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Centrelink robo-debt system is an 'abuse of power', inquiry hears Centrelink robo-debt system is an 'abuse of power', inquiry hears
(about 1 hour later)
Centrelink’s automated debt recovery system represents an “abuse of government power” that is undermining confidence in public administration and scaring people away from accessing income support, a senate inquiry has heard. Centrelink’s automated debt recovery system represents an “abuse of government power” that is undermining confidence in public administration and scaring people away from accessing income support, a Senate inquiry has heard.
The senate inquiry into Centrelink’s “robo debt” system began on Wednesday, initially hearing from representatives of the community sector. The Senate inquiry into Centrelink’s “robo-debt” system began on Wednesday, initially hearing from representatives of the community sector.
Critics of the system say its many flaws have combined to create a debt recovery process that is unfair, inaccurate, and inhumane.Critics of the system say its many flaws have combined to create a debt recovery process that is unfair, inaccurate, and inhumane.
But members of the community sector have warned the impact of the system has gone further.But members of the community sector have warned the impact of the system has gone further.
The Australian council of social services believes the poor treatment of welfare recipients has acted to scare individuals away from exercising their right to claim income support. The Australian Council of Social Service (Acoss) believes the poor treatment of welfare recipients has acted to scare individuals away from exercising their right to claim income support.
ACT council of social services director, Susan Helyar, said cynics believe that may have been the government’s intent. The director of the ACT Council of Social Service, Susan Helyar, said cynics believed that may have been the government’s intent.
“All of these things compromise the public’s confidence in systems, and some of our members have wondered whether partly what individuals are being encouraged to do is stay out of the welfare system,” Helyar said.“All of these things compromise the public’s confidence in systems, and some of our members have wondered whether partly what individuals are being encouraged to do is stay out of the welfare system,” Helyar said.
“They are being discouraged from exercising their entitlements in the income support system by this poor public administration,” she said. “They are being discouraged from exercising their entitlements in the income support system by this poor public administration.
“Some people cynically suggest that might be the point of the process.”“Some people cynically suggest that might be the point of the process.”
“I just think it’s really dangerous for the government to implement programs in a way that is so flawed because it has long term impacts on the public’s confidence.”“I just think it’s really dangerous for the government to implement programs in a way that is so flawed because it has long term impacts on the public’s confidence.”
Those comments were echoed by Acoss chief executive, Cassandra Goldie, who said public confidence in the social security system had been undermined. Those comments were echoed by the chief executive of Acoss, Cassandra Goldie, who said public confidence in the social security system had been undermined.
Goldie said Centrelink should be creating an environment of support and help for the nation’s most vulnerable.Goldie said Centrelink should be creating an environment of support and help for the nation’s most vulnerable.
“It is really important to understand the power dynamic here. The department of human services plays such a critical, powerful role in Australian society. We call it a safety net, let’s not forget the importance of that,” Goldie said. “It is really important to understand the power dynamic here,” Goldie said. “The Department of Human Services plays such a critical, powerful role in Australian society. We call it a safety net, let’s not forget the importance of that.
“What this system has done is create a climate where people have been frightened, indeed people have been bullied, into complying,” she said. “What this system has done is create a climate where people have been frightened, indeed people have been bullied, into complying.”
The system places a higher reliance on unscrutinised data matching between the income reported to Centrelink and the Australian taxation office. The system places a higher reliance on unscrutinised data matching between the income reported to Centrelink and the Australian Taxation Office.
Where discrepancies were previously interrogated manually, the system now automatically sends out a letter demanding an explanation from welfare recipients.Where discrepancies were previously interrogated manually, the system now automatically sends out a letter demanding an explanation from welfare recipients.
In 6,600 cases, those letters were sent out to old addresses.In 6,600 cases, those letters were sent out to old addresses.
When a response is not received within three weeks, the debt is automatically imposed and individuals are told to begin repaying, or be referred to a debt collector.When a response is not received within three weeks, the debt is automatically imposed and individuals are told to begin repaying, or be referred to a debt collector.
A 10% debt recovery fee is being imposed in many cases.A 10% debt recovery fee is being imposed in many cases.
Thousands would have only learnt of their debts when contacted by an external debt recovery agency.Thousands would have only learnt of their debts when contacted by an external debt recovery agency.
