Prime Minister announces bombshell probe into ‘shameful’ Centrelink saga

Victims of an unlawful Centrelink scheme could receive further compensation after the government unveiled details of a fresh probe.

Victims of the unlawful robodebt scheme could be entitled to further compensation should the recently announced royal commission recommend it.

Fulfilling an election promise, Prime Minister Anthony Albanese on Thursday unveiled details of the inquiry into what he labelled a “human tragedy”.

“The royal commission will examine the establishment of the scheme, who was responsible for it and why it was necessary, how concerns were handled, how the scheme affected individuals and the financial costs to government, and measures to prevent this ever happening again,” he said

“People lost their lives … we need to get to the heart of why this occurred.”

The details of the election promise were unveiled on Thursday. Picture: NCA NewsWire / Dylan Coker

Former Queensland Supreme Court chief justice Catherine Homes, who led the commission into the state’s 2010-2011 floods, has been tipped to head the $30 million probe.

Between 2015 and 2019, the former government used an automated system to match tax and Centrelink data to raise debts against 443,000 welfare recipients for money it claimed was overpaid.

In total, $751 million was wrongly collected from 381,000 people.

The scheme has cost taxpayers more than $1.8 billion in compensation after the government agreed to a settlement with victims following a class-action lawsuit.

Asked if further compensation could be offered to victims, Mr Albanese said he would not pre-empt the commissioner’s findings.

The program was ruled unlawful in 2019. Picture: NCA NewsWire / Luis Enrique Ascui

Government Services Minister Bill Shorten, who in opposition was fierce in his pursuit of the Coalition, said the probe would provide “robo-justice” for victims.

“The government has never satisfactorily explained how this monster scheme got away from the system and just had a life of its own,” he said.

Scott Morrison, who is already facing an inquiry into his secret ministry appointments, could be called to appear to explain his role in the scheme’s creation while social services minister in 2015.

Whether he, or other ministers who oversaw the scheme such as Christian Porter and Stuart Robert, would be required to give evidence would be at the discretion of Ms Holmes, Mr Albanese said.

The former judge will have until April 18 to finalise the inquiry.

Mr Albanese said the inquiry would make sure the scheme never happens again. Picture: NCA NewsWire / Dylan Coker

Opposition leader Peter Dutton swiftly rejected the royal commission as a witch hunt from a government obsessed with “squaring” Mr Morrison.

He claimed the process of raising debts without human review began while Mr Shorten was minister when it commenced under the Coalition.

The Australian Council of Social Services welcomed the royal commission, saying it was time for those responsible to be held to account.

“Hundreds of thousands of people were victims of robodebt and we are yet to see anyone held to account,” acting chief executive Edwina MacDonald said.

“This royal commission must eliminate any possibility of robodebt happening again and focus on improving protections for people receiving social security.”

Originally published as Prime Minister announces bombshell probe into ‘shameful’ Centrelink saga