Centrelink services ‘gutted’ in ‘unbelievable’ budget cuts

Welfare recipients are likely to wait longer for Centrelink claims to be processed with more than 2,500 staff cuts at Services Australia contained in the 2022 Budget.

The Budget has confirmed a 9.4 per cent cut to Services Australia staff - which is around 2,719 jobs - according to Community and Public Sector Union national secretary Melissa Donnelly.

Donnelly said the government workforce had been substantially hollowed out in the nine years the Coalition had been in office, leaving key public service agencies with at least 8,000 fewer staff.

• Also read: Budget 2022: Why petrol will be much cheaper within days

• Also read: Budget 2022: 10 million Aussies to get extra $420 cash bonus

• Also read: Australia's $6 billion shopping list: 5 issues the 2022 Budget must tackle

For Australians trying to access welfare support, she said wait times would only get longer as the trimmed workforce dealt with a growing backlog of claims.

Donnelly said this was concerning, given the vast numbers of Australians affected by flooding in NSW and Queensland.

“At a time when so many Australians are relying on Services Australia, Scott Morrison has shown his true colours by gutting the services that communities rely on,” she said.

“It is unbelievable that as we watch floodwaters recede, and the clean-up just begins, Services Australia staff will be cut by 9.4 per cent.”

Responding to the claims, a spokesperson for Government Services Minister Linda Reynolds said the staff numbers outlined in the Budget were a baseline and employee numbers would be boosted if demand for services increased.

“Each year, the Budget sets the baseline resources for Services Australia - surge resources, including additional staff, are provided throughout the year, as required, to meet demand,” she said.

In the lead-up to the 2022 Budget, Treasurer Josh Frydenberg said the Government was expecting to have more in its coffers because fewer people would be unemployed.

"With more people in work and less people on welfare, the Budget bottom line is improving after providing unprecedented economic support to Australians,” he said.

Budget measures to ease rising cost-of-living pressures

The Morrison Government looked to address cost-of-living concerns in the Federal Budget.

Those receiving a welfare payment, including pensioners, veterans and concession card holders will get an automatic $250 payment.

The Government also offered low- and middle-income earners additional tax relief and halved the fuel excise tax.

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.