Labor will scrap a $200 million online calculator introduced by the Coalition to crack down on incorrect welfare payments, as Government Services Minister Bill Shorten calls for better ethical oversight of policy in the wake of the illegal robo-debt scheme.

A day after senior public servant Kathryn Campbell resigned from her $900,000 a year Defence Department job over revelations from the bruising royal commission report, Mr Shorten will tell The Australian Financial Review Government Services Summit he is scrapping the entitlement calculator engine project, announced in early 2020.