Centrelink's Role in the Process of Appeal to the Social Security Appeals Tribunal and to the

112 Pages·2010·1.82 MB·English

T h e A u d i t o r - G e n e r a l
Audit Report No.16 2010-11
Performance Audit
Centrelink’s Role in the Process of Appeal to
the Social Security Appeals Tribunal and to
the Administrative Appeals Tribunal
Centrelink
Department of Education, Employment and Workplace
Relations
Department of Families, Housing, Community Services
and Indigenous Affairs
A u s t r a l i a n N a t i o n a l A u d i t O f f i c e
© Commonwealth
of Australia 2010

ISSN 1036–7632

ISBN 0 642 81160 1

COPYRIGHT INFORMATION

This work is copyright. Apart from
any use as permitted under the
Copyright Act 1968, no part may be
reproduced by any process without
prior written permission from the
Commonwealth.

Requests and inquiries concerning
reproduction and rights should be
addressed to:

Commonwealth Copyright
Administration
Attorney-General’s Department
3–5 National Circuit
Barton ACT 2600

http://www.ag.gov.au/cca

ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal

2
© Commonwealth
of Australia 2010

ISSN 1036–7632

ISBN 0 642 81160 1 Canberra ACT
25 November 2010

COPYRIGHT INFORMATION
Dear Mr President

Dear Mr Speaker
This work is copyright. Apart from

any use as permitted under the
Copyright Act 1968, no part may be
reproduced by any process without The Australian National Audit Office has undertaken an independent
prior written permission from the performance audit in Centrelink, the Department of Education,
Commonwealth. Employment and Workplace Relations and the Department of Families,
Housing, Community Services and Indigenous Affairs in accordance

with the authority contained in the Auditor-General Act 1997. I present
Requests and inquiries concerning
the report of this audit, and the accompanying brochure, to the
reproduction and rights should be
Parliament. The report is titled Centrelink’s Role in the Process of
addressed to:
Appeal to the Social Security Appeals Tribunal and to the Administrative

Commonwealth Copyright Appeals Tribunal.
Administration
Attorney-General’s Department
3–5 National Circuit
Following its tabling in Parliament, the report will be placed on the
Barton ACT 2600
Australian National Audit Office’s Homepage—http://www.anao.gov.au.

http://www.ag.gov.au/cca Yours sincerely

Steve Chapman
Acting Auditor-General

The Honourable the President of the Senate
The Honourable the Speaker of the House of Representatives
Parliament House
Canberra ACT

ANAO Audit Report No.16 2010–11 ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal and to the Administrative Appeals Tribunal

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AUDITING FOR AUSTRALIA

The Auditor-General is head of the
Australian National Audit Office
(ANAO). The ANAO assists the
Auditor-General to carry out his
duties under the Auditor-General
Act 1997 to undertake performance
audits and financial statement audits
of Commonwealth public sector
bodies and to provide independent
reports and advice for the Parliament,
the Australian Government and the
community. The aim is to improve
Commonwealth public sector
administration and accountability.

For further information contact:
The Publications Manager
Australian National Audit Office
GPO Box 707
Canberra ACT 2601

Telephone: [phone]
Fax: [phone]
Email: [email protected]

ANAO audit reports and information
about the ANAO are available at our
internet address:

