Centrelink

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A Centrelink office at Innaloo, Western Australia.
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A Centrelink office at Innaloo, Western Australia.

Centrelink is a statutory authority responsible for delivering human services on behalf of agencies of the Commonwealth Government of Australia. The majority of Centrelink's services are the disbursement of social security payments and the coordination of Job Network, a national job-matching scheme. Centrelink delivers services primarily on behalf of the Department of Families, Community Services & Indigenous Affairs (92% of services) and the Department of Employment and Workplace Relations (5% of services)[1].

Centrelink differs from earlier welfare agencies as it acts merely as a conduit for the delivery of services. Centrelink's client agencies provide funding for payments and are responsible for policy development, including development of social security entitlement and payment policies.[2] Services are delivered according to Business Partnership Agreements (BPAs) negotiated periodically with each client agency.[1]

As an integrated service delivery agency, Centrelink provides ancillary services such as assistance and education for people receiving welfare payments. It offers 140 different products and services, which it supplies to around one third of Australian citizens.[1]

Centrelink was created in 1997 through restructuring of the former Department of Social Security (DSS), Commonwealth Employment Service (CES) and Austudy. The reforms aimed to simplify access to Commonwealth services by providing a 'one stop shop',[3], and to encourage efficiency through a purchaser-provider service delivery relationship.[4] Centrelink operates under the Commonwealth Services Delivery Agency Act 1997[2].

The United Kingdom has implimented strikingly similar unemployment/welfare policies, which also have official titles based on informal, colloquial terminology; eg. New Deal, Jobseeker's allowance and Work Fare.

Contents

[edit] Centrelink payments

  • ABSTUDY - offers a range of allowances to assist Indigenous students and New Apprentices.
  • Age Pension - for people planning for retirement or who are already retired.
  • Assistance for Isolated Children - for families with a child who cannot attend school locally because of distance or special needs.
  • Austudy Payment - for full-time students and New Apprentices aged 25 years or over.
  • Carer Allowance - for people who care for an adult over 16 years with a disability at home.
  • Carer Allowance (Child) - for people who care for a child under 16 years with a disability at home.
  • Child Care Benefit - for families to help with the cost of child care.
  • Disability Support Pension - for people unable to work for 2 years due to illness, injury or disability.
  • Double Orphan Pension - for people who are raising children who have lost both parents.
  • Family Tax Benefit Part A - for parents or carers to help with the cost of raising children.
  • Family Tax Benefit Part B - for single income families or sole parents.
  • Maternity Immunisation Allowance - for fully immunised children or those exempt from immunisation.
  • Newstart Allowance - for people who are looking for employment.
  • Maternity Payment - for help with those extra costs after the birth of a new baby.
  • Parenting Payment - for parents or guardians to help with the cost of raising children.
  • Pensioner Education Supplement - helps people on Pensions with education expenses.
  • Student Financial Supplement Scheme - no longer available.
  • Youth Allowance - for full-time students or New Apprentices aged 16 to 24 and people aged under 21 who are undertaking job search or a combination of approved activities.

[edit] Income support

Most are payable on a fortnightly basis, although some small allowances (e.g. Telephone Allowance only for people on Pensions) are paid on a quarterly or other basis. In addition, lump sum crisis payments are payable in certain situations, such as release from prison, discharge from a psychiatric institution, or having to leave home due to domestic violence.

Family Tax Benefit Parts A and B are administered by the Family Assistance Office within Centrelink. It is payable to low income earners either as a payment or through a tax reduction. The FAO also administers the "baby bonus".

[edit] Age pension

The Age pension was the first payment issued from the Commonwealth Government and dates back to 1909. It is available to men aged 65 years and over. The age for women to become eligible is being progressively phased upward from 60 to 65 years, in line with males. Women currently becoming eligible for Age pension is 63 years old. Unlike pension payments of many other countries, workers do not contribute to a pension or insurance within Australia, and the payment is available subject to means testing. This ensures that only those that require assistance receive it.

