Services Australia has been grappling with a significant backlog of claims, with more than one million claims remaining outstanding as of December 2023. Despite efforts to alleviate the backlog, including the hiring of thousands of new staff, the issue persists.
Age Pension backlog averages
| Age Pension | Average Days to process |
| FY 2020-21 | 14 |
| FY 2021-22 | 35 |
| FY 2022-23 | 33 |
| 2023-24 1 July to 31 Aug | 61 |
| 2023-24 1 Sept to 31 Dec | 68 |
During a recent Senate estimates hearing, Services Australia’s new chief executive, David Hazlehurst, expressed optimism about reducing the backlog in the coming months. Mr. Hazlehurst aims to bring the number of outstanding claims down to between 400,000 and 500,000 by April.
One key metric showing improvement is the average speed of call answering, which has decreased from 32 minutes to 20 minutes. However, the average wait time for those seeking employment services remains high at 48 minutes.
Documents presented at the hearing revealed that nearly 7.5 million calls to Centrelink in the six months leading up to December 31, 2023, resulted in congestion messages. Of these, two million were related to employment services. Additionally, 2.3 million calls were terminated by the caller due to the lengthy wait times.
Mr. Hazlehurst emphasised that there are alternative ways to access support besides calling the phone line, encouraging individuals to explore these options to avoid long wait times.
The average processing time for claims with Services Australia has been steadily increasing since the beginning of the decade. These delays can cause significant financial stress for many individuals.
To mitigate the impact of these delays, it is crucial to account for the backlog where possible. One way to do this is by applying for the Age Pension up to 13 weeks before reaching the qualifying age (67 for those born after 1 January 1957). This can help reduce the waiting time after becoming age-eligible. Additionally, if you are still working but have reached Age Pension age, you can apply before you stop working. When declaring income, you can include your full work income, which will be used in the income calculation to determine if it is below the income limit. If you expect to stop or reduce work hours in the next two weeks, you can declare this lower expected income.
Furthermore, ensuring all supporting evidence is included with your claim application can help prevent delays due to errors.
In conclusion, while Services Australia is working diligently to address the backlog, it is important for individuals to take proactive steps to avoid adding to the delays. By understanding the options available and providing accurate information, applicants can help expedite the processing of their claims.
If you require assistance with your Services Australia application or updates, please contact the Venture team.