employment and Workplace Relations Access to Self Help Services (Output 1.2)

Employment Services (Output 1.2.2)

Employment Services for Special Groups (People with Disabilities) (Output 1.2.1)

Indigenous Employment Programmes (Output 1.2.3)

Information to Job Seekers (Output 1.2)

Information, Referral and Support Services (Output 1.2.1)

Job Seeker Assessment (Output 1.2)

Job Seeker Compliance and Participation (Output 1.2)

Job Seeker Referrals (Output 1.2)

Job Seeker Registration (Output 1.2)

Labour Market Programme Management and Delivery (Output 1.2)

Mutual Obligation Initiatives (Output 1.2.4)

Department of Family and Community Services Age Pension (Output 3.4)

Austudy Payment (Output 1.2)

Bereavement Allowance (Output 3.1)

Carer Allowance (Output 3.3)

Carer Payment (Output 3.3)

Centrelink Multilingual Call

Child Care Benefit (Output 1.4)

Child Support registrations (Output 1.3)

Commonwealth Seniors Health Card (Output 2.2)

Community Agents Program (Output 2.2)

Community Development Employment Project Participant Supplement (Output 3.1)

Community Partnership Agreements (Output 2.2)

Concession Cards (Output 2.2)

Crisis Payment (Output 3.1)

Disability Employment Services (Output 3.2)

Disability Services (Output 3.2)

Disability Support Pension (Output 3.2)

Double Orphan Pension (Output 1.1)

Education Entry Payment (Output 3.1)

Employment Entry Payment (Output 3.1)

Family Tax Benefit (Parts A and B) (Output 1.1)

Fares Allowance (Output 1.2)

Financial Information Service (Output 3.4)

Greencorps Referrals (Output 1.2)

Health Care and other customer concessions (Output 2.2)

Interpreter and Translation Services (Output 3.2)

Job Placement, Employment and Training Referrals (Output 1.2)

Jobs, Education and Training Programme (Output 1.2)

Lump Sum and Phone Advances (Output 3.1)

Maternity Immunisation Allowance (Output 1.1)

Maternity Payment (Output 1.1)

Mature Age Allowance (Output 3.1)

Mobility Allowance (Output 3.2)

Multicultural Service Officer Program

Newstart Allowance (Incapacitated) (Output 3.1)

Newstart Allowance (Output 3.1)

Nominee Arrangements

Parenting Payment (single and partnered) (Output 3.1)

Partner Allowance (Output 3.1)

Pension Bonus Scheme (Output 3.4)

Pension Concession Card (Output 2.2)

Pension Loans Scheme (Output 3.4)

Pensioner Education Supplement (Output 3.1)

Pharmaceutical Allowance (Output 2.2)

Reconnect Program (Output 1.2)

Remote Area Allowance (Output 2.1)

Rent Assistance (Output 2.1)

Retirement Assistance for Farmers (Output 3.4)

Sickness Allowance (Output 3.2)

Special Benefit (Output 3.1)

Special Employment Advance (Output 3.1)

Student Financial Supplement Scheme (Output 1.2)

Telephone Allowance (Output 2.2)

Widow Allowance (Output 3.1)

Widow B Pension (Output 3.4)

Wife Pension (Outputs 3.2 and 3.4)

Work for the Dole Supplement (Output 3.1)

Youth Allowance (Incapacitated) (Output 1.2)

Youth Allowance (Output 1.2)

Youth and Student Line for Youth Allowance and Austudy Payment Enquiries(Output 1.2)

Department of Finance and Administration Ex-Gratia Payments for Farmers (Output 2.1.3)(a)

(a) in conjunction with DAFF

Department of Foreign Affairs and Trade Australian Passport Information Service Call Centre (Output 2.1.2)

Department of Health and Ageing Commonwealth Carelink Program in Western Australia (Output 3.2)

Hearing Services (Outcome 6)

Income Assessment for Residential Aged Care fees (Output 3.1)

Medicare Safety Net (Family Tax Benefit Customer Validation) (Output 2.1)

Pharmaceutical Benefits Scheme (Concession Validation) (Output 2.1)

Department of Immigration, Multicultural and Indigenous Affairs Assurance of Support (Output 1.1)

Department of Transport and Regional Services Bass Strait Passenger Vehicle Equalisation Scheme (Administered Program 2.1)

Rural Transaction Centres (Administered Program 1.1)(a)

Tasmanian Freight Equalisation Scheme (Administered Program 2.1)

(a) in conjunction with Office of Small Business, Department of Industry, Tourism and Resources

Department of Veterans’ Affairs Veterans’ Information and Community Support Services in selected Centrelink sites(Output 4.1)

Other servicesBusiness and community Centre pay

Customer Confirmation Service

Income Confirmation

Rent Deduction Scheme

Interpreter Services

Advice to business via Business Hotline

Electronic Information Reporting

International Foreign pension access and assessment

International agreements

Portability of payments

Social Work Social Work services for citizens and customers with difficult personal and family issues

Domestic and Family Violence Policy and Procedures

Child Support exemptions

Assessment of Youth Allowance for young people in situations of extreme family breakdown

Assessment of Crisis Payment for people leaving situations of domestic violence

Social Work services for customers facing multiple barriers to participation

State and Territory Housing Authorities Rent Deduction Scheme

Tasmanian State Government Partnership with Service Tasmania

STRATEGIC FRAMEWORKCentrelink’s key strategic planning document is Future Directions 2003–2006. Future Directions identifies Centrelink’s five corporate goals and the strategies that support them, as well as Key Performance Indicators (KPIs) and targets for each goal. Future Directions also explains Centrelink’s mission and vision; provides the basis for local and national business planning; and engages Centrelink people in a common purpose through shared behaviors and core values. Future Directions 2003–2006 focuses Centrelink’s efforts and contributes to and supports our key themes of:

protecting the integrity of outlays

supporting participation outcomes

providing more flexible service for business, customers and government

Demonstrating that we provide value for money.

Our missionCentrelink’s mission, as the human face of the Australian Government, is to provide easy and convenient access to high quality government and community services that improve the lives of Australian families, communities and individuals.

Centrelink aims to improve the lives of Australians, together with their families and the communities we all live in, by:

assisting Australians to cope with the cost of having a family or caring for someone

helping communities in emergencies such as droughts, floods and bushfires

helping people cope with difficult financial circumstances, for example, when they lose a job, retire, become ill or are disabled

ensuring that homeless people and other disadvantaged groups do not miss out on opportunities available to others in the community

assisting customers to find accommodation and other emergency services and cope with personal and family problems

encouraging and helping people reconnect with their communities through social and economic participation. For many people, contacting Centrelink is the first step in getting a job

helping industries and communities to adjust to industry and other changes such as through the Tasmanian Freight Equalisation Scheme and the Sugar Industry Assistance Package

demonstrating environmental responsibility and minimising the negative impacts we have on the environment through efficient use of resources and reducing waste

facilitating links between government, business and community sectors to foster social capital and community capacity.

Our visionCentrelink will:

be an innovative and rewarding place to work

provide access to a wide range of high quality, personalised services that help Australians cope through life events

help make a positive difference to customers by anticipating, listening and responding to their needs and providing options that focus on outcomes

work closely with Government, business and the community sectors

be held in high regard by the citizens of Australia and their Government

as a trusted and networked organisation, continue to adapt, design, integrate and deliver services, information and support for all Australians.

Our goalsTo achieve Centrelink’s mission and vision, our goals are:

Accountability to Government and client agencies: To contribute to achieving Government policy objectives through consistent high quality services and being responsive to the needs of client agencies and Government. (For information about our performance, see Chapter 3.)

Business and community: To work closely with the business and community sectors to achieve positive outcomes for Australians. (For information about our performance, see Chapter 4.)

Customer: To provide access to high quality services recognising the diverse needs, preferences and expectations of our customers, consistent with Government policy. (For information about our performance, see Chapter 5.)

Developing and supporting our people to achieve business outcomes: To meet the challenges of current and future business by supporting our people with knowledge, skills, tools and opportunities. (For information about our performance, see Chapter 6.)

Efficiency and effectiveness of our operations and processes: To ensure our internal processes support efficient and effective services and provides value for money. (For information about our performance, see Chapter 7.)

Our themesFuture Directions 2003–2006 focuses Centrelink’s efforts and will contribute to and support our key themes of:

protecting the integrity of outlays

supporting participation outcomes

providing more flexible service for business, customers and government

Demonstrating that we provide value for money.

Our strategies link up to support these objectives, capturing the contribution of teams’ right across the organisation. To deliver on these overarching priorities and implement the future directions, the achievement of strategies across all goals is essential.

Future directionsThe annual review of Centrelink’s Future Directions commenced in late 2003. The review aimed to continue to strengthen and simplify the planning framework, and more closely link our business activities with our strategic goals.

Coming into effect on 1 July 2004, the new Future Directions 2004–2009:

strengthens our vision and better aligns this to our strategic themes

continues to simplify planning in Centrelink by including priorities for each strategy

ensures our KPIs and targets assist in monitoring our performance as we move towards our preferred future

Improves the foundation for operational planning throughout Centrelink.

Centrelink Business Plan 2003–2004During the year, Future Directions 2003–2006 was implemented at national, area and local levels through the Centrelink Business Plan 2003–2004, which provided the basis for preparing local Business Improvement Plans for every Centrelink team.

The Centrelink Business Plan 2003–2004 came into effect on 1 July 2003 and provided a one-year focus that aimed to strengthen Centrelink’s ability to respond to and manage change. The Business Plan 2003–04 outlined detailed initiatives designed to help address the five strategic goals set out in Future Directions 2003–2006.

The Balanced ScorecardAt the core of Centrelink’s strategic framework is the Balanced Scorecard. The Balanced Scorecard is the key instrument for measuring and reporting on Centrelink’s performance against its Future Directions. It uses the five corporate goals as its measurement perspectives, which represent a balance of internally focused measures and measures set by client organisations.

The Balanced Scorecard is a strong performance driver because it is accessible to every staff member online and focuses the organisation on performance results.

Top-level Key Performance Indicators for each goal form the basis for external reporting, and indicators for each strategy form the basis for internal reporting on progress. Each month Centrelink collects data against all Key Performance Indicators and reports performance to the Board of Management, the Executive, the Guiding Coalition, and key management meetings.

Review of the Balanced ScorecardFollowing a major review of the Balanced Scorecard in 2002–03, Centrelink implemented a new scorecard in July 2003. The new scorecard is more strategically focused, based around organisational goals and includes lead and lag indicators.

In 2003–04, Centrelink conducted a review of all internally-set measures and targets within the Balanced Scorecard to ensure they:

reflect the current business priorities within Future Directions

are relevant and meaningful

are strategic

will assist in monitoring organisational performance

The scorecard changes will come into operation from 1 July 2004.

Customers at the centre of our businessCentrelink is committed to providing a high level of customer service, consistent with the achievement of Government outcomes, by placing the customer at the centre of our business.

Centrelink has undertaken a detailed analysis of research about our customers’ needs, preferences and expectations. From what our customers have told us and from what we have learned through our contact with customers and with other organizations, there are eight key areas that customers want us to focus on to improve the customer experience.

These are:

staff capability—attitude and knowledge

promptness and consistency of our service

on-paper communication

management of mistakes

aligning future servicing arrangements with customer expectations and preferences

working with our customers and the broader community to achieve positive outcomes

improving the Customer Service Centre environments

access to and integration of services.

Centrelink has listened to and is learning from what our customers have told us. Centrelink’s Future

directions 2003–2006 identified a number of key strategies against each of its corporate goals that

reflect our commitment to responding to what our customers say is important to them. These

strategies are detailed in Chapters 3 to 7.

FIGURE 4: CENTRELINK’S ORGANISATIONAL STRUCTURE

CENTRELINK STRUCTURECustomer service networkCentrelink’s customer service network includes Customer Service Centres (CSCs) and Call Centres, along with other specialist customer service outlets and Community Agents. The network provides services funded by Centrelink’s client agencies directly to 6.5 million customers (see Table 2 on page 13 for more information).

Centrelink CallCentrelink Call comprises 24 networked Call Centres and two Rural Call Centres located around Australia. These are supported by Centrelink Call Canberra, which provides operational, financial, human resources and technical support. Centrelink Call is headed by a General Manager and two National Managers. All Call Centre managers, Centrelink Call business managers and the Executive are members of the Centrelink Call Leadership Team which meets bi-monthly to discuss strategic Call Centre issues. The two Rural Call Centres are managed by Centrelink Call and Rural Services.

Area Support OfficesVarious CSCs and specialist services are grouped into 15 geographical areas around Australia, each with an Area Support Office (ASO) headed by an Area Manager. These area Offices provide management, administrative and operational support for each CSC.

National Support OfficeThe National Support Office is Centrelink’s headquarters and is located mainly in Canberra with some teams out posted to other states. It supports the Board of Management, Ministers, client agencies, ASOs and the Centrelink network. Traditional divisions and branches have been replaced by teams in Centrelink (see Figure 4 on page 23). Each team is led by a Senior Executive Service officer.

The National Support Office operates under four business categories:

Customer Service, headed by a Deputy CEO

Business, headed by a Deputy CEO

Digital Business and Business Transformation, headed by a Deputy CEO and Chief Information Officer

Service Management, headed by a Deputy CEO.

Centrelink ExecutiveThe CEO is responsible for the day-to-day administration and control of Centrelink’s operations, and has the power to enter into service arrangements with the heads of client agencies. The CEO leads the Centrelink management team to implement strategy, measure financial and operational performance and report to the Board of Management.

The Deputy CEO Business has responsibilities for: Participation and Client Partnerships; Families, Retirement and Payment Support Services; Financial Services; Property and Services; Environmental Management; Resource Management; Contracts and Procurement; People and Corporate Performance; and Risk and Business Assurance.

The Deputy CEO Service Management has specific responsibilities for: the Area Network; Centrelink Call Centers; Business Continuity in Service Delivery; and Service Delivery Integration.

The Deputy CEO Customer Service is responsible for improving the overall quality of customer service. The Customer Service Domain comprises the following Teams: Service Recovery; Indigenous Services; Multicultural Services, Business Liaison and Community Sector Relationships; Current Customer Services and Customer Experience Management.

The Deputy CEO Business Transformation includes the responsibilities of Chief Information Officer, and is accountable for the effective and efficient delivery of information and technology strategy and services. The Deputy CEO Business Transformation is also responsible for creating strategies, processes and solutions that identify cross-organization and whole of government opportunities to redefine Centrelink’s business model.

GOVERNANCE FRAMEWORKEstablished under the CSDA Act, Centrelink is an autonomous statutory authority within the Family and Community Services portfolio. The Minister for Family and Community Services is accountable for Centrelink policy to the Parliament and the public. The Minister for Children and Youth Affairs has day-to-day responsibility for Centrelink.

As a core part of the Government’s operations and unlike most statutory authorities, Centrelink is subject to all the mainstream Australian Public Service legislation such as the Public Service Act 1999 and the FMA Act.

The Centrelink Board of Management is responsible for ensuring the corporate governance framework is in place. The Guiding Coalition—a peak management group that includes all Centrelink Senior Executive Service officers—governs Centrelink internally.

Board of ManagementThe role of the Board is to:

decide Centrelink’s goals, priorities, policies and strategies

Ensure that Centrelink functions are properly, efficiently and effectively performed.

The Board is fully accountable for these outcomes through the Chairman to the Minister. The Minister may, by written notice given to the Chairman, give directions to the Board about the performance of Centrelink’s functions. Generally, the Minister’s directions go to client agencies who exercise contractual authority over Centrelink’s delivery of their programs.

Ministerial directionsThe CSDA Act requires details of ministerial directions to the Board to be published in Centrelink’s annual report. There were no ministerial directions to the Board during 2003–04.

Board structure and operationsDuring 2003–04, there were eight Board members:

the Chairman

five non-executive directors who serve part-time

one non-voting member who is also a client department secretary

The CEO (the sole executive board member).

The Board usually meets monthly and works from an agenda set by the Chairman. Board papers are circulated a week before meetings and records of discussion and attendance are kept.

The ChairmanThe Chairman convenes meetings and generally acts on behalf of the Board. The Chairman is the Chief Executive for the purposes of the FMA Act. Under section 44 of the FMA Act, the Chief Executive has general responsibility for managing Centrelink’s resources. The Chief Executive receives instructions from the Minister and prepares and gives the annual report to the Minister each year. The Chief Executive also provides the Minister with reports on Board meetings, which outline the key issues discussed and any significant decisions made.

Chief Executive OfficerThe CEO leads the Centrelink management team to implement strategy, measure performance and report to the Board.

Board committeesBoard committees assist the Board in ensuring the efficiency and effectiveness of the corporate governance framework. The Board decides which committees should operate.

There are three committees—the Audit and Risk Committee, the Quality Committee and the I&T (Information and Technology) Committee.

The Audit and Risk Committee supports the Board in ensuring Centrelink operates with proper financial management and internal controls and by contributing and reviewing the audit process. The committee also contributes to and considers the Risk Management Framework.

The Quality Committee promotes and oversees the achievement of quality outcomes in people development, customer service and overall organisational performance.

The I&T Committee provides advice and direction to the Board on strategic I&T issues, particularly those likely to affect Centrelink’s ability to deliver government services.

(For more information about Board committees, see pages 32–35.)

All Board members participate in at least one committee. The Chairman may participate as a member of all the committees. The CEO attends meetings of all committees but cannot be a member of the Audit and Risk Committee. See Table 3 on page 32 for attendance at committee meetings in 2003–04.

Board MembersJohn Pascoe AO

CHAIR OF THE BOARD

NON-EXECUTIVE DIRECTOR

Managing Director, Phillips Fox Lawyers

Term as Chairman of Centrelink Board: 29 July 2000 to 28 July 2006(a)

John Pascoe AO was appointed as Chair (non-executive) of the Centrelink Board of Management from 29 July 2000 to 28 July 2006. He is the Managing Director, Insurance and Risk Management Division, Phillips Fox Lawyers, and also holds a wide range of board positions in the private, government and community sectors. Mr Pascoe was awarded as an Officer in the Order of Australia on 26 January 2002. The award was for service to business and commerce; children’s health (in particular the needs and rights of patients and their families); the Children’s Hospital at Westmead; and to youth training, nationally and internationally, through the Duke of Edinburgh’s Award Scheme.

Mr Pascoe is non-executive Chairman at George Weston Foods, and Chairman of Sealcorp Ltd; Deputy Chair of the Institute of Early Childhood Foundation; Chairman of Aristocrat Leisure Limited; and Deputy Chancellor of the University of New South Wales. He is also a Member of the Board of Trustees of the Duke of Edinburgh’s International Foundation (United Kingdom).

Mr Pascoe previously held positions as Deputy Chairman and CEO of George Weston Foods, and as a partner in the law firm Stephen Jaques and Stephen. His previous board positions include Chairman of Objective Corporation Ltd and CommSecure Ltd; director of the Aged Care Standards and Accreditation Agency Ltd, Qantas Airways Ltd and Cambooya Investments Ltd. Mr Pascoe was a member of the Board of the Royal Alexandra Hospital for Children and was a member of the Advisory Council of the Australian Graduate School of Management. He was also President of the Corporation and Securities Panel and was a part-time board member of Tourism New South Wales.

(a) John Pascoe resigned as Chairman of the Centrelink Board effective from 14 July 2004 to take up the position of Chief Federal Magistrate.

Executive memberSue Vardon AO

EXECUTIVE MEMBER

CEO, Centrelink

Appointed to Centrelink Board: September 1997

Sue Vardon AO has served as CEO of Centrelink since 1997. She is also an Adjunct Professor at the Institute of Governance, University of Canberra; National President of the Institute of Public Administration Australia; and a member of the Administrative Review Council.

Ms Vardon previously held positions in the South Australia Government as Chief Executive, Department of Correctional Services; Commissioner for Public Employment; CEO, Office of Public Sector Reform; and CEO, Department of Family and Community Services.

Non-executive directorsDon FraserCHAIR, QUALITY COMMITTEEConsultant/corporate adviser

Term as Centrelink Board member: 29 July 2003 to 28 July 2006

Don Fraser works as an independent management consultant and corporate adviser to manufacturing, wholesale and retail companies in the food industry. He brings a focus on customer service from the private sector to Centrelink.

Mr Fraser is Chairman of Didasko Ltd; Chairman of the RIRDC Organic Produce Research and Development Committee; member of the South Australian Premier’s Food Council; and an adviser to senior management of several private companies.

Mr Fraser held a range of senior retail executive positions in the United States, the United Kingdom, Europe, Asia and Australia—for example, as Regional Director Australia and New Zealand with Dairy Farm International; Joint Managing Director of Simago Supermarkets, Spain; Fresh Foods Development Director of Dairy Farm International; Regional Director of Woolworths Australia; founding Executive Director of Australian Safeway stores; and Regional Manager of Safeway stores in the United Kingdom.

Mr Fraser holds an MBA from Stanford University and is a graduate of the University of Queensland.

Elizabeth MontanoCHAIR, AUDIT AND RISK COMMITTEELawyer and consultant

Term as Centrelink Board member: 29 July 2002 to 28 July 2005

Elizabeth Montano is currently a non-executive member of the Executive Management Board of the Australian Federal Police. Previously, she held a number of senior positions in private legal practice and government as the Director (Chief Executive) of the Australian Transaction Reports and Analysis Centre (AUSTRAC); adviser to the Australian Institute of Criminology and to the Asian Development Bank; senior banking and finance solicitor and consultant with Mallesons Stephen Jaques; and Director of Corporate Regulation at the Australian Securities Commission (predecessor to the Australian Securities and Investments Commission).

Christina GilliesCHAIR I&T COMMITTEEConsultant

Term as Centrelink Board member: 20 July 1997 to 28 July 2005

Christina Gillies currently holds board director positions at Australian Home Care Services; Emergency Communications Victoria; Multiple Sclerosis Societies of Australia and Victoria; CommSecure; Oakton; Sealcorp; and United Customer Management Solutions.

Ms Gillies previously held management positions as Program Director, Claims Management Reform, Victorian Work cover Authority (consultancy); Group Executive, Group Services, St George Bank Ltd; Chief Information Officer, Bank of Melbourne; General Manager, Information Technology, Coles Myer Ltd; General Manager, Melbourne Information Technology Services Proprietary Ltd; and Vice President, DMR Group.

Susan RapleyNON-EXECUTIVE DIRECTORBusinesswoman

Term as Centrelink Board member: 29 July 2002 to 28 July 2005

Susan Rapley holds several board director positions on private boards, including three as Chairman. Currently she is CEO of Laincot Fabrics Pty Ltd. As well, she has extensive interests in the construction and rural industries in Tasmania.

Ms Rapley held previous management positions including CEO of Harrington Homes Group Pty Ltd and Australian Exports Pty Ltd (United States).

David R. DeansNON-EXECUTIVE DIRECTORNon-government organisation Chief Executive

Term as Centrelink Board member: 31 March 2004 to 30 March 2007

David Deans has been Chief Executive of National Seniors Association—the largest organisation representing older Australians—since 1991. In that period membership has increased from 36 000 to over 290 000.

Born and educated in Western Australia, David was heading a national construction company in Queensland at the age of 30. David remained in the building industry for over 20 years, practising as an arbitrator for much of the 1980s. From 1975 until 1991 he was a member of the Federal Government Indicative Planning Council for the Housing Industry.

In January 2000, David received the Centenary Medal for service to the aged–50 community.

In 1975, David was appointed a director of Later Years, which was the forerunner of National Seniors Association. He remained a director for nine years.

At National Seniors’ helm for 13 years, David fully understands the issues facing seniors.

He actively participates in many government, non-government and business sector committees focusing on areas such as age discrimination, unemployment, crimes against older people, banking services, retirement income, housing, health, aged care, and dementia.

David is also Chief Executive-elect of the organization that will be formed from the merger of National Seniors and the Councils on the Ageing.

Non-voting directorMr. Mark SullivanNON-VOTING DIRECTORSecretary, FaCS

Appointed as Centrelink Board member: 18 June 2002

Mark Sullivan was appointed Secretary of the Department of Family and Community Services on 18 January 2002 and was appointed to the Board in that capacity. Mark was well known to many as the CEO of the Aboriginal and Torres Strait Islander Commission, a position he held for nearly three years from May 1999. Before heading up the commission, Mark was a deputy secretary at the Department of Immigration and Multicultural Affairs. He has extensive senior managerial experience in the private and public sectors, including with WANG Australia, SBS, the Department of Social Security and the Australian Taxation Office. Mark is a Fellow of the Society of Certified Practicing Accountants and obtained a Bachelor of Economics from Sydney University in 1971.

Governance changesIn 2003–04:

John Pascoe was reappointed to the Board for three years, commencing 29 July 2003

Don Fraser was reappointed to the Board for three years commencing 29 July 2003.

Board of Management committeesTABLE 3: MEMBERS’ ATTENDANCE AT BOARD AND COMMITTEE MEETINGS 2003–04

Board member Board

(10 meetings)

Audit and Risk

Committee

(5 meetings)

Quality Committee (10 meetings)

I&T Committee

(10 meetings)

John Pascoe 10/10

(Board

Chairman)

5/5 - -

Christina Gillies 9/10 - - 9/10

(Committee

Chair)

Don Fraser 10/10 - 10/10

(Committee

Chair)

-

Elizabeth Montano 10/10 5/5

(Committee

Chair)

- 9/10

Susan Rapley 10/10 - 8/10 8/10

David de

Carvalho(a)

4/5 - 5/5 -

Sue Vardon(b) 10/10 5/5 7/10 5/10

Mark Sullivan 9/10 4/5 6/10

David Deans(c) 3/3 - 2/2

a) David de Carvalho resigned as at 5 January 2004b) As CEO, Sue Vardon attends all committee meetings, but is not a formal member of the Audit

and Risk Committeec) David Deans was appointed on 31 March 2004.

Quality Committee charterThe Quality Committee advises the Board on a number of key aspects of Centrelink’s operations including people management; communication, media and marketing; strategic thinking; customer service; and performance and business assurance.

Roles and responsibilities

The Quality Committee: establishes a framework that supports the achievement of quality outcomes ensures that there are appropriate ways of measuring quality outcomes Reports to the Board on the achievement of quality outcomes.

Membership

Don Fraser (committee Chair) Susan Rapley (non-executive director) David Deans (non-executive director)

Advisers to the committee

The Deputy CEOs Business, Customer Service, and Service Management are advisers to the committee and attend meetings. Centrelink staff whose work is relevant to the committee attend meetings as well.

Meeting schedule

The committee meets each month except in January. The committee Chair reports to the full Board on the committee’s work.

Information and Technology Committee charterThe Board of Management established the I&T Committee to provide assurance on the operation and direction of I&T in Centrelink. Information and Technology in Centrelink for the purpose of this committee is defined as ‘the Centrelink computing environment that develops and delivers all business processing systems on behalf of customers and clients’.

Role and objectives

The role of the I&T Committee is to oversight Centrelink’s I&T planning and operations on behalf of the Board to ensure that:

the frameworks and processes are in place for the efficient and effective management of the I&T investment and the continuing alignment with business strategies and plans

there are appropriate ways of measuring performance, risk and productivity

there is a sound base behind recommendations to the Board on overall architectural direction, I&T investment and risk management.

To meet the above objectives, the committee focuses on several key aspects of Centrelink’s I&T planning and operations, including:

the business/I&T strategic planning and business alignment processes—particularly to ensure that the business leverages future technology trends and opportunities

the 1–3–5 year migration plan with a focus on risk, investment and Benefit

the capability of the current environment to support current and future business requirements

internal I&T governance arrangements

I&T management capability and sourcing arrangements.

On behalf of the Board, the committee maintains a continuing review and overseeing role across the following key areas:

service performance

risk management

delivery against the business I&T strategic plan.

Membership

Christine Gillies (committee Chair)

Sue Vardon (executive member)

Elizabeth Montano (non-executive director)

Susan Rapley (non-executive director)

Mark Sullivan (non-voting director)

Advisers to the committee

The Deputy CEO Business Transformation and Chief Information Officer attend meetings of the committee as an adviser.

Meeting schedule

The committee meets 11 times each year, aligned with business planning and the Federal Budget processes.

Audit and Risk Committee charterThe Audit and Risk Committee advises the Board on the annual financial statements and compliance with statutory and legislative requirements including requirements of Chief Executives under the FMA Act and Finance Minister’s Orders.

Role and responsibilities

The Audit and Risk Committee supports the Board in ensuring Centrelink operates with appropriate financial management and internal controls by contributing to and reviewing the audit process. The Audit and Risk Committee has three key areas of responsibility.

It advises the Board on:

annual financial statements compliance with statutory and legislative requirements business assurance requirements of client agencies.

It monitors risk exposures to Centrelink by commissioning and approving:

the Risk Management Framework and implementation fraud control and security reports other risk management strategies and reports.

It oversees the audit function by:

approving the internal audit work program reviewing the effectiveness of its conduct and the major findings reviewing the major findings of the external auditor reviewing reports on any management’s actions to respond to these findings and those from other

relevant audits monitoring internal audit liaison with the external auditor, audit committees and bodies of client

agencies receiving reports on disagreement between management and internal audit ensuring that timely action is taken to resolve any outstanding issues monitoring the processes and systems for the design of audit programs.

Members

Elizabeth Montano (committee Chair) John Pascoe (Chairman of the Board) Mark Sullivan (non-voting director).

Advisers

The Chief Auditor reports to the Audit and Risk Committee on progress against the work program and audit-related issues. The Audit and Risk Committee is supported by an independent adviser, Professor Dennis Turner, from the Australian Graduate School of Management. ANAO representatives are also invited to meetings to provide the Audit and Risk committee with information and advice on external audit matters.

Meeting schedule

Meetings are held quarterly or more frequently if required. The committee Chairman reports to the full Board on the work of the committee.

Audit activitiesAudit activities are a key responsibility of the Board. The Board’s Audit and Risk Committee approves an annual program of internal audits covering all aspects of Centrelink activities. These aim to identify significant management issues and improve Centrelink’s business. Centrelink is subject to external audit scrutiny by the Auditor- General for Australia.

Internal audit activityThe Chief Auditor and Centrelink Audit staff, supported by contracted professional resources, undertakes the audits on the annual program to assist the Board and management discharge their governance responsibilities, particularly in relation to the efficient and effective management of business risk and resources.

Seventy-six internal audits were completed in 2003–04, covering financial management and accountability; corporate governance; I&T environment and applications; I&T strategic management; business outcomes; Customer Service Centers; and systems under development.

Centrelink Audit monitors progress in resolving internal and external audit recommendations. A progress report is considered at each of the Audit and Risk Committee meetings, with the Chief Auditor’s assessment highlighting instances where it was considered management has not satisfactorily resolved or progressed an issue. When necessary the Audit and Risk Committee invites relevant General Managers and National Managers to attend committee meetings.

Centrelink Audit continues to support staff development and learning. As part of an ongoing program to continually upgrade the skills of our auditors and to help meet the challenges of auditing in such a complex organization, several are currently studying for post graduate certificates in performance auditing at the University of Canberra.

Australian National Audit Office activityCentrelink was involved in the following audits that were issued by the Australian National Audit Office (ANAO) during 2003–04.

Administration of three key components of the Agriculture–Advancing Australia package

Report No. 1, tabled 31 July 2003

The audit objective was to assess the adequacy of the Australian Government’s administration of three key components of the Agriculture–Advancing Australia package—the FarmBis II program, the Farm Help program and the Farm Management Deposits scheme. Centrelink was responsible for delivering the program on behalf of the Department of Agriculture, Fisheries and Forestry Australia.

Broadly, the audit examined the areas of strategic management, managing compliance, program promotion, performance monitoring and evaluation, and performance results.

The ANAO made nine recommendations aimed at strengthening the overall administration of the Agriculture–Advancing Australia package in the areas of strategic management, compliance, and performance management. Only one of the recommendations related to Centrelink, and action is under way to address this recommendation.

Business continuity management and emergency management in Centrelink

Report No. 9, tabled 23 October 2003

This audit assessed whether Centrelink has effective business continuity management and/or associated risk management procedures and plans in place that minimise the likelihood of a significant

business outage; and in the event of such an outage, minimise disruption of critical services to customers. The audit also assessed whether Centrelink services satisfy special community demands during emergencies.

The ANAO made 11 recommendations to further improve Centrelink’s business continuity management and emergency management capacity. Centrelink agreed to all of the recommendations and is currently addressing them.

Compensation payment and debt relief in special circumstances

Report No. 35, tabled 24 March 2004

The audit examined a number of the discretionary compensation and debt relief mechanisms that are available to Australian Government agencies, where individuals or entities have been disadvantaged by legislation, or actions by agencies or staff, or some other negative circumstances. It deals mainly with two legislative mechanisms, namely, act of grace payments and waivers of debt, and one administrative mechanism, the Compensation for Detriment caused by Defective Administration scheme.

The main objective of the audit was to assess whether the management of claims for compensation and debt relief in special circumstances was in accordance with relevant legislative requirements and Australian Government guidelines, and whether the current administrative policies and procedures were adequate.

The ANAO made 11 recommendations, seven of which were directed at agencies (such as Centrelink) that receive claims for compensation and debt relief. Centrelink agreed to these recommendations and has started to address them.

Guiding CoalitionThe Guiding Coalition is led by an Executive consisting of the CEO; the Deputy CEO Business; the Deputy CEO Service Management; the Deputy CEO Customer Service; and the Deputy CEO Business Transformation and Chief Information Officer.

The role of the Guiding Coalition is to:

guide the organisation set direction and lead change establish a culture for the future be an educative forum Communicate decisions.

National Indigenous CoalitionOperating for the past three years, the National Indigenous Coalition is the key advisory group for Centrelink operations that relate to Indigenous issues. It is the internal governance mechanism responsible for identifying Indigenous servicing issues and developing strategies and initiatives to enhance service delivery.

Representation includes the National Manager and members of the Indigenous Services Team; Indigenous Service Unit Managers and Area Business Managers with Indigenous responsibilities; the Indigenous Communications Manager; and the Indigenous Call Centre Manager. The National Indigenous Coalition meets three to four times a year to discuss strategic issues of importance to Indigenous Australians and to provide input to Centrelink’s management and business directions.

Centrelink Project ManagementCentrelink has continued to improve its project management capability through better alignment of projects to its strategic goals and a clearer understanding of the impacts and interdependencies

between projects. Contribution to this capability improvement has continued to come from Centrelink’s education and accreditation of Project Management at the Diploma level (which is linked to the Level V Certification by the Australian Institute of Project Management); enhanced corporate management of project information; improved monitoring and reporting of projects; and from Centrelink’s Project Management Framework (CPMF).

The CPMF is modelled specifically to meet the needs of the organisation and provides governance that reflects Centrelink’s commitment to improve its operational efficiency.

The framework includes:

Centrelink’s Project Management Policy, setting out roles and responsibilities of Business Owners, Project Managers, Service Providers and Steering Committees

a high level project life cycle with supporting workflows, processes and templates, along with a single contact point for assistance in relation to methodology and procedures, reporting, brokering referral and escalation of issues

linkages to specialist support groups in Centrelink that provide a wide range of services that assist in the incorporation of more reliable and accountable planning of projects

Streamlined electronic reporting of project progress.

Work has continued on a Program Management approach for projects and this has mainly involved planning for a greater level of Program Management in 2004–05. Centrelink has also made significant advances in implementing a corporate project management toolset to allow better project management that identified links and dependencies between projects.

Evaluating our businessEvaluation is a fundamental component of Centrelink’s quality improvement processes that identifies strengths, weaknesses and opportunities for improvement within the organisation. As well as a three-year rolling program commissioned by the Executive and conducted through the Risk and Business Assurance Team, individual managers may commission evaluations.

The Centrelink Evaluation Handbook was updated and issued in January 2004. It received high praise within Centrelink, from other Australian Government agencies, and from Canberra Evaluation Forum participants. It provides guidance on and sets the standards for evaluations undertaken within Centrelink. The handbook assists in building a strong evaluative culture within Centrelink and is designed to improve the quality and cost effectiveness of Centrelink evaluations by:

providing a clear consistent framework, focused on business and service objectives ensuring Centrelink evaluations 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 findings are used to improve processes, and inform decision making and

strategic planning.

Significant activities during the year included evaluations of:

the Tiered Proof of Identity Model—that was found to provide a good balance between the need to be seen as tough to deter fraud and the requirement to pay customers their entitlements under the legislation

centrelink’s response to homelessness—that found that Centrelink is doing much good work with homeless customers, however, there was scope to improve the operational guidelines to assist staff with their responses to customers

service Profiling—that found that the service updates conducted under Service Profiling appeared to produce better longer-term outcomes than the program reviews they replaced.

Risk managementCentrelink continues to apply risk management principles to improve the way it controls and manages its business. Risk management in Centrelink is driven by the Board’s Risk Management Policy and associated framework and operational guides.

Comcover provides an independent assessment of our application of risk management. Analysis for 2004 was conducted in May. Centrelink improved its rating to 4 star—Advanced Implementation level from its previous rating of 3 stars. Improvements that were recognised since 2003 were across the following Key Performance Indicators: Risk Management Framework, Non-Insurance Risk Transfer, Insurance Risk Transfer, Business Continuity Planning, and Measuring Performance. These results reflect the efforts made across the financial year to build and consolidate on the foundations previously developed.

Integrated risk managementIn 2003–04, Centrelink continued to extend the systematic assessment and management of risk as part of standard business planning and management processes. The fundamental lines of accountability are from individual managers to members of the Executive, either through Business Improvement Plans (the operational components of the Business Plan), or project management plans for specific initiatives.

Strategic and operational risk managementFuture Directions 2003–2006 includes eight risks that could impact on achieving Centrelink’s five goals.

Centrelink’s Business Plan 2003–2004 details operational initiatives that were specifically framed to manage those risks. Each initiative is assigned to a team(s) that is then responsible for its delivery. In this way our goals become operational. Therefore, the new Business Plan is, in effect, our Risk Management Plan and is the vertical link between strategic goals and operational action.

Risk Management FrameworkThe Risk Management Framework provides an integrated approach to managing risks within different parts of our business. A horizontal link divides risks to our business at the operational level into four broad groups:

New Business Project Management Business Operations Program Integrity.

Risk Management ToolkitThe Risk Management Toolkit has been well received and continues to be used as a resource to the network since it was released on our Centre Net intranet site. It provides all Centrelink staff with useful, timely and relevant information about risk management.

Risk assessment workshopsTwenty-eight risk assessment workshops were held assisting teams to analyse key areas of risk and develop appropriate treatment plans. Workshops continue to be improved including the use of simplified risk templates and streamlined risk data reports. Risk assessment criteria have also been introduced. A number of workshops included client agencies.

New Business—Business CasesA total of 151 Business Cases were assessed during the financial year to ensure that there was appropriate regard to risk management. Content of these plans shows that staff across Centrelink are gaining increased awareness and understanding of risk management principles.

Business assuranceThe Business Assurance Framework provides comprehensive performance assurance to Centrelink’s key stakeholders, including Government, client agencies, the Board and customers.

Random sample surveys form part of Stage One of the Business Assurance Framework, assuring the correctness and accuracy of social security outlays.

Implementation of the other stages of the Business Assurance Framework will:

negotiate suitable and meaningful assurance measures, including reciprocal measures with external parties for other non-payment services

ensure quality measures and assurance processes for the customer experience ensure results are valid, reliable and independent.

The Business Assurance Framework will be negotiated with all Centrelink client agencies.

Social justice and equityCentrelink is a service provider to 6.5 million customers, including retired people, families, sole parents, people looking for work, people with a short-term incapacity, people with disabilities, students, young people, Indigenous people and people from diverse cultural and linguistic backgrounds.

Centrelink recognises the importance of ensuring that customers have equitable access to the full range of client agency products and services, and that people are not disadvantaged by service delivery arrangements. Translated into a variety of languages, the Centrelink Customer Charter is Centrelink’s primary service offer to all its customers. The Charter sets out the type of service customers can expect, their basic rights and responsibilities, and how they can give Centrelink feedback. At the same time, Centrelink is committed to developing a workplace culture that supports the principles of workplace diversity and it has received external acclaim for its activities.

A comprehensive communication strategy for customers who do not have English as their first language is in place within Centrelink. This includes printed and online information products, radio programs and free interpreter and translation services.

Centrelink provides a wide range of specialist services to customers with special needs and undertakes comprehensive consultations both with customers and peak community bodies who represent customers.

Within the framework of the Charter of Public Service in a Culturally Diverse Society, Centrelink submits an Access and Equity report to the Department of Immigration, Multicultural and Indigenous Affairs (DIMIA) in September each year. This report outlines specific initiatives and strategies undertaken by Centrelink to ensure that service delivery standards are maintained and that customers receive fair and equitable treatment.

For more information about social justice and equity see Chapters 3 to 7.

OUR ACCOUNTABILITYCHAPTER THREEOUR ACCOUNTABILITYGOALTo contribute to achieving Government policy objectives through consistent high quality services and being responsive to the needs of client agencies and Government.

TOP-LEVEL RESULTAchievement of client agency Key Performance Indicators (KPIs).

HIGHLIGHTS FOR 2003–04 met 95 per cent of agreed client agency Key Performance Indicators (see page 66) developed Alliance 2004 with the Department of Family and Community Services(see page 66) successfully implemented the role of Senior Practitioner to support business assurance in Centrelink

(see page 47) Successfully implemented Phase 2 of the Australians Working Together initiative (see page 62).

DESCRIPTIONIn 2003–04, Centrelink administered approximately $60.1 billion in payments, or around one-third of Australian Government outlays. Australians must have confidence in their social security system, and Centrelink’s accountability for this outlay is a key component of our performance as an organisation.

Through high quality service delivery, Centrelink’s goal is to contribute to government policy objectives through the responsible management of client agency policies and programs. The top-level Key Performance Indicator for this goal is the achievement of Key Performance Indicators set by our client agencies.

Increasingly, the objectives of income support payments are being broadened beyond short-term economic assistance. A greater proportion of our work will be about supporting and encouraging social and economic participation. This means Centrelink needs to ensure its efforts are focused on achieving policy outcomes such as increasing self-reliance in addition to managing outlays.

Other measures of Centrelink’s accountability include ensuring correct payments; actively contributing to the social and economic outcomes of government policy; and demonstrating value for money as a competitive supplier of services to the Australian community.

Customers have identified staff knowledge, better on-paper communication, better management of mistakes and staff working with customers and the community to achieve positive outcomes as key areas they want Centrelink to focus on for service improvement. The strategies in this chapter help address these customer expectations and provide Centrelink with a greater capacity to achieve government objectives.

KEY STRATEGIES protect the integrity of outlays (page 46) support economic and social participation (page 62) meet client agency KPIs by implementing better practice (page 66) provide transparent pricing options by channel and product (page 77) Support the policy development process (page 77).

PROTECT THE INTEGRITY OF OUTLAYSAccuracy of paymentsBusiness Assurance FrameworkAn increased focus on business assurance was identified as a priority in the Family and Community Services (FaCS) Portfolio Budget Statements 2002–03. The first priority was the integrity of social security program outlays, and a new Business Assurance Framework for this was introduced from 1 July 2002.

Centrelink has extended the principles of improved business assurance, including the key concept of mutual assurance, to all areas of our business. Development work on this continued during the year.

As one of the six projects identified under the Alliance 2004 ‘banner’, a Business Assurance Framework is being developed for services Centrelink delivers for FaCS non-income support programs.

A Business Assurance Framework was identified as a key component of the Department of Employment and Workplace Relations Business Partnership Agreement 2003–2006.Effective from July 2004, the framework helps to manage risks and give assurance on meeting the provisions of the arrangement and government policy.

A Business Assurance Framework will also be included as part of the Business Partnership Agreement being developed with the Department of Education, Science and Training (DEST). The Department of Agriculture, Fisheries and Forestry has also indicated the need to develop a Business Assurance Framework with Centrelink for the payments Centrelink makes on their behalf.

During 2004–05, work will also continue on assuring customer service, internal capability, and relationships with the private and community sectors, with particular attention to appropriate business assurance for the Refresh Budget initiative.

Ongoing assuranceCentrelink uses the random sample survey results to assure the correctness and accuracy of FaCS social security program outlays. Random sample surveys are the primary quality assurance tool for the Business Assurance Framework Stage 1—Integrity of Outlays. The random surveys are an analysis at a point in time, measuring payment correctness and accuracy.

Payment correctness measures errors within Centrelink’s control that impact on outlays. Payment accuracy measures errors that impact on outlays that are the shared responsibility of FaCS, Centrelink and the customer.

Every quarter, Centrelink randomly selects a valid sample of customers from each of the major payments and checks their details and payment records. FaCS independently validates the results of this examination. The vast majority of inaccuracy detected during 2003–04 was the result of customers not declaring changes in their circumstances or failing to report income.

The rolling results of the random surveys are reported in the Balanced Scorecard. The target for correctness is 95 per cent. Since the sampling process began in July 2002, Centrelink’s payment correctness figures have exceeded 95 per cent every quarter.

Getting It RightCentrelink’s commitment to the Getting it Right strategy continued throughout 2003–04.

The strategy aims to ensure we pay the right person, under the right program, at the right rate, from the right date. Getting it Right also aims to reduce preventable work and rework.

During the year, products and tools were developed and improved to provide more support for staff to assist them in making correct decisions. A driver for the work undertaken in

2003–04 was an action plan that strengthened Centrelink’s commitment to getting it Right in four key areas:

policy and product improvement with the introduction of the Senior Practitioner role management support and accountability with the enhancement of Quality Online staff support through implementation of the Learning Needs Analysis System improvement.

Implementation of Senior PractitionersThe Centrelink Development Agreement 2003–2005 introduces the new position of Senior Practitioner to the organisation. Senior Practitioners will work closely with Customer Service Team Leaders (CSTLs) to support Customer Service Officers (CSOs) in meeting the quality agenda and Getting it Right.

A Senior Practitioner’s primary role is to ensure that staffs are able to provide a high standard of service offer.

The Senior Practitioners will contribute to Centrelink’s overall capability by assuring the quality of decision making and transaction processing, by managing the maintenance and development of quality outputs from CSOs. A key feature will be the monitoring of CSOs’ application of their knowledge, and managing the introduction of change. The Senior Practitioner will work closely with both CSOs and CSTLs on improved methods to assure the quality of work, and to ensure CSOs possess the appropriate skills and receive the necessary training to do their jobs.