[edit] Newstart Allowance

Newstart Allowance is a payment for people between 21 and 65, made when they find themselves unemployed and are seeking work. It is paid on the basis of a mutual agreement between the customer and Centrelink, where Centrelink will continue to pay fortnightly payments to the customer, for so long as the customer makes a genuine attempt to find employment. As a customer's period of unemployment lengthens the requirements of Centrelink become more onerous.Customers are required to apply for 10 jobs a fortnight and record the details of these jobs within a 'job diary'. They are required to apply for jobs within different sectors. The customer is obliged to contact a Job Network provider. The customer is obliged to spend one day a week with their Job Network Provider where their job applications are not supervised . If the customer remains unemployed then they are subject to more intense voluntary gardening.A Job Network Provider and may be required to do voluntary work [ between 2 to 4 days "voluntary work" ]and apply for 4+ positons at the same time to meet their mutual obligations.

[edit] Youth Allowance

Youth Allowance is an alternative to Newstart and Austudy tailored specifically to young Australians in full-time study, an apprenticeship, or actively looking for employment.

'Youth' is defined as 15-25 for full-time students, or 15-21 for job seekers. The payment is only available to dependents of low-income earners or young people 'independent' of their families. As eligibility is based on parent's income or independence from parents, there is an assumption that parents of 15-24 year old students or under 21 year old job seekers will support their children. There are special exemptions for previous income of the applicant or in cases where the parent/s have abandoned their responsibility or the home life is untenable. Those under 18 and not at school cannot receive social security benefits. 15 year olds can only receive Youth Allowance if they are defined as independent. Youth Allowance was introduced from July 1998 and replaced previous unemployment and study benefits for those under 25.

[edit] Austudy

Austudy was originally an all-ages study allowance, but since the introduction of Youth Allowance (see above) it has been reserved for the over 25s. To qualify, one must be an Australian resident, over 25, and studying full time at an approved education institution. However, students who were receiving Youth Allowance prior to turning 25 and are still pursuing the same course of study continue to receive Youth Allowance until they finish (or otherwise terminate) their course. Like most Centrelink payments, Austudy is subject to an income test.

The major differences between the Austudy payment and Youth Allowance payment is that the rate does not vary based on 'living at home'; and that Austudy recipients are not eligible for rent assistance.

[edit] Abstudy

Abstudy is a welfare payment for Indigenous Australians undergoing some form of study. All Indigenous students at secondary or tertiary institutions, as well as those studying by correspondence, and primary students who turned 14 prior to January 1 of their current year of study. To qualify as Indigenous, a student must be of Aboriginal or Torres Strait Islander descent by Centrelink standards and be a current Australian citizen. Abstudy is tailored according to income tests, and the status of partners, guardians, and dependents.

[edit] Disability Support Pension

Provides income support for people who suffer a long-term disability, which in the opinion of a medical professional they will not recover from in the next two years, and which will render themselves unable to support themselves. It is more than you get on Newstart, and is income and assets-tested. However, if you are permanently blind, you can receive DSP without income and assets tests, and without needing to prove any inability to work, etc. DSP can take a while to process, so as a temporary measure claimants are placed on another payment (e.g. Newstart with a medical certificate to cover the activity tests) while the payment is being assessed; once granted it is backdated to the claim date at the higher DSP rate.

[edit] Sickness Allowance

A payment for those who are currently suffering an Illness / Injury / Disability (Short Term ie. less then 2 years), are employed, and have no access to leave or have used all their leave. Paid Under the Newstart System without an Activity Test.

[edit] Carer Payment

A payment for those providing full time care to someone who is ill, injured or has a disability.

[edit] Parenting Payment

A payment for those providing full time care to their own children

[edit] Additional and Supplementary Payments

[edit] Rent Assistance

Income support recipients who are classed as non-homeowners and pay more than a required amount of board or rent for accommodation are eligible for Rent Assistance payments. This payment is paid as part of the income support payment. Verification of the rent details are required either a lease or by completing a Rent Certificate every six months.

[edit] Pharmaceutical Allowance

A very small payment for those receiving Centrelink payments, to help cover the cost of prescription medicines.

[edit] Telephone Allowance

A very small payment for those receiving Pension payments only, to help cover the cost of telephone bills.

