Daily Telegraph - $8m age pension bungle

Services Australia has been caught out in an embarrassing error which saw the agency accidentally overpay a whopping $8m in incorrect pension payments. 

In November last year, it was first revealed that thousands of Australians had either been underpaid or overpaid their pension because their superannuation was incorrectly excluded from the income and assets tests assessment upon reaching the Age Pension age. 

Under questioning from NSW Senator Maria Kovacic in Senate Estimates in February, officials at Services Australia said the agency had made overpayments of $8000. 

But The Daily Telegraph can reveal the agency has since admitted that the overpayments actually cost taxpayers a shocking $8m. 

Last week, a department official wrote to Senator Kovacic saying they wished to correct the record after missing a few zeros in their original claim. 

“In answering a question from Senator Kovacic … (older Australians and veterans general manager) Ms (Laura) Gannon stated ‘I don’t have the quantum. I can say that, as of 31 January this year, we have waived 2651 debts to a total value of $8000’,” the letter said. 

“The correct value is $8,000,000. Accordingly I would like to correct the Hansard record. ” 

The bungle was first uncovered via an internal government briefing document obtained through Freedom of Information laws last year. 

Opposition government services spokesman Paul Fletcher said the error was further proof that Services Australia was a mess and in need of reform. 

“This error is unacceptable and raises serious concerns about Services Australia’s competence,” Mr Fletcher said. 

“There should never have been an overpayment shemozzle, but for the agency to get the figures so wrong is embarrassing and worrying. 

“This revelation adds to the woes impacting the Age Pension, with the latest data showing it takes 78 days on average to process an Age Pension claim as at 31 December 2023, compared to 33 days for the 2021-22 financial year.” 

Mr Fletcher has been calling for a “root and branch” review of Services Australia to overhaul the agency. 

Services Australia general manager Hank Jongen apologised for the confusion. 

“No one will need to repay any money as a result of this issue,” he said. “We sincerely apologise for any confusion or distress it’s caused.”

Author: Angira Bharadwaj

This article appeared in the Daily Telegraph on 23 April 2024