In essence, the Senior Practitioner is a technical expert who supports CSTLs to ensure that CSOs are able to:

make and maintain complete service offers achieve business and customer outcomes, including self-support and participation make correct and timely decisions.

Expansion of service profilingService profiling is a method of selectively targeting Centrelink services and assistance to our customers. Profiling is supported by an information and technology (I&T) tool that checks a customer’s record for the predictors or characteristics which are relevant to the service being provided. It then determines the most appropriate pattern of actions, recognising that not all customers require the same level of service.

During the year, service profiling was expanded to encompass customers being paid Austudy (from 1 April 2004) and Disability Support Pension (DSP) (from September 2003). Profiles, predictors and service components have now been identified across these customer groups. Reference material and training were provided to the network to support the implementation of the expanded I&T capability.

The review system for Disability Support Pension has been replaced by targeted Service Updates. A ‘service update’ refers to the actions taken by staff in response to the selection of a customer by the profiling tool. These actions range from checking the consistency and completeness of various items on the customer’s record to sending a review form by mail, or arranging a face-to-face interview.

Payment correctness (income and assets) and incorrect payment (non-declaration of earnings) service updates were introduced in September 2003 with a combination of mail and face-to-face contact with customers. Face-to face contact provided a new, improved contact mechanism for communicating with customers.

Two more service updates (medical/work capacity qualification and earnings under declaration) were introduced in December 2003. These initiatives built on the early intervention and better assessment measures that were introduced in the Australians

Working together package of September 2002.

The annual number of DSP service updates (excluding Working Credit) will be 150 000 (22 per cent of the target population), an increase of 61 000 under the previous review regime. The Austudy initiative will result in service updates for approximately 5000 customers who have not previously had any reviews.

Debt managementDebt Servicing StrategyDebt management is an integral part of Centrelink’s core business. Preventing, minimising and servicing customer debts accurately and in a timely manner, while being sensitive to the customer’s circumstances, is central to achieving Centrelink’s client department customer service and efficiency goals.

The Debt Servicing Strategy provides direction and continuous improvement strategies for all customer-related debt issues. Centrelink places a strong emphasis on a wide range of debt prevention measures in its dealings with customers. Work has continued over the past year on improvements to debt raising, and analysis tools.

Debt Services TeamIn cooperation with the Centrelink network, the Debt Services Team seeks to prevent and/or minimise Centrelink customer payment debts. At the same time the team supports efficient and effective debt raising and recovery practices consistent with the Government’s aim to achieve a range of social policy objectives. This is to ensure that Centrelink meets its debt raising and recovery Key Performance Indicators and core business obligations.

Debt Prevention and Monitoring OfficersDebt Prevention and Monitoring Officers (DPMOs) have a vital role both within Centrelink and the wider community in working to prevent or minimise customer debts. In consultation with the Debt Services Team, the DPMOs’ work to prevent debt is critical to meeting Centrelink’s core business obligations. Among their range of duties, DPMOs:

identify and initiate work practices aimed specifically at preventing or minimising debts seek to continually improve customer awareness of their notification obligations coordinate information and outreach programs 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.

BUILDING STRONG LINKS TO REDUCE STUDENT DEBT—VICTORIAOver the past 12 months, DPMOs in Area North Central Victoria have been developing strategies for reducing student debt. The introduction of the ‘Gateway’ to Centrelink for secondary schools involves DPMOs building relationships with secondary schools and delivering presentations to secondary and tertiary students.

A series of presentations have been developed to help students understand some of the complexities of Youth Allowance. The presentation is an interactive exercise in ‘brainstorming’ students’ questions and concerns about Youth Allowance.

To avoid unnecessary student debts, Centrelink is also investigating another strategy in partnership with secondary and tertiary institutions and with the state/territory education authorities. This involves reporting directly to Centrelink when students complete or abandon their studies.

DPMOs will continue to build strong links with secondary schools, TAFEs and universities by providing outreach and on-campus assistance to educate students about Youth Allowance requirements.

Debt base analysisA comprehensive analysis of the debt base and relationships between debts and customer characteristics, business processes and demographics was completed in 2003-04. The aims of this analysis were to observe/measure the impacts of customer characteristics on the debt base and through this lead the development and implementation of targeted debt prevention strategies and initiatives.

The analysis will contribute to a forecasting model to predict impacts on the debt base of proposed changes to legislation, policy and business processes.

Based on the detailed analysis, Centrelink has started to develop program specific debt prevention strategies. The first group of strategies targets are Age Pension, Disability Support Pension, Sickness Allowance and Indigenous customers.

The analysis found that the current debts KPIs are not appropriate measures of performance. For example, the debt raising KPI only looks at activities completed and does not account for outstanding, undetermined activities. In addition, performance against the recovery KPI has been trending down since 2000 even though recoveries have actually increased over that period.

New debt raising and recovery KPIs that focus on management of debt raising processes have been developed and will replace the current KPIs from July 2004.

Debt prevention projectsWith development and implementation of targeted debt prevention strategies, the Debt Services Team asked Centrelink’s Youth link leadership group to help develop the protocols and arrangements for the National Debt Prevention Projects Database operations.

In summary, the project protocols and arrangements set a consistent methodology of debt prevention project management, including clear validation and recommendation processes for debt management at the local, area and national levels.

The database will contain plans, reports and recommendations arising from debt prevention projects undertaken by the DPMO network. It will also list other project-related work such as the analysis of debt situations across customer groups, pilots or trial prevention work. All DPMO network members will have access to the database, which will help to provide important information and intelligence needed for effective planning and to conduct future debt prevention initiatives.

The project arrangements and protocols are designed to ensure that any recommendations fl owing from the project outcomes will be based on statistically valid results, thus providing Centrelink with strong assurances that any recommendations adopted will provide the anticipated results.

Debt RaisingOver the past year, Centrelink introduced specialist debt teams responsible for processing non-compliance debt activities. The focus is on improving the timeliness and accuracy of debt raising processes.

In 2003–04 Centrelink exceeded its target of raising new debts within 56 days, with a result of 91 per cent against the target of 80 per cent. Table 4 summarises debts raised during 2003–04.

TABLE 4: DEBTS RAISED DURING 2003–04

Type of debts Number of debts Amount raised($m)

Total debts raised, excluding Family

Tax Benefit and Child Care Benefit

reconciliation and non-lodger debts

1 559 577 939.31

FaCS debts, including compensation

and FAO Qualification Debts1 538 486 922.18

DEST debts 18 550 14.85

Other government agencies 2 541 2.28

Family Tax Benefit and Child Care

Benefit reconciliation and non-lodger

Debts

See Table 5 below See Table 5 below

Table 5 shows the number and value of top-ups and overpayments arising from the reconciliation process for 2002–03 as at 25 June 2004. The number and value of non-lodger debts outstanding as at 25 June 2004 for 2001–02 is also shown.

TABLE 5: 2002–03 FAO INCOME RECONCILIATION RESULTS AND 2001–02 NON-LODGER OVERPAYMENTS

Type of debt Number of debts Debt amount $m

2002–03 FAO income reconciliation results

Family Tax Benefit(s)

Top-ups 552 912 500.2

Overpayments 560 633 482.6

Child Care Benefit

Top-ups 193 233 43.2

Overpayments 156 191 47.7

2001–02 Outstanding Non-lodgers

Overpayments 39 189 192.6

Debt recoveryIn 2003–04, Centrelink recovered $1269.25 million in customer debts.

Centrelink offers customers a range of payment options to repay their debts. Customers can pay their debts at any Australia Post outlet, by telephone, mail, over the Internet, or by direct debit. Cash, cheque, money order, and credit and debit card payments are all accepted. When a customer is unable to pay a debt in full, Centrelink attempts to negotiate a repayment arrangement that will recover the debt as quickly as possible without placing the customer in financial hardship.

In 2003–04 Centrelink undertook a major review of its debt recovery arrangements.

The review found some variation in performance across the network and unnecessarily complex procedures and processes for handling some debts. The review made a number of recommendations for improvement, including consolidating debt recovery into a small number of specialised sites and streamlined processes for handling some debts. These recommendations will be implemented in 2004–05.

Links with educational institutionsDuring 2003–04, the Business Transformation project established ‘proof of concept’ trials. To commence in June 2004, these will link Centrelink to educational institutions to evaluate automatic transfer of student data from universities and TAFEs.

Proposed outcomes from the trials are:

significantly reduced student debt levels A new claim process initiated by a third party, placing the organisation in a better position to target its

resources at student peak processing periods.

The proposed trial stages are:

Stage 1 June 2004—academic Proof of Concept trial with Curtin University and University of Queensland, enabling Centrelink to receive information when an academic change occurs

Stage 2 September 2004—enhancements to stage one, academic Proof of Concept trial with the TAFE sector

Stage 3 December 2004—Proof of Concept trial on third party-triggered new claims for students Stage 4 January 2005—trial evaluations Stage 5 March 2005—enhancements to the electronic transfer of new claim data trial functionality.

Once the trials and evaluations are completed, the Business Transformation project will involve looking at the development of a national strategy for the implementation of full functionality.

WORKING WITH TAFE TO DEFINE ‘FULL-TIME’ STUDENTS—QUEENSLANDTo help minimise and prevent student debt, Area Brisbane has signed a Memorandum of Understanding with Queensland TAFE, which includes an agreed definition of a ‘full-time’ student.

The TAFE enrolment project grew out of concerns from both TAFE and Centrelink about the very large numbers of TAFE students with a debt who were not deemed as full-time students by Centrelink.

Because of methods such as competency-based learning, some students would appear to be less than full-time in an ‘enrolment’ check, but would in fact be studying at the correct workload for payment eligibility.

The student policy team in Area Brisbane and Queensland TAFE developed a proposal to look at the students’ entire workload to determine their student status. This aligned with an agreement with TAFE Queensland on what can be considered a full-time workload, which will greatly reduce the significant debt problem that many students face.

Given the success of the Queensland project, educational institutions in other states are considering similar approaches.

Indigenous debt preventionThe Indigenous Services Team continues to work with other stakeholders in developing specific Indigenous debt prevention strategies. These strategies include:

increased awareness among Indigenous customers about their responsibilities, particularly the notification requirements for changes in personal circumstances

improved information products for customers and training tools for staff, to assist with reducing debt for Indigenous customers

Development of an ABSTUDY debt prevention and management strategy.

ABSTUDY debt management strategyCentrelink is developing a debt management strategy to address the issues involved with ABSTUDY payments. During the year, debt analysis found substantial ABSTUDY customer debt arose from incorrect payments to educational institutions, or from ABSTUDY customers failing to commence studies, notify Centrelink about changes to course details or to inform Centrelink if they have stopped studying.

The debt strategy has four major elements, based on education, communication, accessibility and culture. By focusing on these, it is expected potential and current ABSTUDY customers, and their communities, will have a clearer understanding of payment entitlement criteria and be aware of customer obligations for receiving the payment.

Work undertaken during the year included updating ABSTUDY debt raising and management material in e-Reference, enhanced debt scripts and updating ABSTUDY debt training material.

Assurance of Support—Contributory Parents Migration SchemeThe Assurance of Support (AoS) scheme enables new migrants to come to Australia who might not otherwise be eligible to migrate. This is achieved by an Australian resident providing an assurance and signing an agreement to provide support to the new migrant. The assurer is liable to repay any debts that may arise if the new migrant receives certain social security payments, which are recoverable. Until 30 June 2003, the assurance was required for a period of two years.

Changes to the AoS scheme on 1 July 2003 introduced the Contributory Parent Migrant Scheme to assist Australian residents to bring their parents to Australia. This allows an extra 4000 parents to migrate each year. Under the scheme, the period for which the assurer agrees to provide support and repay any debts incurred if government payments are made is 10 years. Centrelink introduced system and procedural controls to ensure the successful introduction of this change.

The Government introduced changes to the AoS scheme in the May 2004 Budget. These changes move responsibility for the assessment of potential assurers from the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA) portfolio to FaCS. Centrelink will undertake this responsibility on behalf of FaCS. The agencies have worked closely to ensure a smooth transition effective from 1 July 2004.

Residential Care AssessmentIn 2003–04, Centrelink continued processing income assessments for aged care residents for the Department of Health and Ageing. These are to help determine residential care fees. Improved performance resulted from training completed in 2002–03 and sustained technical support.

Compliance measuresReview activityCentrelink’s review activities are specifically aimed at the prevention, detection and deterrence of incorrect payments and fraud, to ensure customers are receiving their correct entitlements. The mechanisms 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 staff observation Selecting customers for review based on their circumstances, duration of payments, or a specific

event.

During 2003–04, Centrelink completed 4.1 million reviews of eligibility and entitlement on behalf of FaCS and the Department of Education, Science and Training. As a result, there were 709 923 reductions in payments (including payment cancellations). Savings to future outlays totalled $104.6 million a fortnight. Additionally, 382 326 debts were raised for recovery action to the value of $460.0 million as a result of this review activity (See Table 6.)

TABLE 6: CENTRELINK’S REVIEW ACTIVITY FOR FACS AND DEST

AgencyReviews

CompletedReductions in payment

Fortnightly

SavingsDebts

No. No. % $ No. $

FaCS 4 108 593 708 164 17.2 104 159 698 378 247 452 817 756

DEST 12 603 1 759 14.0 402 891 4 079 7 140 509

Total 4 121 196 709 923 17.2 104 562 589 382 326 459 958 265

Source: Integrated Review System

Prosecution referral activityDuring 2003–04, Centrelink referred 4471 matters to the Commonwealth Director of Public Prosecutions (DPP) for consideration of prosecution action. Of these, 4462 matters related to FaCS payments and nine matters related to DEST payments.

During the same period, the DPP prosecuted 3043 cases for fraud against FaCS payments with a conviction rate of 98 per cent, and for DEST payments 12 cases were prosecuted for fraud with a conviction rate of 92 per cent (see Table 7).

TABLE 7: CENTRELINK’S PROSECUTION ACTIVITY

Agency Prosecuted Dismissed Convicted Debt amount involved in convictions

FaCS 3 043 66 2 977 $36 622 195

DEST 12 1 11 $191 702

Total 3 055 67 2 988 $36 813 897

Data-matchingData-matching is a major mechanism Centrelink uses to detect incorrect payment and fraud. In 2003–04, data-matching with information obtained from other Australian, state and territory government agencies, as well as non-government organisations, represented 14 per cent of all reviews conducted.

Further progress continued to be made with supplying electronic data to Centrelink. Electronic data has been provided to Centrelink by a private sector education provider and negotiations are under way to bring more private providers online. Education Queensland now provides a regular central data file that significantly enhances the quality of data-matching of information received from them.

State departments of corrective services are increasing the frequency of data provision, with New South Wales the latest to move to a weekly arrangement. Negotiations are also under way for additional data to identify jail escapees and others who are not eligible for payments from Centrelink.

Federal Budget data-matching initiativesThe 2003–04 Federal Budget provided funding for two data-matching initiatives that build on Centrelink’s existing compliance regime.

The initiatives focus on enhanced data-matching processes and expanded data matching activities. Both initiatives reflect the success of the 2002–03 pilots involving four consolidated sites that processed additional reviews, tested new data sources, and improved data-matching processes (see ‘Increasing and centralising data-matching work—Area Hunter’ on page 58).

In 2003–04, these projects led to savings and debts of $72.3 million, 24.3 per cent above the combined savings estimate of $58.2 million.

Data-matching for Community Development Employment ProjectsAn electronic data exchange process was implemented with the Torres Strait Regional Authority (TSRA) in June 2004 and will be implemented with Department of Employment and Workplace Relations (DEWR) in July 2004. (From 1 July 2004, DEWR is responsible for administering all CDEPs that were previously administered by Aboriginal and Torres Strait Islander Services.)

As of 1 July 2004, all CDEP processing in Centrelink will be undertaken in three consolidated CDEP Customer Service Support Centres.

Proposed initiatives to address current issues surrounding CDEP debts include:

developing a CDEP debt management strategy identifying and introducing ‘better practice’ for payment correctness and recovery working with external stakeholders to reduce CDEP debt occurrence undertaking a risk analysis that focuses on identifying risks affecting payment correctness monthly reporting of CDEP debts Improving CDEP debt recording to enable easier identification of CDEP debts.

International data-matchingCentrelink has continued to develop its cooperative relationship with the Netherlands through the International Data-matching pilot. Under this pilot, Centrelink matches information about customers (and any spouses) who are receiving Dutch pensions with information provided by the Social Verzekings bank. The data-matching is able to identify customers who may have incorrectly declared their pension amount as well as payments made to the accounts of deceased people. During 2003–04, the pilot matching identified over $2.3 million in savings and debts. There are plans to undertake further matching next financial year using updated data.

INCREASING AND CENTRALISING DATA-MATCHING WORK—AREA HUNTERAs part of the 2003–04 Federal Budget, Centrelink’s Detection and Review Team received extra funding to significantly increase current data-matching work. The team’s main role is to undertake periodic reviews of customer entitlements to ensure payment correctness and to detect incorrect payments and fraud.

The new data-matching work was centralised across four national sites, including Area Hunter. Experience has shown that centralising compliance review work can deliver gains such as improved effectiveness, resource efficiencies, and a pooling of specialist skills. Located at Cardiff, the Area Hunter team is responsible for processing Tax File Number Declaration Forms and Pay as You Go reviews.

Operations in Cardiff started on 27 August 2003. Within a short time staff had undertaken significant training and development to bring them up to speed with the new review activities. This training and development investment, combined with the team’s strong commitment to the project, produced major dividends for Centrelink and the Australian Government. In 2003–04 the Hunter data-matching site exceeded its Tax File Number Declaration Form benchmark and made a substantial contribution to protecting the integrity of outlays by detecting incorrect Australian Government payments.

Optical surveillanceIntroduced in 1999, optical surveillance continues to provide Centrelink with a useful tool to investigate complex fraud cases that, in the past, may have been concluded less successfully.

During 2003–04, Centrelink referred 3241 cases to surveillance providers. Within the same period, 3372 cases were finalized and resulted in debts or payment reductions in 60.1 per cent of cases referred. Savings to future outlays and debts of $24.4 million were identified.

Cash economyCentrelink continues to use a range of measures to detect and investigate fraud associated with the cash economy. Activities include traditional desk-based reviews and individual field reviews. They also include joint field operations involving the Australian Federal Police (AFP), the Australian Taxation Office (ATO), and the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA) and other Australian, state and territory agencies.

As members of the Cash Economy Working Group, Centrelink, the ATO and DIMIA work to improve their coordination of cash economy compliance activities.

Centrelink has had investigators out posted to the ATO since 1998. In 2003–04 this concept was extended to include a pilot with DIMIA.

During the year, Centrelink’s cash economy activities identified $33.0 million in savings and debts and 163 field operations were undertaken. In the past year, Centrelink’s cash economy, optical surveillance and identity fraud teams were amalgamated in Sydney and Melbourne. The teams’ co-location has led to more effective use of resources and better intelligence sharing.

‘Operation Hilton’ was one of the joint cash economy operations conducted during 2003–04, with a number of Centrelink customers identified as working for cash and receiving payments from Centrelink at the same time. Investigations revealed that a labour hire company was making ‘cash-in-hand’ payments to these customers. Several agencies were involved in the operation, which resulted in over 100 Centrelink customers having their benefits cancelled and some may face prosecution.

Tip-offs from the publicCentrelink investigates all public ‘tip-offs’ as a way of detecting abuses of the income support system.

From public tip-offs received in 2003–04, 72 473 reviews of customers were completed and 17 570 payments reduced. Review activity of tip-offs identified $156.7 million in savings and debts.

The investigation of tip-off information continues to build community confidence in the integrity of the social security system. The public can phone (Report fraud 13 7230), visit or write to Centrelink with tip-off information. Another way to report tip-off information is through Centrelink’s Report a fraud website at www.centrelink.gov.au. Tip-offs received via the site account for about 7 per cent of tip-offs received.

Increased focus on identity fraud investigationsFunding in the 2003–04 Federal Budget allocated extra resources for Centrelink to establish skilled investigative teams to increase the focus on identity-related fraud. Through better use of internal and external data sources to detect possible cases of identity fraud, the teams are now undertaking more complex investigative work in Centrelink’s service delivery network.

To build Centrelink’s capability to deal with identity fraud, a phased implementation commenced in January 2004 and will continue over several years. The initiative is expected to deliver $89 million in program savings over the next four years.

Australian Federal PoliceCentrelink’s relationship with the Australian Federal Police (AFP) remains strong. In June 2004 they renewed their service agreement, first signed in 2001. The agreement provides the framework for cooperation between the agencies.

From compliance activity undertaken by Centrelink suspected cases of fraud are detected, and Centrelink and the AFP then collaboratively investigate these.

During 2003–04 three federal agents were out posted to Centrelink in Sydney, Perth and Melbourne. Additionally, the AFP co-located one agent in Centrelink’s Newcastle Office.

In June 2004, Centrelink and the AFP reached agreement on increasing the number of out posted federal agents to the equivalent of 9.5 in 2004–05.

When gathering evidence, the AFP’s involvement brings search powers and access to intelligence not directly available to Centrelink. As a result, the AFP’s involvement increases the possibility of convictions in cases referred for prosecution before the courts.

Extension of links with the Australian Taxation OfficeCentrelink is exploring the use of new data sources with other agencies, particularly the Australian Taxation Office (ATO). This could lead to greater capacity to check for income and assets not disclosed by customers.

Australian Transaction Reports and Analysis CentreIn December 2003, legislative amendments were made to the Financial Transaction Reports Act 1988 to allow Centrelink access to Australian Transaction Reports Analysis Centre (AUSTRAC) data used in administering social security law.

In March 2004, a Memorandum of Understanding was signed between AUSTRAC and Centrelink that will facilitate access to financial transaction report information. This will enable delegated Centrelink

employees to access significant cash transaction reports, international currency transfer reports, suspect transaction reports, and international funds transfer instructions.

Access to information held by AUSTRAC will also provide Centrelink with financial intelligence and other information from overseas financial intelligence units and assist in identifying customers involved in more serious fraud, who may currently go undetected.

Medicare and Pharmaceutical Benefits SchemeCentrelink provides the Health Insurance Commission (HIC) with data so they can validate a customer’s entitlement to the Pharmaceutical Benefit Scheme (PBS) and the Medicare Safety Net. However HIC are unable to match all of the customer information that Centrelink ‘sends’ to them.

To improve the HIC’s matching success rate, in 2003–04 Centrelink was engaged to collect Medicare card numbers from unmatched customers.

As part of this exercise, a Medicare number training and collection process was developed. This involved Australia-wide training for Indigenous Customer Service Officers—who service remote communities—in collecting identified remote customer Medicare card numbers during community visits.

Australian Valuation OfficeIn 1985, the Australian Government introduced an assets test for social security pensions. The assets test was extended to benefits classed as ‘allowances’ in 1987. Assets test legislation is governed under the provisions of the Social Security Act 1991.

The Australian Valuation Office is the sole contractor of valuation services to Centrelink and plays an important role in assisting Centrelink in administering this legislation.

During 2003–04, a new Memorandum of Understanding for valuation services was negotiated between Centrelink and the Australian Valuation Office, which will operate for three years and includes the option of a two-year extension.

Concessions and related initiativesIn October and November 2003 Centrelink’s Concessions Team conducted successful consultations with state and territory government concession providers throughout Australia.

In response to these consultations, Centrelink introduced an electronic newsletter for concession providers in January 2004. CPNews provides information on developments with concession cards and related services. Through this initiative Centrelink is strengthening its relationship with concession providers and ensuring better service to customers. The response from state government, local government and private providers has been extremely positive.

Under a Department of Health and Ageing administrative reform, Centrelink developed a new computer system (Centrelink Entitlement Manager) to determine eligibility for Australian Government concession cards. The new system has made significant advances for Centrelink in the determination of entitlement and delivery of concession cards.

SUPPORT ECONOMIC AND SOCIAL PARTICIPATION

Australians Working Together initiative Phase 2BackgroundBuilding on the Australians Working Together (AWT) Phase 1 initiative, Personal Adviser assistance has been extended to a wider range of customers under AWT Phase 2. Phase 2 of the AWT initiative commenced from September 2003 and marked the introduction of new or more flexible participation requirements for a number of customer groups. The number of Personal Advisers employed within

Centrelink also increased in line with the increased number of customers that Personal Advisors will be servicing.

Personal Advisers were introduced from September 2002 as a key component of the AWT initiative. Personal Advisers and Jobs, Education and Training (JET) Advisers offer personalised and intensive participation assistance to working age people. They help people maximise their potential for economic participation by identifying opportunities and goals and offering tailored intervention strategies and additional support.

The AWT initiatives have laid the foundation for a more personalised and responsive assistance and support framework for working age people.

Phase 2 AWT enhancements introduced from September 2003 included:

no further new claims of Partner Allowance and Mature Age Allowance from 20 September 2003 the development of the Mature Age Participation Guide the re-development of the Parents and Employment Guide a new participation framework for New start Allowance customers aged 50 or over, including: reduced reporting requirements for New start Allowance customers aged 50 or over

the introduction of maximum job search requirements for certain New start Allowance customers aged 50 or over

new portability provisions for New start Allowance customers aged 50 or over new breach waiver provisions for New start Allowance customers aged 50 or over

access to Work for the Dole (WFD) for Parenting Payment customers including access to the WFD supplement payment

the introduction of Participation Agreement breaches and breach waiver provisions for certain Parenting Payment customers.

Expansion of services provided by Personal and JET AdvisersFrom September 2003, Personal Adviser services and support was extended to include additional customer groups. With the extension of assistance to a wider range of customers, additional Personal Advisers were recruited. These Personal Advisers undertook a comprehensive 13-week training program starting in August 2003. (See ‘Supporting customer participation’ on page 111 for more information.)

Participation transformationSupporting participation is a clearly identified priority in Centrelink’s Future Directions. Centrelink has redesigned its business model to support participation outcomes and is already a strong player in the new participation system.

In early 2003, Deloitte Touché Tohmatsu was engaged to explore Centrelink’s future role in participation. From June to December 2003 Deloitte conducted focus groups, surveys, think tanks and cross-organisation discussions with teams from the National Support Office and the Centrelink network to examine how Centrelink can leverage its existing capabilities to play a stronger role in moving people of workforce age along a pathway to work.

Achievements in 2003–04 raised awareness of the concept and implications of participation for Centrelink in the future including

a ‘cascade’ briefing throughout the organisation a definition of participation for Centrelink that recognises the progression of a customer along a

pathway to work. Participation is defined as ‘all progress towards work outcomes including personal and skill development, training and volunteering’

an operating vision and principles of participation that have received strong support in the organisation. The vision and principles are:

– Centrelink will become a hub for participation by working collaboratively with Job network and people in their local communities to help them:

find work connect with opportunities, services and support build their skills and self reliance improve their lives and wellbeing

a framework for redesigning the service delivery model including assessment and planning for customers and working more closely with local communities.

Next stepsThe work so far represents a major step forward in the development of Centrelink’s service delivery response to the Government’s participation policies. A significant change strategy will improve the ways Centrelink interacts with both customers and local communities. This will involve engaging more with client agencies, further communicating participation messages throughout the organisation, and developing a detailed plan to guide the changes necessary to the service delivery model.

Working CreditThe Working Credit initiative was part of the Australians Working Together (AWT) initiative and provides a financial incentive for workforce participation by income support recipients.

It commenced 20 September 2003. The earlier deferrals to the passing of AWT legislation afforded the opportunity for Centrelink to develop new technologies to provide customers with additional options for communicating with Centrelink and meeting new reporting requirements after 20 September 2003.

ComponentsKey components of the Working Credit scheme include:

a Working Credit Scheme that allows income support recipients of work force age to offset some of their employment income against credits accrued during periods of low or no income

fortnightly assessment of Employment Income for all eligible payment types (on a similar basis to the Newstart income test)

Entitlement maintained for six fortnights (at nil rate) when income from employment precludes payment for those otherwise qualified.

Prior to the commencement of Working Credit, an information line was established to assist customers’ understanding of their changed reporting obligations and the advantages of the Working Credit scheme. They were also advised of the options for reporting their earnings available after 20 September.

During the fortnight immediately prior to implementation customers due to report were Contacted to remind them that their reporting arrangements had changed and ensure they understood how to report. Following implementation for the first fortnight customers who failed to report were contacted to make sure that they understood the new arrangements and make sure they knew that they needed to report to receive their payment. The number of fortnightly reporters failing to report at the end of the first month was negligible.

Self ServiceTo make it easier for customers to comply with new reporting requirements, Centrelink developed avenues for customers to report earnings through an Integrated Voice Response (IVR) system using natural language speech recognition (NLSR) and through the Internet via Centrelink’s Website. Working Credit customers have been encouraged to take up these options after 20 September as alternatives to reporting through Centrelink Call or a Customer Service Centre.

By the end of June 2004, over 40 per cent of new reporters under Working Credit were using self service reporting options, the majority through the voice response system.

FIGURE 6: CHANNEL USAGE FOR REPORTING EMPLOYMENT INCOME FOR ‘NEW REPORTERS’ (A)

Information and Technology participation supportDuring 2003–04, Centrelink introduced significant new I&T capability to support assessments for social and economic participation as a part of the Employment Services Contract Round 3 and Australians Working Together (AWT) initiatives. The system, known as the Participation Application, was developed by Centrelink.

The Participation Application includes support for AWT, welfare reform, Job Seeker Registration, Job Seeker Classification, connection with Job Network members through connections with DEWR, and referrals for customers to participate in activities for social and economic participation in the community. These services are delivered using leading edge technologies that interact with existing Centrelink and DEWR systems.

The outputs of the Participation Application include Job Seeker Registration, Job Seeker Classification Instrument assessment, Job Seeker Management, Job Network member referrals that allow Centrelink staff to make an appointment directly through the DEWR system, Preparing for Work Agreements, Participation Agreements, Participation Plans, and Service Offers.

MEET CLIENT AGENCY KEY PERFORMANCE INDICATORS BY IMPLEMENTING BETTER PRACTICEBusiness Alliance 2004 projectThe Business Alliances Team has been developing the new Business Alliance Agreement with FaCS. The alliance reflects the distinct and complementary roles of the two organisations. Centrelink and FaCS recognise the need to work jointly to deliver successful government outcomes. The two agencies work cooperatively on a broad range of social issues affecting Australian society and the living standards of Australian communities, families and individuals.

The relationship between Centrelink and FaCS is governed by the Business Alliance Agreement and acknowledges that each agency contributes to the performance and outcomes of the other. The agreement will be signed off early in 2004–05.

Client agency performance summaryDepartment of Family and Community ServicesBusiness arrangementsCentrelink works closely with FaCS to provide a high level of service to the Government and the Australian community. During 2003–04 the business arrangements between FaCS and Centrelink have been renewed with a new Business Alliance Agreement implemented in July 2004. This agreement recognises:

the distinct roles of FaCS and Centrelink that each organisation makes different and equally valuable contributions to achieving Government

outcomes that the roles of both organisations have to be combined effectively to ensure the delivery of

Government requirements.

Refinement of the new business arrangements is ongoing with a continuing focus on achieving outcomes for Government and the Australian community.

Major initiativesDuring the reporting year Centrelink:

continued to improve service delivery to customers improved performance achieving 100 per cent of KPIs as measured by the Centrelink Balanced

Scorecard negotiated a new business agreement with the Department of Family and Community Services Implemented service delivery aspects of new policy initiatives.

TABLE 8: FACS REVENUE AND PERFORMANCE SUMMARY

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

1 967 171 29 100

Department of Employment and Workplace Relations

Business arrangementsThree new KPIs, consistent with the implementation of the Active Participation Model, were incorporated into the 2003–2006 Business Partnership Agreement (BPA). The new BPA was developed to better reflect the shared responsibilities of the Department of Employment and Workplace Relations (DEWR) and Centrelink in achieving government outcomes, including a reciprocal approach to the agencies’ performance based on collaboration, trust and openness. The introduction of consultative committees under the BPA and continuation of the Partnership Programme have supported an increasingly strong partnership approach taken by Centrelink and the department.

PerformanceCentrelink is pleased to report for the third consecutive year that DEWR has agreed that all Centrelink KPIs have been met.

TABLE 9: DEWR REVENUE AND PERFORMANCE SUMMARY

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

116 999 3 100

Department of Agriculture, Fisheries and Forestry

Business arrangementsDuring 2003–04 Centrelink continued to deliver the Farm Help—Supporting Families through Change Program, the drought assistance package, Exceptional Circumstances Relief Payment, Dairy Type Grants, the Environmental Management Systems Incentives Program and commenced delivery of the Sugar Industry Reform Program 2004.

Centrelink operates a Rural Processing Unit (RPU) in Area West Victoria to improve its service delivery performance by providing centralised expertise in the assessment of eligibility for assistance under most of these rural programs.

Major initiativesThe number of Exceptional Circumstance (EC) declared areas also rose significantly over 2003–04. Centrelink delivers income support to eligible farmers living in EC declared areas for the duration of the declaration (usually two years). As at 30 June 2004, over 13 000 farmers had received an EC income support payment in 2003–04. The Farm Help—Supporting Families Through Change Program assists farmers through the process of considering their long-term viability in agriculture. Centrelink’s role is to assess the eligibility and entitlements of farmers, to make payments and work with farm families on their longer-term planning. The Farm Help program was extended as part of the 2004 Federal Budget. The

extended program includes an increased emphasis on using strategic information, analysis and professional advice to support decision making.

In March 2004, Centrelink commenced the delivery of the Sugar Industry Reform Program 2004 to eligible cane growers and harvesters in Queensland, Western Australia and New South Wales. This follows from the successful delivery of similar assistance measures to the Sugar Industry in 2000 and 2002. The program includes income support, business planning assistance, restructuring grants, and re-establishment grants. Developed by the Department of Agriculture, Fisheries and Forestry (DAFF) in consultation with Centrelink, the package provides for immediate assistance to help stabilise the sugar industry so that cane growers and harvesters can better position themselves for making decisions about their future.

Memorandum of UnderstandingCentrelink delivered services for DAFF under the memorandum of understanding that was finalised in December 2001. Protocols are in place for all programs. The memorandum of understanding includes organisational KPIs and identification of appropriate measures.

ChallengesThe key challenge in 2004–05 will be to build on Centrelink’s close working relationship with DAFF on the delivery of the new Sugar Industry Reform Program measures, the revised Farm Help program, and the ongoing drought assistance package, including EC.

In 2004–05 Centrelink will be working closely with DAFF to consider the recommendations of the Australian National Audit Office drought report when it is finalised.

Centrelink has been working jointly with DAFF to develop and implement a Business Assurance Framework to provide appropriate measures for establishing organisational performance in terms of payment correctness. These measures become operational on 1 July 2004.

Centrelink continues to focus on improving its performance against the KPIs by improving processes and streamlining its service delivery mechanisms.

PerformanceThe RPU provides a responsive service to farmers and has improved the correctness and accuracy of assessments of farmers’ eligibility for assistance. The RPU has significantly improved Centrelink’s performance against the timeliness standard for payments, which met the 42-day target.

Centrelink received positive feedback about the delivery of its service to drought affected farmers at the Drought Round Table meeting of Australian Government, state and territory government ministers, and key industry representatives held in March 2004.

TABLE 10: DAFF REVENUE AND PERFORMANCE SUMMARY

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

22 155 3 100

Department of Education, Science and Training

Business arrangementsDuring 2003–04 Centrelink and the Department of Education, Science and Training (DEST) renewed their BPA affirming joint commitment to achieving the Government’s desired outcomes relating to education, training and employment of Indigenous people, isolated students and customers seeking employment.

Key improvements included the fulfilment by Centrelink of its BPA obligation to make 14 000 referrals to the Career Planning Programme, the joint partnership between Centrelink and DEST in a project to

improve the quality and educational outcomes for ABSTUDY customers, and improved performance reporting combined with closer working relationships at all levels.

Centrelink met 100 per cent of 10 KPIs, and did not reach target in relation to a further three. In relation to the KPI on ABSTUDY accuracy, performance was only 0.8 per cent under the target of 95 per cent. This is an improvement on the 2002–03 performance which was 93.8 per cent. During 2003–04, there have been substantial efforts made to improve accuracy of ABSTUDY decision making including updating training and online reference material, and updating the DEST ABSTUDY Policy manual. From 1 October 2004, ABSTUDY processing will be nationally consolidated in four locations to further enhance accuracy and consistency of decision making. It will also allow for better monitoring of processes and standards. In relation to the other two KPIs, negotiations with DEST in terms of their appropriateness as measures of Centrelink performance are underway.

PerformanceTABLE 11: DEST REVENUE AND PERFORMANCE SUMMARY

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

16 150 13 76

Department of Health and Ageing

Business arrangementsDuring 2003–04, Centrelink and the Health Insurance Commission jointly implemented administrative reforms to the validation of Pharmaceutical Benefits Scheme concession entitlements on behalf of the Department of Health and Ageing (DoHA) announced in the 2003–04 Federal Budget.

The reforms included the development of a new Centrelink system to determine customer entitlement to Australian Government concession cards; the enhancement of business processes and system infrastructure to provide identity information about Centrelink customers to the Health Insurance Commission; and the voluntary collection of Medicare numbers from Centrelink customers to assist the Health Insurance Commission to improve their data matching performance.

Centrelink subsequently used the same system infrastructure and business processes for providing identity information to the Health Insurance Commission to support the Medicare Safety Net component of the Strengthening Medicare package.

During the year, the Office of Hearing services decided to return its eligibility assessment and voucher processing functions in-house. Validation of concession status will now be undertaken through the Customer Confirmation e-Service.

In 2003–04, Centrelink continued processing income assessments for aged care residents for DoHA, to help them to determine residential care fees. Training completed in 2002–03 and sustained technical support has resulted in improved performance for this year.

The Commonwealth Carelink Program assists older Australians and people with disabilities to retain their independence and avoid premature or inappropriate admission to long-term residential care by providing free information and referral to community care services. Centrelink is one of a number of government and community organisations that operates and delivers the Commonwealth Carelink Service on behalf of DoHA. Commonwealth Carelink continues to maintain a service out of five outlets in Western Australia—in Kalgoorlie, Albany, Broome, Geraldton and South Hedland.

PerformanceThe Aged Care Schedule, which forms part of the BPA between Centrelink and DoHA, includes the following performance targets:

automatic matching of resident data against social security pension records— 100 per cent of cases within three working days

manual matching of resident details against social security pension records— 100 per cent of cases within eight working days

Obtaining and providing assessed income information for self-funded retiree residents—100 per cent of cases within 70 calendar days.

During 2003–04 Centrelink achieved:

the automatic matching target for 12 months (monthly figures above 99.5 per cent have been rounded up to 100 per cent)

The manual matching target for 12 months (monthly figures above 99.5 per cent have been rounded up to 100 per cent).

In relation to self-funded retiree income assessments, performance in 10 months was measured as meeting target (with the lowest performance level during the remaining two months being 99.07 per cent in July 2003). Daily data transfer arrangements can impact on Centrelink’s ability to meet the performance targets and were affected because of DoHA and/or Department of Veterans’ Affairs systems unavailability on a number of days.

TABLE 12: DoHA REVENUE AND PERFORMANCE SUMMARY (AGED CARE SCHEDULE)

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

10 677 3 94

Department of Foreign Affairs and Trade

Business arrangementsThe Australian Passport Information Service (APIS) is a Call Centre operated by Centrelink in Hobart on behalf of the Department of Foreign Affairs and Trade (DFAT). Under a memorandum of understanding, which began in March 2000 and was extended for two years in March 2003, the Call Centre provides information relating to Australian passports to customers over the phone and by email. The centre operates seven days a week from 8.00 am to 8.00 pm Monday to Friday and 8.30 am to 5.00 pm Saturday and Sunday.

PerformanceThe Call Centre handled 1.5 million calls in 2003–04, replied to 55 000 emails, and issued 44 000 application forms. There are eight service standards, which are consistently achieved on a monthly basis.

In 2003–04, APIS expanded the services provided to include passports online services and priority fee payment by credit card over the phone. In response to international security issues, proof of identity for passport applications was tightened in September 2003. These rule changes caused a dramatic increase in call volumes and duration of calls. The changes also affected passport renewals and this part of the business has dropped significantly. APIS was able to successfully implement and consolidate the changes with minimal disruption to service standards.

As a direct response to an urgent need of Government to provide accessible and up to date travel advice for the Australian public, in 10 days Centrelink established the ‘Smartraveller’ advisory service for DFAT. ‘Smartraveller’ is a fully automated self-service facility available to the public 24 hours a day, seven days a week. This service has handled approximately 26 000 calls since it began on 7 September 2003.

TABLE 13: DFAT REVENUE AND PERFORMANCE SUMMARY

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

3 468 8 100

Department of Transport and Regional Services

Business arrangementsSince 1998, Centrelink has delivered the Tasmanian Freight Equalisation Scheme and Bass Strait Passenger Vehicle Equalisation Scheme to business customers (mostly Tasmanian) on behalf of the Department of Transport and Regional Services (DOTARS) in accordance with a four-year service agreement (1998–2002).

The strong working relationship between DOTARS and Centrelink culminated in the signing of a new five-year service agreement on 30 August 2002, for the continuing delivery of this service for the period June 2002 to June 2007.

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

PerformanceDuring 2003–04:

Centrelink met and surpassed all of the six KPIs in the Service Agreement. (In September 2003, the number of KPIs was reduced from nine to six.)

The average number of claims per week continues to grow. In 1998 average claims per week totalled 82 compared to the average claims per week in 2003–04 of 114.

The relationship between Centrelink and DOTARS remained strong, with DOTARS acknowledging they are very satisfied with the quality of the service provided by Centrelink.

The procedures agreed between Centrelink and DOTARS for claims for payment under Tasmanian Freight Equalisation and Bass Strait Passenger Vehicle Equalisation schemes continued to work successfully.

TABLE 14: DOTARS REVENUE AND PERFORMANCE SUMMARY

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

1 067 6 100

Attorney-General’s Department

Business arrangementsFamily Law and Regional Law hotline services continued this year, delivered by the La Trobe and Bun bury Call Centres. This business operates under a memorandum of understanding between Centrelink and the Attorney-General’s Department, which was reviewed, updated and signed during 2004.

The customer service hours are 8.00 am to 8.00 pm Monday to Friday. Demand for the services continued to grow with 22 000 calls answered in 2003–04—a growth of 10 per cent on 2002–03. The agreed service level of 80 per cent of calls answered within 30 seconds has been met every month in 2003–04. Centrelink also provided an efficiency improvement for the Attorney-General’s Department this year, by introducing new call routing technology to the hotline services.

PerformanceTABLE 15: ATTORNEY-GENERAL’S DEPARTMENT REVENUE AND PERFORMANCE SUMMARY

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

822 N/a N/a

Child Support Agency

Business arrangements

Centrelink and the Child Support Agency (CSA) continued to work in close partnership in 2003–04 by offering a whole-of-government approach to servicing mutual customers.

Twenty Regional Service Centres (co-located in regional Centrelink Customer Service Centres) provide child support customers with access to face-to-face services that are typically only available in metropolitan areas. In many other sites Centrelink premises are used by the CSA to provide a visiting service for child support customers.

Major Centrelink initiatives during 2003–04 conducted the Telephone Transfer Pilot (to be evaluated in the first half of 2004–05 with a view to

broadening the concept) continued to develop a memorandum of understanding in relation to exchange of data(due for

completion in the first half of 2004–05) Continued joint system enhancements to improve the quality of data transferred.

ChallengesCentrelink and the CSA are committed to working together over 2004–05 to provide even better customer service to our mutual customer base. This will be achieved through refinements to computer processing and continued improvements in service integration and customer access.

PerformanceTABLE 16: CSA REVENUE AND PERFORMANCE SUMMARY

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

728 N/a N/a

Australian Electoral Commission

Business arrangementsThe Australian Electoral Commission (AEC) approached Centrelink in mid-2002 with a request to offer call centre services for the 2004 Federal election. A new schedule to our BPA was finalised in 2004 to formalise arrangements of this service, badged for the AEC. Preparations for the service, including infrastructure, support and additional staffing were complete prior to 30 June 2004. The service is operated on a full cost recovery basis.

PerformanceTABLE 17: AEC REVENUE AND PERFORMANCE SUMMARY

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

442 N/a N/a

Department of Veterans’ Affairs

Business arrangementsA new, national memorandum of understanding between the Department of Veterans’ Affairs (DVA) and Centrelink was signed in 2003–04.

DVA continued to support arrangements that involve Centrelink offering a Veterans’ Information Service in seven regional sites in New South Wales, six sites in Queensland, and one in Mt Gambier in South Australia.

Specialist DVA trained information Officers who can give the veteran community information about DVA payments and entitlements run the service.

In 2003–04, DVA delivered refresher training to New South Wales Veterans’ Information Service Officers. DVA also supported the service in New South Wales by training four new information Officers.

PerformanceTABLE 18: DVA REVENUE AND PERFORMANCE SUMMARY

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

438 N/a N/a

Aboriginal and Torres Strait Islander Services

Business ArrangementsCentrelink provided an Indigenous Services Information Line call centre service to Aboriginal and Torres Strait Islander Services (ATSIS) customers from June 2004.

The service was intended to provide information and referral to callers who may have concerns about the future of services for Indigenous people following publicity about the future of the Aboriginal and Torres Strait Islander Commission. The service uses scripts and information provided by ATSIS.

TABLE 19: ATSIS REVENUE AND PERFORMANCE SUMMARY

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

101 N/a N/a

Dairy Adjustment and Australian Dairy Corporation

Business arrangementsThe ongoing Dairy Adjustment package aims to assist dairy farmers in the transition to a deregulated market. The Dairy Adjustment Authority was established to administer the Dairy Structural Adjustment Program. Through DAFF the authority contracts Centrelink to provide services for assessing and paying claims for the Dairy Type Grant, which is now a component of the Farm Help Re-establishment Grant

PerformanceTABLE 20: DAIRY ADJUSTMENT AND DAIRY AUSTRALIA REVENUE AND PERFORMANCE SUMMARY

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

60 N/a N/a

Australian Taxation Office

Business arrangementsIn July 2001 Centrelink signed a memorandum of understanding with the ATO to provide Office facilities in Centrelink premises for ATO staff to enable them to better service clients in remote and rural sites. The services include access to Office equipment, telephones, interview rooms and work areas. The relationship continues to be successful, and Centrelink will again provide these services under agreement in the 2004–05 financial year.

