The federal government is to begin the mass-harvesting of financial information on hundreds of thousands of Australian pensioners as it steps up the "automation" of the nation's welfare system.

Centrelink is to be given the power to force superannuation funds and other sources of income for retirees to hand over the details of payments made to their members.

Centrelink is to begin harvesting financial data on hundreds of thousands of Australian pensioners. Credit:Greg Newington

The move is expected to save up to $38 million each year in reduced administration for Centrelink and fewer overpayments of the age pension.

The welfare reform bill that passed late on Wednesday night contained the clause empowering Centrelink to demand the information, which is expected to be in the form of data-sets, from super funds and other "income stream" providers.