[edit] Pensioner Education Supplement

An additional payment, for those on a disability pension who are studying, to help cover the cost of study. It only applies to approved courses of study. Bachelor's degrees and many TAFE courses are approved courses of study. However, Masters and Doctorate degrees are not approved. You are still eligible for PES for study even if you have completed previous studies. However, no one who has been awarded a Masters or Doctorate is eligible for PES.

[edit] Concession cards

The following concession cards are issued by Centrelink:

  • Health Care Card - primarily entitles holder to PBS medications at the concession rate. Most recipients of a payment are entitled to this. This card has secondary benefits, including cheaper public transport in some states.
  • Commonwealth Seniors Health Card- a HCC issued to senior citizens
  • Pensioner Concession Card - this offers additional benefits to the Pensioner, including pensioner transportation fares (in some areas), and a certain number of free country rail journeys within the holder's state.

[edit] Prisons and psychiatric hospitals

If you are imprisoned or admitted to a psychiatric institution, you are not eligible to receive your benefits for the duration of your imprisonment or admission. (However, it may be payable if a psychiatric stay is classed as rehabilitation.) The benefits resume upon release or discharge. However, upon release or discharge from imprisonment or psychiatric hospitalisation of more than two weeks, the claimant is entitled to an additional payment equal to seven days of their regular payment, to help with adjustment.

[edit] Centrelink's IT

Centrelink operates one of the largest and highest throughput OLTP database systems in Australia, and is one of the largest users in Australia of Model 204.

[edit] Motivation for serious crime

In 1999, when the Snowtown murders, also known as the "bodies in the barrel" case was first brought to public attention, it was discovered that many of the people murdered had continued to collect their Centrelink pensions or unemployment cheques for years after their murders, and hence were not declared dead. It was hypothesised that one of the main motivations for the murders was to take their pension cheques and hence increase their income. Alternatively, it was suggested that the pension cheques were used as a way to get away with the murder, by them not being declared as dead.

[edit] Legal issues

Every decision made under social security law is to be in writing and given sufficient notice, usually in a letter.[5] Applications for review of such decisions may be lodged within 13 weeks of receiving notice, and may be withdrawn before the review is completed. At the bottom of each letter informing customers of a Centrelink decision, a “your rights” box informs individuals of potential avenues for review.

[edit] Internal Review

Legislation ultimately governs the decision making process, and Centrelink policy guidelines provide the lens through which legislation is interpreted by Centrelink Customer Service Advisers (CSAs). However, notwithstanding legislation and policy, there are still many areas in which significant discretion is afforded to the decision maker, which may be subject to internal and external review.

[edit] Original Decision Maker (ODM) Review

Centrelink possesses a prescribed two-tiered system of internal review. The initial stage is the ODM Review, where the matter is brought back to the CSA for reconsideration.[6] This is a wholly intra-office process and functions as an initial check on the decision, and the appeal progresses further from the ODM only if necessary. Many reviews are due to legislative changes, administrative errors, provision of new customer documentation, or customer disagreement with the decision. There is also the opportunity for the customer to make a formal written complaint. However, many individuals may not wish to have the same CSA make another decision, which may even lead to confusion as to whether internal review has actually taken place.

Once the ODM review has been completed it should contain the relevant legislative provisions, any new information considered, and a determination stating whether the original decision has been set aside, affirmed or varied.

[edit] Authorised Review Officer (ARO) Review

If the individual is not satisfied, an Authorised Review Officer (ARO), an officer delegated review powers from the Secretary for the purposes of social security law, may affirm, vary, or set aside the original decision.[7] Although an employee of the Centrelink, an ARO is not to defend ODM decisions as it is a strong principle that the ARO is independent of the situation and has no previous involvement in the case in adherence to the Westminster model of separation of government and bureaucratic transparency. Nevertheless, AROs also look at legislation with the same policy guidelines as CSAs, and a recent Centrelink management decision has decentralised the location of AROs and has instead placed them together with CSAs and partially fulfilling the role of specialised trainers such as providing guidance with discretion in decision making and providing positive feedback.

