Council
5 March, 2026
System error creates funding shortfall
A SOFTWARE error has left Moyne Shire Council unable to access an estimated $500,000 in aged care services funds.
The concern was raised at last week’s Ordinary Meeting of Council when councillors received the Community Care Bi-Monthly Management Report, as required under the Aged Care Act 2024.
Issues with client management system CareLink have impacted the shire’s ability to claim funding from client budgets and to invoice client contributions.
All providers of the Support at Home program who use the CareLink system have been impacted, but it is understood the funding will be claimed once the system is operational and able to link with Services Australia – which holds client budgets.
Councillor Lisa Ryan sought advice on how long the system had been down and if council had escalated the matter with the vendor or government.
Director assets and community Liam Arnott said the CareLink system had been down since the start of November, with council having escalated the issue with both the government and the owner of the software Civica Group.
Councillor Jim Doukas sought clarification on the costs to council and if the government or company would be liable.
Mr Arnott said the shire was in negotiations.
“Is there any idea what that cost might be?” Cr Doukas said.
“How far behind are we in payments?
“Thousands? Tens of thousands? Hundreds of thousands? Millions?”
While the shire is a cool half-a-million behind in payments, it is understood payments will be recouped when the CareLink system is back online and can be processed through Services Australia.
“So that has to come out of our budget somewhere to pick up the shortfall?” Cr Doukas said.
“Must have a good piggy bank somewhere.”
Chief executive officer Mark Eversteyn acknowledged the funding shortfall had left Moyne in a difficult place from a cash flow perspective, but said payments were expected to be processed before the shire finalises its end-of-financial-year accounts.
Cr Doukas questioned why the federal government could not be invoiced on good faith to be reconciled later when the system is up and running to ensure impacted councils aren’t left “half a million in the red”.
Councillor Susan Taylor questions what the costs to council would be, with Mr Arnott acknowledging there would be costs associated with a “considerable backlog of administrative works”.
Cr Ryan moved the motion to note the report, saying it showed aged care services in Moyne remained “fundamentally sound”.
“Our most vulnerable residents are continuing to receive the care they need and our compliance obligations are being met,” she said.
“I want to acknowledge there is genuine effort from our community care team to maintain service levels and requirements during what has clearly been a challenging period.
“The ongoing issues with the CareLink system are a real concern but not because they reflect poorly on our staff, who are working as hard as they can within the situation.
“Delays in federal funding claims have real consequences for the financial sustainability of the service.
“It’s something I know our staff are working tirelessly to resolve and I thank them for their efforts.”
The motion was carried unanimously.