$10.6M in Overtime: A Symptom of Bureaucratic Inefficiency?

Taxpayers have once again been left footing the bill for government inefficiency, with new figures revealing that Services Australia spent over $10.6 million in overtime payments for public servants to clear a backlog of Medicare, welfare, and child support claims.

The spending covered nine “Super Saturday” events over the past financial year, where more than 2,100 staff worked extra hours to process nearly 775,000 claims. While the government defends the expenditure as necessary to manage a backlog left by the previous administration, critics argue that such massive overtime costs highlight a deeper issue—poor productivity and inefficiency in the public sector.

A $10M Drop in the Ocean or a Sign of Waste?

Government Services Minister Bill Shorten justified the spending, stating that the previous Coalition government cut too many staff, leaving the agency unable to process claims efficiently. He pointed out that the $10.6M in overtime represents just 0.2% of Services Australia’s annual operating budget.

However, the Australian Taxpayers’ Alliance (ATA) is calling for greater accountability. ATA President Brian Marlow slammed the overtime payments as a sign of “horrible efficiency,” questioning why government employees—who aren’t exactly working 80-hour corporate weeks—couldn’t complete these essential tasks within standard working hours.

“The $10M may seem like a drop in the ocean, but it reflects a larger problem,” Marlow said. “Government agencies continue to expand their workforce and rely on taxpayer-funded overtime, instead of improving productivity and streamlining processes.”

Automation & Workforce Management in Question

The opposition blames Labor’s handling of Services Australia, arguing that pausing automation processes and cutting over 1,000 specialist tech jobs has created more inefficiencies in the system. Opposition spokesman Michael Sukkar has called for a full review of Services Australia to address its productivity issues and ensure taxpayer dollars are used effectively.

While the backlog has now been reduced, this issue raises bigger concerns about whether government departments are operating at maximum efficiency or simply relying on increased staffing and overtime at the taxpayer’s expense.

The Need for Greater Accountability

The Australian Taxpayers’ Alliance is urging more transparency and oversight on public sector spending. With cost-of-living pressures mounting, Australians deserve greater accountability for how their tax dollars are spent.