TABLE 21: ATO REVENUE AND PERFORMANCE SUMMARY

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

21 N/a N/a

State and territory housing authorities

Business arrangementsIn 2003–04, Centrelink processed approximately 6.5 million transactions and received $2 567 194 in annual revenue from state and territory housing authorities in payment for the delivery of services for the Rent Deduction Scheme. An electronic Income Confirmation service was also provided to housing authorities, and during 2003–04 Centrelink processed approximately 300 000 transactions for this service and received $114 374 in annual revenue.

PerformanceTABLE 22: STATE AND TERRITORY HOUSING REVENUE AND PERFORMANCE SUMMARY

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

2682 N/a N/a

Other organisations

Business arrangementsDuring 2003–04, Centrelink continued to deliver the following services on behalf of state, territory and local governments, and a number of private organisations:

Centrpay Customer Confirmation e-Service Half Fare Concession Travel Card (New South Wales Government only) ACTION Concessional Travel Card (Australian Capital Territory Government only).

PerformanceTABLE 23: OTHER ORGANISATIONS’ REVENUE AND PERFORMANCE SUMMARY

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

3942 N/a N/a

Emergency responses

Agencies continue to notice and acknowledge Centrelink’s ability to respond quickly and effectively to emergencies. Centrelink’s contribution ‘onsite’ or ‘on phone’ is highly regarded, particularly following responses in recent years to corporate collapses— for example, the Ansett and HIH collapses and other natural or community disasters.

PROVIDE TRANSPARENT PRICING OPTIONSThe development of strategic cost management methodology continued in 2003–04. This work provided the foundation work for the development of a Centrelink Service Offer and Pricing Catalogue.

Following the Government’s endorsement of the Centrelink Funding Model from 1 July 2004, Centrelink is developing a funding model-based costing template. This will provide greater clarity in terms of the costs by output for government initiatives.

SUPPORT THE POLICY DEVELOPMENT PROCESSFamily Tax Benefit Task ForceTowards the end of 2003 the Government asked Centrelink to look at how the administration of Family Tax Benefit could be streamlined and simplified to reduce the likelihood of overpayments. The CEO wrote to Centrelink staff asking them for feedback. Over 550 staff responded with more than 750 suggestions for improvement. Suggestions included:

improved communication with customers with a focus on face to face contact changes to forms and letters Some procedural and system changes.

In response to the suggestions by staff, a joint Centrelink and Department of Family and Community Services Task Force did a substantial amount of work in the first half of 2004 to change claim forms and information products to make information clearer, simpler and easier to understand for customers. For example, the Task Force worked on rolling four information products into a single comprehensive information product, called the ‘What, Why and How of Family Assistance’. Work was also done to improve processes and I&T systems to better target those customers at risk of being overpaid.

Department of Employment and Workplace Relations: The Statement of ExpectationsIntroduced in 2004, the Statement of Expectations takes a values-based, collaborative approach to the relationship between Centrelink, DEWR, and the Job Network.

With a strong emphasis on the local relationships between the three organisations, the Statement of Expectations plays a key role in providing business intelligence about service delivery, policy impacts and emerging issues. It also provides a framework for improving and enhancing the future business of each organisation.

Drafted following extensive consultation with Job Network members, the National Employment Services Association (as the peak body of Australian employment organisations), DEWR and Centrelink, the Statement of Expectations ensures staff from all organisations understand how they need to work together to achieve the best outcomes for Australian job seekers.

Essentially, the statement is about Centrelink, the Job Network and DEWR working in partnership towards common goals, and has been designed to influence behaviour at all levels, from frontline staff to senior executives.

The Statement of Expectations is made up of three components, each of which plays an important role in identifying and defining the main areas of focus—the Statement itself, the Charter, and the Operating Principles.

The Statement‘Working together with job seekers to meet their individual needs in finding the right pathway to achieve sustainable employment.’

The Statement provides the high level focus of how Centrelink, the Job Network and DEWR will work together in both meeting our respective business needs and interacting with our mutual customers. Overall, the Statement helps to explain our overarching and shared responsibilities to Australian job seekers.

The Charter ‘We will keep the job seeker as our focus, engage them in a timely manner, we will be non-

judgmental and provide appropriate services.’

‘We will jointly listen to job seekers and our other stakeholders; we will improve our own practices, and feedback information to government.’

The Charter gives us the focus we need in our day-to-day business with job seekers and each other, and helps form the foundations for future business delivery.

The Operating Principles ‘We will seek to understand and explain what we are each responsible for, our business models, our

drivers, and why we do the things the way we do.’ ‘We will be accessible, open and honest in our communication and bring contentious issues to each

other in the first instance.’ ‘We will focus on solving problems, getting processes right, looking for innovative solutions, being

proactive, planning for contingencies, and valuing different approaches to ensure consistent outcomes.’

The Operating Principles describe the values that underpin the Statement of Expectations and the charter. In addition to helping guide decisions and actions, the Operating Principles outline the values that need to drive our behaviour in dealing with each other and have been designed to build team spirit and foster a collaborative working relationship into the future.

OUR BUSINESS AND COMMUNITY RELATIONSHIPSCHAPTER FOUROUR BUSINESS AND COMMUNITY RELATIONSHIPSGOALTo work closely with the business and community sectors to achieve positive outcomes for Australians.

TOP-LEVEL RESULTCommunity sector satisfaction with Centrelink.

TARGET 71%

RESULT 71%

FIGURE 7: COMMUNITY SECTOR SATISFACTION SURVEY—SATISFACTION WITH WORKINGRELATIONSHIP WITH CENTRELINK

HIGHLIGHTS FOR 2003–04 developed a strategic framework for staff defining the expectations and the importance to Centrelink

of its role in the community (see page 87) continued to improve working relationships with local community organisations to improve the

delivery of Centrelink services to shared customers (see page 89) continued to enhance Centrelink’s connection with businesses and other third party organisations

(see page 102) Continued strong commitment by members of Centrelink’s Community Reference Groups to assist

Centrelink in improving its service delivery (see page 89).

DESCRIPTIONIncreasingly, Centrelink’s role has been changing to one that helps customers to participate and to engage more productively. This includes customers participating in the labour market and in their communities, and achieving greater independence and better long-term outcomes for themselves and their families.

Cooperation and working with others in the community is essential to ensuring that Centrelink’s services are delivered in ways that respond to people’s needs (particularly those who have difficulty accessing services), and to community issues and trends.

This has meant recognising the vital role that communities and other sectors can play in working with Centrelink to find new ways of ensuring our customers get the best possible assistance available.

Our customers have told us access to and integration of services is important to them.This includes both Centrelink and other service providers. Customers have also told us that they want Centrelink staff to work with customers and the community to achieve positive outcomes and that Centrelink should align its future servicing arrangements with their expectations and preferences. The strategies in this chapter respond to our customers’ expectations to improve access and integration of service and Centrelink’s capacity to work with customers and the community to achieve positive outcomes.

KEY STRATEGIES manage referral processes effectively (page 85) actively engage with the business and community sectors (page 87) improve the effectiveness of our interactions with business (page 97) improve our image in the community (page 99) enable transactions involving third parties to be carried out effectively (page 102).

Our business and community relationshipsCentrelink helps customers move towards greater participation and links them back to their communities, but it cannot do this on its own. There are many community organisations who have different work to Centrelink, but who have a common goal, which is to improve the life opportunities of the same groups of people, especially those who are isolated because of social and economic disadvantage.

These community organisations have expertise that complements Centrelink’s work.They also understand the needs and barriers faced by customers and their communities.Therefore, it makes good sense that local Centrelink Offices develop good working relationships with these organisations and the community, so that issues affecting individuals can be addressed in appropriate and integrated ways.

Cooperative relationships and partnerships are a strategic priority for Centrelink—locally, at the regional and state levels, and nationally). Strong partnerships:

provide an opportunity for improved access to Centrelink and better links with other services ensure that Centrelink is friendly, accessible and responsive to the needs of individuals, families, and

the communities they live in assist customers to engage more in community life and in the labour market, and to achieve a

greater independence and better long-term outcomes for themselves and their families.

Over the past year, Centrelink focused on developing better working relationships within communities to deliver those services that customers need and want.

Centrelink’s role in local communities, and its commitment to working closely with them to help customers, has seen a wide range of activities and relationships developed at the national, state, area, regional and local levels with community organisations; with the business sector; within communities;

and with other levels of government. These can involve Centrelink staff volunteering their time and skills as individuals to support the communities they live in, and through to local outreach arrangements for customers, often involving community partners.

In collaboration with community and other organisations, Centrelink also continues to look for ways to better tailor our services so they are more convenient for customers.

At the local level across Australian communities, Centrelink managers and their teams also build and maintain contacts with employers, business and industry to ensure that Centrelink is seen as friendly, accessible and responsive to their needs.

The information and support provided by the business sector, in particular, is critical and Centrelink will continue to rely heavily on their cooperation. At the same time, Centrelink recognises the competing priorities faced daily in running a business and it is important that it becomes easier for them to do business with us.

Centrelink also listens to ideas for improving services at the national level, such as how best to increase cooperation and links with other service providers and the business sector.

MANAGE REFERRAL PROCESS EFFECTIVELYDisability employment assistanceDuring 2003–04, Centrelink continued to build on current practices and processes to more effectively manage the referral of customers to the most appropriate employment assistance. Two initiatives to assist in this were introduced over the year.

Disability Employment Assistance Service Provider SurveyThe aim of the survey was to assess the quality of the business relationship between Centrelink network staff and disability employment assistance service providers that are funded by the Department of Family and Community Services (FaCS).

The survey results showed that the business relationship between Centrelink and individual service providers was very positive. The feedback and responses helped Centrelink identify ways to achieve and maintain a higher quality level of business relationships with service providers. These include building on the existing strengths of our relationships, improving cross-organisational business knowledge and awareness, and developing effective communication strategies to achieve business outcomes in line with government policy.

Disability Employment Indicators assessmentAs a result of a joint effort involving FaCS, the Department of Employment and Workplace Relations (DEWR) and Centrelink, a new assessment for job seekers with disabilities was introduced in April 2003. Called the Disability Employment Indicators assessment, it assists in determining the most appropriate type of employment assistance for people with disabilities, based on their ongoing support needs.

During 2003–04 Centrelink also worked with FaCS, DEWR and peak disability groups to evaluate the effectiveness of the assessment and subsequent streaming of customers to appropriate services.

Psychology servicesCentrelink has over 250 Psychologists working in our Customer Service Centres to deliver assessment and referral services on behalf of DEWR and FaCS. Centrelink customers who Benefit from Psychology services include registered job seekers, mature age customers, parents, and people with significant and multiple non-vocational barriers. Psychologists assess customers to identify barriers and determine the level of assistance they require to achieve economic or social participation outcomes.

Centrelink continues to be the ‘gateway’ to the Personal Support Programme, and Centrelink Psychologists play a key role in referring customers, who often have severe and multiple barriers, to the Programme. Psychologists identify barriers and provide recommendations for intervention, as well as liaising with local service providers and providing ‘help desk’ liaison for Personal Support Programme providers who require customer support advice. They have also been at the forefront of delivering services to special customer groups—for example, working as part of Centrelink’s Community Units to assess pre-release prisoners.

As well, Centrelink Psychologists run innovative outreach programs—for example, by working with local disability services and the community to assess disabled athletes’ level of intellectual impairment and to help them work towards competing in national championships.

ACTIVELY ENGAGE WITH THE BUSINESS AND COMMUNITY SECTORSIn 2003–04, Centrelink developed a framework to assist staff to engage with their local communities. The framework describes the types of activities and relationships that can make a difference and the minimum expectations for Centrelink’s role in the community. Staff guidelines and other support tools complement this framework.

The framework identifies four levels of activity:

Communicating and establishing relationships with people who understand local issues and problems. Creating relationships with those in the community who understand the demographics and issues of local communities helps Centrelink to address customer issues more quickly and effectively. Centrelink establishes these relationships through:

individual staff and team involvement in the community forming good working relationships with external organisations such as community sector

organisations, government-funded service providers and businesses and industry Local support of community based organisations, forums or initiatives including participation in

community activities and forums, supporting local expos, and interagency or local network meetings. Developing cooperative relationships to make existing services more accessible for our

customers. This involves establishing everyday working relationships between Centrelink staff and people who work in the community, to encourage joint initiatives and make access to services easier for our shared customers. Centrelink does this through:

supporting local and national events inviting community members to use Centrelink meeting facilities and welcoming community agencies

into our Offices to deliver services to mutual customers, and sharing the skills and expertise of our staff

community engagement and consultation through Community Reference Groups as well as liaison with peak organisations and regional or community groups

establishing links to local and state government agencies, chambers of commerce/ regional development boards, local service clubs and community interest groups

Establishing outreach partnerships for servicing customers such as out-servicing, to make services accessible in community based sites; co-location arrangements with other service providers; and working with industry and business to find simpler ways to exchange customer information.

Working in collaboration with others to adjust existing services to respond to emerging community issues. Formed with other organisations, these partnership screate more responsive ways of delivering current services which address emerging community issues and problems that are faced by our shared customers in accessing services. Centrelink does this through:

early intervention responses to emerging community issues collaborative solutions to new and emerging community based issues supporting local and place based approaches

Supporting initiatives or partnerships led by the community which actively create new opportunities, responses and services to address emerging community issues. These partnerships are often developed in response to a crisis or developing social problems which have no solutions available locally. It can involve a range of groups from across the community such as local clubs, welfare services, health services, churches, and businesses. Through its presence Centrelink often plays an enabling or supporting role because of the contribution we can make in finding solutions that use our available human, physical and information resources.

Community ConnectCommunity Connect is one of the ways Centrelink is building better relationships and developing collaborative working arrangements with other community based service providers. It allows Centrelink customer service staff and service providers to share information via a website.

Community Connect is a shared resource with the community sector, providing better outcomes for our customers and enhancing skills and networks for our people.

Community Connect supports Centrelink in helping customers to participate in, and engage more productively with, their communities. It is based on developing strong local working relationships and shared understanding between Centrelink and community service providers at the local, state and national levels.

In 2003–04, Centrelink’s effort focused on identifying the success factors required to build on this collaborative approach with organisations such as The Smith Family, the Salvation Army, the Benevolent Society, the Brotherhood of St Laurence, Domestic Violence Victoria, Mallee Family Care, and Lodden Mallee Housing Service.

Working together at various outlets, these community service providers and their local Centrelink Customer Service Centres have provided valuable information about what facilities, resources and information are of most value to ensure effective links between services for our shared customers. The feedback has helped Centrelink to improve the Community Connect website with several new features, including:

Centrelink News, which provides up-to-date information about changes to Centrelink payment arrangements

access to information on a range of community and government services and support a document library of Centrelink and community information to read or download. This contains links

to Centrelink Information, as well as other publications of interest to workers in the human services sector, such as the Australian Council of Social Services Emergency Relief Handbook

Centrelink payment rate estimators access to the websites of the partner providers A community calendar that allows the public to add details about national and community events of

interest to the human services sector.

Future improvements to Community Connect will mean customers can access Centrelink information and products and find the solutions they are looking for, no matter which service provider they initially approach.

Community Reference GroupsIn 2003–04, Centrelink continued to work with a number of national Community Reference Groups that provide direct feedback on and input to Centrelink’s service delivery options and models. These reference groups include representatives of peak community and service delivery bodies. Several reference groups have operated for many years. The groups help Centrelink to better understand customers’ needs and to target services more effectively.

The groups include an Older People’s Reference Group, a Multicultural Reference Group, a Disability Customer Service Reference Group, and an Australians Working Together Implementation Community Reference Group. This year a Carers Service Delivery Reference Group was also set up with peak carer bodies.

Assistance for victims of the Bali tragedy and their familiesMany local communities were affected by the Bali bombing and in 2003–04 Centrelink continued play a role in delivering the Government’s Bali Assistance Package. The package included direct financial assistance and support through Centrelink’s Social Work Team.

Centrelink was involved in providing:

travel assistance to the Bali bombers’ trials and personal support travel assistance to the anniversary commemoration in Canberra and Bali and personal support assistance with workplace, vehicle and home modifications in conjunction with CRS Australia emergency assistance following closure of the Australian Red Cross appeal fund.

Centrelink maintains strong relationships with victims of the Bali tragedy and their families by case management through the Family Liasion Officer program and a centralised Bali Hotline and Processing Team.

HELPING THE EAST TIMORESE COMMUNITY IN YARRA, VICTORIACentrelink’s work and support for the East Timorese community in Victoria has been formally recognised by the Mayor of the City of Yarra. In speaking about Centrelink’s role, the Mayor said: ‘Your valuable contribution … is recognised and, on behalf of the Yarra community, I would like to thank you for your support and assistance’.

Currently around 1700 East Timorese live in Australia, with the majority in Victoria. During the year, the Richmond Customer Service Centre in Victoria organised information seminars in the local community, which formed part of a collaborative strategy across areas and with other agencies and departments.

The Centrelink Multicultural Service Officers network links up with the communities and helps to coordinate similar projects across Australia.

Prison servicing and state/federal memoranda of understandingIn 2003–04, Centrelink worked closely with state and territory correctional facilities to reach agreed prison servicing protocols which provide a more consistent and integrated approach to supporting prisoners as they are released. To formalise the agreements Centrelink has signed memoranda of understanding with state and territory corrective services authorities.

Because of this joint work, there is now a greater understanding of roles and processes.It has also meant higher satisfaction among the agencies involved and better integration of services for released prisoners.

Service delivery partnerships with the communityServicing remote communitiesIn remote communities, Remote Area Service Centres (RASCs) are linking Centrelink with existing government and non-government services. In the past, remote communities often missed out on programs and services. However, RASCs provides a centre to support other services and programs and the introduction of RASCs in Laverton, Yarrabah and Halls Creek has meant new or more regular visiting services to these communities by agencies like CRS Australia, Literacy and Numeracy providers, and Job Network members. At the same time, RASCs are working with financial agencies to provide better income support management arrangements.

These alliances support both increased participation and capacity building in communities. (See also ‘Remote Area Service Centres’ on page 151.)

Centrelink Agents and Access PointsCentrelink’s commitment to improving access and quality of Centrelink services to rural, regional and remote Australia continued throughout the year with the extension of its network of Agents and Access Points across the country. Under these arrangements, a range of community organisations such as neighbourhood centres, local businesses and councils are contracted to deliver services and programs on Centrelink’s behalf.

The network currently exceeds 340 Centrelink Agents and 160 Centrelink Access Points, with further expansion planned in 2004–05. Each Agent and Access Point provides a means for customers to conduct their business with Centrelink and a valuable link between rural/remote communities and Centrelink. (See also ‘Centrelink Agents and Access Points’ on page 151.)

Hanover TrialCentrelink’s involvement with Hanover Homeless Services started some years ago when Hanover worked with Windsor Customer Service Centre to look at the information customers provided in relation to their personal circumstances, particularly any information Centrelink may have had about people’s experiences of homelessness.

During the year, staff from Area North Central in Victoria met regularly with Hanover and other stakeholders such as FaCS, DEWR and the state government to develop the project plan for a new Hanover Trial. The project will bring together the efforts and resources of all levels of government, local community agencies and the business sector to achieve positive employment outcomes for this vulnerable group of customers.

The Hanover Trial is about working better with homeless customers to stabilise their lives and, ultimately, get in to paid work. A significant milestone in the planning and implementation for this innovative trial was achieved when the Minister for Family and Community formally announced a grant of $270 000 to Hanover Homeless Services on 21 April 2004.

Neighbourhood Renewal projectIn 2003–04, the Neighbourhood Renewal project was initiated by the Victorian Government. In Victoria over 95 per cent of public housing residents are on income support payments and have low levels of workforce participation. Therefore, the renewal project is focusing on working together with communities to improve these customers’ social and economic participation.

With an emphasis on working together with communities, Neighbourhood Renewal is a whole-of-government approach to assisting disadvantaged communities, and Centrelink has developed a set of protocols with the Neighbourhood Renewal program in Victoria.

Drought support for farmersIn December 2002, the Prime Minister announced interim income support for drought affected farmers. Following the announcement, Shepparton Customer Service Centre formed a ‘Drought Team’ to look at strategies to provide the most efficient service and information to farmers. They also developed a drought plan that included local information seminars for farmers, where Centrelink could also pick up farmers’ claims and documents.

Within a short period, 2500 farmers had attended seminars, and Centrelink had processed around 3000 claims from farmers.

The Drought Team developed excellent working relationships and partnerships with the Department of Agriculture, Fisheries and Forestry, and the many state based drought committees.

The team also participated in community sessions such as ‘Time Out, Community Drought’ gatherings and public meetings organised by members of parliament.

The drought team was recognised in the national Centrelink awards for their leadership, support and involvement with drought affected farmers, and received a letter of congratulations and thanks from Dr Sharman Stone, the Member for Murray.

Community Inbound and Exchange programDuring the year, Box Hill Customer Service Centre developed a Community Inbound and Exchange program for local agencies. The program was organised by two Social Workers with support and assistance from the Office.

Under the program, local community agencies were invited by Box Hill Customer Service Centre to spend a day at the Centrelink Office. This was to give them a better understanding of the work Centrelink does and to reinforce closer working relationships.The program also involves Box Hill Customer Service Centre staff visiting the participating agencies for half a day, to see where and how they work and to learn more about the support and services agencies provide to clients. The program’s objective is to help reinforce partnerships with local agencies and to improve Centrelink’s image in the community. As well, the exchanges give Centrelink staff more confidence about referring customers to appropriate services.

Victoria’s Award for Excellence in Multicultural AffairsDuring the year, a Multicultural Service Officer from the Darebin Customer Service Centre in Victoria participated in an interagency project, which tackled racially based tensions amongst people from diverse backgrounds.

As part of the project, Centrelink sat on a Darebin steering committee with other community participants including the City of Darebin and various local agencies.

The project brought together people of different faiths, and residents and businesses, who organised a range of community events that contributed to reducing prejudice and misconceptions.

The project was nominated for an award in Victoria’s Awards for Excellence in Multicultural Affairs 2003. Attended by the Victorian Premier, the awards ceremony was held at the residence of Governor John Landy. The Darebin steering committee was presented with an award by the Governor in the category of ‘service delivery to multicultural community and community relations’.

People traffickingOn 13 October 2003 the Australian Government announced a major strategy to combat people trafficking. The $20 million initiative will complement existing efforts to significantly enhance the detection, investigation and prosecution of traffickers and improve the range of support available to victims. As part of this commitment, Senator the Hon Dr Kay Patterson announced a Victim Support Package, with funding of $5.6 million over four years. The package aims to provide a comprehensive range of support services to victims who agree to stay in Australia to assist trafficking investigations.

Coordinated by the Office for the Status of Women, the Support for Victims of People Trafficking Program provides financial and other support to victims around Australia who are assisting with criminal investigations and prosecutions in Australia. The support provided assists with victims’ living expenses and their general well being, and includes income support, access to accommodation, medical treatment, basic legal advice, counselling, training and social support.

Centrelink’s Social Work Services became involved as part of a ‘whole of government approach’ to people trafficking. This approach places an emphasis on stakeholders working together to deliver integrated solutions to social problems across a number of government sectors. As part of an interim measure, Centrelink’s National Manager of Social Work Services, Desley Hargreaves, was approached to provide interim case management services for the victims of people trafficking. A communication and operation protocol was developed and signed by critical stakeholders, including Centrelink, the Australian Federal Police, the Department of Immigration, Multicultural and Indigenous Affairs and the Department of Prime Minister and Cabinet.

The protocol outlined case manager roles and response expectations within prescribed time periods. The case management role incorporated a crisis intervention framework, requiring social workers to facilitate immediate access to a coordinated range of services.

An integral component of the program was the establishment of key contacts to facilitate the negotiation of services. For example, professional staff through Medicare Offices facilitated the arrangement of medical appointments. The provision of a single point of contact within Centrelink similarly ensured seamless access to payments. Most importantly the cooperative framework established across government departments ensured open communication and access to information as required, and provided the framework for future inter-agency cooperation.

Shanghai tourFor six weeks in late 2003, Area Brisbane hosted a study tour for nine delegates from the Shanghai Municipal Labour and Social Security Bureau. Sponsored by the Australian Government, tour delegates spent time in the Area Office, Customer Service Centres and the Brisbane Call Centre, to learn about the Australian welfare system in general, as well as how things work in practice at the front line.

On the first two days of the tour, delegates attended a two-day orientation program conducted by FaCS. On day three, the delegates were welcomed to Area Brisbane office.

As part of their tour, delegates travelled to Stradbroke Island to find out about the work of Centrelink Agents and to discuss remote servicing and Indigenous issues. On the island, delegates also met Aboriginal elders at the Aboriginal Housing Cooperative.

During the six weeks, delegates were placed in various Customer Service Centres to see how they operate. This included time spent at reception and with new claims, customer support and participation team staff.

At the Brisbane Call Centre, delegates listened to operators dealing with customers over the phone.

HABITAT—PREVENTING FAMILY HOMELESSNESSAs one of the participating organisations in the Family Homelessness Prevention Pilot projects, Wyong Customer Service Centre worked in partnership with community organisations to target people identified as ‘at risk of homelessness’. The Family Homelessness prevention project involved eight Centrelink Offices across Australia, working in partnership with a local community agency. In large part, the success of the Wyong ‘Habitat’ pilot has relied on the excellent working relationship that developed between the Centrelink Social Worker and the partner agency, Uniting Care Burnside. Burnside has a strong focus on early intervention, and runs a number of other family programs using strengths based, whole-of-family approaches.

Many customers referred to Habitat reported positive outcomes for themselves and their families including more stable housing, better links to other community support, improved social connections, and completion of vocational training. Several parents also said that Habitat staff worked with them to keep their adolescent children in education, with many now keen to go on to further study.

The Centrelink Social Worker at Wyong Customer Service Centre also plays an important role in educating Centrelink staff about homelessness issues and encourages them to refer customers to Habitat, when appropriate.

Based on the success of all eight pilots, in 2003–04 funding was allocated to extend them for another four years.

Women in Transition—a Parramatta Action Group for Families projectDuring the year, the Parramatta Action Group for Families Women In Transition project continued to achieve positive results.

Edna Lee, Social Worker at the Parramatta Customer Service Centre recognised the isolation of the women from the many diverse cultures within her local community and established this project in 2002. The project now has 50 members, representing government and non-government organisations, with staff from Parramatta Centrelink

Customer Service Centre playing a key organising role.

Partners in the project include the Granville Multicultural Community Centre; the Harris Park Community Centre; Granville TAFE Outreach; The Smith Family; the Baulkham Hills/ Holroyd/Parramatta Migrant Resource Centre; Parramatta City Council; the Immigrant Women’s Speak out Association; the Cumberland Women’s Health Centre; the Parramatta Community Health Centre; Breast Screen Greater Western Sydney; the Parramatta Business Enterprise Centre; and Centrelink Parramatta.

The aim of the Women In Transition Project is to provide a forum for socially disadvantaged women to participate in craft and personal development activities, facilitate social integration, learn new skills, increase self-reliance, and build the community’s social capital.

As part of the project, from October to December 2003, 11 women from diverse cultural and linguistic backgrounds completed a nine-week TAFE certificate course, which included producing health and beauty products and learning about women’s health issues, vocational and small business options, financial services, and Centrelink services. A second Woman in Transition Group includes a participant from the first group as the craft trainer, who is now paid by Granville TAFE Outreach as a part-time teacher. As well, because of the project, a new range of professional health and beauty products has been developed.

IMPROVE THE EFFECTIVENESS OF OUR INTERACTIONS WITH BUSINESSMedical liaison projectIn May 2003, Centrelink began implementing a communication strategy with the medical community. The strategy was designed to focus on relationship building with the medical community on a local level through Medical Liaison Coordinator positions located in each Centrelink Area Support Office.

During the year, the Medical Liaison Coordinators worked with Customer Service Centres to develop and establish sustainable relationships with the medical community across Australia.

Each area coordinator was responsible for raising the profile of the project in their area and supporting staff in Customer Service Centres. This included developing outreach plans with each Customer Service Centre, assisting with appropriate presentation material, identifying the target audience, and establishing the most suitable way to work with the medical community.

Improved relationships resulted because:

awareness was raised among general practitioners of the issues surrounding Centrelink medical information requirements, ensuring better assessment processes for people with disabilities introduced in the 2001–02 Federal Budget

the quality of medical information provided was improved in support of claims for income support payments, which ensured that claimants received the most appropriate payment, given their individual circumstances and the relevant eligibility criteria

The understandings gained of each other’s issues meant a more amicable working relationship was generated between Centrelink, general practitioners and other medical providers.

Income Confirmation serviceIntroduced in October 2002, Income Confirmation allows state and territory housing authorities to receive a Centrelink customers’ income and payment details electronically so they can determine eligibility for housing assistance. As part of the service, a customer must authorise Centrelink to release their details electronically to housing authorities.

The main benefits are:

one contact for the business with our customer An immediate service response that means customers do not have to deal with Centrelink and a

housing authority several times to complete their business.

From 1 July 2003 to 30 June 2004, Income Confirmation recorded 291 616 transactions.

Future directions for Income Confirmation services include:

continuing to work with the Department of Human Services, Victoria in implementing Income Confirmation

encouraging customers to use self-service facilities to request housing authority income statements through the Internet and over the phone

Working towards extending Income Confirmation to other government agencies, businesses and community organisations who have a requirement to obtain Centrelink customers’ income information.

Customer Confirmation e-ServiceCustomer Confirmation e-Service (CCeS) allows organisations, such as utility companies and local councils—who give concessions to certain Centrelink customers—to use the Internet to confirm the customer’s payment status.

Covered by a strict security, privacy and confidentiality regime, the service is provided on a small fee-for-service basis and can be used once a customer gives their consent for the release of limited details. As at 30 June 2004, there were 289 concession providers using CCeS.

In a joint initiative with the Department of Veterans’ Affairs (DVA), CCeS also allows concession providers to confirm the concession status of DVA customers. There are currently 198 combined Centrelink/DVA concession providers using CCeS for this reason.

Future directions for Customer Confirmation e-Service include:

marketing the service to other concession providers in Australia (approximately 1000 providers) continuing to improve the CCeS with additional features, such as the ability for concession providers

to produce customer income statements Working with Australian and state/territory government agencies to offer a whole-of government

approach to CCeS.

IMPROVE OUR IMAGE IN THE COMMUNITYCentrelink continued to build its recognition and reputation in the community throughout 2003–04.

Network marketing trialA customer’s most tangible experience with Centrelink is in Customer Service Centres.

Feedback from research and from customers shows that customers need a more consistent and predictable environment where it is easy to join a queue, see a Customer Service Officer, or pick up printed information about payments and services.

During the year, the Network Marketing project trial in Tasmania was developed and implemented to test the best approaches to meeting these needs.

The idea was to develop marketing guidelines and tools for Customer Service Centres that would deliver the consistency customers were asking for; would Benefit staff and the community; and would ensure a consistent Centrelink image.

Benchmark research helped to set project priorities, which included the need for better product information displays and display infrastructure, as well as a review of marketing guidelines.

Trial changes have included a new ‘look and feel’ for public contact areas; a new front of- house video; prioritised and logical brochure display units; and promotional thematic displays.

The project was fully implemented by early June 2004, and initial top-line evaluation reports are very positive. Roll-out of Network Marketing nationally depends on funding availability.

Co-brandingIn late December 2003, Centrelink received formal direction and instructions from the Department of Prime Minister and Cabinet in relation to co-branding that is, combining Centrelink’s existing logo and the Commonwealth crest.

In line with the direction all new forms and publications are being co-branded with changes to Centrelink’s website largely in place by 30 June 2004.

Co-branding will continue to be rolled-out across the organisation during 2004–05.

Property managementThe look and feel of Customer Service Centres is critical to ensuring positive experiences for customers. With this in mind, Centrelink Property and Services has targeted the standard of Office cleaning as a key part of Centrelink’s presentation.

New, geographically zoned, cleaning contracts were progressively implemented from November 2003. The whole Customer Service Centre network is now covered by contracts that have resulted in much improved standards of cleaning. At the same time, there have been significant reductions in cost.

Consistency and quality of presentation is also being addressed through the three year appointment of Woodhead International in February 2003 to provide services as Centrelink’s corporate architect.

This contract will complement the existing property and architectural design work already done by the Area Support network. New fi tout design standards for Customer Service Centres, Call Centres, Processing/Contact Centres and Area Support Offices will be established and documented. All building technical standards will also be reviewed.

The work will help Centrelink to make informed decisions when selecting future Office sites, through closer alignment to Centrelink business directions, image and style. The national focus of the contract should also deliver more consistency across the network in Office design and layout.

Good news campaignPublicising the involvement of Centrelink staff in local fundraising and community relations was the focus of this year’s ‘good news’ campaign.

The result was a significant spread of grass-roots news stories, with 95.2 per cent of Centrelink Customer Service Centres, Call Centres and other service outlets experiencing positive exposure in their local media.

International Day of People with a DisabilityIn 2003–04, Centrelink provided support to the National Information and Communication Awareness Network to coordinate International Day of People with a Disability celebration. Additionally, Centrelink supported the day by holding events in communities around the country.

In Australia, the International Day is seen as a significant event within the disability sector and an opportunity to celebrate and recognise the achievements of people with disabilities. The day involves little financial cost to disability organisations because it centres on people with a disability and their contribution to our society, rather than a fundraising ‘cause’.

NAIDOC WeekFor Australian Indigenous people, one of the most important weeks this year was 7 to 14 July. During NAIDOC (National Aboriginal and Islanders’ Day Observance Committee) Week, Indigenous people join together in celebration of the survival and continuation of their culture. As part of their ongoing support and commitment to Indigenous people, Centrelink joined in the NAIDOC Week celebrations. Staff at Offices around the country took part in community events such as fl ag-raisings and cultural performances. NAIDOC Week continues to grow each year and Centrelink is proud to be a part of it.

National Families WeekNow in its second year, National Families Week was held from 9 to 15 May 2004. The event aimed to build awareness of issues relating to families and to recognise the important place of families in the Australian community.

National Families Week coincided with Mothers Day on 9 May and the International Day of the Family on 15 May, making it a busy week for Australian families.

Families Australia, a national peak organisation promoting issues facing Australian families, was funded by the Department of Family and Community Services to coordinate the event nationally, and worked closely with Centrelink in this role.

The theme for National Families Week in 2004 was ‘Celebrate Your Family’, and in line with this theme more than 120 Centrelink sites hosted grass-roots celebrations.

The activities included information stalls and sausage sizzles at Centrelink Customer Service Centres; art competitions displaying family-themed artworks by school children, visits to hospitals to present new mums with bouquets of flowers; and family festivals held at shopping centres and community venues.

A National Families Week special edition of Centrelink’s Community Update magazine commemorated the event and was mailed to more than 20 000 community organisations around Australia.

National Families Week provided an opportunity for Centrelink to demonstrate its commitment to supporting Australian communities and strengthening the quality of life for Australian families.

ENABLE TRANSACTIONS INVOLVING THIRD PARTIES TO BE CARRIED OUT EFFECTIVELYCentrepayCentrepay was developed by Centrelink to enable customers to make deductions from their Centrelink payments, so they can better control their budget, meet their living expenses, and become more financially secure.

Centrepay allows deductions to be made from a customer’s Centrelink payments and be paid directly to participating organisations to cover costs such as private rent, water and electricity costs, court fines, and household items.

Over the years, the number of Centrepay options has extended to payment for services such as education, child care, home care, professional insurance, medical services and equipment, household goods, nutrition programs, travel and transport.

In 2003–04, Centrepay continued to maintain and establish new relationships with businesses and community based organisations. There are now over 9879 service providers around the country making Centrepay available to their customers. As at 30 June 2004, there were 158 229 customers using Centrepay.

Centrepay is a voluntary and free service for customers. Participating client organisations are charged a transaction fee for each deduction. Participating organisations consider Centrepay to be cost effective, as it assures them regular and reliable payments for their services.

Community organisations support Centrepay as a useful budgeting and early intervention tool for Centrelink customers.

Indigenous Centrepay initiativesDuring 2003–04, Centrelink developed a strategy to market Centrepay to the Indigenous servicing network, including Centrelink Agents, social welfare agencies, financial advisers, and other community support organisations.

Public relations material was developed to assist Centrelink’s Centrepay Account Managers and Indigenous Services Units to encourage customers and organisations to use Centrepay. Centrelink also prepared a promotional video, showing how to use Centrepay for rent, education fees, prepayment of funeral expenses, and nutrition programs. Two versions of the video are available—one targeting customers, and the other targeting organisations.

By ensuring a more secure income base, Centrepay has contributed significantly to Indigenous communities through increased revenue and subsequent increases in housing stock and maintenance programs. Centrepay also provides support for other Indigenous specific programs including child nutrition, health care, education, funeral benefits, substance abuse rehabilitation, banking, and family income management.

Future directions for Centrepay include:

creating a self-service option that allows customers to start, vary or cancel their Centrepay deductions via the Internet, meaning less need to complete forms or contact Centrelink

negotiating arrangements so that customers no longer need a form, but can initiate Centrepay deductions by phoning Centrelink Call

establishing a centralised Business Support Unit to provide more effective and efficient service to client organisations and customers

continuing to increase the number of client organisations who offer Centrelink customers Centrepay as a payment option

Increasing the number of customers making Centrepay deductions.

Rent Deduction SchemeThe Rent Deduction Scheme (RDS) allows Centrelink customers living in public housing to have their housing related payments such as rent, loans and arrears deducted from their Centrelink payments.

The RDS is free for customers, however housing authorities pay transaction fees.

The scheme is voluntary, and provides customers with an easy way to manage their government housing payments, and helps to prevent rental arrears, debts and evictions. All state and territory housing authorities use the RDS and the number of customers using this service continues to increase. In 2003–04, 260 000 customers used the scheme, an increase of 5.25 per cent on 247 024 customers in 2002–03.

National Service Improvement ProjectThe National Service Improvement Project is a Ministerial Online Council initiative managed by the Australian Government Information Management Office, under the direction of its Integrated Transactions Reference Group. It aims to provide a framework to improve whole-of-government, multi-agency, collaborative service delivery to citizens in a way that is secure and respects privacy.

Centrelink, along with representatives from the Australian, state, territory and local governments have developed the framework structure and agreed on the upper tiers of the framework. Collaboration principles and statements of intent to collaborate have received Online Council approval.

As part of the project, Centrelink’s business products and services are being used in selected trials which aim to demonstrate how the framework will provide greater cross agency and cross jurisdictional collaboration to achieve improved services to citizens, business and other government agencies.

Electronic Employer ReportingCentrelink is required to confirm the earnings of income support customers to ensure that they receive correct payments. The correctness of payments is monitored in a variety of ways, including checking income details with a customer’s previous and current employer. This normally occurs by sending a letter directly to an employer who is required to reply within a fixed timeframe, usually 14 days.

Electronic Employer Reporting provides some businesses with an alternative to the existing paper based arrangements. It also eases the administrative burden on employers; improves the verifi cation process; reduces the need for Centrelink to seek Confirmation from businesses through additional review procedures; reduces the requirement for customers to contact Centrelink; and provides greater accuracy of information reporting, thus reducing the possibility of overpayment.

Centrelink is implementing electronic reporting for business so that it requires only minimal business information and technology capability—a desktop payroll system, and an Internet connection. When customers provide their consent, these arrangements allow businesses to electronically report the earnings of their employees who are also Centrelink customers.

Over time, electronic reporting will be extended to businesses such as nursing homes and educational institutions and allow them to report relevant changes in customer circumstances to Centrelink online.

Employer reporting for business servicesA ‘business service’ (also known as a supported employment service) employs people with disabilities. Business service workers are unlikely to enter competitive paid employment at or above award wages, and often need substantial and ongoing support to stay in their jobs.

In a recent initiative, employer reporting for business services started to use Centrelink’s electronic reporting capability. The initiative allows business services to submit regular electronic reports to Centrelink on employees’ earnings.

This recognises that many Disability Support Pension customers have high support needs and may find it difficult to meet their new reporting obligations under the Working Credit initiative.

Since the introduction of Working Credit in September 2003, 95 business services have commenced reporting the earnings of their Disability Support Pension employees (approximately 7950 staff) to Centrelink each week or fortnight. Another 25 business services are currently going through the registration process, and many more have expressed interest in participating in this initiative. More than 10 000 business service employees have also signed consent forms.

Feedback from participating business services and their employees has been very positive, and the success of this initiative is paving the way for an expansion of electronic information reporting to Centrelink by third parties.

OUR CUSTOMERSCHAPTER FIVEOUR CUSTOMERSGOALTo provide access to high quality services recognising the diverse needs, preferences and expectations of our customers, consistent with government policy.

TOP-LEVEL RESULTOverall customer satisfaction with last Centrelink contact.

FIGURE 8: OVERALL CUSTOMER SATISFACTION WITH LAST CONTACT WITH CENTRELINK,NOVEMBER 1999 TO APRIL 2004

TARGET 85%

RESULT 86%

Source: Customer Service Centre satisfaction survey and Call Centre satisfaction survey, DBM Consultants.

HIGHLIGHTS FOR 2003–04 customer satisfaction with last Centrelink contact continued to grow and reached a new high of 86.2

per cent increased range of self-service options extended to a number of customer groups, via the Internet

and telephone (see page 145) Increased range of Internet transactions available to customers, allowing customers to access their

own records and conduct a broader range of online business (see page 141). increased number and range of out-servicing activities (see page 141) Improved customer service experience through the introduction and expansion of innovative delivery

approaches (see page 123).

DESCRIPTIONCentrelink’s 6.5 million customers represent a broad cross-section of the Australian population. They come to Centrelink for assistance of many kinds—ranging from income support through to help with making the steps that will move them along a path to greater economic participation.

The diversity of our customer base is a major issue for the design and delivery of Centrelink services. Recognition and understanding of the breadth of personal, social and economic barriers that customers face in their everyday lives has been a key element of Centrelink’s work in improving its service delivery approach.

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 service solutions that reduce the complexity of accessing Government services.

Our customers have told us that there are eight key areas they want Centrelink to focus on to improve the customer experience. These are:

staff capability—attitude and knowledge promptness and consistency of our service on-paper communication management of mistakes aligning their future servicing arrangements with customer expectations and preferences working with our customers and the broader community to achieve positive outcomes improving the Customer Service Centre environments acess to and integration of services.

Centrelink’s Future Directions 2003–2006 identifies five key strategies that reflect our commitment to these expectations by making our servicing arrangements accessible, supportive, seamless and focused on achieving positive outcomes for all our customers.

KEY STRATEGIES support participation (page 111) improve the consistency of the customer experience (page 118) provide appropriate service offers for customers’ life events (page 129) value our relationships with customers through more effective management of contacts(page 137) Improve access for customers (page 141).

Our customersFor many of our customers, 2003–04 heralded a major shift away from traditional ways of doing business with Centrelink.

Increased opportunities were opened up for some customer groups to use self-service— either on the Internet or the telephone (using Natural Language Speech Recognition). Customers responded by adopting these new service options in significant numbers—not surprising given both the convenience of self-servicing and the growing comfort and confidence in many communities about using newer technologies.

In the last year, other work on increasing service options has paved the way for Centrelink customers to access their records and conduct a much broader range of Internet based transactions from 2004–05. A key element of this work is the Customer Account, which will be accessible via the Internet and will enable customers to view and update a range of their data.

A focus on the needs of specific customer groups has led to several initiatives that will improve the accessibility of Centrelink’s services. Another six Remote Area Service Centres have been established in Indigenous communities and expansion of the Centrelink Agent and Access Point networks continues. To support blind and visually impaired customers who want to use self-service options without assistance, plastic credit style cards with names and customer reference numbers printed in braille and large font have been issued. A number of projects have also focused on the building of Centrelink’s understanding of the challenges facing customers of diverse cultural and Linguistic backgrounds, including refugees.

As in previous years, local initiatives featured strongly in the development of service solutions designed to address the issues facing communities serviced by Centrelink. A particular focus for the past year has been on reaching the most disadvantaged, many of whom have difficulties accessing government services. This has led to an increase in the number and range of out-servicing activities (where Centrelink Officers deliver services out in the communities rather than from Customer Service Centres), including to prisons and to homeless people.

Our efforts to change and improve customers’ service experiences through the introduction and expansion of innovative delivery approaches have been complemented by an ongoing commitment to providing a range of problem resolution options to customers whose experience of Centrelink has not been entirely satisfactory.

This focus on service recovery recognises that the way we respond to service failures is as important as the quality of the initial service experience. With this in mind, there has been a focus on improvements to the collection and analysis of feedback to Customer Relations Units, the development of stronger relationships with external review bodies, and a commitment to resolving customer concerns quickly at the local level, whenever possible.

The reporting year has also been important in terms of significant service improvements, which have increased the accessibility and choice of how customers access Centrelink’s services, and other work to build our understanding of customers’ needs, expectations and preferences.

SUPPORT PARTICIPATIONCentrelink supports income support recipients to prepare for re-entering the workforce by encouraging customers to increase their economic and social participation in their community. Participation is defined as ‘all progress towards work outcomes including personal and skill development, training and volunteering.’

Personal AdvisersPersonal Advisers and Jobs Education Training (JET) Advisers provide personalised assessment for specific customer groups identified as disadvantaged in the labour market. Since the introduction of Personal Advisers under the Australians Working Together (AWT) initiative in 2002–03 (see page 62), many customers have been motivated and challenged by their Personal Adviser or JET Adviser at their interview. Personal Advisers and JET Advisers provide professional advice in a supportive environment and help people achieve greater social and economic participation wherever possible.

