Royal commission into robodebt scheme ‘recommends referrals of individuals for civil and criminal prosecution’

Individuals named in a secret sealed section of the robodebt report have been referred to the police and anti-corruption commission.

A landmark royal commission into the robodebt scandal has recommended the referral of matters contained in a secret sealed section to the police and the new anti-corruption commission.

News.com.au can reveal that the individuals named will remain secret to protect future prosecutions according to a letter provided by the royal commissioner.

In a letter to the Governor-General, Royal Commissioner Catherine Holmes today outlines how she is approaching the referrals.

“I have provided to you an additional chapter of the report, which has not been included in the bound report and it is sealed,’’ the correspondence states.

“It recommends the referral of individuals for civil action or criminal prosecution.

“I recommend that this additional chapter remain sealed and not be tabled with the rest of the report so as not to prejudice the conduct of any future civil action or criminal prosecution.”

“I’m also submitting relevant parts of the additional chapter of the report to heads of various Commonwealth agencies, the Australian Public Service Commissioner, the National Anti-Corruption Commissioner, the president of the Law Society of the Australian Capital Territory, and the Australian Federal Police.”

A landmark royal commission into the robodebt scheme contains a secret sealed section. Picture: Supplied

In a media statement, Commissioner Holmes said the report was 990 pages and includes 57 recommendations.

“There is also an additional sealed chapter that is not part of the bound report. It recommends referrals of individuals for civil and criminal prosecution,” she said.

$1.8 billion settlement over unlawful Centrelink debts

The robodebt scheme resulted in a $1.8 billion settlement covering hundreds of thousands of Australians issued unlawful Centrelink debts.

The compliance program claimed thousands of welfare recipients owed debts to the commonwealth on the basis of ATO assumptions using their annual income to estimate their average fortnightly income but many of the debts were ultimately found to be wrong.

But under the scheme the onus was put on welfare recipients to prove they did not owe a debt, leading to thousands of victims spending years paying back debts that in some cases never existed.

The inquiry heard harrowing evidence from victims of the scheme and public servant whistleblowers who fought for change with one giving tearful evidence she felt like “a failure” because she could not convince superiors the scheme was wrong.

Senior government sources have confirmed that the Commonwealth was initially advised of up to 16 adverse findings that the report was considering.

The robodebt scheme resulted in a $1.8 billion settlement covering hundreds of thousands of Australians issued unlawful Centrelink debtsPicture: NCA NewsWire / Emma Brasier

Prime Minister says he won’t be able to read sealed section, foreshadows anti-corruption investigation

Prime Minister Anthony Albanese has warned that even he will not be allowed to read the sealed section.

“This is a decision taken by the royal commissioner,’’ he said. “The royal commission made it clear why she has made that decision.

“She is not saying that it will not occur. In fact, she is saying the opposite. The head of my department has the sealed section. I do not.”

He also said it was possible the scheme could be investigated by the National Anti-Corruption Commission (NACC).

“That would be open to the royal commission to recommend action, and one of those responses could be to refer to the National Anti-Corruption Commission,” he told ABC Radio.

“The important thing is that it never happened again because this was a human tragedy with real consequences for people over a long period of time,” Mr Albanese said.

“There should never be that sort of automated system, it is something that we certainly aren’t doing.

“If someone receives payments they’re not entitled to, then of course it should be followed up. But what we had here was a very different system that was a part of the rundown of human services.”

Labor frontbencher Bill Shorten, who fought to establish the royal commission, said the findings proved that the previous government and senior public servants “gaslighted the nation” and betrayed their trust.

“It fundamentally says that it has broken the sacred trust, that when citizens give some of their power to the Government, that the Government will make sure that it helps, not hurt, citizens.”

Scott Morrison gave evidence about scheme

The hearings saw a conga line of former prime ministers give evidence about the scheme including Scott Morrison and Malcolm Turnbull and former cabinet ministers including Christian Porter, Alan Tudge and Stuart Robert.

Robodebts were debts that were raised between July 2015 and November 2019 under the Income Compliance Program.

They were raised using averaged Australian Taxation Office (ATO) income information and were subsequently found to be unlawful.

During his own evidence to the inquiry, former Prime Minister Scott Morrison said he was given “very explicit” advice that no legislation was needed for the scheme which would ultimately become robodebt.

“The critical failure in the system was that this advice, which had been sought prior to my turning up, was not brought to the attention of ministers, and I believe there was an obligation and duty to do so,” Mr Morrison said.

“I believe that was a reasonable expectation of a minister of their department.”

The Department of Social Services had warned in late 2014 the robodebt proposal would likely be unlawful.

During the hearings, senior counsel assisting Justin Greggery KC asked if Mr Morrison was able to say why the advice was “withheld” from him.

“No, I’m not. And that is distressing,’’ the former prime minister replied. “At no time was any legal advice advanced to ministers that the program was unlawful.”

Scott Morrison - who is on holiday in Europe with his family - was made to give evidence during the inquiry. Picture: Supplied

Morrison was in the Amalfi Coast on July 4. Picture: Supplied

Legal advice for former ministers cost $2.5m

The extraordinary cost of the legal advice for former ministers has been revealed today after the release of new documents by Parliament.

The costs for legal representation at the robodebt royal commission are:

• $795,053 for Porter, the social services minister from 2015 to 2017

• $518,064 for Michael Keenan, the human services minister from December 2017 to May 2019

• $477,528 for Scott Morrison, the social services minister in 2014 and 2015

• $240,520 for Marise Payne, the human services minister from September 2013 to September 2015

• $183,835 for Stuart Robert, the human services minister from September 2015 to February 2016, then government services minister from 2019 to 2021

• $112,696 for Dan Tehan, the former social services minister

• $98,935 for Malcolm Turnbull, the former prime minister

• $5626 for Anne Ruston, the minister for families and social services from 2019 to 2022

But the government has hit back at suggestions the release of the report is timed to hurt the Coalition in the Fadden by-election sparked by the resignation of the former minister Stuart Robert.

The Albanese Government has noted today that the July 7 reporting date was set on May 11 and Mr Robert resigned on May 17.