Georgia Dixon
Money & Banking

Centrelink urged to cease controversial automated debt recovery scheme

The final report has been handed down by the Senate inquiry into Centrelink’s controversial automated debt recovery program, and the findings are damning. The committee is strongly urging the government put a halt to the highly criticised and “broken” scheme until its “fundamental lack of procedural fairness” was dealt with.

Despite the 21 recommendations handed down, Human Services Minister Alan Tudge disagrees entirely. “This is a politically motivated and factually inaccurate report, reflecting the fact that Labor and the Greens don't support auditing of the welfare system,” he told AAP.

Tudge referred back to a previous ombudsman review of the so-called “robo-debt” scheme, which described it as a reasonable and accurate way to recover welfare debt.

The Greens, however, stand by the new report. “Enough people have been hurt by this program which was designed to get money back quickly regardless of the impacts and whether it is legitimate debt,” senator and committee chair Rachel Siewart argued. “Urgent action needs to be taken by the government before more harm is done.”

Some within the Liberal Party disagree with Tudge’s criticism of the findings, with Liberal senator Jonathon Duniam telling parliament more could be done to improve the system. “I don't think anyone comes to this issue thinking that everything was done perfectly and everything was done right.”

Over the past year, over 200,000 people have been targeted by the robo-debt program, with at least one in five of the debt notices issued found to be unwarranted.

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Tags:
Centrelink, money, finance, Senate, government, debt