Centrelink Reduced Claims Backlog Significantly Following Hiring Spree

A backlog of over a million claims submitted to Services Australia is expected to return to normal levels by the middle of the year after a significant hiring initiative.

Statistics show that more than 500,000 Centrelink and Medicare claims have been processed and cleared from the backlog in just 10 weeks.

This progress follows the recruitment of over 3000 new employees by Services Australia to address the growing backlog of claims.

As of December 2023, there were 1.1 million outstanding claims, with the backlog reaching its peak at 1.35 million claims.

Government Services Minister Bill Shorten emphasized the organization’s commitment to expediting the clearance of the backlog.

“We understand the frustration of individuals awaiting payments, but we are finally making significant strides in the right direction,” he stated.

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“These new recruits have helped reduce claims by nearly 40%, and as the new staff enhance their skills and experience, Australians will witness continued improvements.

“We aim to bring outstanding claims back to regular levels by mid-year.”

In 2023, the federal government allocated over $200 million (US$131 million) to hire additional personnel to address the escalating number of claims being lodged.

During a Senate estimates hearing in February, Services Australia CEO David Hazlehurst anticipated the outstanding claims to be reduced to between 400,000 and 500,000 by April.

While the recruitment began in January, Mr. Hazlehurst previously mentioned that the training process would result in a delay before a significant dent is made in the claims backlog.

Since the new staff appointments, online Medicare claims have dropped by 78%, and Commonwealth seniors health card claims have decreased by 59%.

“Reducing the outstanding claims will help alleviate call wait times as fewer individuals will be inquiring about the status of their claims,” Mr. Shorten added.