The Robodebt debacle had a devastating impact across Australia. Over 400,000 people had unlawful debts raised against them by the previous government, marking a shameful chapter in the management of our social security system and a massive failure of public administration.
My electorate of Bean was no exception, with the scheme creating catastrophic stress and anxiety for many of my constituents. In one instance, a 28-year-old constituent with an intellectual disability was being chased for a debt all the way back to 2015 without any prior notice or review of her earnings by Centrelink. Our most vulnerable – often those most ill equipped to properly understand or challenge the basis of such debts – were targeted.
The previous government persistently denied the scheme was illegal or that it was doing harm, dismissing concerns as a ‘roboscare’. After months of victims of Robodebt being dragged through further stress, anxiety and hardship, the scheme was found to be illegal and the government finally agreed to zero the debts.
After a class action by the representative applicants, the Commonwealth agreed to a settlement costing $112 million, a huge waste of public money for something that should never have happened. Thankfully, most debts raised using averaged income information have already been refunded and anyone who made repayments of debt raised using Australian Tax Office (ATO) averaging of income under the program between 2015 and 2019 is eligible for a refund.
We need to ensure such a debacle never happens again and understand how ministers and senior public servants overlooked something so significant as the unreliable income averaging based on ATO data. Additionally, why there was a failure to acknowledge the mounting evidence of serious problems following its implementation.
Beyond the harm that Robodebt has caused to so many vulnerable Australians, we also need to consider its impact on democratic governance, government integrity, and broader trust in our public institutions. Robodebt demonstrated a total disregard for citizens where they felt disempowered and under attack. If we do not restore public trust in our institutions, we risk losing people’s cooperation with the public system. Our social contract is compromised and undermined.
Alarming statistics have already been revealed by Transparency International’s Corruption Perceptions Index. Analysing perceptions of public sector corruption, Australia has plummeted since 2012 from 11th to 18th out of 180 countries. Furthermore, a Vote Compass survey found that 85 per cent of Australians believe corruption is a problem in this country.
As promised prior to the election, the Royal Commission into the Robodebt Scheme was established by the Albanese Government and proceedings have now commenced. The Commission’s focus will be on decisions made by those in positions of seniority and, as requested, federal departments and other relevant agencies will provide information. Anyone with relevant information will also be able to engage in the process.
Like many Australians, I look forward to the final report to be delivered by April 2023. It’s critical that we restore integrity and confidence in our system.
– with David Smith MP
Canberra Daily would love to hear from you about a story idea in the Canberra and surrounding region. Click here to submit a news tip.
