Phillip Hudson & Joe Kelly - The Australian
Social Services Minister Scott Morrison has declared there would be near-immediate savings and more effective service delivery arising from the replacement of an antediluvian 1980s era Centrelink computer that poses a new impediment to welfare reform.
Federal cabinet is currently considering replacing the system in a move estimated to cost about $1bn with The Australian revealing today that changing a letter for social security payments takes 100 public servants six months at a cost of $500,000.
Centrelink’s “Income Security Integrated System” which handles $100bn worth of payments each year runs on a Model 204 mainframe considered to be too cumbersome to cope with the overhaul of the payments system proposed by welfare reformer Patrick McClure.
Mr Morrison and Human Services Minister Marise Payne are pushing for funding in the May budget to replace the outdated system.