The computer mainframe underpinning Centrelink needs a substantial overhaul, which will cost "billions", federal Treasurer Joe Hockey says.
Mr Hockey has acknowledged a blow-out in Centrelink phone call waiting times and says the department's ageing computer mainframe is a major factor.
"The mainframe for Centrelink, which provides services to millions of Australians, is ageing and in bad shape," he told Fairfax Radio on Thursday.
"Centrelink and the Pentagon in the US are the only two customers in the world of this one company that maintains the Centrelink mainframe, which is extraordinary."
He said the waiting time for a Centrelink call is now 17 minutes.
"From my perspective that is not good enough. When I was the minister for Centrelink previously we had it down to six minutes if not less."
He said it was an example of the deterioration of infrastructure which had occurred under the previous Labor government and said it needed to be fixed.
The cost would be "billions", he said.
But this was necessary as the delays were undermining productivity and impeding the government's reform agenda.
"The two most important computer systems, arguably, for the government are the mainframe for the Australian Taxation Office and the mainframe for Centrelink," Mr Hockey said.
"My overwhelming concern is it is inhibiting the capacity of the government, to some degree, to roll out policy that properly addresses the problems in the economy and in the budget."
Mr Hockey was also asked whether the Abbott government's paid parental leave scheme should be shelved given the cutbacks expected in the May budget.
"The fact is we're putting a levy on big business to pay for it - together with the abolition of the existing paid parental leave scheme it is fully covered by the levy," Mr Hockey said.