Many reports have emerged of individuals being hit with inaccurate debts, which largely arise from the system’s crude averaging of an individual’s income across a certain time period. That leads the system to assume an individual has worked constantly during the period and were therefore ineligible to claim welfare. Many reports have emerged of individuals being hit with inaccurate debts, which largely arise from the system’s crude averaging of an individual’s income across a certain time period. That leads the system to assume an individual has worked constantly during the period and was therefore ineligible to claim welfare.
Reports have also been received of the system double-counting income when an employer name that has been reported to Centrelink does not match that on tax office records.Reports have also been received of the system double-counting income when an employer name that has been reported to Centrelink does not match that on tax office records.
Individuals have also faced difficulties using the new online compliance system to correct their details or explain a discrepancy.Individuals have also faced difficulties using the new online compliance system to correct their details or explain a discrepancy.
Acoss issued a statement on Wednesday morning, signed by 37 community sector organisations, repeating calls for the system to be shut down. Goldie also wants the government to convene a roundtable with experts to develop a more humane and fair system.Acoss issued a statement on Wednesday morning, signed by 37 community sector organisations, repeating calls for the system to be shut down. Goldie also wants the government to convene a roundtable with experts to develop a more humane and fair system.
Goldie told the inquiry that she had met with human services minister, Alan Tudge, once, but had otherwise not received replies to correspondence. Goldie told the inquiry that she had met with the human services minister, Alan Tudge, once but had otherwise not received replies to correspondence.
“None of that has been responded to. The one outcome from the engagement to date, is as we say, we have met with the department about the next round of technology design [the welfare payment infrastructure transformation],” Goldie said. “The one outcome from the engagement to date, is as we say, we have met with the department about the next round of technology design [the welfare payment infrastructure transformation],” Goldie said.
“But none of the other requests have been responded to.”“But none of the other requests have been responded to.”
The community and public sector union, which represents Centrelink workers, also gave evidence to the inquiry on Wednesday morning. The Community and Public Sector Union, which represents Centrelink workers, also gave evidence to the inquiry on Wednesday morning.
Cpsu national secretary, Nadine Flood, said years of funding cuts and poor policy decisions had reduced the department’s ability to act as a cornerstone of the welfare system and Australian society. The CPSU national secretary, Nadine Flood, said years of funding cuts and poor policy decisions had reduced the department’s ability to act as a cornerstone of the welfare system and Australian society.
Flood said 36m calls to Centrelink went unanswered last year. She said staff were reporting an increased level of client distress and frustration.Flood said 36m calls to Centrelink went unanswered last year. She said staff were reporting an increased level of client distress and frustration.
“What we see currently is a very human price being paid, both by clients.. and the people who work for the department themselves,” Flood said. “What we see currently is a very human price being paid, both by clients … and the people who work for the department themselves,” Flood said.
“It is not an exaggeration to say that the department of human services is an agency in crisis, and it’s not something I say lightly,” she said. “It is not an exaggeration to say that the Department of Human Services is an agency in crisis, and it’s not something I say lightly,” she said.
Flood said she felt that staff and delegates could not give evidence to the inquiry because of the current climate within the department.Flood said she felt that staff and delegates could not give evidence to the inquiry because of the current climate within the department.
The inquiry continues on Wednesday. The inquiry’s chair, Greens senator Rachel Siewert, said the evidence on Wednesday morning showed how serious the impact of the system had been. She said Acoss’s evidence showed how the system had reversed the onus of proof onto the welfare recipients to prove they did not owe a debt.
Inquiry chair, senator Rachel Siewert, said the evidence on Wednesday morning showed how serious the impact of the system has been. She said Acoss’ evidence showed how the system had reversed the onus of proof onto the welfare recipients to prove they did not owe a debt.
“Acoss are right in pointing out the absurdity of recipients having to investigate their own debt and prove their innocence,” Siewert said.“Acoss are right in pointing out the absurdity of recipients having to investigate their own debt and prove their innocence,” Siewert said.
“That job belongs to the Department, the Department should clearly point out the nature and details of the debt,” she said. “That job belongs to the department, the department should clearly point out the nature and details of the debt,” she said.
The CPSU had also requested a briefing from the department secretary, Kathryn Campbell. CPSU deputy national president, Lisa Newman, said those requests had been rejected. The CPSU had also requested a briefing from the department secretary, Kathryn Campbell. The deputy national president of the CPSU, Lisa Newman, said those requests had been rejected.
Witnesses from the department of human services are expected to give evidence on Wednesday afternoon. Witnesses from the Department of Human Services are expected to give evidence on Wednesday afternoon as the inquiry continues.