Agencification—the creation of autonomous agencies within the public service—has occurred in many jurisdictions. It has usually had a rationale of improving the way in which government works. Generally, agencies are expected to provide more flexible, performance-oriented, responsive public services. This work examines an example of agencification in the Australian Public Service (APS) and compares it with similar occurrences elsewhere. Specifically, it looks at the splitting of the former Department of Social Security (DSS) into two organisations, a policy department and a service delivery agency, Centrelink. It does so in the context of theories of agencification and experience of agencification elsewhere. This, the most prominent and substantial case of agencification in the Australian government, is compared with the agencification experience reported in other jurisdictions—the United Kingdom and New Zealand. It shows why Centrelink came about, what the outcome has been of the change in institutional arrangements, and what the likely future is of the Centrelink arrangements.