The age pension is the Government’s means tested income support for eligible seniors. It is a significant component of Australian Government expenditure, comprising 8.4% of the Federal budget and 42.5% of social security payments in 2024–25. This audit provides assurance to Parliament on the the Department of Social Services’ (DSS) and Services Australia's administration of the age pension.

There were four recommendations to DSS on effective oversight and reporting on program effectiveness, six recommendations to Services Australia including on enhanced claims verification and compliance activities, and one to the Department of Veterans' Affairs (DVA) on program implementation. Services Australia and DVA agreed to all recommendations. DSS agreed to three and agreed in principle to one recommendation.

Key findings

• DSS’ oversight of the age pension is partly effective.
• Services Australia’s processes to assess and review applicants’ and recipients’ age pension eligibility are partly effective.
• Services Australia does not fully use the information it has to improve its engagement with seniors.
• Between July 2021 and June 2024, estimated age pension payment inaccuracy was $5 billion. This includes $1.33 billion in underpayments to seniors eligible for higher benefits and $3.67 billion in overpayments.
• For the same period, the timeliness performance target (at least 80% of claims are completely assessed within 49 days) was not met.