http://www.anao.gov.au

Audit Team
Isabelle Favre
Dorian Serrier
Tessa Osborne
Nathan Williamson

ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal

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Contents

AUDITING FOR AUSTRALIA
Contents ......................................................................................................................... 5 
The Auditor-General is head of the Abbreviations and Acronyms ......................................................................................... 8 
Australian National Audit Office
Glossary ......................................................................................................................... 9 
(ANAO). The ANAO assists the
Auditor-General to carry out his Summary and Recommendations ............................................................................ 11 
duties under the Auditor-General Summary ...................................................................................................................... 13 
Act 1997 to undertake performance
Introduction ............................................................................................................. 13 
audits and financial statement audits
Audit objective, criteria and scope .......................................................................... 17 
of Commonwealth public sector
Overall conclusion ................................................................................................... 18 
bodies and to provide independent
reports and advice for the Parliament, Key findings ............................................................................................................. 19 
the Australian Government and the Summary of agency responses .............................................................................. 23 
community. The aim is to improve Recommendations ....................................................................................................... 24 
Commonwealth public sector
Audit Findings ............................................................................................................ 27 
administration and accountability.
1.  Introduction ............................................................................................................. 29 
For further information contact: Background ............................................................................................................. 29 
The Publications Manager Related ANAO audits .............................................................................................. 39 
Australian National Audit Office Audit objective and criteria ...................................................................................... 40 
GPO Box 707
Audit approach ........................................................................................................ 40 
Canberra ACT 2601
Structure of the report ............................................................................................. 41 

Telephone: [phone] 2.  Centrelink’s Communication with Customers ......................................................... 42 
Fax: [phone] Introduction ............................................................................................................. 42 
Email: [email protected] Information to customers about review and appeal rights ...................................... 43 
Information to customers about their decisions ...................................................... 49 
ANAO audit reports and information Conclusion .............................................................................................................. 54 
about the ANAO are available at our
3.  Provision of Information to the SSAT and the AAT ................................................. 56 
internet address:
Introduction ............................................................................................................. 56 

http://www.anao.gov.au Administrative and legal framework for the provision of information ...................... 57 
Timeliness of information provided ......................................................................... 59 
Audit Team Clarity and relevance of information provided to Tribunals ..................................... 61 
Isabelle Favre Conclusion .............................................................................................................. 66 
Dorian Serrier 4.  Centrelink’s, DEEWR’s and FaHCSIA’s Administration of SSAT and AAT
Tessa Osborne Decisions ................................................................................................................. 67 
Nathan Williamson Introduction ............................................................................................................. 67 
Administrative and legal arrangements ................................................................... 68 
Management of SSAT and AAT appeals and decisions ......................................... 72 
Timeliness of the appeal process ........................................................................... 74 
Capture of broader implications .............................................................................. 75 
Conclusion .............................................................................................................. 79 

ANAO Audit Report No.16 2010–11 ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal and to the Administrative Appeals Tribunal

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5.  Centrelink’s Management of the Implementation Process ..................................... 81 
Introduction ............................................................................................................. 81 
SSAT and AAT decisions implementation processes ............................................. 83 
Timeliness of implementing decisions of the Tribunals .......................................... 85 
Impact of processes on the time taken to implement a decision ............................ 90 
Conclusion .............................................................................................................. 96 
Appendices ................................................................................................................. 99 
Appendix 1:  DEEWR response to the audit ......................................................... 101 
Appendix 2:  Methodology for selecting the data set used to assess the
timeframe for implementing SSAT and AAT decisions .................... 102 
Index ........................................................................................................................... 105 
Series Titles ................................................................................................................ 107 
Current Better Practice Guides .................................................................................. 109 

ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal

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5.  Centrelink’s Management of the Implementation Process ..................................... 81  Tables
Introduction ............................................................................................................. 81 
Table 2.1 DCAL and ATSI customers who lodged an appeal to the SSAT
SSAT and AAT decisions implementation processes ............................................. 83  and the AAT, July 2008–June 2010 ................................................... 49 
Timeliness of implementing decisions of the Tribunals .......................................... 85  Table 2.2 Performance of AROs in relation to quality of reasons given in
Impact of processes on the time taken to implement a decision ............................ 90  decisions, as reported by ARO QA program ...................................... 54 
Conclusion .............................................................................................................. 96  Table 3.1 Centrelink’s timeliness in the provision of documents to the
SSAT and the AAT ............................................................................. 60 
Appendices ................................................................................................................. 99 
Table 3.2 Administrative Arrangements Agreement Compliance Survey
Appendix 1:  DEEWR response to the audit ......................................................... 101  results, July-December 2007 and July-December 2009 .................... 64 
Appendix 2:  Methodology for selecting the data set used to assess the Table 4.1 Centrelink’s timeliness in conducting reviews, 2009–10 .................... 74 
timeframe for implementing SSAT and AAT decisions .................... 102 
Table 5.1 Time taken (days) to implement SSAT and AAT decisions,
Index ........................................................................................................................... 105  1 July 2008–30 June 2010, by six-monthly periods ........................... 87 
Series Titles ................................................................................................................ 107 

