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waste Services Australia
$5.0B

$5 billion in wrong pension payments — 3 years, every quarter a miss

Services Australia made $5 billion in incorrect age pension payments over 3 years to June 2024 — $3.67B overpaid, $1.33B underpaid. The agency missed its own 80% timeliness target in all 12 quarters audited. Its worst quarter: 38.6%. ANAO called it "poor stewardship of public resources."

On Their Watch
BS
Bill Shorten
This happened on Shorten's watch as Government Services Minister, June 2022–May 2025. Minister responsible for Services Australia and age pension payments administration
Department: Services Australia
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What This Means

$5.0B of Australian taxpayer money was wasted at Services Australia. Services Australia made $5 billion in incorrect age pension payments over 3 years to June 2024 — $3.67B overpaid, $1.33B underpaid. The agency missed its own 80% timeliness target in all 12 quarters audited. Its worst quarter: 38.6%. ANAO called it "poor stewardship of public resources."

Spread across Australia's 10.8 million households, that's roughly $463 per family — enough in total for funding roughly 42 public hospitals for a full year.

  • It is Australia's largest social support program.
  • Sources: - Accounting Times: https://www.accountingtimes.com.au/profession/services-australia-blundered-5-billion-in-pension-payments-in-3-years-audit-finds - ANAO audit (January 2025)
Amount Spent
$62,200,000,000
Original Estimate
Not specified
Waste / Overrun
$5,000,000,000
AI Confidence
96%

Analysis

Services Australia made $5 billion in incorrect age pension payments over 3 years to June 2024:

- $3.67 billion overpaid (sent to people who shouldn't have received it at the amount paid)

- $1.33 billion underpaid (withheld from retirees who were entitled to it)

The age pension costs $62.2 billion per year — 8.4% of the entire federal budget. It is Australia's largest social support program.

Performance failures:

- Services Australia missed its own 80% timeliness target in every single quarter of the 3-year audit period (12/12 quarters)

- Worst quarter performance: 38.6% of claims completed on time

- A 2019 IT error resulted in $37 million in overpayments across 175,032 recipients — undetected for 5 years

- Complaint volumes surged 80% during the period while the recipient base grew only 2%

ANAO assessment: "Poor stewardship of public resources."

Per household: $5B in errors across 10.8M households = $463 per household in payment errors in a single 3-year period.

Sources:

- Accounting Times: https://www.accountingtimes.com.au/profession/services-australia-blundered-5-billion-in-pension-payments-in-3-years-audit-finds

- ANAO audit (January 2025)

Sources

https://www.accountingtimes.com.au/profession/services-australia-blundered-5-billion-in-pension-payments-in-3-years-audit-finds
Category: waste
Severity: critical
Agency: Services Australia
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Department: Services Australia
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