Centrelink income averaging axed after ‘failed’ robodebt scheme
The controversial “robodebt” scheme used to recoup money from Centrelink clients is set to be overhauled, but an unrepentant Federal Government says it makes no excuses for fulfilling its legal obligation to collect debts.
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The Federal Government has begun overhauling the controversial “robodebt” scheme used to recoup money from Centrelink clients.
The Department of Human Services will no longer rely solely on income averaging, and “further investigations” will be undertaken to decide if a debt exists.
Government Services Minister Stuart Robert downplayed the changes when he announced them on Tuesday.
“The government makes no apologies for fulfilling our legal obligation to collect debts with income compliance,” he said.
“We have an absolute responsibility to ensure the right people get the right amount of money at the right time. The integrity of our welfare system is important and Australians rightly expect us to do that.”
Until Tuesday, when a government welfare recipient failed to provide exact dates worked and wages earned, the department used ATO income data to work out average earnings. Problems arose when people worked different hours or earned different amounts each week.
People who had potentially been “incorrectly” caught up in the scheme would be contacted by the DHHS in coming weeks, Mr Robert said.
“I’ve also asked my department to go back and identify the small cohort of Australians who have a debt raised solely on the basis of income averaging so we can commence discussions with them and seek further points of proof,” Mr Robert said.
Labor frontbencher Bill Shorten said the move was a “complete backflip” and an admission of guilt.
“The Department of Human Services is instructing staff the department will no longer raise a debt where the only information is the averaging of ATO income data,” Mr Shorten said.
“They’re junking the reverse onus of proof where victims have to prove they don’t owe the debts. That means robodebt is being taken to the wrecker’s yard.
“Other changes signify the regime going forward will not be robodebt as we know it.”
Greens leader Richard Di Natale called the development “promising”.
“Robodebt is an inhumane system that only serves to punish people for using income support,” he said.
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The estates of up to 200 deceased people were pursued as part of the scheme, it was recently revealed in a Senate committee hearing.
The previous Labor government had a similar process in play from 2011, but each case was reviewed by a staff member at the DHHS before a call was made.
The Coalition fully automated the system in 2016.