Centrelink’s robo-debt system faces major overhaul
MPs have welcomed an overhaul of Centrelink’s controversial robo-debt system, but the Federal Government has defended the program.
Tasmania
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CENTRELINK has dramatically wound back its reliance on the so-called robo-debt scheme which has seen thousands of Tasmanians hit with incorrect debt notices in the past three years.
The federal Human Services department has changed its policy on clawing back debts from overpaid welfare recipients to use additional means of proving debts, rather than just income averaging.
MORE THAN 6000 TASSIE ROBO-DEBT ERRORS, CLAIMS LABOR
The changes come as the debt recovery system faces a number of legal challenges, including a possible class action.
Independent MP Andrew Wilkie has welcomed the “backflip”, saying it will “bring some comfort to many Centrelink recipients”.
Hundreds of Tasmanians had approached his office distressed after receiving “inexplicable and frightening” debt notices, prompting him to raise concerns about the robo-debt process with the Commonwealth Ombudsman.
“Many have been brought to tears and some have talked of being driven to self-harm,” Mr Wilkie said.
“I’m glad the Government has finally admitted that it’s a dud.
“This must mark the end of the Government treating Centrelink recipients like criminals.”
Government Services Minister Stuart Robert said the Government would contact welfare recipients who received a debt notice based solely on income averaging in coming weeks.
He downplayed the changes today, saying the automated system would still be used along with other methods of proof.
Mr Robert also defended the process, saying the Government made “no apologies” for collecting debts when welfare recipients were overpaid.
“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,” he said.
Labor frontbencher Julie Collins said the change was an admission robo-debt had been “wrongfully targeting vulnerable Tasmanians”.
“If the system is dodgy enough it needs to be junked then what happens to all those people who have already been victims of robo-debt,” she said.
The Mercury last month reported more than 6300 debts were either wiped or reduced in Tasmania in the past three years.
Originally published as Centrelink’s robo-debt system faces major overhaul