Ministerial Statement

Auditor-General's Report: Concessions Review

The Hon. Z.L. BETTISON (Ramsay—Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for the Status of Women, Minister for Ageing, Minister for Multicultural Affairs, Minister for Youth, Minister for Volunteers) (14:13): I seek leave to make a ministerial statement.

Leave granted.

The Hon. Z.L. BETTISON: Today, the Auditor-General has released his report entitled—

Ms Chapman interjecting:

The Hon. Z.L. BETTISON: —Department for Communities and Social Inclusion—

The SPEAKER: The deputy leader is warned a first time.

The Hon. Z.L. BETTISON: —Concessions Review 2015-16. This report deals principally with the issue of concessions validation and reconciliation, with a particular focus on the energy concession.

During the six-year time period covered by the Auditor-General's report, DCSI was responsible for the payment of almost $800 million in concessions for council rates, energy, transport and water. Due to the limitations of DCSI's current computer system, the Auditor-General identified validation issues with some concession payments.

Dr McFetridge interjecting:

The Hon. Z.L. BETTISON: These amount to approximately 3 per cent of the value of the concession payments administered for council rates, energy, transport and water concessions during this period. This does not mean that these concession payments were not legitimate.

When paying concessions, it is important that they get to those who need them as fast as possible. Each year, more than 200,000 South Australian households benefit from energy, water and sewerage concessions, with the energy concession being provided to more households than any other concession. The energy concession is highly volatile and experiences a higher level of 'customer churn', more than other concessions administered by DCSI. A considerable number of customers may come in and out of eligibility each year, or change retailers during the year and, as well, new customers enter. Centrelink beneficiaries, such as Newstart recipients, may become eligible and also ineligible several times during the year.

In his report, the Auditor-General makes a number of recommendations regarding changes to DCSI validation processes, payment, and reconciliation of concessions. The Auditor-General is supportive of the upgraded energy reconciliation processes that the department has implemented since late last year. The department has indicated it would also welcome the opportunity to work with the Auditor-General's Department to further improve its processes.

The government has allocated funds in the budget for the implementation of a purpose-built and fully automated database, COLIN, which will enable validation, payment calculation and customer level reconciliation. While this system is currently focused on the new cost-of-living concession, I have instructed my department to examine its expansion to cover all concessions. The Auditor-General has also recommended changes to information sharing processes to improve processes and discussions with energy retailers. This is also being undertaken. We are focused on continuing to provide government assistance to those who need it in both a timely fashion and one that is fiscally responsible.

Dr McFetridge interjecting:

The SPEAKER: The member for Morphett is called to order, warned a first time and warned a second time.