Expansion of services provided by Personal AdvisersFrom September 2003, Personal Adviser support was extended to Newstart Allowance customers aged 50 or over and Personal Advisers now provide individualised services and additional support to people in the following groups:

mature age people aged 50 or over and receiving Widows Allowance, Partner Allowance, Newstart Mature Age Allowance or Newstart Allowance

parents receiving Parenting Payment whose youngest child is aged up to 12 years people recently released from prison who claim Newstart Allowance or Youth Allowance Indigenous people claiming Newstart Allowance or Youth Allowance Activity Test exempt people claiming Newstart Allowance or Youth Allowance who are granted

certain exemptions from the Activity Test certain incapacitated people seeking an exemption from the Activity Test due to a medical incapacity.

Phase 2 of the AWT initiative from September 2003 has also seen the introduction of new, flexible participation requirements for a number of customer groups:

Newstart Allowance recipients aged 50 or over are required to attend an annual participation planning interview with a Personal Adviser and may have access to a more flexible participation framework than those aged less than 50 years.

New claimants of Widow Allowance are required to attend an annual participation planning interview with a Personal Adviser.

customers receiving Parenting Payment for at least six months with a youngest child aged at least six years old are required to attend an annual participation-planning interview with a Personal Adviser.

customers receiving Parenting Payment for at least six months with a youngest child aged 13 or older are also required to attend an annual participation-planning interview and to undertake up to 150 hours part-time activity in each six-month period. The JET Adviser generally provides support for these people.

Recruitment and trainingWith the extension of Personal Adviser assistance to a wider range of customers, additional Personal Advisers were recruited. These Personal Advisers undertook a comprehensive 13-week training program starting in August 2003.

In response to feedback gathered via the post-implementation review of Phase 1 AWT training, a different approach to training was adopted for the newly recruited Personal Advisers. The training was delivered via a case-based format with appropriate on-the-job modules to reinforce learning and included a nationally standardised induction package for new Centrelink staff.

Other Centrelink staffs, including current Personal Advisers and JET Advisers, were given appropriate training relevant to their role to cover Phase 2 AWT enhancements.

The outcomes Personal Advisers are seeking to achieveOne goal of the AWT initiative is to reduce the proportion of working-age people receiving income support. The Personal Adviser role aims to encourage and support each person to determine their own future, and to actively participate in the community in a way that is appropriate to their individual circumstances. For some customers this may also mean encouraging and supporting various forms of social participation such as voluntary work, before moving towards paid employment.

By providing assistance at the earliest possible stage, Personal Advisers can make a better assessment of each customer’s needs and:

address possible barriers that may affect some customers’ ability to Benefit from mainstream assistance programs

work alongside Centrelink specialist staff to make more appropriate and better-targeted referrals for assistance

provide greater levels of support for customers once they begin to take part in an assistance program or activity, to ensure that they are able to participate actively and effectively

reduce the numbers of breach penalties being incurred by some job seekers in vulnerable customer groups.

Personal Adviser successesMOVING FROM REDUNDANCY TO APPRENTICESHIP

By helping people through difficult times in their lives, Personal Advisers are getting good feedback from customers. One Personal Adviser said:

‘I received a phone call from a customer a couple of months ago. His sister-in-law, who I had seen earlier in the year, had given him my number and he was hoping we could have a chat.

‘He had been made redundant by his employer a year ago and since then he had been on Newstart Allowance while he looked for work. He was convinced that his age (he was over 50) was working against him when applying for new jobs, and this was causing him much frustration. We sat down and discussed the options available to him, as well as alternative types of employment, such as Community Jobs Projects and Mature Age Apprenticeships—many of these were options he had never considered.

‘When he came back to see me last week, he had just been accepted as an apprentice panel beater! Although he will be starting on a relatively low wage, he is delighted to be employed and to be learning a new trade that will take him through to retirement.’

SOLVING PROBLEMS AND BRIGHTENING VISIBLY

Personal Advisers are trained to tap into community support networks to help customers, for example:

‘In my short time as a Personal Adviser I have encountered many customers whose circumstances have reinforced the need for and the value of the Personal Adviser role. ‘Just recently I interviewed a single mother of two. On the surface she appeared to be a healthy young woman raising her children—an impression soon shattered as she opened up and talked about her problems.

‘She had serious health issues that she was doing her best to ignore because the money she had was going on paying her daughter’s dental bills. As well, her other child has serious behavioural problems, which take up a lot of the mother’s time. In addition, she was caring for an alcoholic relative and cleaned his house a couple of times a week.

‘I referred her to the local health service for medical treatment and physiotherapy and free dental care for her children and to Parent zone for help with her son and relative. She brightened visibly when she understood how much help was available to help solve her problems.’

Centrelink Assessment ModelThe Centrelink Assessment Model is being developed to maximise customer participation. In November 2003, an early version of the model was presented to our three major client departments (the Department of Family and Community Services (FaCS), the Department of Employment and Workplace Relations (DEWR), and the Department of Education, Science and Technology (DEST)).

The Centrelink Assessment Model builds on the AWT initiative and DEWR’s Active Participation Model. It aims to improve participation outcomes by:

streaming customers to the most appropriate participation assessing Officer at their first contact with Centrelink

ensuring customers are quickly referred to the right program and/or service following assessment, including rapid engagement with the Job Network

giving voluntary customers the choice at first contact of immediately accessing participation options including the Job Network.

Indigenous Customer Breach Prevention ProjectsA Centrelink working group formed to focus on Indigenous customer breaching issues with the aim of promoting improved servicing of Indigenous customers in relation to breaching. This includes better

statistical reporting and analysis of breach data, and communication and promotion of best practice procedures throughout our network.

A project was established in Moree and Goondiwindi regions (spanning New South Wales and Queensland) to:

engage the local community, including their involvement in developing local strategies to help reduce breaching

Increase community input to strategies designed to improve individual understanding of information provided about government policies and appeal rights.

Initial findings have assisted in identifying consistently emerging community issues and will contribute to the development of better practice initiatives.

Community Participation AgreementsCommunity Participation Agreements (CPAs) were included in the Australians Working Together initiative in 2001. Voluntary CPAs have been developed in remote communities encouraging customers to contribute to their community in return for income support. Centrelink continues to work in partnership with Aboriginal and Torres Strait Islander Services (the lead agency), Family and Community Services (FaCS) and the Department of Employment and Workplace Relations (DEWR) on this initiative.

Introducing participation requirements through CPAs is a significant aspect of welfare reform. These initiatives are also potentially important as part of a response to the many problems—such as social, economic and health issues—being experienced in remote communities.

Implementation strategies have been developed jointly by multiple agencies, under the direction of the secretaries’ group for Indigenous Issues.

BUILDING SELF-ESTEEM TO INCREASE PARTICIPATION

Fraser Coast Centrelink Offices, encompassing Hervey Bay and Maryborough, recognise that raising customers’ self-esteem is vital to customer participation. To help with this, the Offices launched a Mature Age Self-Esteem program for customers aged 50 years and over. The program is designed to build people’s self-esteem so they have more confidence to actively seek employment and/or to increase their social participation.

The program involves the Fraser Coast Centrelink Psychologist delivering six, one and a half-hour sessions for customers, over six weeks. Throughout the six-week program, participants are given myriad opportunities to actively participate in activities, and discussions and group activities are set to encourage interaction between participants.

The courses were well received by participants and most of them completed all six sessions. Future programs will be extended to include customers on Parenting Payment who have activity requirements.

Similarly, the Hervey Bay Office has been working closely with the community to assist young women at risk to build their self-esteem, and set goals for their future through craft and self-expression. Called Active8, the program runs over eight weeks for young women aged 15 to 16 who have been identified as at risk through their schools.

The program is a partnership between several agencies, including Reconnect Youth Service, Queensland Police, Women’s Health, Women’s Domestic Violence Service and Centrelink.

Many of the young women involved said that they now see Centrelink and its employees in a different light. In the words of one participant:

‘The program was extraordinary; it was very helpful to know that someone cared enough to produce this program. The program boosted our confidence tremendously, changed our outlook on life and stopped some from wagging because we felt better about ourselves and other people around us.’

MAKING THE TRANSITION TO COMMUNITY PARTICIPATION AND PAID WORK

For ex-offenders, employment and supportive family relationships are key factors when it comes to making the transition from prison to economic and social participation.

Centrelink’s Area West New South Wales Prison Servicing Unit, in collaboration with DEWR, local Job Network members and the Pre Release Programs Unit of the New South Wales Department of Corrective Services are working cooperatively to provide a seamless service to inmates participating in work release programs.

Delivered from John Moroney Correctional Centre in western Sydney, inmates eligible for work release are registered and linked with local Job Network members. The Job Network supports participants by helping them to find paid work prior to their release from prison. In June 2004 this pilot will extend to Silverwater Correctional Centre near Parramatta.

In partnership with Relationships Australia, Children of Prisoners Support Group, the New South Wales Department of Correctional Services, Throughcare and Silverwater Correctional Centre, the Prison Servicing Unit is also involved in developing the ‘Growing Together—Parents and Kids’ program.

Under the program, pre- and post-release camps are held for inmates and their families. These camps are to work through difficult issues, draw on existing family strengths, and to encourage ex-offenders to take part in community life and look at opportunities for paid work.

Engaging multicultural communities in participationCentrelink is committed to assist and support customers from Diverse Cultural and Linguistic Backgrounds (DCALBs) move toward joining or returning to the workforce. Key priorities adopted by Centrelink’s Multicultural Services Business Team for DCALB customers in 2004 have been to:

build better partnerships with agencies and community groups to ensure multicultural customers are better able to participate in various programs and services

tailor Centrelink communication, access, participation and service delivery strategies to the needs of these customers

assist Centrelink staff in developing greater awareness of the issues affecting migrant and refugee customers

equip staff with skills and strategies to effectively service these parents and link them to appropriate services, programs and necessary support.

Centrelink also develops strategies that encourage an ‘all of community’ approach to providing the necessary assistance and support to our mutual refugee and migrant customers during their pathway to work.

In 2004 an internal working party was set up to act as a consultative forum to help identify issues and address gaps in services and support for migrants and refugee customers as they move towards entering or returning to the workforce.

Centrelink has conducted consultation with various multicultural customer groups to find out directly how customers think Centrelink could improve services in this area. These consultations have enabled the organisation to identify good practice as well asgaps in servicing.

Centrelink has also undertaken several projects focusing on participation and customers from diverse cultural and linguistic backgrounds. These projects aim to address a range of issues such as staff training, improved communication, outreach and collaboration with external agencies and community groups.

Social Workers supporting participationDuring 2003–04, Centrelink Social Workers in South Australia trialled a group work program for parents receiving Parenting Payment from Centrelink and whose youngest child was turning 13. The aim of this program was to increase the parents’ social and economic participation.

The program set a number of goals to achieve this aim:

to enhance the participants’ self-esteem to increase their knowledge of the community and available resources to give participants an understanding of the benefits of participation for themselves and the

community To have participants set goals and plan actions that would increase their social and economic links

with the community.

The group ran for eight weeks with seven participants attending each session. Six were sole parents and none were employed or studying when the group commenced.

Over the eight week period a range of topics was covered including: planning for the future, volunteering, education, and parenting. There were presentations by a number of guest speakers such as Centrelink JET and Personal Advisers, TAFE and high school career counsellors, volunteer coordinators, and community youth workers.

The participants met one month after the group finished, and a further evaluation was conducted three months after the group ended, to assess the participants’ progress towards undertaking social and economic participation activities.

The evaluation found that all members had increased their level of participation within the community. Prior to attending the group none of the participants were involved in study or employment. Now every participant is actively undertaking some kind of study, employment or volunteer work, and in many instances they are undertaking a combination of these activities.

Many of the women who participated in the group had been out of the workforce for an extended time since having their children and had not studied recently, if at all. They had not considered their future or what direction they wanted to take, and had not made any plans in relation to this. The direction and motivation that they gained from participating in the group was instrumental in assisting them to be more engaged with their community, and to undertake participation activities.

The responses to the evaluation indicated that many of the participants were unaware of services available in their community and also through Centrelink. This information was an essential component in their forward planning.

This innovative approach demonstrates the contribution that Centrelink’s Social Work service is able to make in supporting customers to achieve greater levels of social and economic participation. It also demonstrates Centrelink’s ability to deliver services in alternate ways. While this model was trialed for only one customer group (parents whose youngest child was turning 13), the evaluation indicates that it would be a useful program for all customer groups that have or will have a compulsory participation requirement. Planning is currently underway to extend this program to other customer groups.

IMPROVE CONSISTENCY OF CUSTOMER EXPERIENCECustomer satisfaction surveysCentrelink continues to monitor customer satisfaction with its service through regular surveys. These are to ensure a continuing focus on improving customer service, as well as identifying emerging customer needs.

The three types of surveys include one that looks broadly and holistically at Centrelink’s service and how well it delivers against what customers’ value, and two others that cover the quality of service provided the last time a customer rang up or visited an Office. Over the year, these surveys captured the views of around 73 000 customers.

Overall customer satisfaction with CentrelinkIn November 2003, 81 per cent of customers rated the overall quality of Centrelink’s people, services and information as either ‘good’ or ‘very good’. This is Centrelink’s highest satisfaction rating to date and is a 4 per cent increase on the previous year’s result of 77 per cent.

FIGURE 9: OVERALL CUSTOMER SATISFACTION WITH CENTRELINK(A)

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

Source: Centrelink National Customer Satisfaction Survey (Millward Brown and DBM Consultants)

Customers’ views on Centrelink’s value to the communityCentrelink customers value Centrelink and view it as an organisation that provides customers with assistance and information that:

will help them find work or achieve work related goals gives them options appropriate to their personal circumstances has offices that are located in convenient places

Most customers (83 per cent) agreed that they can usually do business with Centrelink at a day and time that suits them, and three-quarters (75 per cent) of customers also agreed that Centrelink gives assistance and information that will help them find work or achieve work related goals. More than three-quarters of customers (78 per cent) agreed that Centrelink is a caring organisation that is concerned with customer interests.

Customer satisfaction with service delivery channelsDespite the increase in satisfaction with the overall quality of Centrelink’s service (as measured by the National Customer Survey), satisfaction with the overall quality of service offered by the two main service delivery channels has been more variable, with a marginal drop recorded since November 2002 for Customer Service Centres and a marginal rise for Call Centres.

For Customer Service Centres, customer ratings of the overall quality of the service received on the last visit dropped by 3.1 per cent to 82.4 per cent.

For Call Centres, customer ratings of the overall quality of the service received on the last call rose by 2 per cent to 90.7 per cent.

FIGURE 10: CUSTOMER SATISFACTION BY CHANNEL(A)

(a) The percentage of customers who rated Centrelink’s overall quality of Customer Service Centres and Call Centre service as ‘good’ or ‘very good’.

Source: Customer Service Centre Customer Survey (DBM Consultants Pty Ltd); Call Centre Customer Satisfaction Survey (DBM Consultants Pty Ltd)

Customers acknowledged the high quality of Centrelink’s staff, with 87 per cent saying the staff they dealt with in Offices and over the phone were ‘good’ or ‘very good’. Staffs were seen as skilled and knowledgeable (74 per cent), and their ability to listen to their customers was another strength (85 per cent).

Customers also saw providing a fair and personal service as a strong area for Centrelink. Staffs are seen as behaving with honesty and integrity (88 per cent), treating customers with respect and dignity (88 per cent), and doing what they say they will do (84 per cent).

Almost all customers interviewed about the quality of Customer Service Centre service on their last visit rated the way Centrelink Office staff treated them as either ‘good’ or ‘very good’ in terms of being courteous, friendly, helpful and respectful (90.6 per cent). They were highly satisfied with the ability of Centrelink to explain things (83 per cent).

Explaining skills were also highlighted for those customers who had received referrals, with almost all (92.3 per cent) understanding why these referrals were made and most (85.1 per cent) feeling that these were appropriate to their needs at the time.

Accuracy of advice is an important driver of customer satisfaction with the quality of service provided by both Call Centres and Customer Service Centres. In June 2004, customers’ satisfaction with the accuracy of the advice and information provided to them by Centrelink on their last contact at a Customer Service Centre was 78 per cent and 89.7 per cent with a Call Centre.

Satisfaction with the speed and efficiency of service rated well. In June 2004, customers rated their overall satisfaction with the speed and efficiency of Customer Service Centre staff at 78.4 per cent and Call Centre staff at 94.5 per cent. Around 72 per cent of customers were satisfied with how quickly Centrelink made a decision once it had all the required information.

Areas for particular focusThe surveys identified a number of areas for continued improvement. One area is to improve the ease of accessing government services (60 per cent) and provide prompt service by not making customers wait (57 per cent). Satisfaction with the length of time spent in a queue in an Office on the last visit remains low (53.1 per cent).

Customers’ views on Centrelink’s service quality had an increased emphasis this year within Centrelink’s performance monitoring and management framework and processes. From 1 July 2003, ‘Customer’ became a corporate goal in its own right. As one of the five corporate goals, ‘Customer’ forms one section of the Balanced Scorecard.

The quality of customer service is part of the regular performance review of the service delivery network, and one of the dimensions in the new quarterly Performance Management reports, which began in the first half of 2003. The measures for the service quality component of these reports are taken from the customers’ point of view, and the data are supplied from the ongoing program of customer surveys.

Centrelink’s analysis of the results from its customer surveys, in-depth workshops with customers (that is, our Value Creation Workshops), and other customer feedback helped identify a number of specific ways to improve service delivery in 2003–04. Stemming from this, a set of key strategies was included in the Balanced Scorecard under the Customer goal, and data from the customer surveys provided the results each month for most of the related measures.

Customer CharterAwareness of the Customer Charter is monitored as part of Centrelink’s customer satisfaction research program. Results in November 2003 showed customer awareness of the charter had increased 9 per cent to a new high of 25 per cent. This result is consistent with or better than levels of customer awareness achieved by other government agencies.

For more information on how customers rated Centrelink’s performance against the commitments in the Customer Charter, see Appendix 7, page 285.

Favourability and awarenessThe overall impression (‘favourability’) of Centrelink held by the general community has remained stable. Survey results indicate that there is still some further work to do in raising awareness of Centrelink’s role in the general community.

Two-thirds (67 per cent) of those surveyed thought Centrelink was somewhere they would go for help if something in their life changed and a similar number (71 per cent) felt Centrelink provided a wide range of government services in one place. Less than one-fifth (15 per cent) of survey participants believed that Centrelink only provides payments for sole parents and unemployed people.

Value Creation WorkshopsCentrelink’s national programs of Value Creation Workshops (VCWs) help staff to understand and empathise with the experiences of individuals and communities. The program also aims to promote Centrelink as the ‘human face’ of government.

Value Creation contributes to Centrelink’s customer strategies by driving change at local Customer Service Centres. During 2003–04, 57 VCWs were conducted by local Value Creation teams in a range of locations around Australia. Approximately 800 customers from a variety of backgrounds attended these VCWs. Six of the workshops focused on the experiences of Indigenous customers.

As well as its program of VCWs designed to improve service at the local level, Centrelink uses the workshops to evaluate how many of its service initiatives impact on customers.

In 2003–04, the national Value Creation team also conducted 78 VCWs to understand the customer experience in projects by, for example, testing customer reactions to new authentication technology; exploring social and economic participation from the perspective of Indigenous customers and customers from diverse cultural and linguistic backgrounds; and gauging customer reactions to the Centrelink service centre environment.

A program of community VCWs contributes to Centrelink’s business and community goal by building and strengthening partnerships between community agencies and service centres. In 2003–04, Centrelink conducted nine VCWs with community groups, including a workshop involving community agencies in the design of an inner city servicing strategy for Melbourne.

Centrelink also uses Value Creation to develop and support its people. Internal VCWs help Centrelink to improve business practices and staff support. In 2003–04, Centrelink conducted 34 VCWs with Customer Service Officers and internal service providers.

Customer Experience StrategyThroughout 2003–04 work continued on developing Centrelink’s Customer Experience Strategy. With substantial consultation across Centrelink and with input from staff at all levels, the results included:

identification of new and emerging ‘best practice’ in customer experience management in both private and public sectors, here and overseas

development of a Customer Experience Management Model created specifically for the Centrelink context of delivering services and social policy outcomes for the Australian Government

review and consolidation of Centrelink’s customer research to identify service issues for customers and the community.

The Customer Experience Strategy focuses on priorities for improvement to Centrelink’s customer experience in relation to:

current customer service issues—‘fixing’ key current service delivery issues using existing resources service recovery future servicing arrangements.

Development of the Customer Experience Strategy positioned Centrelink well to inject ‘the voice of the customer’ into its strategic level planning processes by informing the preparation of Future Directions 2004–2009. As a result, a detailed Customer Experience Road Map was developed, which identifies the range of activities needed to support the strategies outlined in Future Directions.

In 2004–05, the Customer Service Domain will focus on coordinating and monitoring the implementation of the work outlined in the Customer Experience Road Map and continuing to work with our customers to ensure Centrelink stays in touch with changing preferences and expectations of the service experience.

Service Response FrameworkThe Service Response Framework is a ‘customer needs’ based model that will assist Centrelink to make informed and consistent decisions about how and through which channels services should be delivered to customers.

The framework was developed throughout 2003–04 and included direct input from customers through a number of Value Creation Workshops, as well as input from the Centrelink network.

The framework is designed to help Centrelink make appropriate service offers to customers by stepping staff through the range of business imperatives that have to be considered in each case, and identifying the appropriate business information required before channel choices can be determined.

The framework is now being tested by applying it to actual business cases.

Customer experience intelligenceThe key element of a customer experience approach is to know your customers. Centrelink’s Customer Experience Strategy and planned service improvement initiatives are based on a wide range of research and discussion with customers.

During 2003–04, Centrelink undertook substantial work and analyses to consolidate existing research and to identify the key issues for customers and the drivers of customer behaviour. The work included:

Consolidating the key findings and undertaking further work relating to customer behaviour in using the On Site, On Call, On Paper and Online channels. The information from these reports was used to feed into Centrelink decision making forums and other projects

exploring the customer, corporate and legal issues surrounding the use of email services Conducting the Customer Interaction Study July 2003, which provided additional strategic

intelligence and direction on the most effective methods of delivering services to customers now and into the future. The study focused on customer preferences when interacting with Centrelink, and their predisposition to adopt alternative service channels. Arising from the study’s findings, further work was undertaken on how Centrelink could best provide support to customers using the Internet and the Natural Language Speech Recognition services.

Participation in industry customer service forumsDuring 2003–04, Centrelink participated in a wide range of industry forums to identify and better understand best practice customer service and customer experience management across a range of public and private sector businesses.

Contact with the Society of Consumer Professionals Australia helped introduce Centrelink to the emerging focus in Australia and overseas on consumer emotions as a critical element of customer experience management. Centrelink was represented at the launch of the society’s innovative research report into the role of emotions in customer service.

A greater understanding of the importance of both the traditional elements of the customer experience (for example, timeliness, access and service environment) and emotional considerations (for example, trust, confidence, helpfulness and caring) has helped shape some of the key initiatives planned for customer experience management in Centrelink for 2004–05.

Indigenous Servicing Strategy 2001–2004The Indigenous Servicing Strategy 2001–2004 underpins Centrelink’s Statement of Commitment to Reconciliation and guides Centrelink operations. The strategy has six goals to ensure outcomes for Indigenous customers and communities are achieved.

These are to:

improve services, access and information for Indigenous customers and communities create opportunities for Indigenous customers and communities to increase social and economic

wellbeing

work with Indigenous communities to build stronger families and communities value cultural awareness and shared purpose commit to partnerships and holistic solutions for Indigenous customers and communities Influence policy processes and link service delivery innovation across government for Indigenous

customers and communities.

The existing Indigenous Servicing Strategy is now due for review, which will start at the beginning of 2004–05.

Maintaining privacy and security of customer recordsPrivacy in CentrelinkFor Centrelink to carry out its business, a large amount of sensitive personal information is collected about its customers. Centrelink works continuously to ensure the privacy and security of customers’ personal information. The privacy culture’s foundation is Centrelink’s legal obligation to comply with the Privacy Act 1988 and the confidentiality provisions contained in the various legislation it administers, for example, the Social Security (Administration) Act 1999 and privacy guidelines approved by Centrelink’s Board of Management.

Privacy investigationsCentrelink logs and records all Centrelink staff accesses to its computer databases. This means Centrelink can determine whether a customer’s privacy has been breached through unauthorised or improper access to customer records.

Centrelink Privacy Officers examine all matters that may result in a privacy breach and investigate all privacy incidents, which include mailout errors and alleged privacy breaches reported by the public and staff. As well, Privacy Officers audit computer access to detect unauthorised access and use.

In 2003–04, Privacy Officers finalised 1449 investigations of 1494 reported incidents. The investigations were either initiated by Centrelink management and staff, or the incidents were reported by customers, the Ombudsman, members of Parliament, or the Office of the Federal Privacy Commissioner.

Of the inquiries finalised in 2003–04, 30 per cent of incidents were substantiated as breaches of privacy or confidentiality. Criminal charges were laid by the Director of Public Prosecutions in one of the more serious substantiated privacy breaches detected during 2003–04. Disciplinary action was also undertaken against 282 staff, which resulted in these Officers being either dismissed, fined, formally counselled or warned in writing (see Tables 24 and 25).

Of the substantiated breaches most were minor and resulted in local managerial action and feedback to staff designed to prevent reoccurrence.

TABLE 24: REPORTED INCIDENTS

Year Incidents reported Investigations finalised

Number proven % proven

2003–04 1494 1449 436 30%

2002–03 1386 1281 355 27.7%

TABLE 25: PRIVACY BREACHES

Privacy incidents proven by breach type 2003–04 2002–03

Misdirected mail 119 110

Privacy incidents proven by breach type 2003–04 2002–03

Mail house 7 27

Browsing:

• access

• disclosure

• use

173

22

5

110

12

4

Information Privacy Principle (IPP) 4 Storage and security

24 24

Untrue representations 0 1

Other 32 14

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

34 38

IPPs 5–8 Access and accuracy 14 9

Soliciting 3 3

IPP 13 Collection 3 3

Total 436 355

There were 119 substantiated mail errors attributed to administrative error. This represents a slight increase from 2002–03. There were also seven substantiated mail house errors involving a technical error in production. In 2003–04 Centrelink generated more than 90 million mailout items.

During the year, Centrelink focused attention on improving mailout procedures and processes. Improvements in both our network and contracted mail houses led to fewer mailout errors.

Privacy strategyCentrelink’s Privacy Compliance Strategy, which commenced in July 2003, supports a commitment to ensure that employees comply with privacy and confidentiality legislation. Employees are selected at random and their computer access to customer information is checked to ensure that it is consistent with their obligations as specified in the Privacy Act 1988 and the confidentiality legislation applicable to Centrelink. These processes assist in reinforcing Centrelink’s privacy culture and framework.

Office of the Federal Privacy CommissionerCentrelink works closely with the Office of the Federal Privacy Commissioner (OFPC) to enable privacy complaint cases to be handled more effectively. Complaints are resolved faster under this arrangement because information is exchanged after preliminary inquiries, which usually results in better service for the complainant.

In 2003–04, there were five open cases carried over from the previous financial year. Another five new cases were opened with the OFPC, bringing the total to 10 cases for the year. Centrelink finalised seven cases with the OFPC and as at 30 June 2004, there were three cases still open.

The OFPC 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 2003–04, the Privacy Commissioner did not issue any reports or determinations under these sections.

Under section 73 of the Privacy Act 1988, an agency may apply for a public interest determination by the Privacy Commissioner about an act or practice that breaches an IPP. During 2003–04, Centrelink did not apply to the Privacy Commissioner for any section 73 determination.

Improving freedom of information accessStatement under Freedom of Information Act 1982Section 8 of the Freedom of Information Act 1982 (FOI Act) requires each Australian Government agency to publish information about the way it is organised; its functions, decision making and other powers which affect the public; arrangements for public participation in the agency’s work; and the document categories that are held by the agency and how the public can access documents.

Improving access to personal documentsCentrelink continues to build on practices and procedures that improve customers’ access to information held about them in Centrelink records. A wide range of personal information documents are made available to customers on request outside the formal FOI processes.

All Customer Service Centres can release documents outside the formal FOI process and can give advice on how to lodge a formal FOI request. As well, Customer Service Officers receive training on consulting with customers about requests and providing access to documents. This practice has substantially reduced the number of formal FOI requests and resulted in more efficient services for customers seeking information.

Requests from customers for more detailed documents or that involving third party information are still handled through the formal FOI processes. In 2003–04 the number of formal FOI requests increased by 25 per cent, compared with 2002–03.

Requests for access to documents under the FOI Act must be made in writing. To ensure that requests for access to documents are handled promptly, FOI forms are available in all Customer Service Centres. It is Centrelink policy not to apply the FOI fee or charge when a customer requests information about their record.

Request statisticsAt the beginning of 2003–04, Centrelink had 1706 requests on hand under the FOI Act. During the year, an additional 12 202 requests were received. A total of 11 944 cases were finalised. Applicants withdrew another 394 requests before decisions on access were made. Full access was allowed in 7229 cases, while part-access was allowed in 2930 cases. Access was refused in 1390 cases. In most of the cases where full access was refused, this was done to protect the confidentiality of third parties and/or other customers.

TABLE 26: FREEDOM OF INFORMATION REQUESTS

Freedom of information requests 2003–04 2002–03

Pending from previous year 1 706 664

Requests received in year 12 202 9 753

Total for year 13 908 10 417

Requests finalised in year 11 944 9 570

Carried to next year 1 964 1 706

Freedom of information requests 2003–04 2002–03

Reviews and appealsCentrelink provides information about seeking a review or an appeal of decisions made under the FOI Act at all CSCs 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 leaflet that explains the FOI process and customer rights.

During 2003–04, 137 requests were received for an internal review. Of the reviews completed at the end of the year, 28 requests resulted in grant of access or part access, and 94 resulted in affirmation of the original decision to deny access. Two cases were withdrawn and no cases are pending.

The AAT received 40 new applications for review and had 18 pending cases from the previous year. Case status for 2003–04 is:

six cases were affirmed three cases were set aside one case was varied nine cases were dismissed zero cases had no jurisdiction 14 cases were withdrawn 25 cases pending.

PROVIDE APPROPRIATE SERVICE OFFERS FOR CUSTOMERS’ LIFE EVENTSLife eventsThe creation of the ‘life events’ service delivery approach by Centrelink came about in response to an identified need to:

provide high quality and holistic services to customers Reduce service offer complexity and confusion for customers.

The life events service delivery approach is seen as the best way forward for Centrelink to take when it comes to making it easier for customers to access government support. Delivering holistic services requires a shift from applying technical rules and determining a customer’s eligibility as a primary focus, to one where access channels, plans for meeting agreed outcomes, and managing ongoing relationships with customers become equally important aspects of service delivery.

The life events approach, which was market tested with and overwhelmingly supported by customers, is framed around 11 questions:

Are you looking for work? Are you self-employed or responsible for a farm? Are you planning to study or undertake training (or currently studying or training)? Are you a parent or guardian? Have you recently separated or divorced? Are you in crisis or needing special help? Are you someone who is ill, injured or has a disability? Are you caring for someone who is frail, aged, ill or who has a disability? Are you needing help after someone has died?

Are you planning for or needing help in retirement? Have you recently moved to Australia to settle?

Structuring a service offer in response to what a customer tells us is their current ‘life event’ means that people don’t need to know the names of the payments or services, or the right questions to ask, before we help them. Instead, we match the person’s circumstances with the payments and/or services appropriate for them.

Centrelink is reviewing its life events model to identify whether—in addition to providing a successful front-end approach to service delivery—there are opportunities or gains to be made from more fully integrating the concept into back office processes, procedures, systems and structures.

More Choice for FamiliesIn September 2002, the Government announced its More Choice for Families package of measures which included new ways for families to receive their family assistance (Family Tax Benefit and Child Care Benefit) payments. The new payment options are to help families better match their payments to their circumstances to reduce the risk of being overpaid.

Centrelink implemented the new payment options progressively from November 2002.

The payment choices allow families to choose to receive some of their family assistance entitlement during the year and the rest after the end of the financial year when their actual income is known. From July 2003, families whose income increased during the year could choose to have their future rate of family assistance adjusted to account for any amounts they may have already been overpaid.

Families are able to access the new payment choices at any Family Assistance Office, located in Centrelink, Medicare, and ATO access sites, as well as over the phone or online.

More Help for FamiliesIn the May 2004 budget, the Government announced its More Help for Families package of measures to increase the level of financial assistance provided to Australian families.

The first of these measures was to deliver a one-off bonus payment to families and Carers by the end of June 2004. Around 1.96 million Family Tax Benefit and 298 400 Carer Allowance recipients received a $600 bonus payment and 84 300 Carer Payment recipients received a $1000 bonus payment.

The remaining measures including the introduction of a non-income tested Maternity Payment and a Family Tax Benefit Part a Supplement, will be introduced progressively in the first quarter of the 2004–05 financial year.

Carers (including grandparents) providing out of home care for childrenIn response to emerging trends, Centrelink is focusing on service delivery issues affecting ‘substitute’ carers of children (including foster carers, grandparents, aunts, uncles and siblings). In 2003–04, for example, Centrelink took steps to promote staff and community awareness of the issues and provided information to and consulted with peak welfare and representative bodies. Centrelink will continue to work with the government and non-government sectors to build its ability to provide appropriate service to these groups of carers.

Slovenian agreement implementationThe Australia–Slovenia international social security agreement commenced on 1 January 2004. The new agreement covers people on Age Pension or Disability Support Pension. By May 2004, 10 customers had lodged Australian pension claims under the provisions of this agreement. There are

currently 57 Slovenian pensioners living in Australia, receiving a total of A$0.2 million a year in Slovenian pensions. Under the new agreement, 1077 customers have lodged claims for Slovenian pensions.

BROADMEADOWS—HELPING WOMEN UNDERSTAND FAMILY TAX BENEFITThe Multicultural Service Officer at Broadmeadows Customer Service Centre developed a program of information sessions targeting women’s groups from diverse cultural and linguistic backgrounds and their community workers. The program gave targeted groups opportunities to gain a better understanding of Family Tax Benefit and reconciliation. The Multicultural Service Officer explained the various Centrelink letters and terms, people’s rights and obligations, and how to use Centrelink Multilingual Call on 13 1202. The local community workers in the Broad meadows area were so pleased with this initiative that this program is now ongoing.

Complex Assessment OfficersIn 2003–04 the Government allocated an extra $7.8 million to increase the number of Centrelink Complex Assessment Officers. This was in response to a higher than anticipated need to assess the income and assets held by customers in trusts and private companies.

EXPOSURE 2004—GIVING YOUNG PEOPLE OPTIONSExposure 2004—Centrelink Tasmania Youth Expos—were held in Launceston in March 2004 and in Hobart in April 2004.

Coordinated by Tasmanian Centrelink Youth link staff, Exposure 2004 followed the first successful expo held in Hobart in 2002.

Designed to make the transition from study to careers easier, Exposure 2004 used a unique combination of entertainment, demonstrations and interactive stalls to provide young people with health, job and recreation options. Each event was attended by around 1500 students.

Organisations participating in Exposure 2004 included Job Network members, TAFEs, the University of Tasmania, Tasmanian Police, the Department of Defence, Youth Health Centres, the Cancer Council, the Drug Education Network, and Sexual Health.

Generous sponsorship from the Department of Education, Science and Technology provided financial assistance to rural and remote schools needing transport, and there was particularly strong participation from schools as far way as Scottsdale, St Helens, Deloraine, Oatlands and Geeveston.

Former AFL footballer and president of the juvenile justice program ‘Whitelion’, Glenn Manton, assisted with promotion before the events and attended both to meet students and to host the days.

The success of Exposure 2004 shows that events like these are very successful in passing on information to young people about the range of services available and for truly ‘giving them options.’

Boarding house closuresIn 2003, the Queensland Government introduced residential service reforms, including an accreditation system for boarding houses and supported ‘hostel’ accommodation, which have resulted in some boarding houses closing. This has affected some of Centrelink’s most vulnerable customers.

As part of a multi-agency taskforce set up under the Queensland Government Interagency Protocol, Centrelink is listed as a stakeholder in the event of a closure. Its role at such times is critical to helping residents deal with the transition to new accommodation arrangements.

For example, at the Fortitude Valley Customer Service Centre in Queensland, Centrelink staff assisted when a boarding house in Spring Hill closed. Staff interviewed customers onsite, took claims for payment, and assessed entitlement to crisis payment.

In South Brisbane, Centrelink staff also assisted six Centrelink customers who were displaced after a fi re destroyed their boarding house. Under the Closure Response Protocol, staffs were part of a coordinated response, which included transport to the Office to assess customers’ eligibility for crisis payment, referrals for emergency relief and clothing, and issuing new pensioner concession cards. Centrelink worked with state government departments to check customers’ eligibility for the range of support available and with Queensland Housing to make sure customers’ immediate accommodation and future housing needs were met.

Inner City Community TeamArea North Central Victoria has an innovative approach to inner city servicing where they are connecting customers and the community.

Based at Fitzroy Customer Service Centre, the Inner City Community Team is a roving team of staff, operating 37 regular out-services from various community agencies. Centrelink Community Officers also provide out-servicing in the inner city to homeless people and people at risk of homelessness. As a result of these strategies many inner city customers no longer need to go to a Customer Service Centre to access Centrelink services as staff are available on site and use mobile computing technology to access customer information on the spot.

The out-services are delivered through a range of community agencies including hospitals, Indigenous services, prisons, universities, youth services and aged care facilities which means services are targeted to meet specific needs of customers living in and around the inner city.

Sugar industry reform assistanceThe Bundaberg Customer Service Centre is responsible for the administration of Sugar Industry Reform Assistance 2004–05 in Area Brisbane. The package has six components:

income support business planning support restructuring grant re-establishment grant retraining assistance Retirement Assistance for Sugar Farmers Scheme.

Bundaberg staff have been working closely with Sugar Executive Officers from the Wide Bay Burnett Area Consultative Committee, the Queensland Department of State Development and Innovation, and local cane grower organisations.

Sugar farmers responded well to seminars organised by Bundaberg staff and more are planned for local professionals, including accountants, financial advisers, bankers and solicitors.

Centrelink’s Maryborough Rural Call Centre also set up a team of professionals to provide advice on sugar industry reform via a special hotline.

Delivery of the Australian Government’s drought assistance packageDuring 2003–04, the drought had a major impact on rural and regional Australia. Centrelink continued to serve affected communities, working closely with the Departments of Agriculture, Fisheries and Forestry, Industry, Tourism and Resources, and Family and Community Services, and community, agricultural and small business representatives to deliver the drought assistance package and the related Exceptional Circumstances and Interim Exceptional Circumstances programs.

The dedicated Drought Assistance Line delivered through Rural Call Centres in Maryborough (Queensland) and Port Augusta (South Australia) continued to take most of the farmer payment calls.

The Toowoomba Call Centre handled enquiries about the small business component of the package. Claim forms and factsheets were available on the Centrelink website as well as through Rural Call Centres, Customer Service Centres and Centrelink Community Agents.

Centrelink offered personal support and counselling services, which were well attended. Through these services Social Workers and Psychologists made contact with thousands of affected people. A key service element was the use of Social Workers in the Rural Call Centres to provide their specialist services to customers who may not be able to travel for face-to-face support. Centrelink’s Social Workers and Psychologists also established close working relationships with other service providers that were funded as part of the overall drought assistance package.

More than 31 000 applications for assistance for various elements of the package were received by 30 June 2004.

Farm Help—Supporting Families through ChangeCentrelink continued to deliver the Farm Help—Supporting Families Through Change program, which assists farmers through the process of considering their long-term viability in agriculture. Centrelink’s role is to assess the eligibility and entitlements of farmers, to make payments, and to work with farm families on their longer-term planning. The Farm Help program was extended as part of the 2004–05 Federal Budget. The extended program includes an increased emphasis on using strategic information, analysis and professional advice to support decision making.

Bushfire ex-gratia paymentSome Canberra residents whose homes were damaged or destroyed by bush fires in January 2003 were unable to rebuild or repair their homes because of a shortage of building contractors in the Australian Capital Territory and surrounding areas.

Under the Social Security Act, a person’s home is only excluded from the assets test for up to 12 months after it has been vacated. Therefore, residents who were unable to build and were receiving social security payments 12 months after the fires were at risk of having their payments reduced or cancelled in January 2004.

To avoid this situation, on 5 January 2004, the Government approved ex-gratia payments from Centrelink in lieu of social security payments, for affected residents.

These ex-gratia payments were paid to eligible income support customers:

whose homes were affected by the Canberra bush fires in January 2003 (or another bush fire event during the summer of 2002–03 in which customers faced a similar set of rare circumstances as the Canberra fire-affected customers)

who were making every effort to rebuild/repair/sell their home or land whose payments were reduced or cancelled due to the level of their assets (including the value of the

land on which the former principal residence stood) once their 12-month principal home exemption period ended.

The ex-gratia payments topped customers’ rates up to what they would otherwise have received had the 12-month vacation of principal home period not ended. Twenty-one homeowner customers contacted Centrelink to advise they had been affected by the bush fires. Of these customers:

three couples (six people) were granted ex-gratia payments one couple (two people) was not eligible The remaining customers had either returned to their homes, or their payment rates were not

affected by the value of the land on which the former home stood.

As at 27 May 2004, two of the couples granted payments had returned to their homes and one couple remained on the ex-gratia payments.

Environmental Management Systems Incentives ProgramThe Environmental Management Systems Incentives Program was introduced on 1 July 2002 and is delivered by Centrelink on behalf of the Department of Agriculture, Fisheries and Forestry. The program aims to encourage primary producers to adopt sustainable management practices and provide a management framework for continuous environmental improvement through a ‘plan, do, check, act’ cycle within which best management practices can be integrated and codes of practice upheld.

The implementation of an environment management system can potentially reduce environmental impacts and also improve the financial and competitive position of an enterprise. The program is available for up to five years from 1 July 2002 and provides cash reimbursement of up to $3000 for eligible primary producers.

Centrelink Call Social WorkersIn November 2003, the Centrelink Call Social Work Team celebrated five years of service delivery to the network. Established in 1998, the service started with 11 social workers. Originally designed to provide advice and support to young parents claiming assistance, the team has doubled in size and has representatives at most Centrelink Call Centres.

The Call Social Work Team now delivers services to Centrelink customers who, on contacting a Call Centre, are identified as being distressed, in crisis or experiencing a difficult life transition. In 2003–04 alone, more than 400 customers at risk of suicide were referred to Call Centre Social Workers. Other major referral reasons include financial hardship, homelessness, domestic violence, separation and mental health issues.

Call Social Workers also provide important links between customers and community agencies. Last year over 15 000 customers were either directly referred to other services or given community information by the team members.

RESPONDING TO VIOLENCE WITH AWARENESS AND COMPASSIONAs part of their day-to-day work, Centrelink staff are often called on to help customers experiencing domestic and family violence issues. In distressing circumstances like these, it is important that Centrelink responds with immediate and effective assistance and with compassion. Recognising this, Geelong Call Social Worker, Linda Viljoen, ran domestic violence awareness training sessions at the Call Centre for all Customer Service Centre Officers. The training helped staff to better identify and assist people who are affected by domestic and family violence and to offer them prompt and supportive services.

EFFECTIVE MANAGEMENT OF CUSTOMER CONTACTService recoveryIf a customer is not completely satisfied with the service they receive from Centrelink, a number of service recovery options are available to them.

Ministerial correspondenceIn 2003–04, Centrelink handled 3656 items of ministerial correspondence, an increase of 24.4 per cent compared with 2002–03.

The Business Partnership Agreement with FaCS requires Centrelink to finalise 90 per cent of all cases within 13 working days, including making contact with the customer to ensure all issues have been fully addressed. Table 27 compares the 2002–03 outcomes to 2003–04.

TABLE 27: MINISTERIAL REPRESENTATIONS FINALISED

2003–04 2002–03

Completed within standard 93.4%(a) 97.1%

These figures represent correspondence to the Minister or Parliamentary Secretary about issues relating to Centrelink. The total number of priority correspondence responses recorded and handled by Centrelink’s Ministerial Correspondence Team for 2003–04 was 4663.

A productive working relationship and regular discussions with the Minister’s staff have helped to improve workflow procedures and meant consistent achievement of performance standards.

Customer Relations UnitsCentrelink’s Customer Relations Units (CRUs) are central points for handling customer feedback, and provide a channel through which customers can raise issues and have them resolved. Customer feedback is received as complaints, compliments, suggestions and general information requests. This feedback comes through a number of different channels—mostly by phone, but also online and via ‘Tell Us What You Think’ customer comments cards.

Centrelink uses customer feedback to ensure its services better meet customers’ needs and expectations. To achieve this, Centrelink has developed clearer operational objectives and complaint resolution definitions to guide the work of CRUs. In combination with ongoing development of protocols, specific training and outreach packages, this has resulted in more consistent handling of customer feedback.

A total of 203 264 customer contacts were recorded in 2003–04, compared with 209 801 in 2002–03. This is a decrease of 5817 contacts, or approximately 3 per cent. Of these contacts, 137 599 were general enquiries. The rest were complaints (39 663), Call Centre Busy contacts (17 399—from approximately 28 million calls handled each year), compliments (5483), tip offs (2230), Intent to Claim contacts (165), and suggestions (725).

As a proportion of total complaints, in 2003–04 service related complaints (about the quality of service, for example, delay in payment) outnumbered merit based complaints (relating to correctness or reasonableness of decisions, for example, payment eligibility).

The main complaint category related to the merit of a Centrelink assessment or decision. The top five complaint categories by volume of complaints were: (1) disagreement with assessment/decision; (2) delay in payment; (3) delay in decision; (4) staff attitude; (5) no call back. Data on these complaint categories are referred for further analysis within Centrelink and used to plan and implement appropriate service responses.

Timeliness of complaints handling continued to be well above performance targets. A three-tier scale based on the complexity of the contact is used to classify contacts, with complaints having to be resolved in 90 per cent of cases within the specified time standard. Tier one contacts must be resolved in one working day, tier two within three working days, and tier three within five working days (see Table 28).

TABLE 28: CUSTOMER AND COMMUNITY COMPLAINT OUTCOMES

KPIs: Internal measures 2003–04 2002–03

Target Result Target Result

Complaints—Proportion of tier 1

finalised within one working day

90% 99.9% 90% 99.6%

KPIs: Internal measures 2003–04 2002–03

Complaints—Proportion of tier 2

finalised within three working days

90% 96.2% 90% 94.4%

Complaints—Proportion of tier 3

finalised within five working days

90% 93.3% 90% 88.6%

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 Ombudsman’s Office.

