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flag Australia overpaid $3.67 billion in age pensions due to flawed systems and poor oversight.

flag An audit found $5 billion in incorrect age pension payments in Australia between June 2021 and June 2024, including $3.67 billion overpaid and $1.33 billion underpaid, due to systemic failures by Services Australia. flag The agency, which manages the $62.2 billion program supporting 2.67 million recipients, relied heavily on self-reported data without sufficient verification, had inadequate risk assessments for automated systems, and lacked proper staff training. flag Payment accuracy fell below the 97% target, claims took an average of 48 days to process, phone wait times exceeded one hour on over half the days reviewed, and complaints rose nearly 80% despite minimal growth in recipients. flag The auditor-general recommended improvements in eligibility checks, compliance targeting, digital access, and claim simplification, with the government acknowledging the findings and stating corrective actions are underway.

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