Labor says local post offices won't be capable of taking over Centrelink's shopfront services.
Labor human services spokesman Doug Cameron says Centrelink is a very specialised organisation for delivering services to those in need.
"I know my local post office would in no way be capable of delivering that service," Senator Cameron told ABC radio.
The government is reportedly considering allowing Australia Post offices to deliver Centrelink shopfront services under a plan to consolidate service delivery agencies and achieve budget savings.
Treasurer Joe Hockey is also proposing Medibank Private handle administration of the new National Disability Insurance Scheme to avoid creating another bureaucracy.
Senator Cameron said Australia Post just could not be handed the cost and responsibility for Centrelink because of the government's ideological views on outsourcing government services.
"This is people who can't find work, people who have significant personal problems in some cases. I don't think the local post office is capable of dealing with that," he said.
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