In 2003–04, the Commonwealth Ombudsman’s Office received 8084 complaints from Centrelink customers regarding 8837 issues. This is a significant reduction of 16.2 per cent on the previous financial year. Of all the issues finalised during the year, 2589 were investigated by the Ombudsman’s Office and 4698 were referred back to Centrelink for investigation.

Centrelink maintained regular contact with the Ombudsman’s Office during the year to discuss matters of concern and to strengthen the relationship between the two agencies. This link, and the links between each Commonwealth Ombudsman state/territory Office and their Centrelink CRU, continues to help with timely resolution of customer complaints.

Merits reviewsCentrelink undertakes merits reviews of decisions on entitlements of FaCS payments through Authorised Review Officers (AROs). Centrelink also responds to applications for review by the Social Security Appeals Tribunal (SSAT) and the Administrative Appeals Tribunal (AAT).

TABLE 29: MERITS REVIEW APPLICATIONS

Review type 2003–04 2002–03

AROs 36 737 39 383

SSAT 8 899 8 979

AAT (a)1 827 (b)1 869

(a) 1714 lodged by customers, 113 by the Secretary of FaCS.

(b) 1648 lodged by customers, 221 by the Secretary of FaCS.

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:

all SSAT applications lodged at a Centrelink Office must be forwarded to SSAT within seven days A statement of the findings of fact, referring to the evidence, and reasons for the decision 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 findings 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 30: MERITS REVIEW TIMELINESS

Key Performance Indicators—

internal measures

Target 2003–04 2002–03

ARO all reviews within 28 days 75% 76% 78%

ARO ‘no income’ reviews within 14 days 95% 93% 94%

SSAT applications sent within 7 days 100% 81% 85%

SSAT documents sent within 28 days 100% 97% 97%

AAT documents lodged within 28 days 100% 98% 91%

TABLE 31: MERITS REVIEW OUTCOMES

Unchanged decisions Changed decisions

2003–04 2002–03 2003–04 2002–03

AROs 68%

(25 108)

71%

(27 848)

32%

(11 911)

29%

(11 193)

SSAT 67%

(5 908)

69%

(6 324)

33%

(2 918)

31%

(2 871)

AAT—Customer applications 83.%

(1 508)

75%

(1 097)

17%

(308)

25%

(360)

AAT—Secretary applications 64%

(109)

49%

(123)

36%

(62)

51%

(129)

The decisions most commonly challenged at all stages of merits reviews are the recovery of debts, including Family Tax Benefi t reconciliation debts; refusal of Disability Support Pension as the customer is not medically eligible; the date of commencement and increases in payments; and the refusal of payments during compensation preclusion periods. These matters accounted for 70 per cent of requests for ARO reviews, 73 per cent of SSAT applications and 71 per cent of AAT applications during 2003–04.

Court appealsIn consultation with FaCS and AFFA, Centrelink arranges representation when customers exercise their rights to seek review of its decisions in the Courts.

In 2003–04, there were 36 customer appeals (33 in 2002–03) and nine Secretary appeals to the Federal Court (five in 2002–03). Over the course of the year, the Federal Court handed down 38 decisions, with 28 favouring the Secretary. (Twenty-five decisions were handed down in 2002–03, of which 23 favoured the Secretary and two favoured the customer).

During the 2003–04, five customer appeals were lodged with the Full Federal Court (two appeals were lodged by customers in 2002–03). Over the course of the year, the Full Federal Court handed down three decisions, with two in favour of the Secretary (the same as in the previous financial year).

In 2003–04, one special leave application was lodged with the High Court (compared with five in 2002–03). This application will be considered by the Court later this year. The High Court handed down three decisions over the course of the year, with two in favour of the Secretary, and one case was withdrawn/discontinued.

All figures in this section incorporate activity for FaCS and AFFA.

Holiday processingDuring 2003–04, Centrelink continued with special arrangements to ensure customers were not adversely affected by national public holidays. Arrangements involved ensuring as far as possible that payments were available before or on the customer’s normal pay day.

IMPROVE CUSTOMER ACCESSCustomer Account projectThe Customer Account project is designed to deliver of a range of functions that make it easier for customers to do business with Centrelink by simplifying and standardising the interaction and management of customer data. The Customer Account Project:

will be an Account Statement for all payments will be sent by mail to Reporting Income Statement customers initially, accessible by staff and

printable by both the customer and staff in the future will be able to be viewed and printed online.

The Account Statement is due for release in March 2005 to Reporting and Income Statement (RIS) customers (approximately 260 000 customers). Further releases will extend to other customer groups which is expected to give customers periodic information about their payments, declared earnings, income and assets, debts, and other Centrelink related information.

Customer Account—will simplify and standardise the interaction and management of customer data for staff. Included is the development, trial and implementation of the Customer Account claims for customers receiving Parenting Payment Single, Newstart Allowance and Youth Allowance Job Seekers (not including Incapacity payments). By logically grouping customer data for staff, the complexity and frequency of training required by staff to access customer data will be reduced.

Customer Account Online—accessed via the Internet, customers will be able to view and update a range of their data on the web. This includes: View your appointments with Centrelink, View where you payments go, View the money you owe, Make a repayment, View you other assets, View your accommodation, View your contact details, View employment income, Check eligibility for an Advance Payment, Apply for an Advance Payment, View your Advance Payment, View childcare details and View other government payments. Other services will be introduced on a regular basis.

Customer Account project achievementsSince the Customer Account Project began in November 2001, a number of milestones have been reached in relation to the three major components.

Customer Account milestones roll out of Customer Account to Call Centres and reception staff trial of Customer Account claim processes for Parenting Payment Single and Newstart

Allowance/Youth Allowance Job Seekers Introduction of the ‘Important Information’ box within the Customer Account. This Information Box will

flag activities for the customer to staff, including appointments, income estimates and breach information etc.

Customer Account OnlineFrom December 2003 to June 2004, a range of online services was introduced for individual customers, including the ability to request a Family Tax Benefit Advance Payment and access to a customer’s Centrelink details via a secure website.

Student notification of employment incomeImplemented in June 2004, this initiative involves removing the current method of reporting for students. Previously, students who were in full-time study and part-time work had to fill out a form with their income details every fortnight, and lodge these with Centrelink.

Under the new arrangements, students no longer get a form each fortnight. Instead they receive a Reporting Income Statement every 12 weeks, which contains study, income and payment details and provides a new range of options to report income. Now customers can report employment income fortnightly by:

using self-service options available through the Centrelink website or automated phone system calling the Youth and Students dedicated phone line to talk to a Customer Service Operator and

report their income, or attending a Customer Service Centre to report their income to a Customer Service Officer.

This initiative gives students flexible times and places to report their income. Making reporting easier for students will help them fulfil their obligations to Centrelink and reduce the risk of debts occurring.

Rural Call CentresCentrelink has two Rural Call Centres, which were funded by government in the 1999 Budget. These are located in Maryborough (Queensland) and Port Augusta (South Australia). They provide information and advice on Centrelink services to many rural and regional customers as well as employment for local people in rural communities.

In 2003–04, Rural Call continued to achieve very high standards of customer satisfaction, averaging around 88 per cent overall satisfaction with the quality of people, services and information they provide.

During the year, the Rural Call Centres played a vital role in effectively delivering the Sugar Industry Reform Program, the Drought Assistance Package and the Farm Help Program.

Customer Reference Number business cards for the visually impairedAs part of Centrelink’s commitment to provide better service to customers who are blind and visually impaired, Customer Reference Number business cards were sent to all customers receiving Disability Support Pension (Blind) and Age Pension (Blind). Using the cards, customers can independently access Centrelink’s self-service facilities.

The business cards are plastic, credit card style cards that have the customer’s name and customer reference number in large font and in Braille. This effectively eliminates the need for customers to ask for help from a sighted person when accessing Centrelink self-service options.

A first for Australia, the hard plastic cards produced with Braille numbers represent a small but significant step in providing better services for blind and visually impaired customers.

Alternative Formats serviceStarting in May 2003, the Alternative Formats service enables customers on Disability Support Pension (Blind) to receive Centrelink letters via the phone, printed in large font, converted to rich text format and supplied on fl oppy disk, or produced in Braille.

In March 2004, this service was extended to customers receiving Age Pension (Blind). Since then, the number of customers choosing to have their letters delivered in an alternative format has almost doubled. Centrelink has had positive feedback from the blind community on this initiative.

Call Centre accessIn 2003–04, Centrelink Call Centres successfully handled around 28.01 million calls, up from 25.62 million calls in 2002–03. Around 21.9 million callers spoke with a Customer Service Officer, with an overall customer satisfaction rating of 88 per cent for 2003–04.

FIGURE 11: SUCCESSFUL CALLS TO CALL CENTRESThe average length of calls remained consistently at around 521 seconds during the year, a reduction of over two per cent on 2002–03 figures. This is a return to 2001–02 results and reverses a three-year trend of increasing average handle time.

FIGURE 12: AVERAGE CALL HANDLE TIMECall Centre wait times are one of the primary drivers of customer satisfaction with the quality of Centrelink’s phone service. In 2003–04, the average speed of answer time decreased by over 20 per cent to 115 seconds, down from 144 seconds in 2002–03.This result continues to show improved access, with 2003–04 results remaining well within Centrelink’s target of 210 seconds.

Centrelink Call is currently embracing the change to a service level methodology of call operations and revising downwards the previous set target of 210 seconds. This will provide considerable benefits to customers through access and provide a platform to ensure community and client agency expectations are better managed.

FIGURE 13: AVERAGE SPEED OF ANSWERWorking Credit implementationPart of the Australians Working Together measures, Working Credit was introduced in September 2003 (see page 64). The ongoing requirement for customers to report earnings each fortnight is primarily managed via the phone.

The Natural Language Speech Recognition (NLSR) application means customers can fulfil their reporting requirements over the phone, without the need to speak directly to a Customer Service Officer. This sophisticated product then repeats the information to customers so they can confirm or alter the information before they hang up.

Since September 2003, the use of NLSR has steadily increased from 16 000 customers per fortnight to over 100 000 customers per fortnight by June 2004.

Student Claim Liaison Team—Port Macquarie CallStarting in January 2004, a new Student Claim Liaison Team based in the Port Macquarie Call Centre acted as the liaison point for customers enquiring about progress with their new student claims. The team provided links between Call Centre Customer Service Officers and Student Service Centres through to the end of April 2004, which is a traditional peak processing period for student claims.

Team members were ‘assigned’ a group of Student Service Centres and liaised regularly with their contacts in these Centres. This initiative helped to build strong relationships between the Liaison Team and the Student Service Centres.

The Student Claim Liaison Team completed 15 677 ‘contacts’ issued from the Call Centre network. As a result of the Team’s efforts, 861 customers were fast-tracked because of financial hardship, 364 calls were transferred directly to the Student Service Centre, and 3120 customer records were actioned.

Because of the success of this initiative, a similar strategy is being considered for the peak processing period in 2005.

Access for familiesChild care online

Centrelink is involved in the development of online servicing options for delivering Child Care Benefit (CCB) to child care providers and CCB customers. Developing online servicing will occur in stages over the next three years, and will involve extensive consultation with the child care industry during the design and implementation phases.

Online services will better align Centrelink services to child care provider business cycles and reduce administrative effort. This will give providers more time to focus on their primary role—caring for children. Child care customers will also Benefit from greater access to their Centrelink information.

Service delivery enhancements to Child Care Benefit

As part of Centrelink’s continuing commitment to maintain and improve services to child care providers, two extra child care provider ‘queues’ were brought online at Moorabbin and Brisbane Call Centres in August 2003. This brings to four the number of Call Centres—including Tweed Heads and Launceston Call—that have dedicated staff on the 1800 050 021 line which service providers use for CCB queries.

Another positive development was the transition of the fortnightly Child Care Provider Statement (introduced in May 2003) to weekly statements in December 2003. This was a rapid response to child care industry feedback and meant Centrelink could provide even more timely advice to services of customers’ CCB assessment changes.

The Centrelink Call network has also proposed implementing an additional Interactive Voice Recognition option dedicated to CCB enquiries on the Family Assistance Office line (13 6150). This will put customers in touch with Call Centre staff who have specialist training in CCB issues. It will also assist in forward planning by better tracking call trends.The Interactive Voice Recognition option is set to come on stream early to mid 2004–05.

Family business online

A new way for customers to apply for an advance payment of their Family Tax Benefit (FTB) was introduced in December 2003. The new process means that customers can go online to:

check their eligibility for an advance payment request the advance payment to be paid as a one-off or as continuous six-monthly advance

payments view the amount of their FTB advance payment get to see straight away how their advance payment affects their fortnightly payments.

Further changes were made to the family income estimate service so that, if a customer is identified with a potential overpayment, they will get to see the amount of that overpayment. They can then choose to have their ongoing payments adjusted to reduce the chance of being overpaid.

Customers are now also able to see a history of the family income estimates that were provided during the current and previous financial years.

A new telephone service will also be introduced in 2004 to allow customers to update their family income estimate. This service will assist in managing inbound traffic to Call Centres, especially in peak periods around June and July each year.

e-Business for families having a baby

From December 2003 to February 2004, Centrelink trialed the electronic transfer of birth notification data from the Launceston General Hospital to the Mowbray Family Assistance Office. The information was used to streamline the process for claiming family assistance payments.

Customer reaction was positive and the trial provided valuable feedback to assist in further developing streamlined business processes and technology solutions.

The trial was also supported by a Tasmanian Registry of Births, Deaths and Marriages initiative, which tested streamlined processes for registering babies’ births.

Child Support Agency/Centrelink Call transfer trial

In partnership with the Child Support Agency, Centrelink conducted a call transfer trial aimed at improving service to mutual customers. After assistance with their enquiry, the caller was transferred to the other agency. This meant they could cover both child support and FTB issues in the one phone call.

Running from March to May 2004, the trial took place in Victoria and Tasmania. Customer feedback was very positive, and a full evaluation of the trial will be completed in 2004–05.

Multicultural accessCustomers from diverse cultural and linguistic backgroundsThe term ‘diverse cultural and linguistic background’ (DCALB) is used to describe people born in countries other than the ‘main English speaking countries’ grouping of the Australian Standard Classification of Countries for Social Statistics. That is, all countries with the exception of Australia, Canada, Ireland, New Zealand, South Africa, United Kingdom and the United States of America.

To assess the impact of new initiatives on customers from a DCALB and to better target areas of need identified in the community, Centrelink’s Multicultural Services Business Team has compiled profiles for each of its major customer groups.

Centrelink’s customers from a DCALB represent approximately 18 per cent of the total Centrelink customer population. The top four countries of birth of customers from a DCALB are Italy, Vietnam, China and Greece. Customers from DCALBs are represented in all customer groups in the following percentages:

retirements’ customers from DCALBs—24 per cent disabilities’ customers from DCALBs—18 per cent carer customers from DCALBs—22 per cent international services’ customers from DCALBs—85 per cent family (FTB) customers from DCALBs—21 per cent parenting (Parenting Payment Single and Partnered) customers from DCALBs— 21 per cent employment (Jobseeker) customers from DCALBs—16 per cent refugee customers from DCALBs—9.4 per cent Youth and students’ customers from DCALBs—12 per cent.

Understanding our multicultural customersTo improve service delivery and outcomes, over the past year Centrelink undertook a number of projects to gain better knowledge and data about customers from DCALBs. Highlights include:

investigating the reasons for young migrants and refugees incurring debts and ways to prevent and minimise debts

improving service delivery to refugee customers assisting customers from DCALBs in planning for retirement better service delivery to young customers from DCALBs developing a suite of training modules to increase staff cross-cultural awareness and knowledge to

increase capability in providing services to our customers from DCALBs developing statistical profiles of customer populations for better planning investigating the issues surrounding social and economic participation for parents and mature age

customers from DCALBs Investigating the issues around customer communication of obligations.

Centrelink Multilingual CallCentrelink Multilingual Call (CMC) is a National Call Centre in Liverpool NSW. It offers direct language services to customers in 22 language queues and 19 other languages on a ‘call-back’ basis. CMC also engage interpreters for all other languages not available at the Centre.

CMC staff also provide interpreting services at pre-booked face-to-face interviews between Centrelink and customers. By opting to use the services of its own staff and contracted interpreters, Centrelink reduces reliance on ‘TIS’—the Department of Immigration, Multicultural and Indigenous Affairs’ user pays interpreting service. This significantly reduces spending on interpreting services, yet still maintains high quality services.

On average, 45 000 calls are received by CMC each month. The average waiting time to speak to a bilingual Officer is around 100 seconds. During 2003–04, CMC call traffic increased by about nine per cent on 2002–03.

In making outbound calls, CMC also plays a key role in strategies that aim to educate customers about their obligations and any upcoming initiatives. For example, before the Working Credit initiative was introduced, CMC made calls to over 500 customers from DCALBs (see also ‘Communication strategy in languages other than English’ on page 150). During the implementation fortnight contact was made with another 420 customers.

Communication strategies in languages other than EnglishAs part of its strategies to communicate effectively with people from DCALBs, Centrelink offers extensive services and products in languages other than English, including:

a large range of printed and online translated brochures and factsheets in 55 languages fortnightly national broadcasts on SBS radio in up to 58 languages, and the distribution of this

program to up to 114 community radio stations nationwide weekly articles in the ethnic press CMC phone services in 22 languages and other languages as ‘call-backs’

Based on research undertaken by Centrelink in 2002–03 into the effectiveness of its communication with customers from DCALBs, Centrelink is delivering more targeted communication strategies with a focus on customer groups from new and emerging communities as well as people affected by new government and Centrelink initiatives— for example, Australians Working Together, and debt and breaching prevention.

Successful introduction of the Working Credit in September 2003 was also supported by an extensive multicultural communication strategy that included:

mailout of relevant translated material to customers from DCALBs follow-up calls from CMC in customer languages establishing a channel for reporting income in languages other than English via CMC four new multilingual factsheets available in a range of languages extensive promotion to customers and communities via Multicultural Service Officers, SBS radio and

the ethnic press.

Language servicesCentrelink operates its own in-house language services program, which provides on-site and phone interpreters to assist Centrelink staff to communicate effectively with non-English speaking customers.

During 2003–04, over 85 000 interpreting services were provided to assist customers with their appointments in Centrelink Customer Service Centres. Sessional interpreter services in over 30 languages for an average of 2260 hours per week were provided in 70 Customer Service Centres where the demand for language assistance was high.

Centrelink Language Services provided interpreting services to Job Network members Australia-wide to support them in developing job seeker profiles. The Language Service Unit also assisted over 2800 Job Network customers with an interpreter.

Some interpreter assistance was provided via phone interpreters. This was mainly for shorter appointments in rural regional and remote areas, or in less commonly spoken languages. Approximately

22 000 interviews were conducted by phone, and these included customers with problems requiring urgent attention.

Centrelink has centralised interpreter bookings and interpreter contract procurement processes in the Language Service Unit in Sydney (excluding those in Western Australia.) This has achieved operational efficiencies and better management of interpreter procurement, and improved booking and supply processes. The Unit also provides translation services nationally. In 2003–04, the Unit assisted with translating 3000 customer personal documents to help customers access Centrelink payments and services.

Remote Area Service CentresThe introduction of Remote Area Service Centres (RASCs) was announced as part of Australians Working Together in 2001. With 12 services opening over four financial years, the centres help Centrelink deliver government services more effectively to Indigenous Australians in remote communities.

The first RASC opened in Laverton (Western Australia) in March 2003. In 2003–04, this was followed by RASCs in Yarrabah (Queensland) and Halls Creek (Northern Territory). In 2004–05, RASCs will also open in Newman, Western Australia, Nguiu in the Tiwi Islands (Northern Territory) and Weipa (Queensland).

RASCs have a strong focus on participation and offering opportunities for individual and community capacity building. They are small Offices, located in remote communities or townships, that service and support local communities and the surrounding areas and out-stations. RASCs connect with the Centrelink Agent network to offer integrated service delivery. Effectively, RASCs act as ‘hubs’ that give Indigenous Australians better access to the full range of Centrelink’s services.

Personal Advisers in RASCs provide face-to-face assessment and referral services for Indigenous customers. Personal Advisers also develop participation plans with customers to identify participation goals and address barriers that could complicate the achievement of those goals.

RASCs also give Centrelink opportunities to create better links with existing government and non-government services in local areas, such as Job Network members, CRS Australia, and literacy and numeracy service providers.

Centrelink Agent and Access PointsCentrelink has a network of over 500 Agents and Access Points in rural and remote Australia giving customers in and around their communities’ access to free phone and fax services to conduct their Centrelink business. Agent sites also provide an Internet enabled computer and printer, as well as trained staff from the host organisation to assist customers with their enquiries and promote Centrelink’s range of self-service options.

The Centrelink Indigenous Services Team was allocated $8.2 million over four years in the 2002–03 Budget to expand this network. This funding is to implement and maintain new Centrelink Agent sites in 50 Indigenous communities. In 2003–04, 25 sites were selected and established, with another 25 sites scheduled for establishment by July 2005.

Partnership projectsIn the past financial year, Social Workers servicing the Darwin area have focused on increasing community access to the services delivered by Centrelink. Social Workers set out to identify and help individuals who may be eligible for assistance, but have not been receiving support.

Through the development of community partnerships, the project has trialed approaches to deliver government, community and other support services to people who are disadvantaged or are unable to

visit a Customer Service Centre. Social work visiting services have established relationships with individuals in corrective institutions, psychiatric wards, shelters, schools, sole parents groups and even antenatal classes.

During the visits, Social Workers provide information on a range of payments and services within Centrelink. The Social Workers also assist to link individuals and families with other services within the Community.

Called Partnership Projects, this initiative has strengthened Centrelink’s relationships with other community groups, support workers and government agencies, while providing a better service to people who might not have otherwise accessed support services.

TAFE OutreachCentrelink Stones Corner established a partnership with Southbank TAFE to conduct a weekly visiting service focusing on the Adult Migrant Education Program and the Language, Literacy and Numeracy Program. The service is to help newly arrived refugees and students studying at the TAFE to access support from Centrelink during their early stages of settlement.

The weekly visiting services mean that students do not have to skip classes to attend an appointment at a Customer Service Centre. Instead Customer Service Officers can interview students on-site at the TAFE and deal with issues such as people’s payment eligibility and their customer obligations.

The service is working well with local Multicultural Service Officers working with teachers and students to deal with language and cultural barriers—and in some cases, posttraumatic stress disorder—that can disadvantage students when it comes to claiming the right payments, preparing work agreements, accessing the Job Network, and so on.

Other positive outcomes include less class absenteeism and fewer drop-outs, more cost-effective use of Centrelink interpreter services, and a reduction in the need for face-to-face contact in Centrelink Offices.

SmartravellerThe Department of Foreign Affairs and Trade (DFAT) produces travel advisories for Australians to keep them well informed and prepared for travel overseas, and to help them avoid dangers and difficulties when travelling. The department provides up-to-date information about security situations in other countries, visa requirements, health and medical issues, cultural or religious differences.

While travel advice is always available on the Internet, DFAT approached Centrelink to provide a phone service giving access to the above information.

The service was established within 10 days of DFAT’s initial approach by using a combination of automation techniques and ‘voice recognition’ software to manage the majority of calls. Voice recognition software is used to identify which country the customer wants information about, then ‘text to speech’ technology is utilised to capture the relevant information on the DFAT website and convert it to a phone message. The service operates within the call centre currently providing the Australian Passport Information Service to DFAT.

Since the service began in September 2003, around 28 000 calls were handled automatically and 4600 callers were assisted by operators.

OUR PEOPLECHAPTER SIXOUR PEOPLEGOALTo meet the challenges of current and future business by supporting our people with knowledge, skills, tools and opportunities.

TOP-LEVEL RESULT

HIGHLIGHTS FOR 2003–04: implementing the Centrelink Development Agreement 2003–05 (page 158) establishing and continuing programs to enhance leadership capabilities (page 185) streamlining recruitment arrangements (page 166) continuing strong focus on workplace health (page 173) continuing investment in learning (page 169) maintaining the recognition of diversity (page 160)

DESCRIPTIONFor Centrelink to achieve its corporate objectives, the right people must be in the right jobs, with the right skills, at the right time. Strategically managing our workforce in a climate of continuous change plays a key role in Centrelink’s performance as an organisation.

Centrelink’s aim is to meet the challenges of current and future business by supporting our people with knowledge, skills, tools and opportunities.

The top level Key Performance Indicator for this goal is the satisfaction of Centrelink staff with their work. Our target for 2003–04 was a satisfaction level of 70 per cent, which is measured by staff polls. (Centrelink’s staff poll is conducted twice yearly and is available to all staff. Participation in this poll remains high with around 70 per cent of all Centrelink people regularly taking part.) Staff poll results show a satisfaction level of 67 per cent.

Sicore International advises that the external benchmark mean and median results for satisfaction polling are 69 per cent. They also advise that trend variations in the order of five per cent are not statistically significant. With this in mind, the overall result is encouraging as it continues to track very close to industry average. It is within an acceptable statistical variation and at the same time, 88 per cent of staff poll participants intend to be still working for Centrelink for the next 18 months. Some staff pointed to issues like the extent of change in Centrelink’s business—this will continue to be a challenging part of Centrelink’s ongoing and future service delivery.

One of the eight key areas that customers want Centrelink to focus on to improve the customer experience is the area of our staff capability—particularly attitude and knowledge. The promptness and consistency of our service is also important to our customers. The strategies in this chapter seek to respond to these areas of customer concern and to ensure that Centrelink staffs have the capability to meet our customers’ needs now and into the future.

KEY STRATEGIES add value to business (page 158) ensure Centrelink has a skilled workforce (page 166) create a rewarding, safe and healthy work environment (page 173) enhance leadership capabilities and succession planning (page 185) provide the tools, knowledge and business intelligence needed to work effectively(page 188)

Our peopleWith 25 448 employees Australia-wide, Centrelink understands that its people make the main contribution to positive service experiences for our customers. Given this, Centrelink has refocused efforts in all aspects of our people management activities and highlighted the importance of our staff in doing business.

Centrelink’s Future Directions 2003–2006 identifies five key strategies that underpin our aim to meet the challenges of current and future business by supporting our people with knowledge, skills, tools and opportunities.

The National People Plan provides the context for addressing these priorities across the organisation.

The plan’s six areas of focus align with and support Centrelink’s Future Directions. The six areas are:

adding value to business decisions ensuring strong leadership through leaders leading and managers managing ensuring Centrelink has a skilled workforce committing to safety, health and wellbeing focusing on learning as a business investment fostering a culture committed to values, outcomes and innovation.

ADD VALUE TO BUSINESSThe Centrelink Development Agreement (CDA) makes a continuing and positive contribution to the future of Centrelink and its employees, and its initiatives contribute significantly to the value people add to our business.

A number of changes are underway or planned that will provide an expanded range of options to Centrelink’s customers and the community, better returns to Government, and that will, in turn, ensure Centrelink’s future and assist in providing job security and better jobs for its employees. One response is to improve workforce planning so that new capabilities are developed to ensure retention of the high quality, diverse workforce needed now and in the future.

Implementation of the CDA and improving workforce planning arrangements are two aspects that have received significant attention over the reporting year.

Centrelink Development AgreementThe Centrelink Development Agreement 2003–2005 is a Certified agreement between Centrelink, the Community and Public Sector Union, the Media, Entertainment and Arts Alliance, and the Professional Officers Association (Victoria) under Section 170 LJ of the Workplace Relations Act 1996.

The Australian Industrial Relations Commission Certified the agreement on 7 May 2003. It is a two and a half year, comprehensive agreement that provides a framework to support Centrelink’s future directions. The agreement contains employment conditions for Centrelink employees and operates in conjunction with other employment related legislation.

This agreement focuses on achieving business productivities in return for improved conditions, with quality customer service, better jobs, and increased job security as key objectives. Four major initiatives, listed below, have been introduced and implementation of other elements of the agreement is also well under way.

Expanded service delivery hoursIn November 2003, 261 customer service outlets extended their opening hours to eight and a half hours per weekday, with five more outlets following in March 2004. Opening hours can be extended further to nine hours a day from February 2005. This will give many Centrelink customers better service options and Centrelink people more flexibility in working times.

Customer Service Team LeadersThe agreement recognises the importance and influence of Customer Service Team Leaders who directly supervise around 18 000 Customer Service Officers in Customer Service Centres (CSCs), Call Centres and Compliance Units.

The agreement aims to ‘more clearly define for Customer Service Team Leaders their role in terms of leadership in the management of people, business and strategic change’. To achieve this, Centrelink is developing and extending the capability of Customer Service Team Leaders to ensure high quality Centrelink business outcomes. (See page 186 for more information on CSTL initiatives under ‘Support and development for Customer Service Team Leaders’.)

Senior PractitionersIn another agreement initiative, the new Senior Practitioners role is to support team leaders in ensuring the delivery of quality customer service. After extensive trials and consultation, Senior Practitioners were working throughout the customer service network by June 2004. (See page 47 for more information about Senior Practitioners.)

Accredited learningThe agreement reaffirms Centrelink’s commitment to developing its employees and promotes nationally accredited learning opportunities. It also includes new learning pay points awarded to employees who successfully complete approved accredited learning programs and satisfy work performance standards.

The year included an examination of Centrelink’s capability to expand accredited learning. The aim is to determine suitable implementation and transitional arrangements for additional links between accredited learning and pay. This will involve consultation with employees and their representatives.

Matching the workforce to business needsConsultations undertaken in the development of Centrelink’s National People Plan consistently highlighted the need for targeted workforce planning linked to business requirements. The Australian National Audit Office strongly supports the need to ‘align workforce planning processes with business planning processes and implement these at the business and Area levels’.

Workforce planning is a strategic component of the National People Plan and the links between workforce planning and other key human resources strategies are closely monitored. Some of the issues included in the strategies are leadership and succession, recruitment, performance management, learning, work and family, and career pathways.

Over the past year, workforce planning was formalised to give Centrelink leaders a better understanding of the current workforce make-up; the environment in which it works and will work in future; and the necessary skills and capabilities that will be required to achieve business outcomes in an ever-changing environment.

As part of the business planning process for 2004–05, a workforce planning framework and methodology were developed and released in December 2003. By December 2004, workforce planning will be fully integrated with Centrelink’s business planning regime.

Centrelink’s workforce planning framework and methodology provides the strategy and tools to develop a clear picture of its current and future workforce needs. For managers and business planners, a toolkit and information series helps to identify workforce capacity and capability. The series is also designed to put strategies into action and position Centrelink for future success.

A culture committed to values, outcomes and innovationExtensive research shows a strong relationship between an organisation’s culture and its workforce performance. In Centrelink, this understanding extends to ensuring that its organisational culture is built on the respect its people have for one another, and that innovation and creativity are encouraged so that Centrelink excels in service delivery and customer focus.

In 2003–04, Centrelink engaged Human Synergistic to conduct a pilot cultural mapping exercise in a number of Centrelink sites. Centrelink is now assessing how it can further use cultural mapping techniques to identify the intangible factors that drive corporate performance, and to develop strategies for improvement.

Centrelink values the views of its staff and facilitates this through a six-monthly staff survey. The process is simple and all staff can participate. The eleventh staff poll was conducted in May 2004.

This section highlights staff poll results and activities that take account of the diversity of Centrelink people.

Young Professionals Development ProgramThe objective of the Young Professionals Development Program is to give Centrelink’s younger staff—aged 30 years and under—the chance to take part in development opportunities and to ensure they have their opinions and ideas heard. The program is also designed to improve recruitment and retention, and includes:

National Youth Inbound Program, which runs in Canberra during Youth Week and fundamentally aims to find and support Centrelink leaders of the future from among Centrelink’s younger staff. During this residential week, senior Centrelink managers and experts deliver presentations. The participants complete projects that they, in turn, present to a Centrelink panel at the week’s end.

Area Youth Inbound Program is based on the model of the Youth Inbound Program. It provides opportunities at an Area level for CSC and Call Centre staff—aged 30 years and under—to work on strategic projects. During 2003–04, Area Youth Inbound programs were held in Sydney, Queensland, South West New South Wales and Pacific Central.

Centrelink International Exchange Program gives six young staff the opportunity to participate in an international workplace exchange program for up to six months in a variety of countries. Work placements are in project management, community development and information technology. Centrelink also hosts six placements for young professionals from overseas for six months.

Youth Link provides young Centrelink staff with learning and development opportunities, by participating in corporate projects and developing networks with other young staff and senior managers around Australia. This group also contributes to the Institute of Public Administration Australia Young Professionals Network, which involves government and non-government agencies.

YouthLink Virtual Project offers YouthLink representatives from nine Areas the chance to complete a joint ‘virtual project’ sponsored by a business area within National Support Office. Projects take eight weeks to complete within a virtual environment. The group communicates via teleconferences, email and fax, then comes to Canberra for two days to write up the project report and present it to an Executive panel.

YOUTHLINK—DEVELOPING NEW LEADERSGeelong Call Customer Service Officer, Sheridan Bailey, was selected to participate in a ‘virtual’ Youthlink project, where she measured, evaluated and made recommendations about how to effectively communicate key messages about Centrelink’s IT Refresh Program.

Talking about the project, Sheridan said: ‘It was a challenging yet fulfilling experience.It made me aware of different resources available and introduced me to many new areas of Centrelink’.

Belinda Brooks, a Geelong Call Team Leader also developed a Youthlink project, designed to improve the use, functionality and performance of the National Feedback Tool. The Tool is used to improve customer service by providing a means of immediate and constructive feedback between service delivery outlets.

Institute of Public Administration Australia Young Professionals NetworkCentrelink is an enthusiastic and major supporter of the Institute of Public Administration Australia Young Professionals Network. The network supports events and activities of interest to people in the public and private sector who are in the early to mid-stages of their careers. The network is a forum for young professionals to exchange ideas on trends, practices and innovations in the public sector. As well, it helps to identify areas that will affect the professional and personal development of tomorrow’s public sector leaders.

Outbound ProgramThe Outbound Program takes Centrelink employees from National Support Office into Area Support Offices, CSCs and Call Centres. The program aims to help participants better understand and appreciate the work and the services delivered by front line employees.

Client agencies and other government and non-government stakeholders participate in the Outbound Program, including:

Noah’s Ark Outbound—under this program, Centrelink Officers and staff from client departments and agencies spend time in the Network developing a shared understanding of Centrelink’s business on the ‘front line’. Participants include staff from Centrelink; the Department of Family and Community Services (FaCS); the Australian Federation of Disability Organisations; the Victorian Mental Illness Awareness Council; the Australian Association of the Deaf; the Department of Education, Science and Training; the Department of Employment and Workplace Relations (DEWR); the Department of Finance and Administration; the Department of Prime Minister and Cabinet; and ACROD Limited (the national industry association for disability services). The aim of the program is to strengthen relationships, and to build mutual appreciation of each others’ businesses.

Partnership Program—builds partnership relationships between DEWR, Centrelink and the Job Network by establishing productive working relationships through communication, cooperation and commitment.

Statebound—which is run in capital cities for staff from Centrelink, FaCS and other state/territory government and non-government agencies.

Auditbound—which includes Centrelink and the Australian National Audit Office.

Employees from diverse cultural and linguistic backgroundsCentrelink facilitates a National Cultural Diversity Forum, which includes representatives from each state and territory and from FaCS. Meeting each month by phone, the forum assists Centrelink to create innovative and rewarding workplaces for employees from diverse cultural and linguistic backgrounds.

Forum members help to identify, develop and promote strategies and best practice in raising awareness, and recognising, valuing and celebrating cultural diversity within Centrelink.

disAbility CoalitionCentrelink’s disability Coalition is now 12 months old. The coalition promotes a culture of excellence, equitable inclusion and productivity for Centrelink employees with disabilities.

These aspirations are in line with Centrelink’s Future Directions 2003–2006.

The role of the disAbility Coalition is to:

promote leadership and management approaches that provide opportunities and support for career progression and development of employees with disabilities

advise relevant areas of systemic and generic barriers experienced by Centrelink employees with disabilities, recommending action to address the barriers

encourage and support employees with disabilities to articulate their needs and to negotiate appropriate resources to maximise productivity.

During 2003–04, the disAbility Coalition focused on two priority action areas—improving technology and creating an environment that supports employees with disabilities.

Human Resources Disability AdviserTo take a more proactive and innovative approach to human resource management, in 2003–04 Area North Central Victoria established a designated Human Resources Disability Adviser position.

The adviser’s role is to explore current Centrelink policies, practices and programs that relate to the needs of staff with disabilities. As well, the adviser’s job is to raise awareness about the value of supporting people with disabilities in the workplace.

Appointing the adviser at the Area level is a first for Centrelink and Area North Central has been nominated for an Australian Public Service Workplace Diversity award for this initiative.

Activities with external organisationsIn partnership with the Australian Capital Territory (ACT) Government, the disability Coalition is developing best practice guidelines to ensure that people with disabilities are getting the best possible services as employees and service users.

The Social Policy Research Centre at the University of New South Wales has invited Centrelink to help evaluate the Commonwealth Disability Strategy.

As well, business partnerships that relate to employing people with disabilities have been set up with FaCS and the Department of Defence.

Staff pollEvery six months Centrelink conducts a staff poll that provides the organisation with feedback on employee commitment and satisfaction and on the effectiveness of its people strategies.

In November 2003 and May 2004, online polls were conducted with around 70 per cent of Centrelink employees taking part.

The May 2004 poll included four sets of supplementary questions for Indigenous employees, employees with disabilities, employees from diverse cultural and linguistic backgrounds, and those with caring responsibilities.

Since June 2001, the number of staff participating in the polls has increased by 20 per cent, with a small improvement in the proportion of positive responses (that is, average figure across all unchanged questions).

The May 2004 poll saw a slight increase from 67 per cent to 68 per cent positive responses across all questions.

As with previous polls, Centrelink employees are most positive about understanding Centrelink’s purpose and how it applies to their work (89 per cent), and knowing what is expected of them at work (87 per cent). Table 32 shows the proportion of positive responses for the 2003–04 polls, compared with external industry benchmarks (using median positive responses).

TABLE 32: STAFF POLL OUTCOMES NOVEMBER 2003 AND MAY 2004 COMPARED WITH EXTERNAL BENCHMARKS

Question May 2004 Nov 2003 External

benchmark(a)

Your team leader provides good leadership 70% 70% 63%

You are proud to work for Centrelink 54% 54% 70%

Your work gives you a sense of satisfaction 67% 67% 69%

You would recommend Centrelink to others as

a place to work

54% 55% 66%

You plan to continue working in Centrelink for

the next 18 months

88% 89% n/a

Your team values you 72% 71% n/a

Centrelink is committed to you 37% 35% 41%

At work, you have opportunities to learn and

develop yourself

63% 63% 54%

You receive regular feedback about your work

60% 59% 44%

You know what is expected of you at work 87% 85% 77%

You receive recognition and praise for

good work

55% 55% 46%

You have the material and equipment you need

to do your work correctly

75% 75% 58%

You are appropriately informed of policy/

procedural changes that affect your customers

69% 66% 48%

You have the information resources to do your

work effectively

73% 73% 65%

You understand how your work contributes to

meeting the objectives in your local Business

77% 76% 81%

Improvement Plan

You understand Centrelink’s purpose and how

it applies to your work

89% 87% 60%

Centrelink is sensitive to the demands of your

personal/family life

64% 63% 54%

Average positive response 68% 67% n/a

(a) This is the median of positive responses from SICORE Pty Ltd industry benchmark data

Table 32 shows that Centrelink is above the external benchmark median score for most of the poll questions. Centrelink is also above the best practice score of 70 per cent for the question ‘You understand Centrelink’s purpose and how it applies to your work’.

Staff poll data is available at the national, Area and local level. All managers are encouraged to assess their local results and implement appropriate people strategies in response to employees’ concerns.

ENSURE CENTRELINK HAS A SKILLED WORKFORCECentrelink continues its focus on learning as an investment in business and an opportunity for career development.

The Centrelink Virtual College (CVC) plays a significant role in making quality learning and development readily available. For an organisation like Centrelink, this is not a simple undertaking and we are working to overcome the barriers of geographical diversity through interactive distance learning solutions. The Centrelink Education Network fully integrates video, voice and data to deliver live, real time training and education throughout the organisation.

This section illustrates learning and other achievements such as streamlining recruitment arrangements through a panel of providers; the succession management framework; Indigenous Inbound and cadetships.

Evaluation of accredited learning operationsDuring the year Centrelink introduced a new Balanced Scorecard measure for the evaluation of accredited learning operations. The measure sets a target of five per cent, or 1250 staff, achieving an appropriate formal Qualification during the reporting year.

In 2003–04, the target was exceeded with 1736 staff achieving an accredited learning Qualification. In particular, a significant number of staff completed Certificate IV in Government PSP40599 (Fraud Control Investigation) and Certificate IV in Community Services CHC41402 (Information, Advice and Retrieval).

Panel of recruitment providersCentrelink has a panel of providers to supply recruitment services and has centralised contract management responsibility for the panel arrangements. Since establishing the arrangements, much of Centrelink’s recruitment activity has been outsourced to private sector firms, most of which involves base level recruitment.

In 2003–04, 851 staff were recruited via panel providers. This included 336 Personal Advisers recruited in August 2003.

The panel arrangements were due for renewal in early 2004. A two-stage public tender was put to the market and finalised in February 2004.

Under the new panel arrangements, six general recruitment companies and two specialist information and technology (I&T) providers have been contracted on standing offer deeds to meet Centrelink’s recruitment needs. Another seven companies have been contracted to supply contingency recruitment. Contracts are for three years, with options for two one year extensions.

The new panel arrangements have a broader scope and allow Centrelink to access professional recruitment services across all its operations and for all roles below Senior Executive Service (SES) level. They also give Centrelink greater leverage in terms of competitiveness and contingency.

Australians Working Together training—Personal AdvisersEffective training of Personal Advisers is seen as crucial to the success of the Personal Adviser initiative. In meeting the knowledge and skill requirements for a Personal Adviser, the CVC developed a comprehensive 13-week learning program using a range of learning strategies.

The learning program involved nine weeks of intensive face-to-face delivery, reinforced by four weeks on-the-job structured learning. Personal Advisers collected assessment evidence throughout the program, together with demonstrated workplace competency. On completing the program, Personal Advisers are awarded a Certificate IV in Community Services (Information, Advice and Referral).

Succession managementCentrelink’s Succession Management Framework is a formalised process that helps Centrelink manage employee growth and development by building in the necessary capabilities that will ensure individual and organisational success as well as leadership continuity.

Succession management in Centrelink is closely aligned to several key people strategies including the National People Plan, the Centrelink Leadership Framework, workforce planning, and performance management. It is also based on a clear understanding of Centrelink’s future directions.

Succession management in Centrelink commenced at the SES level and is being ‘cascaded’ to other levels of leadership and critical positions over the next 18 months.

Indigenous CadetshipThe Centrelink Indigenous Cadetship Program recruits and trains Indigenous Australians for careers in Centrelink. This program, which is part of DEWR’s National Indigenous Cadetship Project, was introduced in 2001 to offer cadetships for full-time tertiary study in approved courses.

The Centrelink Indigenous Scholarship Program (see Table 33) helps Centrelink Indigenous employees gain Qualifications, increase their knowledge, and develop their career potential within Centrelink. It supports full-time tertiary study in areas aligned to Centrelink business skills and specialised professional streams.

TABLE 33: CENTRELINK INDIGENOUS SCHOLARSHIP PROGRAM

Program Currently studying Graduating in 2003–04

Cadets 17 5

Students 15 3

As at 30 June 2004, 22 participants were studying under the Indigenous Cadetship Program and 18 participants were studying under the Scholarship Program. Ten new scholarships and 10 new cadetships will be offered in late 2004.

Indigenous InboundIn October 2003, an Indigenous Inbound Program was organised as part of Centrelink’s Statement of Commitment to Reconciliation. Targeted at Indigenous CSC, Call Centre Managers and Area staff at the Centrelink Band 3 and 4 levels, the program brings together participants from across Australia for an intensive residential program held in Canberra.

Lasting a week, this year’s program involved 16 Indigenous Centrelink staff from rural, regional and remote areas. As well as presentations from senior Centrelink and client department officials, participants attended Question Time at Parliament House and met portfolio Ministers.

During the week, the group worked on four critical issues affecting Indigenous service delivery:

the Indigenous Employee Action Plan the Integrated Agents and Access Point Service Delivery Model development of an Indigenous Debtor Profiling Framework dealing with ‘did not attends’.

The Indigenous Inbound Program’s outcomes have been included in the Indigenous Services Teams’ business priorities for 2004–05.

Learning LibrarySince March 2003, the CVC and Service Integration Shop have examined all the technical, payment-specific learning that exists for Customer Service Officers. This learning has been re-written into consistent templates, regardless of the payment area. All learning contributes to the achievement of a nationally recognised Qualification. The CVC also offers formative assessment activities designed to provide opportunities for practice and transfer of learning to the workplace.

Learning modules, available from a new Learning Library are self-paced or classroom based, and facilitated by a trainer. Each module includes a study guide for individual learning, a learner’s workbook that includes activities, reference links and learning outcomes, and a facilitator’s guide for use in classroom based sessions.

Learning and training activitiesE-Learning—Satellite enabled interactive distance learningThe Centrelink Education Network (CEN) offers interactive distance learning by satellite and is currently available in 377 Centrelink sites, with 2056 keypads distributed across the network. The interactive live broadcasts include multiple choice questions which the learner responds to using a key pad.

During 2003–04, 56 interactive distance learning programs were broadcast over 363 hours, with an average of 26 viewers per program.

Programs of significance for 2003–04 included emergency management (in light of the Canberra bushfires) and responses to the Government’s 2003–04 announcement of the Medicare rebate package.

Centrelink is currently looking at how to make satellite broadcasts more flexible, for example, by streaming programs to desktop personal computers for all staff. Under this arrangement, staff would view programs either ‘live’ or ‘on-demand’, depending on other e-Business learning needs.

