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Home News

Government outlines royal commission into ‘monster’ robodebt scheme

The Prime Minister has unveiled details of a royal commission into the failed robodebt scheme.

by Maja Garaca Djurdjevic
August 25, 2022
in News
Reading Time: 2 mins read
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Meeting an election promise, Prime Minister Anthony Albanese announced on Thursday that Catherine Holmes, former chief justice of the Supreme Court of Queensland, will head the royal commission into the robodebt debacle. 

“We know that almost 400,000 Australians fell victim to this cruel system. A human tragedy with very real consequences for its victims,” Mr Albanese said.

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“The royal commission will examine the establishment of the scheme, who was responsible for it, and why it was necessary, how concerns were handled, how the scheme affected individuals and the financial costs to government, and measures to prevent this ever happening again,” he added.

Robodebt was an automated Centrelink debt recovery program which ran between July 2015 and November 2019. The program used data-matching algorithms to identify possible overpayments of welfare benefits.

But the system saw the government unlawfully raise $1.76 billion in debts against 443,000 people.

It then pursued some 381,000 people, unlawfully recovering $751 million.

Last year the Federal Court approved a $1.8 billion settlement between robodebt victims and the government.

Following the Federal Court class action, the government announced that all unlawful robodebts would be cancelled, while $751 million would be returned to the victims.

Malcom Turnbull, who was the prime minister when the scheme was first rolled out, apologised for the system, but the then Liberal government led by Scott Morrison ignored calls for a royal commission into the matter.

Royal commission to ‘fill a gap’

Also addressing the media on Thursday, Minister for Government Services, Bill Shorten, labelled robodebt a “monster scheme” and “a shameful chapter in the history of public administration in this country”.

“It was a massive failure of policy law”.

He now expects the royal commission “to fill a gap”.

“At one level, it was certainly the conduct of irresponsible ministers and senior public servants. At another level, no one ever asked the question, “Maybe the machine was wrong and the people complaining were right,” Mr Shorten said.

“Until we have these answers, we’ll never be able to have full restitution for the victims, nor can we guarantee that it can never happen again,” he added.

The government has allocated $30 million for the commission, with final report expected to be delivered to the Governor-General by 18 April.

“It is vital so that we get to the bottom of how robodebt came about so that we can ensure that it can never, ever happen again,” the PM said.

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Comments 1

  1. Anonymous says:
    3 years ago

    $30 Million dollars of taxpayer monies used for nothing more than to gain political traction against the former government.
    Agreed it was a terrible system that caused harm and stress.
    If restitution has been made, why spend yet another $30 Million on a political blame game exercise when it could go into public housing policy and strategy
    That money could be used to build 300 tiny homes at $100,000 each to provide a roof over the heads of the most unfortunate people who cannot secure housing.
    It was done, it was wrong, it should never have occurred and financial restitution has been made.
    Anthony Albanese is starting to show his true colours now that he has secured the top job.
    He is acting as though he is still in opposition when he is in Govt.
    This is a trade union based mentality, to always be fighting against the system that has repressed you.
    Well Anthony, you ARE the system now mate and as such you need to get your skates on and fix the myriad of problems in front of you.
    And for someone that grew up in social housing ( as we heard 300 times before and after the election ) don’t you reckon it’s money better spent helping those people first rather than scoring political points at the taxpayers expense ?

    Reply

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