Review of Services Australia
Services Australia faced a prolonged period of underinvestment in organisational capability and capacity, leading to financial and operational difficulties.
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Public SectorServices Australia faced a prolonged period of underinvestment in organisational capability and capacity, leading to financial and operational difficulties. These included funding shortfalls, operating deficits, emergency demands, and delayed benefits from technology transformation initiatives.
As performance declined, wait times lengthened and delayed client outcomes became more frequent, impacting public confidence and reputation. For several years, Services Australia required mid-year supplementary funding to maintain operations.
To address these challenges, Services Australia engaged our team to conduct a multi-faceted review to determine the root causes of financial and operational issues, identify efficiency opportunities, and recommend reforms and funding requirements for the future.
How we helped
Our role
We undertook a comprehensive and independent review of Services Australia’s operations in close consultation with management and key stakeholders.
Our work focused on:
- Understanding the financial, structural, cultural, and operational drivers behind persistent issues.
- Identifying efficiency opportunities and areas for organisational improvement.
- Reviewing relationships with business partners and other agencies.
- Assessing the feasibility and impact of recommended changes.
- Providing clear and evidence-based recommendations for reform and sustainable funding.
The breadth and complexity of this work reflected both the size and social importance of Services Australia’s role, as well as the diverse stakeholders and management approaches involved.
Additional sensitivity was required due to the organisation’s involvement in the Robodebt issue, which had a significant impact on staff and public perception.
Our exhaustive and independent approach was essential to ensure that the findings and recommendations could be relied upon by the government to make future funding decisions.
Outcomes acheived
Our recommendations were accepted, resulting in a $1.8 billion uplift in funding in the federal government’s budget – the largest budget allocation that year.
This funding uplift provided Services Australia with the resources needed to address long-standing deficits, meet agreed service standards, and deliver improved outcomes for the community.