Implementation of the Learning Management SystemDuring the year, the CVC managed the successful roll-out of Centrelink’s new national learning management system across the Centrelink network. By 30 June 2004, the learning management system had been implemented across all Centrelink’s Areas and the National Support Office. Over 6000 learner records have been created and distributed to around 2000 classes. In early 2004–05, the system will be extended to support the Centrelink Call network’s learning and development operations.

Project Management Learning ProgramTo support staff to adopt a project management approach to their work, the CVC has a learning program that uses generic project management processes and Centrelink Project Office tools. Formerly called Project Management Training, the new Project Management Learning Program supports a range of delivery options including a self-paced learning guide, Centrelink Education Network sessions, and a one-day facilitated workshop. A workplace project shows participants how to apply project management skills to their work. Once competency has been achieved, a Statement of Attainment is awarded for three project management units.

Nationally recognised qualificationsIn 2003–04, Centrelink issued 1736 nationally recognised Centrelink Qualifications to staff members participating in its accredited learning programs. Centrelink is authorised to issue these Qualifications in its own right as a registered training organisation under the Australian Quality Training Framework.

Table 34 shows awards of nationally recognised Qualifications issued by Centrelink. The total number of Centrelink Qualifications issued in 2003–04 is approximately six per cent greater than in the previous year.

As well as qualifications issued by Centrelink, many staff members undertake accredited training with external registered training organisations and are issued with a nationally recognised qualification through those external organisations. During 2003–04 more than 1600 of these external qualifications were issued to Centrelink staff—of these, 1023 were issued to Centrelink Call staff undertaking the Certificate IV in Customer Support.

TABLE 34: AWARDS OF NATIONALLY RECOGNISED QUALIFICATIONS

Nationally recognised qualification Qualifications issued

Certificate I to III in Business 95

Certificate IV in Business 372

Certificate IV in Government (Fraud Control Investigation, and Fraud Control

Prevention and Detection)867

Certificate IV in Telecommunications (Call Centres and Customer Contact) 9

Certificate IV in Community Services 210

Certificate IV in Assessment and Workplace Training 132

Diploma of Business 4

Diploma of Business (Front Line Management) 2

Diploma of Community Services (Disability Work) 23

Diploma of Government (Fraud Control Investigation, and Fraud Control

Prevention/Detection)24

Operations Management ProgramThe Operations Management Program was developed to help Centrelink staff gain the skills and knowledge needed to better manage their work. The program supports effective implementation and

ongoing maintenance of redesigned business processes in the network, including Multi Purpose Contact, Workload Manager, Job Redesign and Customer Account.

Once developed, a training package will be introduced in the second half of 2004 to provide tools and an organisational framework that will assist staff in integrating operational management principles in their work practices.

Front Line ManagementCentrelink Call has introduced the Diploma of Business (Front Line Management) for Call Centre Team Leaders. The diploma is offered in conjunction with TAFE Tasmania—a registered training organisation.

Designed to provide team leaders with a combination of people management theory and practice, and a working knowledge of Call Centre specific requirements and Centrelink business, the course is considered a world first in bringing together training from international call centre industry leaders.

The Incoming Calls Management Institute provides training in essential skills and knowledge for incoming Call Centre management. This explores the business of providing the right people, at the right time, to service anticipated call demand. The Customer Operating Performance Centre offers further development through high performance management techniques, and training in call centre data collection, interpretation and analysis.

Participants receive training over three weeks in a residential ‘live-in’ environment. Fifteen days of face-to-face contact includes six days with a call centre focus and nine days dedicated to Centrelink leadership and management models.

The program has been very successful and provides team leaders with structured, accredited learning that is recognised throughout the call centre industry.

Certificate IVCentrelink Call has redeveloped their accredited training program for Customer Service Officers in line with updates to the Telecommunications Training Package. This allows for greater recognition of Centrelink Call CSO Qualifications, from induction through to their first 18 months on the job.

The competencies that make up the Qualification have been mapped under three themes—delivering customer service, working in teams, and using technology. Customer Service Officers are required to demonstrate competency in meeting Centrelink standards and in understanding how their job relates to Centrelink business, in particular to Future Directions, the Getting it Right Strategy, and service, quality and cost indicators.

The new methodology recognises the alignment between the learning and evidence available to Customer Service Officers through the normal course of their work. Workshops focus on current Centrelink business needs and this learning is linked back through the mapping process. An additional 696 staff have entered the program this year alone.

Centrelink Call accreditationThe Call Centre network has a well-developed and sophisticated quality management system.

The International Standards Organisation has a number of operational benchmarks that are recognised worldwide. Under the quality and environmental management standards, in 2003–04 independent and accredited auditors rigorously assessed Illawarra Call Centre. After mapping Centrelink processes and systems against the standards framework, Illawarra Call was assessed and accredited as meeting both the quality and environmental management standards.

National Indigenous Training and Information FrameworkThe National Indigenous Training and Information Framework is a suite of training materials specific to the needs of Indigenous customers, communities and employees. The training material was developed in consultation with the National Indigenous Reference Group, which answers to Centrelink’s National Indigenous Coalition.

Stage one of the framework is completed and includes:

introduction to Aboriginal and Torres Strait Islander Awareness Training Personal Adviser—Learning and Facilitators’ Guides the ‘Indigenous Customers are Everyone’s Customers’ Program working in Remote Communities (elective) module National Induction package inclusion of Indigenous specific content into training of Centrelink Psychologists.

Stage two of the framework, currently being developed, includes:

‘Indigenous Customers are Everyone’s Customers’ (role specific information) (Accredited) Aboriginal and Torres Strait Islander Cultural Awareness Training People Team/Human Resource Area Units Indigenous Employees Action Plan Training Community Management Certificate IV Diploma of Community Management Coaching and mentoring (Indigenous specific) Indigenous Service Units Induction Training Domestic and Family Violence Training.

Completion of fraud control trainingIn 2002–03, the CVC worked with the Detection and Review Team to support implementation of nationally recognised competency standards set out in the Commonwealth Fraud Control Guidelines. This involved developing learning and assessment systems for:

Certificate IV in Government (Fraud Control Investigation) Certificate IV in Government (Fraud Control, Prevention and Detection).

See Table 34 on page 170 for information about the number of employees awarded these Certificates in Government.

In 2003–04, the CVC continued to develop improved assessment and learning resources to support the Diploma of Government (Fraud Control Investigation), which will assist staff working in the Detection and Review Team meet mandatory Qualification standards.

CREATE A REWARDING, SAFE AND HEALTHY WORK ENVIRONMENTCentrelink is committed to a positive workplace and the National People Plan’s areas of focus are—providing a safe workplace that supports work/life balance; valuing the unique skills and contribution of our people by recognising and celebrating achievements and successes; and allowing our people to express their diversity in their work.

As well as the general information on health and safety intentions and activities outlined in this section, the mandatory reporting required under Section 74 of the Occupational Health and Safety (Commonwealth Employment) Act 1991 is provided in Appendix 8 on page 287.

Health and safetyCentrelink recognises that effective health and safety management systems make good business sense, represent a cost-effective investment in our people, and will lead to reductions in the high social and financial costs of occupational injury and illness.

Centrelink’s occupational health and safety (OH&S) policy states that:

The health, safety and wellbeing of staff is integral to our daily business and values. Centrelink is committed to a strong, well-developed health and safety culture. We want workplaces that recognise the

value of prevention activities, which actively identify and eliminate hazards, and which have managers and staff who are committed to the integration of OH&S practices into everyday business.

The focus is on improvements in both OH&S performance and overall business performance and productivity, to:

prevent work related injury and illness provide information, training and professional support and advice on OH&S issues advise managers and staff about their responsibilities for promoting a safe and healthy work

environment, free from hazards.

Centrelink’s OH&S agreement sets out the roles and responsibilities of all managers, team leaders, employees, health and safety representatives, OH&S committees and the Community and Public Sector Union to meet our duty of care under the OH&S Act. The agreement also sets out the OH&S infrastructure we need to meet our responsibilities.

OH&S programsCentrelink maintains OH&S policies, resources and structures to promote the highest standard of health, safety and wellbeing of all staff through:

the prevention of work related injury and illness providing information, training and professional support and advice providing advice to managers and staff on their responsibilities for promoting a safe and healthy work

environment a policy and agreement with the Community and Public Sector Union that set out roles and

responsibilities of all parties. Consultation about a new policy and agreement is taking place.

Centrelink manages injury and disease risks that are comparable with the Australian Government jurisdiction and actively seeks to identify, adopt and develop best practice in prevention. In addition to workplace initiatives developed by and tailored to individual workplaces, Centrelink implemented corporate prevention activities, including:.

implementing two pilot prevention programs, in cooperation with Comcare, focusing on leadership, organisational climate and culture, and best practice in early intervention

developing a pilot leadership team prevention methodology conducting a review of the current customer aggression management strategies committing to the Safety Rehabilitation and Compensation Commission’s national strategy targets to

reduce the incidence of injury by at least 20 per cent by 2007 and at least 40 per cent by 2012 developing a corporate workplace health and safety plan for implementation in 2004–05

Security consultancy—Australian Protective ServicesAustralian Protective Services is contracted to provide professional security consultancy services to Centrelink.

In 2003–04, Australian Protective Services:

conducted a physical security review of Centrelink’s Canberra Data Centres undertook a comprehensive security review of a security incident at the Inala CSC provided a report on the adequacy of local sites’ security checklists, which were completed in each

Centrelink Office and subsequently provided to National Support Office reported on aspects of physical, personal and asset security of Centrelink CSCs, Call Centres and

Area Support Offices, as part of a comprehensive security review, including risk assessments based on the Protective Security Manual provisions

tested the security of National Support Office developed an Agency Security Plan, including security strategies and risk treatments.

Dealing with difficult situations workshopDuring the year, Area North Central Victoria piloted three workshops for staff with a focus on dealing with difficult situations. The aim of the workshops was to equip Customer Service Officers and Team Leaders with the knowledge and techniques needed to help deal with difficult situations in their roles. The workshops were developed by a group of specialists including a Psychologist, a Social Worker and the Area Learning Team. The three workshops covered:

developing skills in dealing with difficult situations when interacting with customers developing skills in understanding and assisting customers who present with mental health issues looking at the importance of self-care in helping staff to cope with difficult situations.

Because the pilot was such a success, the workshops are now a key part of the Area’s ongoing training program.

CUSTOMER ISSUES TRAININGArea Brisbane’s Learning and Development Team developed a training program to raise staff awareness about the issues some of our customers face. The training is also designed to help staff in their interactions with distressed or aggressive customers.

As part of the program, an external trainer delivered drug and alcohol awareness training.

A new Customer Aggression Peer Support initiative was set up, which involves training volunteer staff to provide onsite and immediate support to their peers affected by customer aggression.

The initiative also involves collecting quarterly statistics on program users; ensuring the program is consistent with best practice critical stress management and occupational health and safety measures; and providing reassurance that Centrelink is committed to staff safety and wellbeing, especially when it comes to dealing with customer aggression.

Balancing work and family lifeCentrelink acknowledges that balancing work and family life can sometimes be stressful for employees and can affect productivity. Centrelink employees have access to a range of services that help them to deal with work/life balance, including:

Dependent Care Referral Services Employees Assistance Program School Holiday Care Allowance leave options in addition to recreation leave.

Centrelink’s Area-based Employee Assistance Program is a professional, free service for staff and their families. The program offers counselling for specific situations such as traumatic workplace incidents, and resources for managers and team leaders who may have to address challenging staff issues.

The Employee Assistance Programs can assist with pressure and stress; alcohol and drug problems; family problems; separation/divorce and relationship difficulties; personal trauma; grief and bereavement; health and lifestyle issues; and gambling and other addictions.

Workforce availabilityThe Corporate Performance Team looks at identifying high performance and promoting better practice within Centrelink. This year the team completed a major research exercise into workforce availability.

In December 2003, the Guiding Coalition accepted the recommendations in the team’s research paper ‘A Study of High Performance in Centrelink – Increasing Business Capacity by Improving Workforce Availability’.

The recommendations cover improvements to both corporate and local issues. These range from I&T systems support, improved local management, and a focus on personal responsibility and accountability. The approach aims to build on other new directions including the Staff Portal, I&T changes and the Centrelink Service Delivery model.

Because reducing unnecessary absenteeism is an important element of workplace efficiency and also contributes to the general wellbeing of all Centrelink people, it will continue to be a focus area in the coming years.

Recognising achievements and successesAwards within CentrelinkCentrelink National AwardsCentrelink has a strong culture of recognising and rewarding the achievements of our employees. Each year, a number of formal awards are presented to Centrelink staff in recognition of their achievements and commitment to the organisation.

The Centrelink national awards are celebrated on the anniversary of Centrelink’s formation. They recognise the outstanding achievements of Centrelink people who have significantly advanced Centrelink’s business objectives.

The national awards cover four categories:

Customer Service Award Change Management Award Ross Divett Award Emergency Response Award.

The Ross Divett Award is the highest achievement award within the national award categories, with nominations assessed for exemplary work in the ‘plan–do–review–act’ business strategy.

Assessment criteria for the national awards are:

the individual or team performance has been exceptional and resulted in an exceptional achievement the initiative has furthered Centrelink’s objectives and accelerated Centrelink’s business

transformation the initiative has been extended and applied throughout the agency the initiative breaks new ground and proves the approach worth adopting.

In addition, the Environmental Management@Work Award was established during 2004 to acknowledge achievement of good practice in terms of ecologically sustainable development within Centrelink’s business operations. This new award will be implemented during 2004–05.

The 2003 highly commended nominees and national award winners were:

Customer Service—teams

Highly commendedTax Cluster Upgrade Project Team, National Support Office

Accessible Letters Team, Geelong Call Centre

Overall winnerArea Hunter

Customer Service—individual

Highly commendedMick Shaw, Rural Call Centre, Queensland

Jonathan Sherlock, Area North Central Victoria

Overall winnerJim Wiblin, Area South Metro, New South Wales

Change Management—teams

Highly commendedDefence Signals Directorate Gateway Certification Team

Business Communication and I&T Team, Area North Central Victoria

Overall winnerCentrelink Project Office Team, National Support Office

Change Management—individual

Highly commendedKathy Volkert, Area South Australia

David Lonsdale, National Support Office

Overall winnerSuellen Shea, Area West Australia

Ross Divett

Highly commendedStrategic Cost Management Team, National Support Office

Overall winnerInformation and technology managers and staff

Emergency Response

Highly commendedWangaratta Bushfire Recovery Team

Catherine Donohue and Jack Forbes, Mildura and Swan Hill Drought Team

Overall winnerKate Hay and the Drought Team, Shepparton

Centrelink Australia Day awards

To celebrate Australia Day, each year Centrelink acknowledges staff who have shown outstanding dedication in service to Centrelink during a difficult time, or over a lengthy period, or who have demonstrated exceptional voluntary work in their community.

Special award ceremonies are conducted throughout Centrelink Offices. Winners are presented with engraved National Australia Day Council medallions and certificates.

In 2004, 72 Australia Day achievement awards were presented to individuals and teams across the Centrelink network. One example of an outstanding achievement was Vicki Campbell from Launceston Call Centre. Vicki raised funds for the Royal Flying Doctor Service by cycling from Cloncurry (site of the first flying doctor service) to Dubbo—a journey of 3500 kilometres. The Bali Family Support Team was also recognised for their around-the-clock counselling and support for victims’ families on the anniversary of the Bali bombing.

Chief Executive Officer’s service awards

The Centrelink Chief Executive Officer’s service awards recognise the commitment and dedication of Centrelink staff in serving the public through the Australian Public Service. Under these awards, Centrelink presents a series of certificates and gifts to celebrate significant milestones of service at 20, 25, 30 and 35 years. Each week, between 20 and 30 certificates and/or gifts are awarded.

Youth awards

Every year, Centrelink’s National Excellence in Youth Servicing Awards are celebrated during National Youth Week. Awards are presented to staffs who have demonstrated exceptional commitment to meeting the needs of young people and to Centrelink staff aged under 30 years who have demonstrated exceptional commitment to their work or the community.

All finalists attended a dinner at Parliament House on 1 April 2004 and the Minister for Family and Community Services, Senator the Hon. Dr Kay Patterson, presented awards to the winners:

Lesley Tannahill Youthlink Award—Christine Kruse, Victoria Community Commitment—Troy Kennedy, Queensland Excellence in Youth Servicing, Community nomination—Rosie Imbert, New South Wales Excellence in Youth Servicing in a Call Centre Environment—Jodie Bird, New South Wales Corporate Citizenship—Mary Livingston, New South Wales Making a Measurable Difference for Students (FaCS award)—Curtin Student Service Centre,

Western Australia Excellence in Youth Servicing—Andrew Blackburn, Western Australia Excellence in Indigenous Youth Servicing—Roy Thompson, Queensland Excellence in Multicultural Youth Servicing—Sally Chan, Victoria.

External awardsPrime Minister’s Employer of the Year AwardCentrelink were the winners of the Prime Minister’s Employer of the Year Award in the large Government agency category for its commitment to employment of people with disabilities.

ACT Excellence AwardThe Centrelink Virtual College (CVC) won the Large Registered Training Organisation category in the Australian Capital Territory Department of Education and Training 2003 Training Excellence Awards. The award acknowledged the excellent work done by the CVC in embedding the Australian Quality Training Framework into the learning and development opportunities provided to Centrelink staff.

Public Service MedalThe Public Service Medal is a component of the official Australian system of honours and is awarded twice a year as part of the Queen’s Birthday and Australia Day Honours List.This very prestigious award recognises employees for outstanding public service.

Desley Hargreaves, in her role as National Manager of Centrelink’s Social Work Services, was awarded a Public Service Medal in October 2003 as part of a special Bali Commemoration List.

Margaret Simmons, a member of Centrelink’s Investigation and Recovery Unit, South Australia was awarded the Public Service Medal for her liaison role between Centrelink and the South Australian Director of Public Prosecutions. Her work contributed to the successful conduct of a major criminal investigation.

Australian Teleservices Association National Call Centre of the Year AwardIn 2003 Centrelink was again recognised as one of the nation’s premier organisations by industry leader, Australian Teleservices Association.

Perth Call Centre was honoured by being named national Call Centre of the Year in the 50 staff or more categories at the 2003 National Awards held during September 2003.

It was the second year in a row that Centrelink had taken out the prestigious major award, following the success of its Liverpool Call Centre in 2002. The Perth Call Centre was also named the Greenfield Site of the Year.

In addition to Perth’s National awards, Barbara Phillips, Staff Manager in Perth, won the Call Centre Champion (non-phone staff) category in the 2003 Western Australian state association awards. Newcastle also took out two categories in the 2003 New South Wales state association awards. Newcastle was recognised as Call Centre of the Year (more than 50 staff) and Greenfields site of the year in 2003.

Centrelink achieved even greater success in 2004 by winning a number of state Australian Teleservices Association awards in the following categories:

Call Centre of the Year (over 50 staff)—Adelaide, Cairns and Newcastle Manager of the Year—Jim McMahon, Adelaide and John Dorian, Newcastle Greenfield Site of the Year—Cairns and Bunbury Help Desk of the Year—Port Augusta Teleprofessional of the Year—Ashley Spowart, LaTrobe and Richard Trow, Port Macquarie Customer Champion of the Year—Mark Davison.

All state award winners are automatically nominated in the national awards that will be held in Melbourne, during September 2004.

Australian Public Service Workplace Diversity AwardsCentrelink won the Regional category and received two commendations.

Area East CoastArea East Coast won the Regional category for their initiative of skilling Indigenous Servicing staff. Area East Coast recognised a learning gap for Indigenous Servicing staff and worked with Nirimba TAFE to develop and deliver the Certificate IV Community Management program. The benefits include stronger business outcomes through better relationships with Indigenous communities, improved opportunities for Indigenous staff, and increased confidence among and retention of Indigenous staff.

Adelaide CallAdelaide Call was highly commended in the 2003 Australian Public Service Workplace Diversity Awards for recruitment of people with a disability.

Adelaide Call actively set out to recruit staff who identified themselves as having a disability. The Call Centre invited the involvement of external agencies and explored the process each agency used to attract and assess people with disabilities.

Selections were merit based and applicants were required to undergo the same assessment process as applicants without disabilities. However, if needed, applicants could use large print material, bigger monitors, and closed circuit television.

Adelaide Call has since successfully undertaken four recruitment exercises, continuing to refine and improve the processes each time. Twelve per cent of Adelaide’s 280 staff are now self-identified as having one or more disabilities.

Cairns CallCairns Call was also highly commended in the Workplace Diversity Awards for their staff child care arrangements.

In an effort to reduce absenteeism and to help staff balance their work and family life, Cairns Call set up a carers’ facility, which means an employee can still come to work when their child is suffering from a non-contagious illness or injury. In response to growing demand for the facility, Cairns Call also bought the equipment needed to set up a mobile carers’ station.

Cairns Call conducted a cost Benefit analysis for the period January 2003 to May 2003. For the five months, Cairns Call recorded a 39 per cent decrease in Carers’ Leave compared with the same period in 2002. This represents potential Carers’ Leave cost savings of approximately $30 000 each year.

Expressing diversity in our workCentrelink is committed to continued development of a culture that supports the principles of workplace diversity through:

becoming an employer of choice by building a diverse workforce providing a flexible work environment that allows our people access to choices that support their

lifestyle ensuring our people understand the importance and values of workplace diversity, andthe

implications of workplace harassment and discrimination both to the individual and the organisation creating a workplace that is valued by our people.

Centrelink’s Workplace Diversity Plan will be reviewed in 2004–05, followed by a new Action Plan based on the review findings.

MOVING FROM UNEMPLOYMENT TO CUSTOMER SERVICEIn its efforts to attract and retain employees with a disability, Moorabbin Call developed a strong working relationship with recruitment agency Diversity@Work. The agency’s job was to find applicants with a disability and people who, through accident or injury, could not return to work in their usual occupation.

A recent recruit, Hugo Sermeno, is a great example of Moorabbin Call and Diversity@Work working together to get the right person for the right job.

After damaging his leg in a car accident, Hugo was out of work for nine years. But Moorabbin Call and Diversity@Work recognised his abilities and Hugo now works in the Retirements and Disabilities Team as a Customer Service Officer.

National Indigenous Employees Plan 2005-2008—Working TogetherCentrelink’s new draft National Indigenous Employees Plan (2005–2008) is the third document of this type for Centrelink. The aim is to improve the employment circumstances and future prospects of Aboriginal and Torres Strait Islander peoples in Centrelink.

Centrelink recognises the important role our Indigenous employees have in identifying employment barriers and developing solutions in line with the principle of self determination.

In partnership with Indigenous employees, Centrelink is working to develop practical solutions for the new National Indigenous Employees Plan in critical employment areas for Indigenous people. Indigenous staff will co-own the plan, which will be achieved through consultation, partnership and awareness.

The key focus areas for Centrelink over the next three years are:

providing greater employment opportunities for Indigenous Australians assisting Indigenous employees to fulfil 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.

The new National Indigenous Employees Plan will be finalised around October/November 2004.

NAIDOC WeekNAIDOC Week 2003 was once again celebrated by holding Centrelink’s Annual Great Debate.

For Centrelink, the main focus of the week is to bring issues of concern to Aboriginal and Torres Strait Islander peoples to the attention of our staff in memorable and exciting ways. Each year NAIDOC week has a theme, which represents an important issue to Indigenous people. The theme for 2003 was ‘Our Children, Our Future’.

For the debate three young Indigenous employees, ‘The Young Guns’ (affirmative) challenged the People Management Team (negative) to debate the NAIDOC theme. Lively and amusing debate led to a very close result with an audience ‘clapathon’ deciding the winner. The trophy went to the People Management Team.

Staff Volunteering StrategyVolunteering strategy launchThe Centrelink Staff Volunteering Strategy was officially launched in National Support Office in December 2003.

The strategy reflects Centrelink’s vision and mission to make a positive difference to people, families and the community by building quality relationships with the community to improve the wellbeing of Australian society. It acknowledges and celebrates the important but often unrecognised contribution by Centrelink staff in volunteering activities, undertaken as individuals in their own time. Centrelink’s Staff Volunteering Strategy guides and facilitates staff involvement in volunteering and encourages sustained support for these activities.

The launch featured guest speakers from volunteer organisations such as Lifeline Australia and Australian Capital Territory Bushfire and Emergency Services, and was broadcast to staff in the network via Centrelink’s Business TV.

Starting in 2004–05, staff involvement in volunteering is to be recognised each December as part of an annual Staff Volunteers Week.

Centrelink volunteering conference paperCentrelink’s recognition and encouragement of staff volunteering was the focus of a presentation at Volunteering Australia’s 10th National Conference in Melbourne in June 2004.

The Conference theme of ‘Volunteering—evolution, devolution or revolution?’ provided an ideal opportunity to discuss the longstanding interest and involvement of Centrelink staff in volunteering activities in their local communities. The paper outlined the volunteering achievements of Centrelink in the past, and the directions for continuing and sustained support for staff volunteering into the future.

Centrelink and FaCS Woman’s Forum annual dinnerOver 100 women from Centrelink and FaCS celebrated International Women’s Day with their sixth annual dinner on 31 March 2004. At the dinner, Michele Hawkins from the Australian National University entertained people with a speech and presentation on ‘career changes and the love life of bonobos’. A live South American all-women band had the audience dancing. As well, the event featured an exhibition of photographs taken by women from Centrelink and FaCS.

Centrelink Games 2003—the ‘friendly games’The 2003 Centrelink Games were held in Tweed Heads as a joint venture between Tweed Call Centre and the CSC. The games, held in October 2003, attracted almost 500 players and onlookers.

Played at Ark install Park in South Tweed Heads, the games’ opening and closing ceremonies were held at the Seagulls Club. The 2003 games saw the introduction of a ‘Guiding Coalition’ team and, for the first time in the history of the carnival, it rained. However, all events went ahead and, in true Centrelink style, wet conditions did not dampen the spirit of participants.

The 2004 Centrelink Games will be held in Grafton.

ENHANCE LEADERSHIP CAPABILITIES AND SUCCESSION PLANNINGEffective leadership and management are essential for the ongoing success of Centrelink and the wellbeing and satisfaction of its people. This section outlines activities aimed at developing leaders to take the business into the future, and supporting managers and team leaders in maximising the commitment and contribution of Centrelink’s people.

Developing leaders to take our business forwardCentrelink Leadership Development FrameworkThe Guiding Coalition endorsed the Centrelink Leadership Framework in August 2002. The framework’s objective is to build and maintain leadership capability across all areas of Centrelink business at the organisational, team and individual levels.

Important framework components are Leadership Development programs. Throughout 2003–04, programs were delivered to many Business Managers and Senior Executives (see Table 35). A separate program was designed and implemented for Customer Service Team Leaders.

The Leadership Development programs were designed after wide consultation. They form the basis of a ‘leadership pathways’ approach adopted for integrated leadership development in Centrelink. The components include capability appraisal and feedback; executive coaching; a residential intensive workshop; peer partnering; and an optional project component leading to accreditation. Further initiatives are planned for implementation in 2004–05.

Centrelink’s Leadership programs have resulted in a heightened awareness of and interest in coaching and mentoring. These concepts are integral to the evolution of a broader Leadership Development Framework. A number of Areas across Centrelink are currently implementing mentoring and coaching programs as significant techniques to develop leadership. In the coming year, the focus will be on developing a Centrelinkwide flexible model that aligns with better practice across public and private sector organisations.

TABLE 35: LEADERSHIP PROGRAM PARTICIPATION

Level Participants to 30 June 2004

Centrelink Managers 195

Senior Executives 43

The Centrelink Virtual College has also implemented a comprehensive and innovative evaluation strategy to provide insights into the impact of the leadership development strategy on organisational outcomes. Setting performance targets for leadership that are measured through the Balanced Scorecard also promotes the organisation’s leadership development priority.

LEADERSHIP DEVELOPMENT—A LIFE-CHANGING EXPERIENCESenior Executive Leadership Program participant, Rilka Macainsh, described her time at the Bowral pilot as a ‘life changing experience’.

‘The program gave grounding in the fundamental principles of leadership and what this could mean in a Centrelink framework. I learnt about the theory of leadership and gained invaluable insights—both at personal and team levels—that have helped me to apply the principles in practice. And, I had great fun along the way,’ Rilka said.

Rilka went on to bigger and better things with a secondment to the Department of Prime Minister and Cabinet, where she says she gained a greater strategic appreciation and understanding of the complexities in which the public service has to operate.

As well, Rilka was chosen as a delegate to the Commonwealth Study Conference held in New Zealand in October 2003. Selected after a rigorous application and interview process, she was appointed as a conference study tour leader. This meant taking responsibility for coordinating a conference report, on behalf of the 15 people in her group who represented seven countries.

Rilka has since been promoted to the Centrelink Senior Executive Service— congratulations Rilka!

Support and development for Customer Service Team LeadersCentrelink Customer Service Team Leaders directly supervise almost 18 000 Customer Service Officers in CSCs, Call Centres and Compliance Units. This makes them one of the most influential groups of people in Centrelink.

The Centrelink Development Agreement 2003–2005 calls for a move to ‘More clearly define for Customer Service Team Leaders their role in terms of leadership in the management of people, business and strategic change’.

Centrelink is developing the capability of Customer Service Team Leaders to improve Centrelink business outcomes, the quality of service to customers, and government program outcomes.

In 2003–04, the focus was on developing Customer Service Team Leaders’ capabilities by:

recognising work value articulating a clearly defined role, understood and accepted by all developing tools and products to help them do their job building leadership skills and development opportunities.

Job specifications

Job specifications for Customer Service Team Leaders were endorsed. Drawing on Centrelink’s ‘leadership capabilities’ and Centrelink’s business goals, the job specifications clarify the responsibilities, skills, knowledge and outcomes required. Widely promoted throughout the organisation, the job specifications have also clearly defined the role of Customer Service Team Leaders. As well, they have provided guidance for recruitment and succession planning, and paved the way for defining and supporting other job roles in Centrelink.

Homepage

During 2003–04, a Customer Service Team Leader homepage was developed as the forerunner to future portal technology. It supports well-informed, accurate business decisions by providing easy access to information, tools, products and development opportunities.

The homepage supports better understanding of Team Leaders’ roles and what is expected of them. As a direct communication link to every Team Leader, it supports change management and includes information specifically tailored to the target audience.

National development program

During the year, Centrelink Area Offices started to implement a national Customer Service Team Leader Development Program. Based on the principles of the Leadership Development Program for Senior Executives and Managers, it covers the areas of fundamental business skills and operational knowledge.

Designed to meet the development needs of Customer Service Team Leaders at all stages of their career progression, this flexible program culminates in a Diploma of Business (Frontline Management) for Customer Service Team Leaders or, for Team Leaders in compliance areas, a Diploma of Government (Fraud Control Investigation).

First introduced in April 2004, the program was trialled in Area West and Area East Coast in New South Wales.

Providing a consistent approach to Team Leader development, the program consists of three interconnected components:

Developing as a Leader—which introduces Team Leaders to their role and responsibilities and develops fundamental business and leadership concepts and skills

Operational Skills—which helps Team Leaders develop the skills to use the available tools, products and processes to achieve business outcomes

the Diploma of Business (Frontline Management)—which develops a more strategic focus for more experienced Team Leaders.

PROVIDE THE TOOLS, KNOWLEDGE AND BUSINESS INTELLIGENCE NEEDED TO WORK EFFECTIVELYAccess to the right business intelligence is critical for staff in their decision making. Centrelink is highly dependent on information technology solutions to support our people in front line service delivery. This section outlines initiatives covering user friendly systems and their operation, as well as enhancements to business intelligence available.

User Assurance CentreThe User Assurance Centre (UAC) collects user input, both from customers and staff, to assist in the development of Centrelink products and processes.

Both customers and staff are matched with Centrelink products and tools in the controlled user assurance centre environment. The relevance and usability of the product are tested as well as its readiness for implementation.

The Usability Laboratory is a facility within the centre used to observe, record, measure and evaluate products at all stages of development.

The UAC also provides user-centred development of learning packages. For example, in 2003–04, this included feedback on Working Credit, Senior Practitioners, and Quality on Line training.

During 2003–04, the UAC conducted user-centred evaluations for Working Credit, online services, Customer Account claims, the Social Work Information System, Workload Manager, Senior Practitioner training and e-Reference. During the year, the UAC also provided user-centred evaluation services for the Australian Taxation Office and the Australian Electoral Commission.

Providing the business knowledge to help achieve team goalsStaff Online Services projectThe Staff Online Services project is one of a range of projects under Centrelink’s IT Refresh Program. As such, the project aims to develop our online presence with customers, business, community, government and staff. The project is being designed to meet the challenges of current and future business by supporting our people with knowledge, skills, tools and opportunities.

Focusing on making it easier for Centrelink staff to access the applications and information they need to do their jobs—whatever they do and wherever they work—the project includes a ‘User-Centred Design’ approach which in 2003–04 involved:

identifying business needs through interviews with Guiding Coalition members determining staff requirements through a series of workshops and interviews with representatives

from CSCs, Call Centres, Remote Access Centres, Indigenous Remote Services Teams, Area Offices and National Support Office

involving staff in the design phase of the project, in particular the design and evaluation of a new workspace.

The information gathered during the interviews, workshops and collaborative design will feed into the development of an improved Staff Online environment.

Comparative Reporting FrameworkDuring 2003–04, a Corporate Comparative Reporting Framework was finalised in response to recommendations made by the Boston Consulting Group’s review of Centrelink’s organisational efficiency.

This is a multi-dimensional framework that enables the reporting of Service Quality Outcomes against Cost Efficiency. An integral component of the framework is the incorporation of drivers for improving performance through a series of leadership and workforce capability measures. The integration of these measures ensures the ongoing alignment of our people management capability with corporate performance information.

People Management Benchmarking ProgramAs a participant in HRM Consulting’s People Management Benchmarking Program, Centrelink is working on a new desktop reporting tool for managers that will incorporate people management Key Performance Indicators and organisational targets for particular measures.

Including Australian public and private sector organisations, the benchmarking program gives Centrelink the potential to monitor performance across a range of human resource and workforce measures, and assess this in the context of broader industry performance.

Centrelink’s People and Corporate Performance Team uses benchmarking data to strengthen its people management reporting and analysis. These data are an important part of our research into improving people’s performance.

The reporting facility will also include resources and information to help managers interpret and understand their workforce data and make more informed decisions.

Workload ManagerDuring the year, Centrelink rolled-out a new system that helps network staff and Team Leaders match staff resources to business demands. Known as Workload Manager, it presents information to staff as team and individual diaries, including a breakdown of tasks to which they have been assigned.

Workload Manager also makes it easier to identify and set priorities for Customer Service Officer Activities in relation to customer records.

Online Document RecordingIn a two-stage implementation of a new Online Document Recording system, Centrelink is set to ensure that recording processes are easier, faster and consistent for all staff.

Starting in June 2004, Stage One introduced structured text, generated from codes and fields entered by the user. This will mean more consistent information management and recording, for example in fields such as ‘Who contacted’, ‘Why contacted’ and ‘Contact channel used’. It will also reduce the amount of storage needed and less processing time.

Scheduled for introduction in September 2004, Stage Two will consolidate improvements and lead to better development and integration with online services. Stage Two will also replace the need to enter details manually, by generating text in response to individual tasks such as updating earnings and accommodation details.

e-Referencee-Reference is Centrelink’s electronic resource for staff to access when dealing with customer enquiries and claims. It sets out the procedures to follow in completing work for the various payments and services Centrelink provides.

In 2003–04, work on new technology that will deliver a better quality of service to staff was close to finalisation. Roll-out of the new technology will start in 2004–05.

The improvements include:

the ability to provide weekly updates better search functionality, making the content easier to find improved information layout, making it easier for staff to read.

Once it is fully implemented internally, work will proceed to allow public access to the material over the Internet.

Edge—Decision Support (Expert) SystemGiven the recent and considerable changes in family policy and its delivery, FaCS and Centrelink commissioned a review of the business case for the further development and installation of the decision support ‘Edge’ system.

Completed in November 2003, the review report found that a viable business case for Edge no longer existed for deploying the system in its then current form.

However, Centrelink has commissioned a feasibility study to explore the targeted use of expert systems that could draw on the work already undertaken and what was learnt from this. The feasibility report is yet to be finalised.

Risk information and managementIn 2003–04, Centrelink identified the requirements for an automated risk management information system. The system will give the Board and Centrelink senior managers access to detailed reports on the ‘health’ of risk management within Centrelink. It will also assist in planning for current and expected reporting and monitoring needs.

During the year, demand for risk identification and analysis workshops grew, with an average of one workshop held each fortnight. Following recommendations from an external consultant, these workshops were restructured to help ensure more efficient delivery of risk management in Centrelink.

During the year, National Support Office also piloted a training course on risk management practices. This course will most likely form the basis of a strategy to develop a more sophisticated network of ‘Risk Champions’ in Centrelink, Australia-wide.

As well, work continued on reviewing each team’s annual Business Improvement Plans to ensure they integrate risk into business planning processes and improve the quality of risk assessments.

OUR EFFICIENCY AND EFFECTIVENESSCHAPTER SEVENOUR EFFICIENCY & EFFECTIVENESSGOALTo ensure our internal processes support efficient and effective services and provide value for money.

TOP-LEVEL RESULTCentrelink expenses as a proportion of program delays.

TARGET Not yet set

RESULT 3.57%

FIGURE 16: CENTRELINK EXPENSES AS A PROPORTION OF PROGRAM OUTLAYS

HIGHLIGHTS FOR 2003–04 Achieved a $6.3 million operating surplus. Accumulated deficits over the life of Centrelink stood at

$6.7 million on 30 June 2004 or 0.05 per cent of total revenue managed by Centrelink since its inception in 1997–98 ($12.8 billion) (page 196)

maintained a positive cash position of $194.9 million at year end(a) (page 198) the Centrelink Funding Model was endorsed by Government in the 2004–05 Federal Budget, for

implementation from 1 July 2004 (page 200) further enhanced Strategic Cost Management as a methodology to better assess costs and allocate

internal resources across Centrelink’s service delivery network (page 200) successfully established the IT Refresh Program by delivering base capabilities required for future

projects (page 211).

(a) Cash includes the cash receivable from the Official Public Account which is held at call on behalf of Centrelink by the Department of Finance and Administration.

DESCRIPTIONCentrelink needs to ensure its internal business processes are effective and efficient to meet the goals we have set in relation to our external stakeholders and government expectations.

Funded primarily by the Australian Government through our client agencies, Centrelink is continuing to develop improved efficiency indicators through the implementation of Strategic Cost Management. The organisation remains subject to ongoing efficiency dividends and must continue to demonstrate sound budgetary controls.

Centrelink will continue to develop the information technology capabilities needed for future service delivery options. New capabilities will support the delivery of robust and reliable customer self service via the telephone and the Internet and facilitate more effective interactions between Centrelink and government agencies, commercial organisations and the community sector. It is also a priority to work with client agencies to identify and address the scope for simplification of legislative requirements.

Three of the eight key areas that customers want Centrelink to focus on to improve the customer experience fall within this goal:

promptness and consistency of service delivery aligning future arrangements with customer expectations and preferences access to and integration of services.

The strategies in this chapter address these concerns and are focused on improving the efficiency and effectiveness of our services.

KEY STRATEGIES manage our budget effectively (page 196) identify and implement better practice (page 201) effectively implement IT Refresh (page 211) tailor our service offers (page 213) simplify, streamline and re-engineer our processes (page 217).

MANAGE OUR BUDGET EFFECTIVELYBusiness managers are responsible and accountable for delivering business outcomes in line with their Business Improvement Plan and within budget allocation. Financial performance against planned outcomes continues to be analysed and addressed on a monthly basis to ensure that all business priorities are met within available revenue.

A longer-term approach to capital budgeting is planned for implementation in 2004–05 with the objective of developing a five-year capital plan. This will better position Centrelink to make longer-term strategic capital improvement decisions.

Centrelink is continuing to develop improved efficiency indicators through the implementation of Strategic Cost Management. This will provide us with an improved understanding of cost drivers and cost containment ensuring active cost reduction strategies are in place across all teams.

Operating resultCentrelink reported a net operating surplus of $6.3 million for 2003–04. This equates to 0.3 per cent of total 2003–04 annual revenue of $2.2 billion. This result is a reflection of sound financial management and due to a concerted effort to tighten discretionary administrative expenses. Another factor affecting the operating result was the requirement for Centrelink to return approximately $19 million in revenue to government as part of the reconciliation process of actual customer numbers to estimates funded under the former Regional Funding Model. In addition Centrelink’s base revenue was reduced by $19 million compared to 2002–03 as a result of the application of the annual efficiency dividend.

TABLE 36: CENTRELINK’S NET OPERATING RESULT 2003–04 AND 2002–03

2003–04 2002–03

$’000 $’000

Revenue 2 156 704 2 016 297

Expenses –2 150 443 –2 064 008

Net operating result 6 261 –47 711

RevenueCentrelink’s operating revenue is primarily derived from client agencies with whom Centrelink has Business Partnership Agreements (BPAs). Centrelink is paid in accordance with the arrangements specified in each BPA for the delivery of agreed services. Though Centrelink provides services on behalf of 25 agencies, FaCS remains Centrelink’s major source of revenue, providing approximately 91 per cent of Centrelink’s overall revenue in 2003–04.

TABLE 37: REVENUE TO CENTRELINK FOR SALE OF SERVICES 2003–04

Source of revenue(a) $’000

FaCS 1 967 171

DEWR 116 999

DEST 16 150

DAFF 22 155

Other client revenue 28 662

Total revenue from sale of services 2 151 137

(a) Excludes $5.567m in revenues comprising resources received free of charge ($4.766m), proceeds on sale of assets ($0.430m), direct appropriations received from Government ($0.250m) and foreign exchange gains ($0.121m).

TABLE 38: SUMMARY OF RESOURCES

Budget(a)

2003–04

Actual

2003–04

Budget(b)

2004–05

$’000 $’000 $’000

Price of agency output Output: Efficient delivery of Commonwealth services to eligible Customers

Revenue from government (Appropriation)

for departmental output

250 250 250

Revenue from other sources 2 152 782 2 156 454 2 208 848

Total price of output 2 153 032 2 156 704 2 209 098

Total revenue for outcome

(Total price of output)

2 153 032 2 156 704 2 209 098

Equity injection 40 676 40 676 23 730

Total capital for Agency 40 676 40 676 23 730

Staffing years (number) 24 418 24 153 23 992

(a) Portfolio Budget Statements 2004–05 Estimated Actual Result for 2003–04

(b) Portfolio Budget Statements 2004–05 Budget for 2004–05.

Balance sheet and cash flowCentrelink’s financial position is strong, with the value of assets exceeding liabilities by $121.4 million. Cash available at the end of the year totalled approximately $195 million.

During the year accounts receivable from clients (excluding moneys held on behalf of Centrelink in the Official Public Account) decreased by $26.4 million.

Centrelink invested $23.6 million in infrastructure, plant and equipment during the year. This was mainly for Information and Technology acquisitions, including personal computers, mainframe equipment and cabling.

Centrelink also acquired over $40 million in software during 2003–04, including internally developed systems, to support customer service delivery initiatives. A portion of this investment was required to replace outdated applications.

Accounts payable to suppliers at year-end were lower than in prior years, consistent with the tightening of expenses towards year end. Other liabilities, such as revenue received in advance, also declined over the 2003–04 year.

Purchasing activity and contract managementSee Appendix 2 (page 271) for details of:

advertising and direct mail expenditure payments $1500 and over made to advertising agencies and agencies with advertising campaigns payments $1500 and over made to direct mail organisations Payments $1500 and over made to market research organisations.

Consultancy servicesDuring 2003–04, Centrelink awarded 132 consultancy services contracts. Table 39 provides a breakdown of these figures. See Appendix 1 (page 265) for all consultancy contracts let during the 2003–04 financial year with a value of $10 000 or greater.

TABLE 39: SUMMARY OF CONSULTANCY SERVICES

Number of consultancy contracts let in

2003–04 by total value (inclusive of GST)

Total value of

consultancy contracts

let $10 000 or greater

(inclusive of GST)

Total consultancy

services expenditure

(inclusive of GST)

$10 000 or

Greater

Less than

$10 000Total 2003–04 2003–04(a)

49 82 131 $4 666 493 $8 516 086

(a) The total expenditure for consultancy services in 2003–04 includes expenditure for all consultancy services contracts let prior to the 2003–04 financial year regardless of value.

Competitive tendering and contactingSince its inception, Centrelink has market tested and externally sourced a wide range of corporate service functions. A considerable number of functions within the human resources, financial management, property, Office service, legal and audit areas have been externally sourced. As well, several of Centrelink’s direct service delivery functions are also now serviced through external contractors, such as property valuation services, translation services, medical assessments, debt recovery, surveillance services and the vast rural and Indigenous agent’s network. Centrelink continues to look for market testing opportunities on a case-by-case basis.

Policy for the selection and engagement of consultantsCentrelink’s policy on the selection and engagement of consultants is based on the relevant Commonwealth Procurement Guidelines and Chief Executive Instructions. It is Centrelink policy to restrict the use of consultants to circumstances when the required expertise or services are unavailable from within the APS and the task is short term and discrete.

In general, Centrelink’s requirements for consultancy services can be identified against a number of broad categories which may include advertising and promotional campaigns, business analysis and review, training and service delivery advice.

Selection proceduresThe method of selecting consultants is based on principles consistent with the procurement methodology used for obtaining other goods and services and underpinned by the Commonwealth Procurement Guidelines. Factors taken into account in the selection of consultants include the extent of competition available in the market place, the complexity and the estimated cost of the proposed consultancy, the available timeframe and the cost of approaching the market and evaluating offers. Centrelink considers that this is best achieved through a combination of public and restricted tendering processes.

PurchasingCentrelink’s Chief Executive Instructions include the requirements for all officers involved in procurement to be aware of, understand and have regard to Centrelink’s procurement policies and procedures and the Commonwealth Procurement Guidelines (CPGs). These include the requirement to consider small to medium enterprise participation. Since December 1997 it has been mandatory for departments and agencies operating under the Financial Management Accountability Act 1997 to source at least 10 per cent of their purchases from small to medium sized enterprises.

