The usual cycle goes like this:
- "We need to decrease costs in public organisation A because $reason"
- "Hey look, public org has growing wait times and growing infrastructure issues. We should reduce their budget because they're not doing their job!"
Rinse & repeat until you're left with Centrelink's current state. They don't have enough money to make the changes needed to clean up legacy systems AND process the work loads they have now AND maintain the current systems, so a choice is made by people in a sinking ship. Around 2014 the amount spent on "admin" was gutted by half with the election of the Liberal party (small govt party in AU), with funding only recovering to the previous levels during 2017.
edit: formatting (bullet point lists and newlines are hard)