"I'm proud to be here in Narooma to open this innovative office, which is a groundbreaking leap forward for Australian Government service delivery," Mr Bowen said.

"The co-located office means local can now access a full range of Centrelink and Medicare services in one convenient location."

The purpose-built office is designed to make it easier to do business with the government by offering a variety of options to access government payments and services.

It features the latest technology, including an upgraded eServices facility, as well as self service facilities including a self-service PC and telephones.

Federal Member for Mike Kelly was at the opening and thanked Centrelink and Medicare staff for their hard work.

"This is a great result for the residents of Narooma and the surrounding region," Dr Kelly said.

"I am really proud that our area is the first to have a purpose-built co-located Medicare and Centrelink," he said.

Mr Bowen said the new office, with no sense of exaggeration, was at the cutting edge of service delivery in Federal and State governments in Australia today.

"I can think of no better place, than to have the first purpose-built joint Centrelink-Medicare office here in paradise,” he said.

"We will be learning from you, the team on the ground, the customers on the ground, about fine-tuning the service to make it better and more efficient."