The Federal Government spent $191 million on a failed Centrelink calculator.

Reports have revealed that the Australian government paid Infosys, a technology services company, $191 million for an automated welfare payment calculator. 

The calculator processed only 784 claims during a trial and was ultimately deemed a failure.

The project, known as the “entitlement calculation engine”, was meant to help Centrelink determine welfare payments based on individual circumstances, part of a larger payment system overhaul.

The contract was awarded in November 2019 and paid in four instalments. It faced delays in December 2020 and was abandoned in late 2022 when Services Australia took control.

By June, only 784 claims related to aged care had been processed, far from the expected volume.

Government Services Minister Bill Shorten terminated the contract in July, stating it was “not fit for purpose”.

Infosys defended its work, but criticism arose, particularly regarding wasted taxpayer money on automation technology.

The contract came under scrutiny in a review of procurement processes. Infosys had paid $16 million to lobbying firm Synergy 360.

Despite controversy, Infosys has emphasised its commitment to integrity.