Independent review of Services Australia

Services Australia had experienced many years of financial and other difficulties, including funding shortfalls, operating deficits, emergency demands, and undelivered technology transformation benefits.

The resulting continuing decline in operating performance, like telephone wait times and delayed client outcomes, were having severe reputational impacts. The entity had required mid-year supplementary funding for consecutive years. 

KordaMentha was engaged to conduct a multi-faceted review in consultation with management and key stakeholders. The objectives were to determine root causes of the financial and operational issues, identify efficiency opportunities, and provide recommendations for funding and reform over the forward estimates period. ​ 

Complexity came not just in the size and scope of the operations and their socially critical nature, but also in the diversity of stakeholders and management approaches. A further complication came from the intense impact on staff of the organisation’s involvement in the Robodebt issue.  

Working with Service Australia’s Acting CEO and key stakeholders, KordaMentha examined every aspect of the organisation’s operations and finances. We conducted extensive interviews to gain a clear understanding of financial, structural, cultural and operational issues as well as relationships with other business partners and agencies.  

This exhaustive and scrupulously independent approach was essential. If we were to recommend a new funding arrangement, clear and undisputed evidence was critical. 

KordaMentha made wide-ranging conclusions about the root causes of Service Australia’s position, as well as future recommendations for service delivery operations, financial models, and budgeting. Importantly, we made recommendations for efficiencies and additional funding required for the organisation to meet previously determined service standards. 

The ultimate outcome was the acceptance of KordaMentha’s findings and recommendations and a $1.8 billion uplift in funding in the following federal government budget, the government’s single biggest allocation that year.