Current Better Practice Guides .................................................................................. 109 
Figures

Figure S 1 Social Security Appeal Structure ........................................................ 14 

Figure S 2 Appeals to the SSAT and the AAT, 2009–10 ..................................... 16 
Figure 1.1 Social Security Appeal Structure ........................................................ 31 
Figure 1.2 Appeals to the SSAT, the AAT and the Federal Court, 2009–10 ....... 35 
Figure 1.3 Number of appeals to the SSAT and the AAT, 2004–10 ................... 37 
Figure 1.4 Centrelink’s management of SSAT and AAT appeals and
decisions ............................................................................................. 39 
Figure 4.1 Administrative and legal arrangements between Centrelink,
DEEWR and FaHCSIA ....................................................................... 68 
Figure 5.1 Total time taken (in days) to implement SSAT and AAT
decisions ............................................................................................. 86 
Figure 5.2 Days elapsed (average) from receipt to implementation of
decisions, by main payment types ..................................................... 88 
Figure 5.3 Days elapsed (average) from receipt to implementation of
decisions, by main Centrelink regions ................................................ 89 
Figure 5.4 Time taken (in days) to consider SSAT and AAT decisions for
appeal ................................................................................................. 91 
Figure 5.5 Time taken (in days) by ODMs to implement SSAT and AAT
decisions ............................................................................................. 95 
Figure A 1 Sampling steps ................................................................................. 104 

ANAO Audit Report No.16 2010–11 ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal and to the Administrative Appeals Tribunal

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Abbreviations and Acronyms Glossary
AAA  Administrative Arrangements Agreement   Advocates  Advocates  work  in  Centrelink’s  Legal  Services  and 
Procurement  Branch  and  are  responsible  for  scrutinising 

AAT  Administrative Appeals Tribunal   decisions  of  the  Social  Security  Appeals  Tribunal  and 
  handling matters that are before the Administrative Appeals 
AAT Act  Administrative Appeals Tribunal Act 1975  
Tribunal and the Federal Courts. 

ARO  Authorised Review Officer  To affirm   To confirm the original decision under review. 
(a decision) 
ATSI  Aboriginal and Torres Strait Islander 
Authorised  A Centrelink officer responsible for conducting an internal 
BMA  Bilateral Management Arrangement 
Review Officer  review of a decision at the request of the customer. 
(ARO) 
CSC  Customer Service Centre 
An  agreement  made  under  the  Commonwealth  Services 
Bilateral 
DCAL  Diverse Cultural and Linguistic  Delivery  Agency  Act  1997  which  outlines  the  business 
Management 
operations  between  DHS/Centrelink  and  DEEWR,  and 
Arrangement 
DEEWR  Department  of  Education,  Employment  and  Workplace 
DHS/Centrelink  and  FaHCSIA  in  the  achievement  of 
Relations 
Government outcomes.  
DHS  Department of Human Services  Litigation  A set of principles to guide the decisions of DEEWR and 
Principles  FaHCSIA  when  determining  whether to appeal decisions 
FAA Act  A  New  Tax  System  (Family  Assistance)  (Administration)  made under social security and family assistance law. 
Act 1999  
Merits review  Merits or administrative reviews, up to and including the 
FaHCSIA    Department of Families, Housing, Community Services and  AAT, are conducted de novo or totally new. The reviewing 
Indigenous Affairs   body is to make the decision as if for the first time, taking 
into account any additional information that is available. 
ODM  Original Decision Maker 
Judicial  reviews,  from  the  Federal  Court  upward,  are 
concerned wholly with the validity of the correct decision, 
QA  Quality Assurance 
and are based only on the correct application of the law.  
SSAT  Social Security Appeals Tribunal 
Original  The  Customer  Service  Advisor  who  made  the  original 
Decision Maker  decision regarding a customer’s payment or circumstance. 
SSA Act  Social Security (Administration) Act 1999 
(ODM) 

