A scathing auditor-general report has criticised the way the federal government ensures Centrelink compliance as ineffective, recommending several changes.
The Australian National Audit Office report on Tuesday examined seven Centrelink compliance measures and found three were not effectively implemented while another two were only partly effective.
"As a consequence, most of the compliance measures examined did not fully achieve their expected outcomes, including savings and addressing the risks to payment integrity," the report tabled in parliament says.
"The Department of Human Services' internal and external monitoring and reporting for compliance measures could be improved."
The report doesn't cover the controversial robo-debt crisis, which Labor claims is resulting in 4000 people each week receiving letters wrongly accusing them of owing money.
Human Services Minister Alan Tudge said the department would implement one of the report's recommendations, while partly implementing another.
He said the audit office used different accounting methodology to the department, resulting in savings being allocated to different categories and the conclusion that some compliance measures didn't meet targets.
He said all fraud and compliance activities combined had delivered savings of $1.44 billion, exceeding a target of $1.07 billion.
"The ANAO report does not comment on how compliance savings has grown since 2012-13 or that the 10 measures combined have exceeded their target," he said.
Labor's human services spokeswoman Linda Burney said the report confirmed the department was a complete mess on Mr Tudge's watch.