The number of payment transactions made to small to medium enterprises was 75 percent of the total number of payment transactions and was 28 per cent of the total value of all payments to suppliers.

Strategic Cost Management and Centrelink Funding ModelThe development of Strategic Cost Management (SCM) within Centrelink has continued in the 2003–04 financial year.

Strategic Cost Management utilises a systems based approach whereby mainframe and other transactional data is captured and then linked to the associated staff effort. Strategic Cost Management data is being utilised to enhance internal performance management, provide the source data for use within the Centrelink Funding Model, inform internal allocations to create a greater alignment and linkage with external funding and will lead to greater transparency in the costing of Centrelink services. Further refinement and development of Strategic Cost Management will occur in the 2004–05 financial year.

The Centrelink Funding Model (CFM) is a financial model that has been developed by Centrelink with our major client agencies—Department of Family and Community Services (FaCS), Department of Employment and Workplace Relations (DEWR) and the Department of Education, Science and Training (DEST)—and the Department of Finance and Administration. The CFM was endorsed by Government in

the 2004–05 Federal Budget, and will be implemented from 1 July 2004 for services delivered on behalf of FaCS, DEWR and DEST. It introduces a new, improved funding arrangement for Centrelink with funding linked to workload unlike previous models. It seeks to ensure an appropriate level of funding for Centrelink to deliver services to fulfi ll the expectations of the Government and client agencies such as FaCS.

Strategic Cost Management will:

facilitate the analysis of Centrelink’s outputs in terms of both expenditure and operational performance

assist Centrelink in better strategic alignment of resource allocations with workload deliver information reporting and modelling capabilities that empower managers when making

business decisions.

The Centrelink Funding Model provides:

greater transparency and improved accountability of Centrelink’s funding considerably more detailed information on the costs of service delivery a much more stable and predictable funding base for Centrelink.

IDENTIFY AND IMPLEMENT BETTER PRACTICEInformation Services ReviewCentrelink’s Executive commissioned the Information Services Review in early 2003.

The review’s purpose was to investigate information management activities throughout Centrelink, identify issues, and put forward a set of propositions for the Executive to consider as part of an overall Centrelink information management strategy. The Executive considered the report in September 2003 and, based on the propositions, made some key information management decisions for the organisation.

Actions taken to 30 June 2004 include:

Establishment of an Information Governance Board in late 2003. This board has direction setting and decision making responsibilities for Centrelink

Renaming and restructuring the Knowledge and Enabling Services Team to become the Data Shop. The Data Shop is the technical arm of information management in the organisation

Establishment of the Business Intelligence and Information Team which has a range of functions around information management. These include:

acting as a ‘front door’ for the Data Shop on information and reporting activities between Centrelink and client agencies, such as FaCS

liaising between business areas and the IT Refresh Business Intelligence subprogram. This includes facilitating workshops, and the developing and coordinating business input to provide direction for the IT Refresh Business Intelligence projects

working with FaCS on the Information and Evidence Base project, which forms a part of the overarching Alliance 2004 project (see page 66). The Information and Evidence Base project focuses on processes and governance arrangements, documentation, reporting tools, data quality, skills and training.

While the above work is ongoing, some outcomes to date are:

an improved flow of information between Centrelink and client agencies better direction setting for the IT Refresh Business Information subprogram a greater focus on management information in Centrelink projects an established governance process for decisions on information management.

Department of Veterans’ Affairs—Veteran Information ServicesA review of the Veteran Information Service (VIS) was conducted during 2003–04, involving the 13 VIS sites in New South Wales and Queensland.

The review was conducted jointly with DVA and found VIS continued to meet the needs of veterans in rural and regional Australia. The report found the valuable link provided by VIS between DVA and veterans was widely appreciated by the veteran community and ex-service organisations.

Carer Allowance (formerly Child Disability Allowance) ‘saved cases’The current assessment tool for Carer Allowance, (formerly Child Disability Allowance) in respect of children aged under 16 years, was introduced on 1 July 1998. Customers receiving the allowance as at 30 June 1998 maintained their eligibility under the pre-July 1998 assessment tool for five years to 30 June 2003 (‘saved cases’).

Since 1 July 2003 carers paid Carer Allowance under the pre-July 1998 assessment tool had their eligibility reviewed by Centrelink under the current care receiver assessment rules. These reviews were required under social security law. The reviews have been successfully completed. A total of 67 657 customers were reviewed. Of these, 43 468 continued to be eligible (including 6843 who only qualified for the Health Care Card) under the post-July 1998 assessment tool.

The Government also added or modified six conditions to the Lists of Recognised Disabilities allowing applications for Carer Allowance to be ‘fast tracked’ if the child they care for has a disability or condition on the lists. The new or modified conditions are:

Down syndrome to age 16 fragile X syndrome to age 16 cystic fibrosis haemophilia—moderate and severe epilepsy—uncontrolled phenylketonuria

As these additional and modified disabilities and conditions were added after the review process had begun, some customers’ payments had been reviewed and cancelled. These customers’ payments were subsequently reinstated.

Six Nations ConferenceCentrelink representatives attended the Six Nations Conference on Benefit Fraud from 7 to 9 October 2003 in Stratford-upon-Avon, United Kingdom, and delivered a paper on improving the efficiency of fraud investigation. Other countries represented at the conference included the United States, Ireland, the United Kingdom, New Zealand and Canada.

The conference was successful in providing a greater awareness and understanding of the social security systems of the countries represented and in identifying emerging fraud trends.

Australia–Vietnam ConferenceCentrelink representatives joined a FaCS delegation to Vietnam and attended the Australia–Vietnam Sectoral Conference on Retirement Incomes in Hanoi from 26 to 28 April 2004, and presented a paper on fraud control and compliance.

The conference aim was to share government and private sector knowledge and experiences related to retirement incomes’ strategies and practices. Through the paper presented by Centrelink, the

conference was given an overview of the approach Australia takes to protect the integrity of outlays within its social security system.

Security and privacy practicesSecurity and privacy related matters are considered at a senior level in the organisation via the Security and Privacy Committee, chaired by the Deputy Chief Executive Officer/ Chief Information Officer. The committee regularly considers issues associated with staff and customer safety, privacy incidents and a range of protective and I&T security matters.

Centrelink ensures that it conforms to the requirements and guidelines for I&T security as laid down in the following government directives:

the Commonwealth Protective Security Manual, which is issued by the Attorney- General’s Department

the Australian Government Information Technology Security Manual, which is issued by the Defence Signals Directorate.

Regular monitoring of the I&T environment ensures that Centrelink remains compliant. This has included commissioning an internal review of the I&T environment by an assessor qualified under the Defence Signals Directorate’s Infosec-Registered Assessor Program. The results of this monitoring are reported to Centrelink’s Security and Privacy Committee and action is taken as necessary.

As a part of the IT Refresh program, Centrelink is developing a Security Architecture Framework which, when implemented, will ensure continued compliance with government directives, as well as compliance with the International and Australian Standards for Information Technology Code of Practice for Information Security Management.

Centrelink was also an active contributor to a range of whole-of-government focused committees including:

E-Security Coordination Committee Authentication Working Group Secure Infrastructure Working Group Protective Security Policy Committee.

With an increased range of services being offered online to Centrelink customers, a review of access and authentication policy was also undertaken during the year.

Property ManagementThe Property and Services Team is responsible for the management of Centrelink’s network of leased buildings. The portfolio of 429 sites occupies 545 638 square metres of leased accommodation and comprises 321 Customer Service Centres (CSCs), 26 Call Centres (Tweed Call Centre operates across two sites), 29 other customer service sites, 34 National and Area Support Offices and 19 storage and other sites. In 2003–04, property leasing costs for the portfolio were approximately $187.2 million.

The past year has seen a number of important achievements in the customer service delivery network. This included relocating nine CSCs and two Call Centres so that customers could get better access to Centrelink services. Centrelink’s micro simulation model is a valuable tool used in this process to analyse demographics, community infrastructure, and customer service delivery channel preferences. The model is useful in determining the best location for CSCs, and the optimum Office size to meet current and future customer needs.

Upgrading the customer service network to Centrelink’s corporate open plan was completed this year with the refurbishment of another nine CSCs.

New furniture designs are being progressively incorporated into Centrelink fi touts to improve the office layouts. One new initiative is the ‘New Gen’ workstation, which has now been installed at over 25 CSCs throughout Australia. These workstations are specifically designed to allow both customers and staff to view screen-based information, while remaining comfortably seated during an interview. The New Gen design is also space efficient, allowing larger circulation spaces for customers and staff.

Ongoing upgrade of the property portfolio is achieved via the annual Leasehold Improvement Program. Some $11.2 million dollars was earmarked for capital improvements such as new fi t outs and refurbishment works in 2003–04.

Five new network Offices were established at:

Perth, Western Australia—Centrelink Community Newman, Western Australia—Remote Access Services Centre Western Cape, Queensland—Remote Access Services Centre Halls Creek, Western Australia—Remote Access Services Centre Nguiu, Northern Territory—Remote Access Services Centre

The Property and Services Team continued to work closely with Centrelink’s outsourced provider of real estate services, Jones Lang LaSalle. The focus of the second year of the contract was to pursue process improvements, including innovative, more flexible lease structures and an outgoing review that is expected to yield significant savings. Jones Lang LaSalle is also participating in our strategic property planning by providing expert advice on industry trends and innovative solutions to planning challenges. Over the medium to longer term, this will position Centrelink’s property portfolio to meet the changing business imperatives of our future directions.

Environmental mattersThe following report is provided in accordance with Section 516A of the Environment Protection and Biodiversity Conservation Act 1999, and addresses the principles of ecologically sustainable development defined in Section 3A of the Act.

How activities of Centrelink and the administration of legislation by Centrelink accord with the principles of Ecologically Sustainable Development (Section 516A(6)(a))

Centrelink’s customers are drawn from about one-third of the Australian population, including families, retirees, people with disabilities, students and job seekers. The payments and services Centrelink provides on behalf of client agencies contribute to the social and economic outcomes set by government for our client agencies and assist them to meet their ecologically sustainable development (ESD) obligations.

How the outcomes specified for Centrelink in the relevant Appropriations Act contribute to Ecologically Sustainable Development (Section 516A(6)(b))

Centrelink has one outcome, which is the ‘effective delivery of Commonwealth services to eligible customers’. This outcome reflects Centrelink’s role as a provider of a wide range of services (outputs) on behalf of client agencies to assist them to achieve their outcomes. (For information about those outcomes, see Chapter 3 of this report.) Accordingly, Centrelink’s outcome contributes indirectly to ESD by supporting those aspects of our client agencies’ outcomes that contribute to the integration and intergenerational principles of ESD.

Effect of Centrelink’s activities on the environment (Section 516A(6)(c))

In 2003–04, Centrelink serviced 6.5 million customers, with over 25 000 staff operating at more than 1000 service delivery points, ranging from large CSCs to small visiting services. Centrelink sent approximately 90 million letters to customers, received more than 28 million phone calls, and had over 32 million website ‘hits’.

In the main, the delivery of payments and services to customers and the community on behalf of client departments involves an exchange of information, either face-to-face at a Centrelink Customer Service Office, but increasingly through our Call Centre and Agent networks and range of online services via the Centrelink website.

To support these activities Centrelink uses the following key resources:

land and buildings information communication and technology equipment energy and water office consumables office furniture and fi tout transport and vehicles human resources.

Consequently Centrelink’s direct impact on the environment is mainly in the areas of:

energy use (electricity and gas) emissions, discharges and waste water use consumption of materials.

Measures being taken by Centrelink to minimise the impact of its activities on the environment (Section 516A(6)(d))

As a large consumer, Centrelink has put in place processes for reducing the use of resources—with a focus on energy and consumption of materials, and improving waste management and recycling. Whilst many of the initiatives that follow have commenced at a national level within the National Support Office, it is intended that these will be progressively rolled out to other parts of the network as contractual and individual leasing arrangements within our property portfolio allow.

WaterA program of water reduction within Centrelink will be progressively implemented across the network as leasing negotiations allow.

CASE STUDY—TUGGERANONG OFFICE PARKCentrelink and FaCS are joint tenants of Tuggeranong Office Park (TOP). TOP provides Office accommodation for around 2400 Centrelink and FaCS staff. Responsibility for managing and maintaining the building rests with Centrelink as the major tenant. This arrangement has allowed Centrelink to implement an extensive range of environmental management initiatives.

Water consumption at TOP decreased by 35 112 kilolitres in 2003–04, which is a 45 per cent reduction compared to 2002–03 usage. This reduction in consumption was a result of Centrelink and FaCS’ water saving initiatives that were designed to reduce water use and comply with water restrictions imposed in the Australian Capital Territory during the year.

EnergyEnergy usage is the prime contributor to the creation of Centrelink’s greenhouse gas emissions. Centrelink purchases Green Power where it is available. During 2003–04, 5 per cent of our energy use in New South Wales, Victoria and Queensland and 10 per cent in the Australian Capital Territory was sourced from renewable energy sources through Green Power.

Since March 2003, Centrelink has been working with AGL Energy services to develop and implement an innovative Energy Management program. The program has four elements:

an energy audit program the creation of an energy management database a review of Centrelink’s Base Building briefs

an energy-efficient fluorescent lighting program at TOP.

Consumption of MaterialsProcurementOur purchasing and leasing practices include decision-making processes that effectively integrate short- and long-term environmental, economic and social considerations. In 2003–04, Centrelink updated its tender conditions and request for tender documentation to ensure tenderers address Centrelink’s environmental criteria on a case-by-case basis.

VehiclesCentrelink is actively addressing the environmental performance of its vehicle fleet in line with the Commonwealth Green Vehicle Guide (GVG) target, which seeks to improve the environmental performance of the Australian Government’s vehicle fleet. The GVG rates vehicles on their fuel consumption, noxious emissions, and greenhouse gas emissions using a score of one to 20.

PaperCentrelink uses approximately 500 000 reams of cut-sheet paper a year. In line with a new paper procurement policy adopted last financial year, Centrelink sources this and its continuous-roll paper from reputable suppliers who are prepared to certify that their product has been manufactured from renewable and sustainable resources.

Centrelink uses a large volume of window faced business size envelopes each year for bulk mail to customers and within the Centrelink network. The paper used in these envelopes is guaranteed to be at least 60 per cent recycled fibre content. In accordance with an agreement developed between Australian Paper and Centrelink, each of these envelopes is clearly identified as being manufactured from paper with at least 60 per cent recycled fibre content.

CASE STUDY—REDUCING ENERGY AND PAPER USE BY OUR PC FLEET

During 2003–04, the Communications, Desktop, Servers and Mobile Team rolled out the Windows XP operating system to our network of personal computers. The rollout included the implementation of XP’s two-stage power management technology, which powers-off monitors after a short period of inactivity, and after a further period of inactivity, powers down the computer’s processor. The rollout also configured XP so that double-sided printing is the standard default print setting.

CASE STUDY—DIGITAL MEDIA MONITORING SERVICEIn May 2004, the Communication, Media & Marketing Team introduced a digital media monitoring service to provide a more timely distribution of media monitoring across the organisation. Senior management and other key personnel all over Australia now receive a comprehensive brief of broadcast media summaries and newspaper clips in the early morning in their email boxes. Previously, paper copies of press ‘clips’ were sent out through the internal mail system.

Waste Management and RecyclingCentrelink seeks to reduce waste production and adopt more environmentally sound waste disposal techniques wherever possible. Recycling initiatives are being utilised or introduced within all areas of Centrelink, and in line with local cleaning contracts. Two Case Studies demonstrating the range in place are detailed below.

CASE STUDY—AREA SOUTH METROArea South Metro (including Liverpool Call Centre) introduced a recycling program involving a reduction in standard desk bins, and introduction of replacement ‘communal’ bins and 27 litre bins for recyclable material. Costs for establishment of this program have been minimal and will be met by a reduction in other associated expenditures. There are now approximately 50 per cent fewer waste bins across the Area and Call Centre, and a reduction of 23 400 plastic bin liners a year has been achieved.

CASE STUDY—AREA SOUTH AUSTRALIAArea South Australia has taken advantage of the 5 cents refund for all beverage containers returned for recycling within their state. Red recycling bins were placed strategically throughout the Area Office building, with designated volunteers organising collection and transfer of the containers to the recycling depot. In eight months the Office has recycled 14 268 cans/bottles.

Mechanisms, if any for reviewing and increasing the effectiveness of these measures (Section 516A (6) (e))

To build on the outcomes of the Initial Environmental Review undertaken in 2002–03, by the Property and Services Team, an Environmental Management Team was established in February 2004. In consultation with the Centrelink Board, the Executive and the Guiding Coalition, the team has developed an Environmental Policy Statement and is working towards implementation of an Environmental Management Strategic Framework.

Centrelink Environmental Policy StatementThe Centrelink Board and the Guiding Coalition endorsed an Environmental Policy Statement in May 2004. The policy statement covers Centrelink’s operations throughout Australia and commits Centrelink to a process of continuous improvement in meeting its environmental stewardship obligations. The policy statement provides that Centrelink will implement and maintain an Environmental Management System based on the Australian standard that allows Centrelink to:

comply with all relevant environmental legislation and regulations, and other initiatives to which we subscribe

incorporate environmental better practice into our core business plans and management processes minimise negative impacts we may have on the environment, through efficient use of resources, and

reduction in emissions and waste develop an agency-wide framework for setting and reviewing our environmental objectives and

targets, which will include key environmental management and performance indicators against aspects of Centrelink’s operations

provide regular monitoring and reporting against these indicators to all staff incorporate environmental better practice into all technological solutions, and the fi t-out and

operation of accommodation ensure we work closely with our clients, suppliers, local communities, and other stakeholders to

continually improve our processes in environmental better practice foster the initiation and ownership of environmental activities by all our staff, and build a strong

environmentally aware business culture.

Environmental Management Strategic Framework (EMSF)To support the Environmental Policy Statement, Centrelink is also developing an Environmental Management Strategic Framework. The framework is designed to ensure that our commitments are supported by actions that integrate environmental management into all aspects of our business planning and service delivery processes.

Key initiatives already in place, and that will be incorporated as part of the EMSF include:

establishment of a Senior Executive Centrelink Environmental Council, which will play a key role in implementing the planned agency-wide Environmental Management System (EMS)

an Environmental Champions Network to support activities and initiatives at the Area and individual team level

a new Centrelink Environmental Management @ Work Award within the Centrelink National Awards presented every September. The award will recognise innovation and good practice in terms of ecologically sustainable development within Centrelink’s business operations.

Development of an Environmental Management System

Through implementation of its Environmental Management Strategic Framework, Centrelink intends to develop an agency wide Environmental Management System. Many Areas and teams within Centrelink are undertaking local initiatives in conjunction with community groups and local government.

CASE STUDY—ILLAWARRA CALL CENTREIn February 2004, Illawarra Call Centre achieved Certification under the Australian Standard for Environmental Management Systems (AS/NZS ISO 14001: 1996) and became Centrelink’s first site and Australia’s first Call Centre to achieve this accreditation. To retain Certification, an audit of all key processes within the Environment Management System is undertaken by Certified auditors twice a year.

CASE STUDY—PINE ISLAND TREE PLANTING In May 2004, more than 130 employees and their families volunteered to help Greening Australia plant 1000 native trees and shrubs at Pine Island, a popular recreational area behind Tuggeranong Office Park that was devastated by the January 2003 bushfires in Canberra.

Information and technology Testing ServicesCentrelink Testing Services provides independent quality assessment of the state of Centrelink’s software ‘awaiting’ release. Placing permanent testers in two test sites has resulted in the development of enduring test expertise, improved reporting, and established better relationships with staff and client agencies.

To further improve on the expertise of Centrelink staff in this critical area, Testing Services has embarked on a training program with a leading industry supplier of test training services. This program is expected to continue over the next three years and will lead to Centrelink staff completing an accredited program covering all aspects of software testing.

To support the continued development of better practice I&T processes, a new testing framework addressing strategies, processes and tools for testing end-to-end services was established in 2003–04, and will be implemented over the next two years.

EFFECTIVELY IMPLEMENT IT REFRESHAbout IT RefreshIT (Information Technology) Refresh is a $312 million, five-year program the Australian Government announced in the 2002–03 Budget.

The IT Refresh program will significantly improve the delivery of services to Centrelink’s 6.5 million customers. The investment will further develop Centrelink’s existing core computer systems, and will provide customers with a wider choice in accessing Centrelink services. It will:

enhance Centrelink’s existing computer systems and develop new I&T capabilities needed to support the delivery of services via the phone, Internet and emerging technologies

provide more choices in how customers can access Centrelink services assist customers in regional and rural areas who have poor Internet services, to be able to use

automated phone services to access and update personal records and to access information about government services and entitlements

allow for online exchange of simple, high volume, routine information that Centrelink uses for validating customer compliance requirements. This will make it easier, less costly and more efficient for businesses and third party organisations to respond to Centrelink requests to verify customer circumstances

enable the automation of routine work so staff can concentrate on assisting customers with complex enquiries and provide customers with a higher level of service

develop the highest levels of security access and authentication controls to protect customer records, protect the privacy of citizens, and protect Centrelink systems from illegal and malicious intrusion.

In its first year, the IT Refresh program is on schedule to meet government requirements. Effort in 2003–04 has focused on: establishing the program; delivering initial savings; implementing enhancements to existing systems to support improved services to clients, customers and government; defining the architecture and solutions for new developments outside of Centrelink’s core systems; and delivering the base projects and capabilities needed for future year projects.

The key achievements from the IT Refresh program for 2003–04 were:

improved data integrity enhancements to customer contact recording systems, rate calculators and debt calculators greater mainframe capacity improved ability to manage organisations as users of online services.

A significant amount of effort was also invested in the planning, analysis and design of other IT Refresh projects. Many of these projects are multi-year projects that are developing the foundation capabilities that future projects require. During the year, three major tenders were issued from the IT Refresh program. These tenders relate to the:

provision of an Information Technology Service Management Solution redevelopment of Centrelink’s Security Access Management System User Interface and Workflow

Layer supply of a Virtual Private Network Solution.

These tenders will enable Centrelink to improve the performance of its systems; enhance its security access and authentication controls to better protect customer records, the privacy of citizens and Centrelink systems; and improve service delivery to regional and Indigenous communities. Further tender opportunities will be announced progressively to the I&T industry.

Future CapabilityThe purpose of Future Capability is to encourage innovation and undertake research that will guide future investment decisions relating to business transformation and technology.

In 2003–04, projects investigating opportunities arising from technologies such as Linux, tablet personal computers, desktop fax, short message services and auto-callout, Wireless local area networking, voice convergence, and video technology.

Several of the projects completed in 2002–03 have provided critical input to the IT Refresh program, resulted in new technology support arrangements being implemented, and led to additional future capability proposals in 2003–04.

TAILOR OUR SERVICE OFFERSCentrelink’s e-Business StrategyCentrelink is committed to providing greater customer and business access to its services, when, where and how the customer wants them. Centrelink’s e-Business Strategy aims to provide customers, business, community groups and other government organisations with a more efficient means of interacting with Centrelink using web and phone based self-service options.

The strategy provides a road map for e-Business transformation, and through Centrelink’s Business Plan priorities they contribute to Centrelink’s Future Directions by expanding Centrelink’s business capability through the smart application of technology.

Self-service

Self-service options complement existing service delivery channels and ensure efficient management of the simpler and more repetitive transactions. This assists Centrelink’s Customer Service Officers by allowing them to focus on current or emerging customer issues and to provide higher levels of customer service, especially for customers with complex needs or those requiring more intensive assistance.

Centrelink’s web and phone based self-service options require customers to register and authenticate before exchanging any personal information. The web and phone based self-service options can be accessed through:

the Centrelink website (www.centrelink.gov.au) and the Family Assistance Office website (www.familyassist.gov.au)

the Centrelink automated phone services using Interactive Voice Response touch phone keypad access and Natural Language Speech Recognition.

National Language Speech Recognition allows the customer to speak naturally to the Centrelink reporting system instead of pressing phone keypad buttons. Customers access this service by calling the Centrelink Employment Income Reporting line.

Recognition and AwardsCentrelink has become an acknowledged leader in the field of e-Business and customer self-services. Case studies detailing Centrelink’s successful use of this technology have been published by National Office for the Information Economy (NOIE), now referred to as Australian Government Information Management Office (AGIMO) and respected international journals.

Centrelink has recently submitted a case study—‘New Technologies Help Centrelink Customers Stay in Touch’ for a new publication by AGIMO. The publication focuses on how technologies are enabling better policy decisions through improved information management as well as driving more streamlined business processes, increased productivity and greater customer focus.

Centrelink has also received a number of prestigious industry awards for its work in this area. A Gold Government Technology Productivity award recognising Centrelink’s harnessing of digital opportunities through self service and collaborative organisational networking for the Benefit of customers was received in September 2003. In addition, Centrelink was awarded an International Best Practice award for the most innovative speech solution for the Natural Language Speech Recognition (NLSR) system at a conference in the USA in late 2003.

Centrelink customers currently have access to more than 20 web and phone based self service options with high take up rates particularly evident in the student and families segments. Usage by Working Credit customers choosing the phone based self-service option to report employment income has been particularly high.

Centrelink has issued more than 225 000 customer passwords to access web based self-services and is approaching 675 000 Personal Identification Numbers (PINs) to access the phone based self-services through either touch phone keypad or NLSR technology. Demand for web and phone based self-services has grown steadily with an average of 190 000 Internet and telephone transactions taking place each fortnight as at June 2004. Approximately 20 per cent of registered self-service customers will use the self-service options over the course of any one fortnight.

Customers will continue to have choice in their preferred way of interacting with Centrelink. However, it is expected that many customers and citizens will find it more convenient to ‘help themselves’ using Centrelink’s website to research and gather information, find answers to questions, advise Centrelink of changes to personal circumstances and access services using an increasing number of web and phone based services.

Ultimately Centrelink’s e-Business transformation, including web and phone based self service initiatives, will facilitate greater customer focus and personalisation, simplification of business processes, closer community partnerships, and easier access to government services. IT Refresh will provide the foundation and capability for this transformation.

Entitlements and Assessment SystemsEntitlements and Assessment Systems (EAS) is responsible for the development of new and maintenance of existing software that supports the operation of Centrelink’s primary business partnership agreements for legislative responsibilities in the areas of retirement, disability and carers support, Families Assistance Office, and employment services systems.

EAS maintains the processing systems that deliver most Australian Government payments to Centrelink customers. Staff responded quickly and efficiently to the Australian Government social welfare reform agenda for the Australians Working Together initiative, as well as delivering extensive changes to the Family Assistance Office systems for the More Choices for Families initiative and the Parental Income Test Linking measure, and coordinating Employment Services Contract 3 systems changes.

EAS perform an ‘unseen’ but essential role in the effective management of crisis response. During 2003–04, EAS staff helped to deliver flexible and rapid responses to a number of national crisis situations, by providing emergency payments to support staff and customers. Tailored support was also provided to rural and remote communities affected by drought, sugar cane growers, dairy farmers, customers affected by bushfires, and customers affected by the events in Bali.

Applications supportThe Natural Language Speech Recognition application allows eligible Working Credit customers and student customers across Australia to declare their fortnightly earnings to Centrelink using a speech recognition self-service application. By 30 June 2004, over 9000 customers were completing this transaction every fortnight.

Customers can call, identify themselves and authenticate their identity (if they have a PIN) before speaking to a Customer Service Officer.

In 2003–04, by entering a Customer Reference Number (CRN), over 30 000 customers identified themselves each day before speaking to a CSO. Over 8000 authenticated their identity by entering a valid CRN and PIN combination. This integration of telephony and computer networks has provided significant savings to Centrelink, especially with the more streamlined customer experience via the phone, with 600 000 customers voluntarily choosing to get a PIN.

Computer Telephony Integration has also enabled Centrelink Call to fully route all their calls using Skills Based Routing, which is now in place in all Call Centre queues. This means Centrelink Call staff can handle calls across more than one area of expertise. The Telephony Business Solutions Team has also enhanced ‘Softphone’ so that it can link into the new Customer Account web based user interface.

During the year, Centrelink continued working on the next wave of speech recognition applications, which are expected to be offered to eligible customers by the end of 2004.

Infrastructure services and operationsTo enhance and track the efficiency of Centrelink’s I&T capability, the Centrelink Network Operations Centre was developed to centrally monitor the availability of I&T infrastructure components. This enables:

more efficient end-to-end I&T service monitoring more effective infrastructure fault prevention and response to faults increased I&T agility through availability and performance information expanded infrastructure availability information delivery options.

In early 2004, Centrelink migrated to Windows XP on the desktop. It is now equipped with the most robust Windows desktop operating system available and is positioned to take advantage of new technologies, while at the same time providing maximum protection against virus and denial of service attacks.

During the year, Centrelink upgraded its IBM mainframes to the newer Z90 machines. This upgrade provides Centrelink with a highly reliable and resilient infrastructure upon which its core applications operate. This ensures continued and highly reliable delivery of services to Centrelink’s customers.

Centrelink also conducted a number of new technology trials during 2003–04 including Tablet personal computers, short message services and auto-callout, Wireless local area networking, voice convergence and Linux trials. These trials have helped Centrelink to study likely performance and customer service improvements that may result from future implementation of these technologies.

SIMPLIFY, STREAMLINE AND RE-ENGINEER PROCESSESMulti Purpose ContactMulti Purpose Contact (MPC) is a business process based on the principles of using data collected once for multiple purposes and using every customer contact as an opportunity to address required or future scheduled tasks and reduce the need for future customer contacts.

In March 2004, a new version of the ‘script’ tool that supports the MPC business process was released. The changes to the MPC tool included:

improved response times on customer record checks checks on customer records to identify required action that directly affects a customer’s

circumstances and displays these to the Customer Service Officer (CSO) in an URGENT checks table. These URGENT checks, if not done, will impact on the customer’s record and will cause preventable work such as debts, suspensions and breaches.

There were also changes to help reduce the amount of Family Assistance Office estimate debts for customers on Family Tax Benefit Part B. If a nil or low estimate is detected the CSO is advised to discuss the consequences of an underestimation of income with the customer. The CSO has the option of referring the customer to the Family Assistance Office team.

Better targeted management information has also been developed to assist managers to identify the urgent completed tasks as well as uncompleted tasks.

Business process redesignABSTUDY redesigned claim processCentrelink’s Business Process Redesign Team worked with a number of stakeholders to design, test and evaluate a new end-to-end process for ABSTUDY. The project’s primary objective was to to ‘design a new end-to-end process for use in all available channels for Indigenous customers.’ The scope of the project included:

drafting the requirements of a simplified ABSTUDY claim process identifying opportunities for customer profiling and debt profiling looking at ways to improve third party arrangements for information exchange looking at ways we can use MPC and the Centrelink Assessment Model for ABSTUDY.

Student end-to-end processThe Business Process Redesign Team also worked with stakeholders to design a student end-to-end service delivery process. This work had the following objectives:

review and redesign student end-to-end service delivery process, taking into account student self-service imperatives including registration and channel options

agree a set of principles for the student redesign identify and consolidate work already done to redesign student end-to-end business process plan for project implementation taking into account current workflow.

One-page humanitarian refugee claim formA one-page humanitarian refugee income support claim form was designed, tested and implemented for Newstart Allowance, Youth Allowance (Job Seekers), Family Tax Benefit, Parenting Payment Partnered, Parenting Payment Single and Age Pension customers in 2003–04.

Claim process for retirement, disability and student customer groupsIn consultation with stakeholders, a revised claim process for the retirement, disability and student customer groups was developed. This process uses dynamic questioning to collect information from customers so that they are asked questions relevant to their circumstances. This design is based on the principle of re-using customer data.

Consolidated ResidenceResidence assessment, affecting all payments and concession cards, was standardised from 6 December 2003.

All payment/concession card systems now use the same standard screens for legal residence status and periods of residence. All systems derive the rules (for example, for periods of residence or waiting periods) the same way. More information is supplied to the CSO and the customer to explain situations where a customer does not satisfy rules, and new summary/explanation screens are available. This makes it much easier for CSOs to ‘get residence right’, even though the legislation remains very complex, with multiple payment-specific savings and exemption provisions.

DIMIA Data linkFrom 26 April 2004, access to real-time online Department of Immigration and Multicultural Affairs (DIMIA) arrivals/departures and visa information has been available from within a customer’s Centrelink record, through a direct data link with DIMIA.

Customer arrival, departure and visa information is necessary to ensure correct entitlement, both at the new claim stage and for ongoing payment. Staff previously relied on a paper-based process to request information about a customer’s visa status and/ or movements into and out of Australia. These requests to DIMIA took several weeks to process. Staff can now request and instantly receive DIMIA information from within a Centrelink customer record. The requests are made via a secure electronic data link between the organisations.

FINANCIALCHAPTER EIGHTAPPENDICESCHAPTER NINEAppendix 1: Consultancy contracts let during 2003–04 with a value of $10 000 or greaterThe following legend serves as an explanatory guide to the data contained in the table below:

‘How engaged’ codesP/T = Public tender

R/T = Restricted tender

Justification codesA = Skills currently unavailable within Centrelink

B = Requirement for collection of quantitative statistical information

C = Requirement for independent or impartial research/assessment by an independent organisation

D = Requirement for specialist/professional expertise

TABLE 40: ALL CONSULTANCY CONTRACTS LET DURING 2003–04 WITH A VALUE OF $10 000 OR GREATER

Reference

Number

Vendor

NameShort description Total value

($)How

Engaged

Justifi cation

Code

EXTS04/

0608AIESEC Australia

To facilitate the

International

Graduate Exchange

Program 2004 for

Centrelink

17 500 R/T A

ITCS04/

0099

Aquitaine

Consulting Pty

Ltd

Provision of

independent advisory

services for the IT

Refresh program

686 400 R/T D

SODS03/

0875-0003

Australian

Protective

Services

Provision of

organisational

security plan and

other security

consultancy services

35 800 R/T A

SODS03/

1189-0001Biometix Pty Ltd

I&T consultancy

services relating

to authentication

systems

120 000 R/T A

CONQ03/

0025

Charmjoy

Pty Ltd T/A

Cross Cultural

Consultants

Consultation

regarding the

operation of the

Centrelink office at

Maningrida

25 000 R/T D

DOAS04/

0164-A

Charmjoy

Pty Ltd T/A

Cross

Consultation

regarding the

operation of the

38 854 R/T D

Reference

Number

Vendor

NameShort description Total value

($)How

Engaged

Justifi cation

Code

Cultural

Consultants

Centrelink Office at

Maningrida

DOAS04/

0229Coleshill Pty Ltd

Provision of specialist

project management

expertise

50 000 R/T D

EXTS04/

0052-D

Convergence

E-Business

Solutions Pty Ltd

Provision of

authentication

consultancy services

82 965 R/T A

EXTS03/

0963

Corporate GIS

Consultants

Australia Pty Ltd

Provision of

consulting services

associated with

the implementation

and support of

a geographic

information system

40 480 P/T D

EXTS03/

1138

CPT Global

Limited

Assessment of

future mainframe

capacity demand and

hardware provisioning

options

74 800 R/T A

DOAS04/

0311

Dale R Boucher

Solicitor and

Consultant

Consultancy into Call

Centre management

Practices

60 000 R/T C

DOAS03/

1212

Deloitte Touche

Tohmatsu

Consultancy services

in relation to Phase

II of the Business

Transformation and

Participation Practice

in Centrelink

198 000 R/T D

DOAS04/ Deloitte Touche

Consultancy services 85 223 R/T D

Reference

Number

Vendor

NameShort description Total value

($)How

Engaged

Justifi cation

Code

0292-A Tohmatsurelating to strategic

project management

SODS02/

1596-0019

DMR Consulting

Pty Ltd

Advice and facilitation

of Centrelink’s

application of

Benefits Realisation

Approach

16 335 R/T D

SODS02/

1596-0020

DMR Consulting

Pty Ltd

Advice and facilitation

of Centrelink’s

application of

Benefits Realisation

Approach

27 235 R/T D

SODS02/

1596-C-

0007

DMR Consulting

Pty Ltd

Advice and facilitation

of Centrelink’s

application of

Benefits Realisation

Approach

49 005 R/T D

SODS03/

1514-0001

Egon Zehnder

International

Pty Ltd

Performance

and capability

assessments

225 500 R/T D

DOAP03/

0143

GSM Executive

Programs

Limited

Design, develop and

conduct workshops

on coaching skills

35 000 R/T D

CONS04/

0333

Heaney; Blaylock

and Associates

Pty Ltd

Services related to

workplace relations48 708 R/T D

DOAS03/

0886

HRM Consulting

Pty Ltd

Review of human

resource governance

and management

123 200 R/T C

Reference

Number

Vendor

NameShort description Total value

($)How

Engaged

Justifi cation

Code

CONS03/

1430

Human

Synergistics

Australia Pty Ltd

Organisational

cultural development

pilot program

43 548 R/T D

CONS03/

1050

Incoming Calls

Management

Institute

Consultancy services

for management

education program

170 000 R/T A

DOAS03/

1218

Interaction

Consulting

Group

Review of risk

management support17 600 R/T D

ITCS04/

0365-A

ITerative

Consulting Pty

Ltd

Software architecture

review and Forte

consulting services

94 050 R/T D

EXTS03/

1075

IV and V

Australia Pty Ltd

I&T consultancy

services relating to

Process Maturity

Reporting

61 864 R/T C

CONS04/

0502

J G Mitchell and

Associates Pty

Ltd

Development of

national assessor/

evaluator network

12 000 R/T A

CONX04/

0003

J G Mitchell and

Associates Pty

Ltd

Consultancy

service to develop

proposals dealing

with evaluation

and recognition of

learning

10 000 R/T D

DOAS03/

1139

J G Mitchell and

Associates Pty

Develop new

approach to learning

and assessment

27 500 R/T D

Reference

Number

Vendor

NameShort description Total value

($)How

Engaged

Justifi cation

Code

Ltd

with regard to

nationally recognised

Qualifications

EXTS04/

0468

Korn /Ferry

International

Recruitment services

Consultancy100 000 R/T C

ITCS04/

0394

Naked Object

Group Ltd

Provision of I&T

consultancy services56 000 R/T D

EXTS04/

0571

Petmar

Consultancies

Pty Ltd

Consultancy into

human resource

system access

33 440 R/T C

SODS03/

1257-0007

Primavera

Australia Pty Ltd

Consultancy services

associated with

Master Software

Licence Agreement,

data gathering and

planning

15 840 R/T D

SODS03/

1257-0036

Primavera

Australia Pty Ltd

Consultancy services

associated with

Master Software

Licence Agreement

33 315 R/T D

SODS03/

1257-0037

Primavera

Australia Pty Ltd

Consultancy services

associated with

Master Software

Licence Agreement,

integration design

51 675 R/T D

SODS03/

1257-0038

Primavera

Australia Pty Ltd

Consultancy services

associated with

Master Software

Licence Agreement,

project manager

29 327 R/TDSODS03/

1257-0042

SODS03/ Primavera Consultancy services 32 061 R/T D

Reference

Number

Vendor

NameShort description Total value

($)How

Engaged

Justifi cation

Code

1257-0042 Australia Pty Ltd

associated with

Master Software

Licence Agreement,

team play scheduling

refresh

SODS03/

1257-0043

Primavera

Australia Pty Ltd

Consultancy services

associated with

Master Software

Licence Agreement,

design work

69 284 R/T D

SODS03/

0322-0002

SGW and

Associates

Specialist services

in change and

strategic stakeholder

management

29 975 R/T D

SODS03/

0322-0003

SGW and

Associates

Specialist services

in change and

strategic stakeholder

management

59 950 R/T D

CONS03/

1505Sherton Pty Ltd

Prepare Community

Connect program

plan and advice on

presentation

20 000 R/T D

DOAS04/

0480

Team Systems

Pty Ltd

Design and facilitate

participation

business information

and process

improvement

workshops

11 990 R/T D

SOXS04/

0462-0001

Terranovate

Group Pty Ltd

Inter-agency Refresh

steering committee

independent adviser

99 000 R/T D

CONS04/ The Business Consultancy 16 500 R/T C

Reference

Number

Vendor

NameShort description Total value

($)How

Engaged

Justifi cation

Code

0566Travel Consulting

Group

advice on travel

management

SODS02/

2194-0004

The Nous Group

Pty Ltd

Design, development

and delivery

of leadership

development

programs

306 326 P/T(a) D

SODS02/

2194-0005

The Nous Group

Pty Ltd

Design, development

and delivery

of leadership

development

programs

162 000 P/T(a) D

SODS03/

1349-0001

The University

of Western

Australia

Provision of fraud

research services105 745 R/T D

EXTS03/

1114

University of

Canberra

Services to extend

the functionality

of the business

assessment tool

365 200 R/T D

CONS03/

0848

University of

South Australia

Consultancy advice

on enhancing the

performance of

personal advisers

10 000 R/T A

CONS03/

1270

Woodhead

International

Pty Ltd

Develop and

documentation of

a set of Corporate

Design Guidelines

582 300 R/T D

(a) Contract formed under a standing offer arrangement that was publicly advertised.

Appendix 2: Purchasing activity and contract managementTABLE 41: ADVERTISING AND DIRECT MAIL EXPENDITURE

Payee Amount ($)(a) Purpose

HMA Blaze 124 499 Advertising related to drought

HMA Blaze 239 264 Advertising related to the Financial Information

Service

HMA Blaze 7 099 Advertising for ethnic community

HMA Blaze 13 154 Advertising related to the sugar industry

HMA Blaze 981 671 Advertising for Centrelink

(a) Figures are Goods and Services Tax (GST) exclusive

TABLE 42: PAYMENTS $1500 AND OVER MADE TO ADVERTISING AGENCIES AND AGENCIES WITH ADVERTISING CAMPAIGNS

Payee Amount ($)(a) Purpose

Independent and 49 128 Dissemination of Centrelink information to the

General ethnic community

Made to Measure 5 100 Advertising for ethnic communities

National Indigenous 223 962 Advertising for the Indigenous community

Radio Service

New Hobsons Press 4 900 Advertising for the Indigenous community

Radio for the print 30 482 Advertising for the print handicapped

handicapped

Payee Amount ($)(a) Purpose

Royal Blind Society 91 321 Advertising for the visually handicapped

Seek 3 115 Advertising for Australians Working Together

Communications

Special Broadcasting 214 850 Provision of multicultural broadcast services

Service

Vibe Aust Pty Ltd 5 000 Dissemination of Centrelink information to the

Indigenous community

(a) Figures are GST exclusive

TABLE 43: PAYMENTS $1500 AND OVER MADE TO DIRECT MAIL ORGANISATIONS

Payee Amount ($)(a) Purpose

EMAP Australia 409 624 Bounty services: preparation and mailout of agency

Pty Ltd material

PMP Communications 1 171 136 Preparation and mail out of agency material

PMP Communications 2 133 421 Preparation and mail out of Age Pension News

(as sub-contractor to for Seniors

POL Corporation)

Salmat Mailing 10 572 260 Preparation and mail out of agency material

Services

(a) Figures are GST exclusive

TABLE 44: PAYMENTS $1500 AND OVER MADE TO MARKETING RESEARCH ORGANISATIONS

Payee Amount ($)(a) Purpose

DBM Consultants

Pty Ltd1 699 624

Market research related to customer satisfaction/

interaction/people from diverse cultural and linguistic backgrounds

Eureka Strategic

Research185 464

Market research related to communicating with

people with a disability, medical and work capacity assessments, Securing Your Future magazine, redesign of Age Pension News for Seniors, Community Update magazine, and Medical Liaison project.

