Centrelink has been told by an independent accountancy firm to abandon its performance targets because it was clear they would not be achieved.
The advice was contained in a report by PricewaterhouseCoopers, which cost $150,000 and was obtained by the ABC.
But it is understood the recommendation was rejected by the Department of Human Services despite Centrelink not meeting its 85 per cent customer satisfaction goal in years.
"It's clear that a target of 85 per cent will not be achieved under all models for Centrelink without substantial change to the customer and service experience," the PwC report says, according to the ABC.
But a department spokesman says no decision has been made to any changes.
"Given that many people accessing welfare are experiencing difficult circumstances, the customer satisfaction targets intentionally set a high bar," he said.