Scott Morrison to front Robodebt inquiry

Robodebt royal commissioner Catherine Holmes gives big hint she expects Scott Morrison and other former Coalition ministers to explain their involvement in the failed scheme.

Robodebt commissioner Catherine Holmes. Picture: Liam Kidston

Former prime minister Scott Morrison and his ex-ministerial colleagues Alan Tudge, Stuart Robert and Christian Porter are expected to be called to give evidence to the Robodebt Royal Commission as it seeks to understand why the discredited debt ­recovery scheme was allowed to continue for years after concerns were first raised.

In her opening address on Tuesday, commissioner Catherine Holmes said the flawed system of debt recovery used by the Department of Human Services from 2015 to 2019 against hundreds of thousands of benefit recipients was well understood after numerous inquiries, but little had been revealed about how the ­government responded “behind the scenes” to criticisms of its operation.

“Many people at different ­levels of government will be asked to give an account of their role in the devising, implementation and continuing of the Robodebt Scheme, but the focus, appropriately … will be on those in senior positions who had oversight of it,” Ms Holmes said.

The commissioner laid out the serious issues with Robodebt, which used an automated averaging process to determine whether a person’s earnings meant they had been overpaid government benefits. Notably, the system saw Centrelink issue automated debt statements without further examination, unlike previous programs.

“The benefit recipient was ­required to displace what was ­effectively a presumption of overpayment,” she said. “If the recipient could not or did not do so the Department used its debt recovery powers without any further ­attempt to substantiate the alleged debt.” Ms Holmes questioned why the government would continue with a scheme for years after its workings had been rejected by the Administrative Appeals Tribunal. “It now falls to this commission to examine how it was that the Robodebt Scheme was set up on that basis, and why, perhaps more puzzlingly, it was maintained,” she said.

Justin Greggery KC. Picture: Liam Kidston

The scheme continued until late-2019, when faced with a class action involving 453,000 people, it was settled by the Morrison government for $1.8bn.

Mr Morrison, Mr Tudge, Mr Robert and Mr Porter all had portfolios with responsibility for or oversight of the scheme.

Government Services minister Bill Shorten said Robodebt had created “trauma” for many families, noting two women Jennifer Miller and Kath Madgwick lost sons to suicide while being pursued for Centrelink debts.

“How can a government create a scheme which is unlawful?” Mr Shorten asked.

Counsel assisting the royal commission Justin Greggery KC told the commission the government had been made aware by the Australian Council of Social Service about a myriad problems with the scheme’s design in December 2016. In March 2017 the AAT first ruled a debt be set aside, with 20 more decisions in the next two months coming to similar conclusions. But the scheme continued until November 2019.

“In the face of public questions about the process, ministers and those in senior roles in the Australian Public Service asserted that the system worked well,” Mr Gregory said.

The commission is due to ­report by April next year. It will reconvene on October 31.