The new SAP payments platform dubbed “Payment Utility” replaces some parts of the existing payments system to deliver welfare payments to Centrelink customers.
The new Payment Utility, which is part of the billion-dollar Centrelink overhaul and welfare payments infrastructure transformation (WPIT) program, officially went live. One payment– the parenting allowance– was released by Services Australia six weeks ago and the pensions were scheduled this Tuesday, 3 November 2020.
Built over the past two years, Payment Utility is designed to replace the payments capability in the legacy income security integrated system (ISIS). Designed as a white-label service, the new SAP payments platform can be used across Services Australia and other agencies to deliver real-time payments.
Speaking to the senate, Charles McHardie, Services Australia’s Transformation Projects Deputy CEO, shared that Payment Utility will administer two payment types this week. He said:
“Where we sit at the moment is we already have one payment up and running – which we released six weeks ago – which was parenting allowance. That’s working very well for use.”
He explained that the pensions that have been planned to go live this week involved a hefty payment cohort and have been developed in the SAP S/4HANA technology capability.
Major IT Replacements
WPIT is pegged to cost around AU$1.5 billion and run from 2015 to 2022. Sharing updates on the WPIT, McHardie said that Services Australia is undergoing tranche four of the program, in which Payment Utility is one of the two major IT replacements. He detailed that the agency is expected to deliver five key priorities in the final two years of the program.
“That is rolling out what we call a new payment utility capability, which allows us to replace the current payment capability that sits in the ISIS system, pushing the payment out to the Reserve Bank. So we’re replacing that,” he stated.
The second major IT replacement is the entitlement calculation engine, which McHardie has called the “heart of the ISIS system”. Outsourced from systems integrator Infosys, the engine based on Pegasystem software is designed for Services Australia to determine the entitlements eligibility of welfare recipients and how much to pay them. Later on, the solution will also be used to calculate aged care payments, veterans’ income support, and the modernisation of Medicare systems.
“Over the period from now all the way through to the end of 2022, we will replace all of our entitlement calculations with that new capability… so they’re what we call the two pieces of reusable tech,” McHardie stressed
Replacing 3,500 Screens
Another part of tranche four is the replacement of Services Australia’s 3,500 screens used by staff in the legacy system for processing of new claims and claim maintenance activity. Tranche four, which commenced in July 2020, is working on a $540 million over four years in the 2020 budget.
According to McHardie, a new SAP system built out under previous tranches of the program will introduce a single staff interface. He said:
“[This] will then allow staff to operate in only one system, with a greatly reduced number of screens … to be able to speed up the claims processing activity for them.”
