Agencies that have direct contact with the public, such as Medicare and Centrelink, will be merged into a "one-stop" shop under changes to the sector announced by the Government today.
In a major overhaul to the way health rebates and welfare payments are delivered, the Government will begin establishing offices around the country that will incorporate Medicare, Centrelink, the Child Support Agency and disability service organisation CRS Australia under the one roof.
Medicare and Centrelink will also be moved into the Human Services portfolio.
Announcing the reforms at the National Press Club today, Human Services Minister Chris Bowen said the changes will improve service delivery and reduce bureaucratic processes and duplication.
"The time has come to reassess whether we, the Government and the nation, are getting enough out of the Department of Human Services," he said.
"There is not enough coordination between our service delivery agencies.
"This reform is about cutting red tape and making processes more efficient for those who require a Government service and those who provide it."
The Government dishes out $100 billion a year in various payments a year and over 360,000 people visit various Government agencies every day.
It also dealt with assistance for people in 11 emergencies last year such as the Victorian bushfires.
It will will move to set up 20 new offices around the country by the end of next year and will increase that to 40 by the end of 2012.
Almost 30 remote and regional Indigenous areas have also been earmarked as priorities for improved services and a mobile office for rural areas, based on the existing "drought bus" will also be established.
Mr Bowen says the changes are needed as the population ages and more older people will require pension and carer payments.
He says people who require assistance will only have to explain their situation once, instead of repeating their story to several agencies.
All agencies will also have the same phone number and website.
Mr Bowen has also been quick to reassure people that the changes are not about the collection of personal information in one central location.
"It is not a central database," he said.
"We will not house an individual's personal, sensitive information in one place, vesting all control with one body or one card."
The Department will work with the Privacy Commissioner over the reforms and Mr Bowen says health information will not be included in the shake up.
He also says the changes will not result in any major jobs cuts, with any losses occurring through natural attrition.
Carolyn Hogg has also been appointed as the new chief executive of Centrelink.
Ms Hogg was deputy chief executive but has been acting in the top position since September.