To set aside   To replace the original decision with a new decision. 

(a decision) 

ANAO Audit Report No.16 2010–11 ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal and to the Administrative Appeals Tribunal

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Glossary
Advocates  Advocates  work  in  Centrelink’s  Legal  Services  and 
Procurement  Branch  and  are  responsible  for  scrutinising 

decisions  of  the  Social  Security  Appeals  Tribunal  and 
  handling matters that are before the Administrative Appeals 
Tribunal and the Federal Courts. 

To confirm the original decision under review. 
To affirm  
(a decision) 
Authorised  A Centrelink officer responsible for conducting an internal 
Review Officer  review of a decision at the request of the customer. 
(ARO) 
An  agreement  made  under  the  Commonwealth  Services 
Bilateral 
Delivery  Agency  Act  1997  which  outlines  the  business 
Management 
operations  between  DHS/Centrelink  and  DEEWR,  and 
Arrangement 
DHS/Centrelink  and  FaHCSIA  in  the  achievement  of 
Government outcomes.  
Litigation  A set of principles to guide the decisions of DEEWR and 
Principles  FaHCSIA  when  determining  whether to appeal decisions 
made under social security and family assistance law. 
Merits review  Merits or administrative reviews, up to and including the 
AAT, are conducted de novo or totally new. The reviewing 
body is to make the decision as if for the first time, taking 
into account any additional information that is available. 
Judicial  reviews,  from  the  Federal  Court  upward,  are 
concerned wholly with the validity of the correct decision, 
and are based only on the correct application of the law.  
Original  The  Customer  Service  Advisor  who  made  the  original 
Decision Maker  decision regarding a customer’s payment or circumstance. 
(ODM) 
To set aside   To replace the original decision with a new decision. 
(a decision) 

ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal

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Scrutiny  A scrutiny is a written examination of a Tribunal decision 
undertaken  by  Centrelink  advocates.  Scrutinies  are 
undertaken mostly in order to identify cases that should be 
considered for further appeal. Scrutinies can also identify 
cases  that  have  a  level  of  significance  in  relation  to  the 
administration of the social security and family assistance 
law.  
Stay   An  order  given  by  the  AAT  (or  a  court  in  the  case  of 
appealed  AAT  decisions)  which  partially  or  totally  stays 
(suspends) the operation or implementation of the SSAT (or 
the AAT) decision until the AAT (or a court) finalises the 
review.  A  stay  can  be  requested  by  Centrelink  or  the 
customer. 
To vary   To change the original decision to some degree (which may 
(a decision)  be  to  the  customers  full  or  partial  advantage,  or 
disadvantage). 
Vulnerable  Include  those  customers   presenting   one  or  more  of  the 
customers  following  characteristics:  psychiatric  or  mental  illness; 
cognitive  or  neurological  impairment;  illness  or  injury 
requiring frequent treatment; drug or alcohol dependency; 
homelessness; traumatic relationship breakdown; language 
and  literacy  issues;  imprisonment  or  recent  release  from 
prison; and significant caring responsibilities. 

ANAO Audit Report No.16 2010–11
Centrelink’s Role in the Process of Appeal to the Social Security Appeals Tribunal
and to the Administrative Appeals Tribunal

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