Robodebt scam exposed as a rort

March 31, 2020
Issue 
Photo: Australian Unions/Facebook

The tide appears to be turning against the federal government鈥檚 punitive robodebt scheme which, for years, has robbed hundreds of thousands of people and caused much distress.

on March 27 that Attorney General Christian Porter 鈥減rivately admitted鈥 that over the next 12 months the government will have to refund more than 400,000 people who were robbed by the scheme to the tune of聽about $550 million in total.

The Australian Council of Social Service (ACOSS) said the government must wipe 鈥渁ll controversial welfare robodebts鈥 and pay people back.

spokesperson Dr Cassandra Goldie said on March 27: 鈥淚t appears that government must repay about 70% of what it has collected, having received $785 million as at August 2019鈥.

She said the robodebt scheme should 鈥渘ever have seen the light of day鈥 and that, given the unprecedented demand for Centrelink, its staff 鈥渟hould not be tasked with administering robodebt, especially when people cannot get through to someone on the phone to access essential income support鈥.

ACOSS senior adviser Charmaine Crowe described the robodebt scheme as a 鈥渕onumental failure in public administration鈥.

She said ACOSS has heard reports that 鈥渢he government is continuing to chase people about robodebt at a time of mass job loss, and unprecedented demand for Centrelink鈥.

鈥淩obodebt has caused so much distress and heartache in our community. The least the government can do now is ensure people are repaid as soon as possible,鈥 Crowe said.

ACOSS is calling for Centrelink staff numbers to be boosted by 15,000. The government has promised 5000.

It also wants the government to: fund a hotline for those trying to access income support; run a campaign to advise people on what they need to do to access income support; and to suspend 鈥渕utual obligation鈥 requirements during the coronavirus pandemic.

Gordon Legal is planning to launch a class action, arguing the scheme is unlawful and demanding compensation. Peter Gordon has previously acted successfully for asbestos victims.

聽on September 19聽the robodebt case would allege that it is wrong to collect money from hundreds of thousands of people by 鈥渢he simplistic application of an imperfect computer algorithm鈥.

鈥淲e think that before the government docked the pensions or took the tax refunds of widows and carers, and aged pensioners it needed to have better evidence; it needed to consider each case individually,鈥 Gordon said.

the courts to determine whether the more than 700,000 debts raised by Centrelink after July 1, 2015, entitles it to recover the amounts claimed.

The courts will also be asked to rule on whether the so-called collection fees, levied by Centrelink, should be refunded and whether those who have repaid all, or part, of those amounts should be paid interest. The case will also seek compensation for any distress or inconvenience caused to those who have been unfairly targeted.

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