Market Access

Consulting and

Research

129 100Market research related to customer letters, Parents and Employment Guide and participation

Market Solutions 186 991

Market research related to the staff poll, debt

prevention, time boxes, Assistance for Isolated Children and website redesign

Millward Brown

Australia38 781 Market research related to Centrelink

positioning

Newton Wayman

Chong and

Associates

156 012

Market research related to Rural News, team leader role, Centrelink Agent and Access Points and Parents and Employment Guide

Orima Research 139 021

Market research related to Family Tax Benefit/Family

Assistance Office products, Customer Account and security management

Worthington De

Marzio Pty Ltd69 800 Market research related to disability and

carers’ products and Centrepay

(a) Figures are GST exclusive

Appendix 3: Commonwealth Legislation affecting CentrelinkEnabling LegislationCommonwealth Service Delivery Agency Act 1997

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) (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

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

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 ManagementDisability 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 Benefit) 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

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

Appendix 4: Organisational chart: list of positions

Position Name

Chief Executive Officer Sue Vardon Sue Vardonq

Chief Auditor Mike Goldstein

Operational and Performance Audit Andrew Cox

General Manager, Strategic and Business Planning

Katrina Edwards

Communication, Media & Marketing Hank Jongen

Executive, Board and Parliamentary Support Ray White

Customer Service Name

Deputy Chief Executive Officer, Customer Service Pat Turner

Chief Customer Officer Sheila Ross

Indigenous Services Barbara Causon

Customer Service Trisha Moran

Multicultural Services Peter Rock

Service Recovery Team John Browne

Community Sector Relationships and Business Liaison

Marcia Williams

Business Name

Deputy Chief Executive Officer, Business Graham Bashford

Chief Financial Officer, Financial Services Marilyn Prothero

Position Name

Property and Services Colin Parker

Environmental Management Robyn Kemp

Resource Management Karel Havlat

Contracts and Procurement Rod Gibson

General Manager, People and Corporate Performance

Carmel McGregor

Workplace Relations and Policy Peter Cotterill

Corporate Performance Tony Gargan

Dean, Centrelink Virtual College Margaret Hamilton

Workforce Capability and People Management David Wilden

General Manager, Families Grant Tidswell

More Help for Families Sally Babbage

International Services David Batchelor

Families and Child Care (Acting) Keith Bender

Families and Child Care (Acting) Keith Bender

Retirement, Carers and Means Test Jan Bush

Debt Services Paul Cowan

Rural and New Business Greg Divall

Cross Program Payments and Services Peter Fisher

Detection and Review Phil Richardson

General Manager, Participation and Client Partnerships

Dr Margaret Browne

Business Alliances Jo Gaha

Business Name

Business Intelligence and Information Paul Conn

Customer Assessment and Referral Services Ruth Freeman

Social Work and Social Inclusion Services Desley Hargreaves

Participation Requirements Darryl Alexander

Position Name

Participation Payments (Acting) Elayne Strahan

Participation Services Robert Williams

Working Age Reform and Simplifi cation Michelle Gunasekera

Risk and Business Assurance Dr Helen McKenna

Business Transformation Name

Deputy Chief Executive Officer, Business Transformation and

Chief Information Officer

Jane Treadwell

General Manager, Service Integration Shop Carolyn Hogg

Participation Peta Fitzgibbon

Business Practices (Acting) Peter Gillies

Profi ling and Reviews Brian Pacey

Customer Support Brian Silkstone

Startup Mark Wellington

Group Director, Business Transformation Ian McShane

Project Services and Delivery Brad Clark

General Manager, New Business Solutions John Wadeson

Enterprise Architecture Helen Austin

Applications Architecture Steve Crisp

New Community Solutions Hylkia de Greve

Infrastructure Architecture Peter Gunning

Business Intelligence Martin Kos

Communication Technologies Kevin Parsons

Enterprise e-Solutions Helen Skrzeczek

New Solutions Development Ken Watt

I&T Change and Integration Luke Woolmer

Position Name

General Manager, Capability Creation and Management

Ann Steward

e-Business Glenn Archer

Capability Planning Elaine Ninham

IT Refresh Program Office Trevor Smallwood

General Manager, I&T Operations/I&T Service Executive

Dr Louise Tucker

Data Shop Linda Argall

Customer Profile and Access (Acting) Tim Bennetts

Business Transformation Project Team Tuan Dao

Business and Information Protection Pat Fegan

I&T Infrastructure Services Julie Fursman

Applications Support (Acting) Tony Leng

Business Transformation Name

I&T Operations Christine Miller

Entitlements Assessment Systems (Acting) Arnold Mueller

I&T Infrastructure Services Nico Padovan

Corporate Systems Helen Austin

Service Management Name

Deputy Chief Executive Officer, Service Management

Paul Hickey

Area Network John Regan

Service Delivery Integration (Acting) Robin Salvage

General Manager, Centrelink Call Christine Hagan

Operations Graham Maloney

Future Capability Sheryl Lewin

Area Managers Name

Area Central and Northern Queensland Peter Doutre

Position Name

Area Brisbane Paul Goodwin

Area Pacific Central Lyn Agnew

Area North Australia Gordon Pitts

Area Hunter Peter Smith

Area East Coast New South Wales Mandy Ritchie

Area South Metro New South Wales Vicki Buchanan

Area West New South Wales David Walsh

Area South West New South Wales Peter Bickerton

Area West Australia Gavin McCairns

Area North Central Victoria Norman Walker

Area South East Victoria Barbara Clements

Area West Victoria Annette Drury

Area Tasmania David Batchelor

Area South Australia Mary Kosiak

Appendix 5: International visits to CentrelinkTABLE 45: INTERNATIONAL VISITS TO CENTRELINK

Date Delegation Areas of Interest

1 July 2003 Delegation from Kyung Ki

State Government

• Visit to Liverpool demonstration site

8 July 2003 Delegation from the People’s

Republic of China

• Visit to Liverpool demonstration site

9–11 July 2003 Thailand Social Security Office • Presentation on overview of Centrelink

• Presentation on Balanced Scorecard

• Visit to Liverpool demonstration site

13 August 2003 Vietnam Ministry of Labour,

War Invalids and Social Affairs

• Visit to Woden Customer Service Centre

Date Delegation Areas of Interest

20–22 August 2003 Senior Study Tour by Royal

Thai Government Officials

• Meet with Sue Vardon

(Chief Executive Officer)

1–19 September 2003 Vietnam Social Security—

Placements

• Presentations and placements with I&T teams

• Visit to Liverpool demonstration site

25 September 2003 Secretary for Administration

and Justice—Macau

• Meeting with Sue Vardon

(Chief Executive Officer) and

Christine Hagan (General Manager, Centrelink Call)

• Tour of Centrelink Call, Canberra

• One-stop shop concept and Call Centre services and policies

7 October 2003 Japanese Employees Pension

Welfare Corporation

• Visit to Wooden Customer Service Centre to meet with Manager, Brett Folkard

7–10 October 2003 United Kingdom Department

of Work and Pensions—

Director for Working Age and

Children, Ursula Brennan

• Visit to Liverpool demonstration site

• Meeting with Dr Margaret Browne (General Manager, Participation and Client Partnerships)

13–17 October 2003 Malaysian Social Security

Organisation

• Presentation by Anne Whiteford (DisAbility Services)

15–17 October 2003 Six Countries Meeting—

United States, Canada, New

Zealand, the United Kingdom,

Ireland and Australia

• Conference on service delivery

issues at the Sails in the Desert

Resort, Uluru

15 October 2003 Bucheon City Social Welfare

Association—Korea

• Visit to Liverpool Customer Service Centre

19 October–

29 November 2003

Shanghai Municipal Labour

and Social Security Bureau—

China

• Placements in Perth and Brisbane at Customer Service Centres, Call Centres and Area Support Offices

• Presentations (an overview of

Date Delegation Areas of Interest

Centrelink and other strategic issues) and evaluation of placements in Canberra

20 October 2003 Tianjin Civil Affairs Bureau • Centrelink services and partnerships in inner city Melbourne

31 October 2003 Danielle Vincent—Assistant

Deputy Minister for the

Quebec Region in Human

Resources Development

Canada

• Meeting with Anne Dickens (Client Partnership Support Team)

• Visit to Woden Customer Service Centre

• Visit to the Department of Family and Community Services in Melbourne

11 November 2003 Russian Social Insurance

Fund

• Visit to Liverpool Customer Service Centre and Call Centre

20 November 2003 Anthony Rologas—Philippines

Australia Short Term Training

Facility

• Meeting with Multicultural Services in Marrickville, Sydney

• Visit to Liverpool Multilingual Call Centre

28 November– 2 December 2003

The Netherlands—Dutch

municipal governments

• Visit to Liverpool demonstration site

• Presentation by a delegate on the delivery of employment assistance and other social welfare services in the Netherlands—current policy

approaches

12 December 2003 South African Treasury • Meetings regarding relationship between Centrelink and the Job Network

3 February 2004 Singapore—Ministry of

Manpower

• Visit to Woden Customer Service Centre

• Customer Service Charter Presentation

5 February 2004 Hong Kong—Special

Administrative Region

Government, Labour

• Visit to Area East Cost Career

Information Centre and Youth Centre

Date Delegation Areas of Interest

Department

9 February 2004 China—Liaoning Province • Meetings with Centrelink Officers

regarding:

– service delivery

– fraud control

– overview of IT

– the Balanced Scorecard

18 February 2004 Mongolia—Mongolian study

group/tour, part of Victorian

University

• Meeting with Cuc Lam (Footscray Multicultural Services Officer) regarding:

– Centrelink structure and

relationship to government

– overview of services provided

– introduction to multicultural liaison

and Indigenous liaison work

25 February 2004 China—Beijing Civil Affairs • Meeting with Malcolm Mill

(Watergardens Customer Service Centre)

• Overview of Centrelink

27 February 2004 China—Guangdong Province • Visit to Liverpool demonstration site

• Overview of Centrelink

1 March 2004 Compliance team from

The Netherlands Sociale

Verzekeringsbank

• Compliance methods

9 March 2004 Canada—Auditor General

Ronnie Campbell and

Jerome Berthelette

• Meeting with Michelle Thorne

(Business Manager, Indigenous

Services) regarding:

– Centrelink’s role in Indigenous

affairs

– overview of Indigenous programs

8–10 March 2004 South Africa—Department of • Governance arrangements

Date Delegation Areas of Interest

Social Development • Financing, budgets and business

partnership agreements

• Balanced Scorecard

• public relations and corporate identity

• I&T, communications and Call

Centres

• fraud

12 March 2004 Thailand–13th ASEAN Social

Security Association board

Meeting

• Centrelink jointly prepared a paper

with the Department of Family and Community Services for presentation at the meeting

23–24 March 2004 China—Ministry of Labour

and Social Security

• Meeting with Centrelink Officers regarding fraud control, channel management, and payment of benefits

• Visit to Liverpool demonstration site

March 2004 Singapore—Ministry of

Manpower

• Set up an email exchange with John Wadeson (General Manager, New Business Solutions) providing information on Centrelink’s information systems and knowledge bases

8 April 2004 Canada—Bay Consulting

Group on behalf of iSERV

(the I&T infrastructure

provider for the Ontario

Provincial Government)

• Seeking Centrelink’s participation in a survey of data centre facilities

15–19 April 2004 The Netherlands Sociale

Verzekeringsbank

• Social security agreement between Australia and The Netherlands

16 April 2004 The Netherlands—Workers’

Insurance Authority, Bert Pont

• Braddon Customer Service Centre

• Australian welfare reform initiatives

Date Delegation Areas of Interest

26–28 April 2004 Vietnam—Australia Vietnam

Sectoral conference on

Retirement Incomes

• Hosted by the Department of Family and Community Services

• Centrelink presentation on fraud control and compliance

30 April 2004 Singapore—Ministry of

Community Development

and Sports, Social Support

Division

• Issues relating to disability services

25 and 31 May 2004 United Kingdom—Department

of Work and Pensions

• How public employment services are delivered to client groups

• Visit to Liverpool demonstration site

26 May 2004 Hong Kong—Hong Kong

Government Efficiency Unit

• Overview of Centrelink including issues faced and lessons learned

7 June 2004 Brunei—Office of the Prime

Minister

• e-Government

8–10 June 2004 Canada—Human Resource

Development

• I&T, Call Centres, service integration, communications, business assurance, the Balanced Scorecard, compliance and risk assurance,web-based services

• Visit to Canberra Institute of Technology regarding community partnership with Centrelink

• Visit David Walsh (Area East Coast Manager) regarding ‘one-Sydney ‘concept

• Visit to Liverpool demonstration site

15–18 June 2004 Northern Ireland—Social

Security Agency, Garbhan

McParland

• Customer service, service recovery, Call Centres, Centrelink Virtual College, Edge, detection and review, Internet and intranet

• Visit to Braddon and Penrith Customer Service Centres,

Date Delegation Areas of Interest

Liverpool demonstration site, Area East Coast

• Multicultural services

24 June 2004 China—Institute of Internal

Audit, various provinces

• Risk assessment, internal control and internal auditor’s role in corporate governance issues

Appendix 6: Major Speeches by the Centrelink ExecutiveSue Vardon—Chief Executive Officer23 July 2003: Australian Public Service Commission—Graduate Series Networking Session, Canberra. ‘Leadership’

26 August 2003: Governor’s Leadership Foundation, Adelaide. ‘Building an outward looking government agency’.

1 September 2003: Emotional Intelligence, University of Adelaide. Keynote address.

24 September 2003: Institute of Public Administration Australia—Australian Capital Territory Division 50 Years, Canberra. ‘IPAA Nationally and the Future’.

20 February 2004: South Australian Heads of Agencies Conference, Adelaide. Keynote address.

1 March 2004: Canberra Times Business Series—Women in Business, Canberra. Keynote address.

8 March 2004: Pathways to Power—International Women’s Day 2004, Canberra. ‘My life in 5 minutes’.

17 March 2004: ARIMA Limited South Australian Risk Odyssey 2004—Turning Theory into Practice, Adelaide. ‘In pursuit of the golden fleece—risk management in Centrelink’.

15 April 2004: The Connected Republic: Possibilities and Priorities for the Next Phase of e-Government, Canberra. Keynote address.

16 April 2004: Institute of Public Administration Australia—South Australia Division Young Professionals Forum, Adelaide. Meet the Chief Program.

5 May 2004: National Institute of Governance, Canberra. ‘Governing risk’.

Paul Hickey—Deputy Chief Executive Officer, Business Capability3–7 August 2003: 12th ASEAN Social Security

Jane Treadwell—Deputy Chief Executive Officer, Business Transformation and Chief Information Officer18–22 August 2003: Six Countries Meeting, Ottawa, Canada. ‘Australia’s update: business transformation and more organisational change’.

16 September 2003: Business Intelligence World Conference, Melbourne. ‘Centrelink growing in intelligence’.

29 October 2003: Business Process Outsourcing Conference, Sydney. ‘Centrelink: orchestrator and broker’.

4 December 2003: National Records Management Conference—Milestone celebrations, Sydney. ‘Refresh and the future, taking Centrelink forward’.

8–12 December 2003: Cisco Public Services Summit @ Nobel Week 2003, Stockholm, Norway and Oslo, Sweden. ‘Connected services and support to people and communities: an integrated approach to social services’.

14–15 April 2004: The Connected Republic—Possibilities and Priorities for the Next Phase of e-Government, Canberra. ‘The connected republic’.

Appendix 7: Customer Charter performance for the customer service networkTABLE 46: CUSTOMER CHARTER PERFORMANCE FOR THE CUSTOMER SERVICE NETWORK

Customer Service

Centre Customer

Satisfaction Survey

Call Centre

Customer

Satisfaction Survey

National Customer

Satisfaction Survey

Annual average

as at June 2004

%

Annual average

as at June 2004

%

As at

November 2002

%

Making it easy to access government services delivered by Centrelink

Ease of accessing

government services

provided by Centrelink

(a) (a) 60

Giving you personal service

Offering you a package of services and products that can help you with what is happening in

your life

Centrelink gives you

options that take

into account your

personal situation and

circumstances

(a) (a) 65

Providing or referring you to other services you may need

Were you referred to other

services? (% said YES)

20.2 (a) (a)

– Appropriateness of 85.1 (a) (a)

the

Referral

Listening carefully to what you say to us

Communications skills

– listening

(a) (a) 85

Identifying ourselves when we talk with you

Did staff identify themselves to your satisfaction?

– Yes (a) 80.4 73

Being friendly, helpful, respectful and sensitive to your individual needs

Way Office staff treated

you—courteous, friendly,

helpful and respectful

90.6 (a) (a)

Call Centre staff was

friendly and polite

(a) 94.9 (a)

Call Centre staff was

Helpful

(a) 94.2 (a)

Understands customers’

Needs

(a) 90.9 (a)

Staff treating you with

respect and dignity

(a) (a) 88

Providing accurate and consistent information

Accuracy of information 78 86.7 (a)

Consistency of information

73.5 69.4 (a)

Providing information that is easy to understand

Information that is simple

and easy to understand

(a) (a) 75

Explaining the things you need to know and making it clear what you need to do

Communication skills

– explaining

81.7 93.7 (a)

Fixing mistakes

Purpose of last visit/call

to fix a mistake

14.2 13.9 (a)

Rating of mistake

Resolution

69.8 (a) 62

Giving you prompt and efficient service

Staff speed and efficiency

78.4 93.3 (a)

Making a decision quickly once we have all the information we need to make that decision

How would you rate the

time Centrelink took to

make a decision once it

had all the information it

required?

(a) (a) 72

Making an appointment for you to visit us or for us to phone you at a time that suits you

You can usually do

business with Centrelink

at a day and time that

suits you

(a) (a) 83

(a) Question was not asked in this survey

Appendix 8: Occupational Health Safety (Commonwealth Employment) Act 1991 reportingCentrelink has an agreement with the Community and Public Sector Union (CPSU) in accordance with section 16(3) of the Occupational Health and Safety (Commonwealth Employment) Act 1991 (the OHS(CE) Act). The agreement covers the election of health and safety representatives (HSRs) and sets out the roles and responsibilities of all managers/team leaders, employees, HSRs, OH&S committees and the CPSU.

Investigations conductedComcare conducted eight investigations.

Four planned investigations were conducted in accordance with section 41(3) of the OHS(CE) Act into Centrelink’s OH&S management system. The investigations included a review of corporate management

systems and workplace investigations undertaken at National Support Office, Braddon Customer Service Centre, in the Australian Capital Territory, and Darebin Customer Service Centre in Victoria. The investigators recommended action to improve the consistency of OH&S performance and the implementation of risk management processes.

An investigation was conducted following an incident at Inala Customer Service Centre in Queensland when a customer started a fi re in the Office. Centrelink conducted a security review after the incident and the investigators supported the recommendations made as a result of the Centrelink review. An investigation was conducted at Currie Street Customer Service Centre in South Australia, following a request from a HSR, about the risk of customer aggression. The HSR had previously issued a provisional improvement notice in respect of safety and security from customer aggression and Centrelink had taken action in response to this notice. The investigator concluded that a further risk assessment and staff training was required, issued an improvement notice and made recommendations. Centrelink has undertaken the additional assessment and complied with the notice.

Two investigations were conducted at Gosford Call Centre and Hurstville Customer Service Centre as part of Comcare’s targeted investigation program into the management of manual handling and occupational overuse syndrome.

All the recommendations arising from the Comcare investigations have been incorporated into the Centrelink Workplace Health and Safety Plan.

Notices issuedTABLE 47: NOTICES ISSUED UNDER THE OCCUPATIONAL HEALTH AND SAFETY (COMMONWEALTH EMPLOYMENT) ACT 1991

Details of notices Number

Notices given to Centrelink under section 29 of the OHS(CE) Act—

provisional improvement notices issued by health and safety

representatives

3

Notices given to Centrelink under section 47 of the OHS(CE) Act—

improvement notices1

TABLE 48: INCIDENTS NOTIFIED TO COMCARE (SECTION 68 NOTIFICATIONS)

Type of incident Number

Serious personal injury 8

Prescribed incapacity (30 or more working days or shifts) 8

Dangerous occurrence 74

Total 90

Appendix 9: Disability Discrimination Act 1992 reportingThe Disability Discrimination Act 1992 (DDA) covers disability issues in relation to the administration of Australian Government laws and programs, and the provision of goods, services and facilities. The Commonwealth Disability Strategy provides the background for Australian Government organisations to ensure that their policies, programs 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 programs 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 those with disabilities includes capacity to support the needs and abilities of the

individual workplace strategies support the employment of people with disabilities.

As a provider, Centrelink:

has an understanding of and capacity to provide services to people with disabilities that are appropriate to their current and future needs

implements appropriate quality assurance and improvement mechanisms implements mechanisms that consider customer satisfaction for people with Disabilities has a complaint handling process that includes addressing the concerns of people with disabilities has a service charter that addresses the needs of people with disabilities.

AchievementsAchievements in 2003–04 include:

increasing the level of representation of employees with disabilities from 5.9 per cent in 2002–03 to 6.1 per cent in 2003–04. This figure compares with a declining Australian Public Service trend, which stood at 3.6 per cent in 2002–03

increasing the number of people who participate in the Centrelink Employees with Disabilities Network to approximately 90 participants by June 2004. This group receives regular information, with teleconferences conducted each quarter

setting up a team room for Centrelink employees who have disabilities establishing partnerships with other Centrelink teams, such as with Communication, Media &

Marketing, in supporting International Day of People with a Disability in December 2003, achieving an increased focus on the accessibility of adaptive technology.

including the Disability Action Plan and its supplementary plan in the People Handbook, to indicate Centrelink’s commitment to be fully inclusive. An overall aim is that Centrelink’s future strategic and business plans will account for how the diverse requirements of its entire staff, including employees with disabilities, are addressed.

Future DirectionsFuture directions for Centrelink’s commitment to employees with disabilities are to:

support the Employees with Disabilities Network continue to raise team leader and manager awareness of disability enhance policies and guidelines in the People Handbook to reflect Centrelink’s commitment to

employees with disabilities develop and implement a strategy to encourage self-identification for people with disabilities address access issues raised by employees with disabilities

ensure recruitment processes encourage more people with disabilities to apply for Centrelink positions

continue to work collaboratively to demonstrate Centrelink’s strong willingness to become an all-inclusive employer that values diversity.

Property and ServicesCentrelink has 321 Customer Service Centres (CSCs) around Australia. All buildings are leased. Those which are purpose-built for Centrelink comply with a building brief that takes into account the needs of people with disabilities. The brief requires compliance with relevant Australian standards, Human Rights and Equal Opportunity Commission Advisory Notes March 1993 and the Building Code of Australia. Access for people with disabilities is a key selection criterion whenever a lease is being considered in an existing building, as some older buildings may not meet all statutory requirements for access.

During the year, Centrelink improved access for people with disabilities in two CSCs that previously did not comply with all statutory requirements for access. Portland CSC was relocated to purpose-built Office accommodation, and Gunnedah CSC relocated to a building that was upgraded with auto access doors.

The number of CSCs that provide less than desirable access for people with disabilities has been reduced to 24 buildings or 7 per cent of the total number of CSCs in the network. The main drawbacks at these sites include:

buildings over two levels that do not have a lift unsuitable parking for people with disabilities non-automatic doors that may be difficult to open.

Alternative arrangements are put in place locally for those customers whose disability requires use of a particular facility, for example, providing full service for customers with a disability on the ground level of a CSC that does not have lift access to the second level.

Over the next 12 months another five CSCs are scheduled for either relocation or refurbishment that will address disability access for these sites for example, relocation of Fitzroy and Richmond (Vic) CSCs, installation of a lift at Fairfield (NSW) CSC, and building upgrades at Casuarina (NT) CSC.

Centrelink’s real estate service provider, Jones Lang LaSalle, is continuing with the building inspection program of CSCs that includes assessment of a site’s compliance with disability access codes. Those sites found not compliant are a priority consideration for inclusion in the annual Leasehold Improvement Program.

Appendix 10: Our people—all Centrelink employeesThe figures in Table 49 below represent a head count of all Australian Public Service employees within Centrelink at 30 June 2004. They include staff on paid and unpaid leave (see also Note 16, Average Staffing Levels in the Annual Financial Statements, on page 256).

LEGEND

F = 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 speak English and another language (s)

SES = Senior Executive Service

IT = Information Technology

Note: The figures in the following staffing tables show the number of employees at each Classification level and include those on temporary performance at higher levels.

TABLE 49: ALL CENTRELINK EMPLOYEES

Total F M F/T P/T O N

Centrelink SES 103 45 58 102 1 102 1

Centrelink 4 1565 775 790 1496 69 1555 10

Centrelink 3 5679 3 474 2205 5123 556 5648 31

Centrelink 2 15982 11 687 4 295 12 336 3646 15698 284

Centrelink 1 345 233 112 274 71 263 82

Passport Information

Service Operator

56 49 7 31 25 29 27

Trainees/Cadets

20 14 6 20 0 17 3

Centrelink Professional 2

337 271 66 265 72 332 5

Centrelink Professional 1

603 493 110 431 172 518 85

Centrelink IT Manager

332 76 256 317 15 328 4

Centrelink IT Manager

21 5 16 19 2 20 1

Centrelink IT 363 86 277 357 6 359 4

Centrelink Public Affairs 4

3 2 1 2 1 3 0

Centrelink Public Affairs 3

16 12 4 16 0 16 0

Centrelink 19 9 10 18 1 17 2

Public Affairs 2

Centrelink Public Affairs 1

4 0 4 4 0 2 2

Total 25448 17231 8217 20811 4637 24907 541

TABLE 50: NATIONAL SUPPORT OFFICE

Total F M F/T P/T O N

Centrelink SES 85 37 48 84 1 84 1

Centrelink 4 1004 488 516 955 49 996 8

Centrelink 3 1069 641 428 964 105 1048 21

Centrelink 2 365 245 120 322 43 316 49

Centrelink 1 34 21 13 26 8 18 16

Trainees/Cadets

5 4 1 5 0 5 0

Centrelink Professional 2

16 12 4 14 2 16 0

Centrelink Professional 1

4 4 0 4 0 4 0

Centrelink IT Manager

332 76 256 317 15 328 4

Centrelink IT Technical

21 5 16 19 2 20 1

Centrelink IT 356 84 272 350 6 352 4

Centrelink Public Affairs 4

3 2 1 2 1 3 0

Centrelink Public Affairs 3

16 12 4 16 0 16 0

Centrelink Public Affairs 2

18 9 9 17 1 16 2

Centrelink Public Affairs 1

4 0 4 4 0 2 2

Total 3332 1640 1692 3099 233 3224 108

TABLE 51: CALL CENTRE NETWORK

Total F M F/T P/T O N

Centrelink SES

3 2 1 3 0 3 0

Centrelink 4 71 28 43 69 2 71 0

Centrelink 3 527 380 147 477 50 527 0

Centrelink 2 3963 3052 911 2825 1138 3960 3

Centrelink 1 8 7 1 7 1 2 6

Centrelink Professional 2

23 19 4 12 11 23 0

Centrelink Professional 1

6 6 0 2 4 3 3

Total 4601 3494 1107 3395 1206 4589 12

TABLE 52: AREA HUNTER, NEW SOUTH WALES

Total F M F/T P/T O N

Centrelink SES

1 0 1 1 0 1 0

Centrelink 4 36 21 15 34 2 36 0

Centrelink 3 287 180 107 233 54 285 2

Centrelink 2 732 558 174 539 193 711 21

Centrelink 1 2 2 0 2 0 2 0

Centrelink Professional 2

13 11 2 13 0 13 0

Centrelink Professional 1

41 32 9 31 10 32 9

Total 1112 804 308 853 259 1080 32

TABLE 53: AREA EAST COAST, NEW SOUTH WALES

Total F M F/T P/T O N

Centrelink SES

1 1 0 1 0 1 0

Centrelink 4 26 11 15 26 0 26 0

Centrelink 3 265 154 111 240 25 265 0

Centrelink 2 811 530 281 638 173 807 4

Centrelink 1 15 9 6 11 4 15 0

Centrelink Professional 2

22 15 7 20 2 22 0

Centrelink Professional 1

39 31 8 30 9 38 1

Total 1179 751 428 966 213 1174 5

TABLE 54: AREA WEST, NEW SOUTH WALES

Total F M F/T P/T O N

Centrelink SES

1 0 1 1 0 1 0

Centrelink 4 29 14 15 29 0 29 0

Centrelink 3 168 108 60 153 15 168 0

Centrelink 2 521 385 136 424 97 517 4

Centrelink 1 7 5 2 2 5 6 1

Centrelink Professional 2

18 14 4 15 3 18 0

Centrelink Professional 1

28 25 3 22 6 22 6

Total 772 551 221 646 126 761 11

TABLE 55: AREA SOUTH WEST, NEW SOUTH WALES

Total F M F/T P/T O N

Centrelink SES

1 0 1 1 0 1 0

Centrelink 4 19 13 6 18 1 19 0

Centrelink 3 214 137 77 191 23 214 0

Centrelink 2 524 383 141 417 107 521 3

Centrelink 1 7 7 0 4 3 7 0

Centrelink Professional 2

18 15 3 11 7 18 0

Centrelink Professional 1

25 22 3 15 10 22 3

Total 808 577 231 657 151 802 6

TABLE 56: AREA SOUTH METRO, NEW SOUTH WALES

Total F M F/T P/T O N

Centrelink SES

1 1 0 1 0 1 0

Centrelink 4 28 14 14 28 0 28 0

Centrelink 3 160 103 57 150 10 160 0

Centrelink 2 615 448 167 496 119 583 32

Centrelink 1 27 20 7 21 6 22 5

Centrelink Professional 2

14 14 0 10 4 14 0

Centrelink Professional 1

30 23 7 25 5 30 0

Total 875 623 252 731 144 838 37

TABLE 57: AREA PACIFIC CENTRAL, NORTHERN NEW SOUTH WALES AND SOUTHERN QUEENSLAND

Total F M F/T P/T O N

Centrelink SES

1 1 0 1 0 1 0

Centrelink 4 37 17 20 37 0 37 0

Centrelink 3 362 231 131 331 31 361 1

Centrelink 2 1044 756 288 822 222 1008 36

Centrelink 1 56 34 22 42 14 41 15

Centrelink Professional 2

27 26 1 20 7 26 1

Centrelink Professional 1

53 42 11 44 9 42 11

Total 1580 1107 473 1297 283 1516 64

TABLE 58: AREA BRISBANE, QUEENSLAND

Total F M F/T P/T O N

Centrelink SES

1 0 1 1 0 1 0

Centrelink 4 40 22 18 38 2 40 0

Centrelink 3 420 241 179 388 32 419 1

Centrelink 2 1201 872 329 1004 197 1188 13

Centrelink 1 7 7 0 5 2 7 0

Centrelink Professional 2

27 23 4 22 5 27 0

Centrelink Professional 1

54 46 8 47 7 47 7

Centrelink IT

4 2 2 4 0 4 0

Centrelink Public Affairs 2

1 0 1 1 0 1 0

Total 1755 1213 542 1510 245 1734 21

TABLE 59: AREA CENTRAL AND NORTH QUEENSLAND

Total F M F/T P/T O N

Centrelink SES 1 0 1 1 0 1 0

Centrelink 4 32 22 10 31 1 31 1

Centrelink 3 208 136 72 202 6 208 0

Centrelink 2 576 452 124 479 97 524 52

Centrelink 1 24 21 3 19 5 13 11

Trainees/Cadets

4 3 1 4 0 1 3

Centrelink Professional 2

14 13 1 10 4 13 1

Centrelink Professional 1

31 24 7 23 8 25 6

Total 890 671 219 769 121 816 74

TABLE 60: AREA NORTH CENTRAL VICTORIA

Total F M F/T P/T O N

Centrelink SES

1 0 1 1 0 1 0

Centrelink 4 39 20 19 37 2 39 0

Centrelink 3 329 201 128 289 40 328 1

Centrelink 2 951 627 324 751 200 949 2

Centrelink 1 17 11 6 15 2 17 0

Centrelink Professional 2

21 16 5 17 4 21 0

Centrelink Professional 1

48 40 8 30 18 42 6

Centrelink IT

1 0 1 1 0 1 0

Total 1407 915 492 1141 266 1398 9

TABLE 61: AREA SOUTH EAST VICTORIA

Total F M F/T P/T O N

Centrelink SES

1 1 0 1 0 1 0

Centrelink 4 39 26 13 36 3 39 0

Centrelink 3 276 162 114 258 18 275 1

Centrelink 2 806 575 231 618 188 806 0

Centrelink 1 69 44 25 62 7 59 10

Centrelink Professional 2

20 15 5 15 5 20 0

Centrelink Professional 1

48 39 9 29 19 35 13

Centrelink IT

2 0 2 2 0 2 0

Total 1261 862 399 1021 240 1237 24

TABLE 62: AREA WEST VICTORIA

Total F M F/T P/T O N

Centrelink SES

1 1 0 1 0 1 0

Centrelink 4 35 19 16 34 1 35 0

Centrelink 3 291 150 141 267 24 291 0

Centrelink 2 860 595 265 666 194 859 1

Centrelink 1 2 1 1 2 0 2 0

Centrelink Professional 2

17 12 5 15 2 17 0

Centrelink Professional 1

53 44 9 33 20 51 2

Total 1259 822 437 1018 241 1256 3

TABLE 63: AREA WEST AUSTRALIA

Total F M F/T P/T O N

Centrelink SES

1 0 1 1 0 1 0

Centrelink 4 35 17 18 31 4 35 0

Centrelink 3 365 218 147 329 36 363 2

Centrelink 2 1139 860 279 894 245 1133 6

Centrelink 1 21 17 4 16 5 12 9

Centrelink Professional 2

32 21 11 28 4 32 0

Centrelink Professional 1

49 38 11 35 14 48 1

Total 1642 1171 471 1334 308 1624 18

TABLE 64: AREA SOUTH AUSTRALIA

Total F M F/T P/T O N

Centrelink SES

1 1 0 1 0 1 0

Centrelink 4 50 24 26 49 1 50 0

Centrelink 3 387 231 156 338 49 387 0

Centrelink 2 1003 718 285 748 255 993 10

Centrelink 1 20 9 11 16 4 17 3

Centrelink Professional 2

34 26 8 25 9 32 2

Centrelink Professional 1

52 42 10 31 21 41 11

Total 1547 1051 496 1208 339 1521 26

TABLE 65: AREA NORTH AUSTRALIA

Total F M F/T P/T O N

Centrelink SES 1 q 1 1 0 1 0

Centrelink 4 24 11 13 24 0 23 1

Centrelink 3 111 79 32 107 4 110 1

Centrelink 2 268 211 57 245 23 264 4

Centrelink 1 9 6 3 7 2 9 0

Trainees/Cadets

11 7 4 11 0 11 0

Centrelink Professional 2

12 12 0 11 1 11 1

Centrelink Professional 1

13 11 2 12 1 12 1

Total 449 337 112 418 31 441 8

TABLE 66: AREA TASMANIA

Total F M F/T P/T O N

Centrelink SES

1 0 1 1 0 1 0

Centrelink 4 21 8 13 20 1 21 0

Centrelink 3 240 122 118 206 34 239 1

Centrelink 2 603 420 183 448 155 559 44

Centrelink 1 20 12 8 17 3 14 6

Passport Info Service

Operator

56 49 7 31 25 29 27

Centrelink Professional 2

9 7 2 7 2 9 0

Centrelink Professional 1

29 24 5 18 11 24 5

Total 979 642 337 748 231 896 83

Appendix 11: Equity and diversityTABLE 67: EQUITY AND DIVERSITY GROUPS

Total F M I L D

O N O N O N O N O N O N

Area Hunter 1080 32 782 22 298 10 52 1 32 1 75 2

Area East

Coast New

South Wales

1174 5 749 2 425 3 27 1 231 0 82 0

Area West

New South

Wales

761 11 541 10 220 1 9 1 224 0 43 1

Area South

West New

South Wales

802 6 573 4 229 2 44 0 41 0 46 0

Area South

Metro New

South Wales

838 37 595 28 243 9 19 1 286 11 45 2

Area Pacifi c

Central

1516 64 1056 51 460 13 96 2 93 1 102 3

Area Brisbane

Queensland

1734 21 1195 18 539 3 60 1 74 0 79 3

Area Central

and Northern

Queensland

816 74 607 64 209 10 122 4 51 6 66 7

Area North

Central

Victoria

1398 9 909 6 489 3 27 0 268 2 113 1

Area South

East Victoria

1237 24 844 18 393 6 16 0 191 0 84 0

Area West 1256 3 819 3 437 0 28 1 154 0 70 1

Victoria

Area West

Australia

1624 18 1154 17 470 1 92 0 171 0 123 0

Area South

Australia

1521 26 1030 21 491 5 35 1 146 0 104 4

Area

Tasmania

896 83 579 63 317 20 43 0 62 3 64 3

Area Northern

Australia

441 8 333 4 108 4 89 0 32 0 20 0

TABLE 67: EQUITY AND DIVERSITY GROUPS—CONTINUED

Total F M I L D

O N O N O N O N O N O N

Call Centre

Network

4589 12 3485 9 1104 3 107 0 261 0 227 0

National

Support

Office

3224 108 1580 60 1644 48 48 0 397 3 171 9

Total

employees

24907 541 16831 400 8076 141 914 13 2714 27 1514 36

TABLE 68: EQUITY AND DIVERSITY SEPARATIONS

Total F M I L D

O N O N O N O N O N O N

Area Hunter 62 135 46 111 16 24 7 3 2 2 7 10

Area East

Coast New

South Wales

83 42 48 31 35 11 3 1 14 1 3 2

Area West

New South

Wales

50 71 36 56 14 15 4 0 12 4 3 2

Area South

West New

South Wales

54 60 35 45 19 15 4 2 2 1 7 1

Area South

Metro New

South Wales

28 79 17 63 11 16 1 1 11 26 2 14

Area Pacific

Central

46 250 35 189 11 61 3 6 1 11 2 30

Area

Brisbane

Queensland

85 117 60 92 25 25 3 2 2 4 4 10

Area Central

and Northern

Queensland

37 144 21 116 16 28 6 14 0 9 4 19

Area North

Central

Victoria

69 101 43 71 26 30 2 1 10 9 7 6

Area South

East Victoria

73 44 55 34 18 10 4 3 12 2 5 0

Area West

Victoria

51 27 32 21 19 6 1 0 3 0 3 1

Area West

Australia

117 194 89 136 28 58 13 7 7 8 19 18

Area South

Australia

63 117 44 93 19 24 0 2 3 0 4 4

Area

Tasmania

27 72 18 59 9 13 4 1 2 5 4 7

Area

Northern

Australia

41 32 26 26 15 6 14 3 4 1 4 4

Call Centre 461 234 349 158 112 76 10 0 22 0 33 5

Network

National

Support

Office

175 156 94 110 81 46 6 4 17 7 15 9

Total

separations

1522 1875 1048 1411 474 464 85 50 124 90 126 142

TABLE 69: EQUITY AND DIVERSITY COMMENCEMENTS

Total F M I L D

O N O N O N O N O N O N

Area Hunter 13 36 11 28 2 8 0 0 0 1 0 1

Area East

Coast New

South Wales

22 11 15 10 7 1 1 0 1 0 0 0

Area West

New South

Wales

12 21 9 18 3 3 0 1 2 0 0 1

Area South

West New

South Wales

38 23 27 16 11 7 3 0 1 0 5 0

Area South

Metro New

South Wales

15 14 12 12 3 2 0 0 6 4 1 2

Area Pacifi c

Central

24 107 20 88 4 19 3 2 0 3 4 6

Area

Brisbane

Queensland

28 64 23 57 5 7 0 2 2 0 1 4

Area Central

and Northern

Queensland

14 100 11 89 3 11 0 5 0 8 2 10

Area North

Central

12 21 10 18 2 3 0 0 1 3 4 1

Victoria

Area South

East Victoria

34 32 28 23 6 9 0 1 1 0 7 0

Area West

Victoria

27 12 21 10 6 2 1 1 3 0 1 1

Area West

Australia

43 87 33 64 10 23 1 1 6 2 7 4

Area South

Australia

16 102 10 79 6 23 0 4 1 3 1 4

Area

Tasmania

14 88 9 73 5 15 1 0 1 2 3 2

Area

Northern

Australia

27 15 17 11 10 4 8 0 4 0 1 0

Call Centre

Network

329 79 246 60 83 19 12 3 14 3 31 1

National

Support

Office

188 158 73 98 115 60 3 3 22 9 15 10

Total

commencements

856 970 575 281 216 33 23 65 38 83 47

Appendix 12: Senior Executive Service (SES) overviewTable 70 below provides an overview of the number of employees engaged at the Senior Executive Service (SES) level as at 30 June 2004.

TABLE 70: EMPLOYEE S ENGAGED AT SES LEVEL AS AT 30 JUNE 2004(A)

Classification

Total F M F/T P/T O N

SES Band 3 4 2 2 4 0 4 0

SES Band 2 10 7 3 10 0 10 0

SES Band 1 77 31 46 76 1 76 1

Total 91 40 51 90 1 90 1

(a) These figures relate to the number of Senior Executive Service employees. They do not include employees on temporary performance.

Appendix 13: Salary overview(See also Note 14, Executive Remuneration in the Annual Financial Statements, on page 255.)

TABLE 71: EMPLOYEES COVERED BY THE CENTRELINK DEVELOPMENT AGREEMENT 2003–2005

Employee type Number

SES 0

Non-SES 25012

TABLE 72: SALARY RANGES FOR EMPLOYEES COVERED BY THE CENTRELINK DEVELOPMENT AGREEMENT 2003–2005

Classification Salary range ($)

Centrelink 4 64 894 to 87 676

Centrelink 3 46 934 to 59 843

Centrelink 2 37 755 to 46 933

Centrelink 1 17 574 to 36 758

Centrelink Australian Passport Information Service Operator

33 147 to 40 749

Centrelink Professional 2 62 398 to 84 304

Centrelink Professional 1 35 346 to 58 400

Centrelink IT 40 749 to 87 676

Centrelink Public Affairs 4 84 837 to 89 173

Centrelink Public Affairs 3 68 267 to 82 759

Centrelink Public Affairs 2 52 802 to 61 857

Centrelink Public Affairs 1 43 416 to 49 768

Centrelink Graduate Trainee 28 607 to 36 758

Centrelink Customer Service Trainee 31 093

Centrelink Administrative Trainee 10 900 to 22 836

Centrelink Cadet—full time study 9 944 to 15 757

Appendix 14: Australian Workplace AgreementsAustralian Workplace Agreements (AWAs) offer flexibility to Centrelink for attracting, deploying, rewarding or retaining employees through tailored remuneration and conditions.

It is not Centrelink’s policy to disclose details of an individual’s AWA. A remuneration policy is in place for non-SES and SES AWAs. The remuneration policy outlines salary ranges in which AWAs are offered.

Senior Executive Service AWAsAll Centrelink SES employees have individual AWAs and therefore, as at 30 June 2004, 91 SES employees were covered by AWAs.

Salaries are determined by the Chief Executive Officer and fall broadly within three bands representing three Classification levels. Table 73 shows the salary range for each Classification.

All SES employees are entitled either to the use of a private plated vehicle or a cash out arrangement.

TABLE 73: SES SALARY RANGES 2003–04

Classification Salary range per annum ($)

SES Band 1 107 603 to 126 911

SES Band 2 131 939 to 153 571

SES Band 3 (a)

(a) SES Band 3 salaries have not been included, as they will enable identification of individual employees’ packages because of the small number of Officers at that level.

SES AWAs provide for performance pay, generally 4 per cent per annum if performance measures are meet. Table 74 shows the amount of performance pay paid under SESAWAs in 2003–04.

TABLE 74: TOTAL AMOUNT OF PERFORMANCE PAY MADE TO SES IN 2003–04

Aggregated amount ($) Number of employees

receiving performance pay

Average bonus paid per

employee ($)

SES Band 1 302 332 71 4258

SES Band 2 29 630 5 5926

SES Band 3 28 607 4 7152

Total 360 570 80 4507

Non-Senior Executive Service AWAsAs at 30 June 2004 there were 345 non-SES employees covered by AWAs. The majority of these staffs were Centrelink 4 and equivalent. Table 75 shows the salary ranges for non-SES AWAs.

TABLE 75: NON-SES AWA EMPLOYEE SALARY RANGES 2003–04

Classification Salary range per annum ($)

Centrelink 4 (APS Executive 1 and 2 or equivalent)

74 813 to 94 640

Centrelink 3 (APS 5 and 6 or equivalent) 56 058 to 71 222

Non-SES AWAs provide for performance pay, generally 4 per cent per annum. Table 76 shows the total amount of performance paid under non-SES AWAs.

TABLE 76: NON-SES AWA PERFORMANCE IN 2003–04

Aggregated

amount($)

Number of employees

receiving performance pay

Average bonus paid per

employee($)

Centrelink 4 (APS Executive

1 and 2 and equivalent)

952 427 310 3 072

Centrelink 3 (APS 5 to 6 and

equivalent)

16 813 9 1 868

Total 969 240 319 3 038

Appendix 15: Centrelink Annual Report 2002–03—Correction of material errorsThe following page references refer to the 2002–03 Centrelink Annual Report.

On page 58, Table 19 DoTARS Revenue and Performance Summary should report nine KPIs with 78 per cent of KPIs achieved.

On page 79, in Tables 34 and 35, the dollar figures should represent millions, not thousands. The numbers in the columns are correct, the column header in each table should be updated from ‘$’000’ to ‘$ millions’.

On pages 213–5, tables 50–53 contain an incorrect zero immediately before the decimal point in each dollar figure.

On pages 290–1, Tables 83–84 should reflect the following information:

THE TOTAL AMOUNT OF PERFORMANCE PAY MADE TO SES 2003–04

Amount $ Actual number of payments made

SES Band 1 289 118.87 322

SES Band 2 14 222.95 18

SES Band 3 26 165.61 16

Total 329 507.43 356

THE TOTAL AMOUNT OF PERFORMANCE PAY MADE TO NON-SES AWA EMPLOYEES 2002–03

Amount $ Actual number of payments made

Centrelink 4 500 346.67 565

Centrelink IT Manager 130 734.92 142

Centrelink 3 784.37 1

Centrelink IT 21 033.97 37

Centrelink Prof 2 6 615.00 8

Centrelink Prof 1 2 656.52 4

Total 662 171.45 757

List of shortened formsAAT Administrative Appeals Tribunal

AEC Australian Electoral Commission

AFP Australian Federal Police

AoS Assurance of Support

APIS Australian Passport Information Service

ARO Authorised Review Officer

ASO Area Support Office

ATO Australian Taxation Office

AUSTRAC Australian Transaction Reports Analysis Centre

AWT Australians Working Together

BPA Business Partnership Agreement

CCeS Customer Confirmation e-Service

CDA Centrelink Development Agreement

CDEP Community Development Employment Project

CEO Chief Executive Officer

CMC Centrelink Multilingual Call

CPA Community Participation Agreement

CPSU Community and Public Sector Union

CRN Customer Reference Number

CRU Customer Relations Unit

CSA Child Support Agency

CSC Customer Service Centre

CSO Customer Service Officer

CSTL Customer Service Team Leader

CVC Centrelink Virtual College

DAFF Department of Agriculture, Fisheries and Forestry

DCALB Diverse Cultural and Linguistic Background

DDA Disability Discrimination Act 1992

DEST Department of Education, Science and Technology

DEWR Department of Employment and Workplace Relations

DFAT Department of Foreign Affairs and Trade

DIMIA Department of Immigration and Multicultural and Indigenous Affairs

DoHA Department of Health and Ageing

DOTARS Department of Transport and Regional Services

DPMO Debt Prevention Monitoring Officer

DPP Director of Public Prosecutions

DVA Department of Veterans’ Affairs

EAS Entitlements and Assessment Systems

EC Exceptional Circumstance

FaCS Department of Family and Community Services

FOI Freedom of Information

GST Goods and Services Tax

GVG Commonwealth Green Vehicle Guide

HIC Health Insurance Commission

HSR Health and Safety Representatives

I&T Information and Technology

IPP Information Privacy Principle

IT Information Technology

JET Jobs, Education and Training

KPI Key Performance Indicator

MPC Multi Purpose Contact

NAIDOC National Aboriginal and Islanders’ Day Observance Committee

NLSR Natural Language Speech Recognition

OFPC Office of the Federal Privacy Commissioner

OH&S Occupational Health and Safety

PBS Pharmaceutical Benefits Scheme

PIN Personal Identification Number

RASC Remote Area Service Centres

RDS Rent Deduction Scheme

RPU Rural Processing Unit

SES Senior Executive Service

SSAT Social Security Appeals Tribunal

TOP Tuggeranong Office Park

TSRA Torres Strait Regional Authority

UAC User Assurance Centre

VCW Value Creation Workshop

VIS Veteran Information ServiceCO001.0411