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Robodebt faces landmark legal challenge over 'crude' income calculations Robodebt faces landmark legal challenge over 'crude' income calculations
(about 1 hour later)
The government’s controversial automated Centrelink debt recovery system – known as “robo-debt” by critics – is set to face a legal challenge in the federal court. The government’s controversial automated Centrelink debt recovery system – labelled “robodebt” by critics – is set to face a legal challenge in the federal court.
In what lawyers described as a landmark case, Victoria Legal Aid will on Wednesday announce a challenge to the way Centrelink evaluates whether a person owes a welfare debt under the $3.7bn system. It will argue the “crude calculations” created using tax office information are insufficient to assess a person’s earnings and, therefore, unlawful. In what lawyers described as a landmark case, Victoria Legal Aid will on Wednesday announce a challenge to the way Centrelink evaluates whether a person owes a welfare debt under the $3.7bn system. It will argue the “crude calculations” created using tax office information are insufficient to assess a person’s earnings and, therefore, are unlawful.
“We want this case to pave the way for a fairer, smarter and more accurate system which works for government, but also for the many people who access social security at some point in their life,” said Rowan McRae, the executive of Civil Justice Access and Equity at Victoria Legal Aid.“We want this case to pave the way for a fairer, smarter and more accurate system which works for government, but also for the many people who access social security at some point in their life,” said Rowan McRae, the executive of Civil Justice Access and Equity at Victoria Legal Aid.
Expert attacks Centrelink robo-debt and 'moral bankruptcy' that allows itExpert attacks Centrelink robo-debt and 'moral bankruptcy' that allows it
“The way robo-debt averages people’s income assumes that they work neat, regular hours throughout a year. In reality, we know people work part time or sporadically throughout the year, because they’re studying, can’t get regular work, have multiple jobs or are unwell. This means the calculation of alleged ‘overpayments’ is often inaccurate.” “The way robodebt averages people’s income assumes that they work neat, regular hours throughout a year. In reality, we know people work part time or sporadically throughout the year, because they’re studying, can’t get regular work, have multiple jobs or are unwell. This means the calculation of alleged ‘overpayments’ is often inaccurate.”
Guardian Australia first reported in late 2016 the growing concerns over the Coalition government’s automated compliance system, which replaced manual checks by staff and led to an explosion in the number of “compliance interventions”. Guardian Australia first reported in late 2016 the growing concerns about the Coalition government’s automated compliance system, which replaced manual checks by staff and led to an explosion in the number of “compliance interventions”.
Since then, the government has stood by the regime, despite sustained criticism from the social services sector and legal experts. In February 2018, government data revealed Centrelink was forced to either wipe or change about 29,000 of 165,000 debts it raised against welfare recipients in the first year of the new system. Since then, the government has stood by the regime, despite sustained criticism from the social services sector and legal experts. In February 2018 government data revealed Centrelink was forced to either wipe or change about 29,000 of 165,000 debts it raised against welfare recipients in the first year of the new system.
Late last year, Victoria’s recently retired state’s chief crown prosecutor, Gavin Silbert SC, described the scheme as an “elaborate sham”. Silbert also indicated a desire to challenge the system in the courts. Late last year Victoria’s recently retired chief crown prosecutor, Gavin Silbert SC, described the scheme as an “elaborate sham”. Silbert also indicated a desire to challenge the system in the courts.
According to a federal court filing to be heard within weeks, Victoria Legal Aid will represent Madeleine Masterton, a Melbourne nurse with whom Centrelink has raised a $4,000 alleged debt.According to a federal court filing to be heard within weeks, Victoria Legal Aid will represent Madeleine Masterton, a Melbourne nurse with whom Centrelink has raised a $4,000 alleged debt.
Masterton, who was studying and receving youth allowance during the period the alleged debt was incurred, said she was given “no information” about how my debt was calculated”. Masterton, who was studying and receving youth allowance during the period the alleged debt was incurred, said she was given “no information about how my debt was calculated”.
“If my case proves the whole robo-debt system is wrong under the law, then I hope that the system is wiped and that everyone else who has a debt is freed from it until a better system is in place that calculates transparently and correctly,” she said. “If my case proves the whole robodebt system is wrong under the law, then I hope that the system is wiped and that everyone else who has a debt is freed from it until a better system is in place that calculates transparently and correctly,” she said.
Centrelink automation hurting Australia's most vulnerable – AnglicareCentrelink automation hurting Australia's most vulnerable – Anglicare
Noting that a Senate committee had argued the government should suspend the regime, McRae said legal aid could not accept “a system that is so clearly not working, that has been proven to be causing overwhelming hardship”.Noting that a Senate committee had argued the government should suspend the regime, McRae said legal aid could not accept “a system that is so clearly not working, that has been proven to be causing overwhelming hardship”.
Since the scheme was introduced, people have reported receiving letters indicating that Centrelink believes they owe a sum of money, often tens of thousands of dollars, as a result of an “overpayment”. The letters do not provide evidence of how the debt has been calculated and places the onus of proof on the recipient.Since the scheme was introduced, people have reported receiving letters indicating that Centrelink believes they owe a sum of money, often tens of thousands of dollars, as a result of an “overpayment”. The letters do not provide evidence of how the debt has been calculated and places the onus of proof on the recipient.
Centrelink claims the initial letters do not represent “debt notices”. But if recipients cannot prove the debt is incorrect, it is assumed the debt exists, Legal Aid said. Private debt collectors are also engaged to collect the money Centrelink believes is owed.Centrelink claims the initial letters do not represent “debt notices”. But if recipients cannot prove the debt is incorrect, it is assumed the debt exists, Legal Aid said. Private debt collectors are also engaged to collect the money Centrelink believes is owed.
Late last year, in response to scathing criticism from a former Administrative Appeals Tribunal official, department spokesman Hank Jongen argued the system was fair and included safeguards to to ensure debt decisions were correct. Late last year, in response to scathing criticism from a former administrative appeals tribunal official, a department spokesman, Hank Jongen, argued that the system was fair and included safeguards to to ensure debt decisions were correct.
Centrelink debt recoveryCentrelink debt recovery
CentrelinkCentrelink
Welfare in AustraliaWelfare in Australia
Australian politicsAustralian politics
Law (Australia)Law (Australia)
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