Approximately 32% of ODMs are overturned by ARO review, with statistics actively monitored by management to identify inconsistencies between AROs or offices. With more time and resources than the CSA to look at the subjective facts of each case, an ARO has the ability to employ “preferential beneficial discretion” in light of the beneficial intent of social security legislation. For example, if an individual incurs a penalty for failing to attend an interview as dictated by policy, the ARO may consider subjective factors such as travel difficulties and reasonable delays, even though the CSA may have correctly made a decision in accordance with policy. In the Debt team the ARO regularly overturns a higher 50% of ODMs due to the availability of discretionary waiver powers.

It is significant to note that public sentiment is generally against Centrelink, with popular media regularly running stories on how Centrelink denies welfare to genuine claimants adding considerable stressors to the decisions that CSAs make. A national survey found that only 45% of respondents believed that they would get the same answer if they asked different CSAs the same question.

The decisions of the courts also filter down to the internal review level. For example, in a recent ARO review matter regarding whether or not to waive a debt owing to Centrelink incurred by an individual suffering mental illness under “special circumstances” provisions, AAT decisions provided useful precedent in interpreting legislation and applying Centrelink policy guidelines.

[edit] The Social Security Appeals Tribunal – SSAT

A customer dissatisfied with an internal review of a decision may apply to the Social Security Appeals Tribunal (SSAT) [8] to review a decision affirmed, varied or set aside by internal review, subject to some exceptions. The SSAT generally has the same powers as the Secretary, and may affirm, vary, set aside and substitute a decision or return the matter to Centrelink with recommendations. SSAT hearings are generally informal, confidential and not bound by the Laws of Evidence.

Experience has indicated that at the SSAT more weighting goes towards the legislation as opposed to policy guidelines. Welfare advocacy groups such as the Welfare Rights Centre are often involved in providing legal help to individuals affected by Centrelink decisions.

[edit] External Review

[edit] The AAT and the Courts

Further appeals (on questions of law only) are available to the Federal Court and High Court.[9] Only if there is a manifest error of law or a decision made which does not reflect the manner in which the law is normally interpreted would an appeal proceed to the AAT. A decision must have been reviewed by the SSAT before it can be heard at the AAT. However, the Secretary or a delegated person on behalf of the Secretary may appeal a decision from the SSAT. Only a small 17% of decisions are overturned at the AAT. Further appeal is available to the Federal Court and High Court but on points of law only.

[edit] The Ombudsman

The Ombudsman does not play a legal review role, but a report or a letter from an Ombudsman enquiry into a decision will invariably result in a review, and must contain reasons for his recommendations.[10] Ombudsman investigations often stem from a complaint, typically regarding how a CSA has treated a customer eg for “being rude,” and may compel a CSA or ARO to give reasons for his or her decision. However, in terms of Centrelink, the Ombudsman’s power is only inquisitorial and may only request reasons or provide information for further review.

Some have also criticized the agreements people under the Newstart allowance are forced to sign, given that they have no real bargaining choice as to what is included or not included in their "independent" agreement, and that in fact it is a "one for all" form that is forced upon people and as such is not a true agreement.[citation needed]

[edit] Australian Government External links

[edit] Other External Links

[edit] References

  1. ^ a b Halligan, J: "The quasi-autonomous agency in an ambiguous environment: the Centrelink case" Public Administration and Development 24(2): 147-156, 153.
  2. ^ Australia. Public Service Commission. 2003. The Australian Experience of Public Sector Reform. Canberra: APSC, 147.
  3. ^ Australia. Public Service Commission. 2003. The Australian Experience of Public Sector Reform. Canberra: APSC, 142.
  4. ^ Halligan, J. 2004. The quasi-autonomous agency in an ambiguous environment: the Centrelink case. Public Administration and Development 24(2): 147-156, 153
  5. ^ Social Security (Administration) Act 1999 (CTH) s237
  6. ^ Centrelink Information – A Guide to Payments and Services, Chapter 14 – Reviews and appeals, p 137
  7. ^ Social Security (Administration) Act 1999 (CTH) ss 125-126
  8. ^ Social Security (Administration) Act 1999 (Cth) s142(1)(a)
  9. ^ Administrative Appeals Tribunal Act 1975 (Cth) s44
  10. ^ Ombudsman Act 1976 (CTH) s 15
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