Services Australia is now under the direct control of the Department of Finance. Photo: Michelle Kroll.
The Department of Social Services has lost its oversight of social security payments and service delivery policy, through machinery of government changes placing Services Australia under the direct control of the Department of Finance.
The move signals a significant shakeup of how the delivery of Centrelink services will be administered going forward.
An Administrative Arrangements Orders amendment the Federal Government hoped would fly under the radar was signed by Governor-General Sam Mostyn on 26 June and quietly posted on the Department of Prime Minister and Cabinet’s website.
It states that it and other moves now form part of the MoG changes made following the reelection of the Labor government in May.
Without any wider announcement being made, the order flagged the changes kicking in from 1 July.
“I, the Honourable Sam Mostyn AC, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and under Chapter II of the Constitution, order that the Administrative Arrangements Order made on 13 May 2025, be amended as set out in the Schedule,” it states.
“This Order commences on 1 July 2025.”
In Part 7 of the order, under the heading of The Department of Finance, it states “Matters dealt with by the Department” and outlines significant changes brought in with the new financial year.
“Add: Delivery of services and payments relating to social security, child support, students, families, aged care and health programs (excluding Health provider compliance); Whole of government service delivery policy,” it says.
Under “Legislation administered by the Minister” in the following lines of the order it says:
“Add: Human Services (Centrelink) Act 1997; Human Services (Medicare) Act 1973, except to the extent administered by the Minister responsible for Health.”
Part 14 of the order, under the heading, the Department of Social Services, lists those responsibilities being removed from its control.
This brings Services Australia into the central agency of Finance, which is yet to get a new department head following the recent promotion of Jenny Wilkinson to Treasury secretary.
It also brings welfare service policy development and frontline delivery back under one department, which the Federal Government sees as another step in improving delivery and creating new opportunities following the disastrous Robodebt era.
And it bolsters the powers of Finance Minister Katy Gallagher, who is also Government Services Minister, over the huge services agency.
The Minister addressed Services Australia staff and external stakeholders in the agency’s mid-year report event last month.
It was her first address in that role since the federal election.
While praising improvements in wait times and the processing of payments, she flagged challenges ahead for the agency.
“I think it’s really important to start and acknowledge there are things that are going really well and government services and Services Australia should be very proud of that,” Senator Gallagher said.
“We’ve seen big improvements in a whole range of areas and I feel that under David [CEO David Hazlehurst] and his team’s leadership, a real focus on customers, customer experience and a focus on the people that we’re here to serve.
“Having said that, I think there’s an acknowledgement there are areas that we need to do better, that we need to continue to focus on.
“And there’s going to be all those challenges that come around that we didn’t even know were an issue – I know that they’ll be coming, I don’t know what they are, but I know they’ll be coming – and how we deal with that.”
The change that moves Services Australia from Social Services to Finances comes as the government is demanding Australian Public Services agencies slash red tape in the push to improve the nation’s productivity.
Senator Gallagher and Treasurer Jim Chalmers sent letters last week to a number of targeted department and agency heads involved in imposing regulatory functions, asking them to find ways to reduce bureaucratic burdens on business.
They want suggestions in time for next month’s economic reform productivity round table.
