Explainer: Robodebt
WHAT IS ROBODEBT?
The Robodebt scheme was an automated debt assessment that ran from 2015 to 2019, designed to calculate overpayments and issue debt notices to welfare recipients. It used an automated data-matching system that compared records from Centrelink with data from the ATO on average income. This automated system replaced a system that was previously done manually.
WHAT WAS THE ISSUE?
This method was introduced in 2015, and from the get-go, there was heavy criticism from the media, academics, advocacy groups and politicians. Questions were raised on the lawfulness of the scheme, as well as allegations of false or incorrectly calculated debt notices being issued. The has also been a large focus on the mental and physical health of those who were being issued the debt notices.
A number of people reportedly committed suicide, with their families identifying that the stress of the debts was a contributing factor to their deaths.
In 2019 the government admitted in federal court that the use of income averaging was not lawful and abandoned its use of it. They also settled a class action lawsuit by wiping or refunding $1.8 billion in debts.
PREVIOUS INVESTIGATIONS
The Robodebt scheme has been investigated by the Commonwealth Ombudsman, been the subject of two senate enquiries several legal challenges and now a Royal Commission.
THE ROYAL COMMISSION
One of the promises of Anthony Albanese’s campaign trail was to hold a royal commission into Robodebt. Once they took office the royal commission was established in August 2022. Several ministers appeared at the royal commission including Scott Morrison who was the Prime Minister overseeing the scheme. Victims of the scheme, advocates, public servants and whistleblowers also appeared.
Former Chief Justice of Queensland Catherine Holmes was appointed as commissioner of the investigation, and on Friday she met with the governor general to submit the findings of the Royal Commission.
THE FINDINGS
The final report was 990 pages long and confirmed that Robodebt was neither fair nor legal and offered 57 recommendations. While some parts of the report have been released publicly, there is a sealed section that has been sent to the Australian Federal Police, the National Anti-Corruption Commission, the Law Society and the Australian Public Service Commission.
Scott Morrison - during 2014 and 2015 he served as the Social Services Minister before becoming the Treasurer. In evidence, Morrison claimed that at no point had anyone advised ministers that the scheme was unlawful, a point that the commission rejected. It also found that he knew that the use of income averaging was a new approach and that he had failed to meet his ministerial responsibilities.
“He failed to meet his ministerial responsibility to ensure that cabinet was properly informed about what the proposal actually entailed and to ensure that it was lawful."
Alan Tudge - Between 2016 and 2017 Alan Tudge was the Minister for Human Services. He told evidence that he maintains he had no reason to doubt the legality of the scheme because it had passed through the cabinet. The report found that Tudge had abused his powers by using “information about social security recipients in the media to distract from and discourage commentary about the schemes problems.”
They further found that he should have done more to assess the impact that Robodebt was having on Australians. "By July 2017, Mr Tudge knew that at least two people had died by suicide and that their family members had identified the impact of the scheme as a factor in their deaths. Nonetheless, Mr Tudge failed to undertake a comprehensive review into the scheme, including its fundamental features, or to consider whether its impacts were so harmful to vulnerable recipients that it should cease."
Stuart Robert - During 2019 and 2021 Stuart Robert was the Minister for Government Services and claims that he was the minister responsible for putting an end to robodebt. The commission found that this was untrue and the Minister who did act first was Human Services secretary Renee Leon.
In evidence he claimed he was allowed to make false statements on the basis of “cabinet solidarity”, “As a dutiful cabinet minister, ma’am, that’s what we do.” he told Commissioner Holmes, to which she replied, “Misrepresent things to the Australian public?” The report stated: “He was making statements of fact as to the accuracy of debts, citing statistics which he knew could not be right. Nothing compels ministers to knowingly make false statements, or statements which they have good reason to suspect are untrue, in the course of publicly supporting any decision or program."
Christian Porter - From 2015 to 2017 Christian Porter was the Social Services Minister before moving on to be the Attorney-General. He was one of the few ministers to accept responsibility for his involvement during evidence and stated his regret at not pushing harder for answers to questions about the legality of the scheme. The final report found that Porter “could not rationally have been satisfied of the legality of the scheme on the basis of his general knowledge of the NPP process, when de did not have actual knowledge of the content of the NPP, and had no idea whether it had said anything about the practice of income averaging.”
Senior public servant Katheryn Campbell who was the head of the Department of Human Services between 2011 and 2017, before moving on to the Department of Social Services between 2017 and 2021. The report found that Campbell was “responsible for the department that established, implemented and maintained an unlawful program.” It also stated that she did “nothing of substance” when it was revealed that the scheme was illegal.
Serena Wilson, a senior official at the Department of Social Services was found to have excluded a document that was being sought by the ombudsman. It stated that her “behaviour in this regard was an attempt to conceal critical information from the ombudsman.”
Mark Withnell was the general manager of business integrity at the Department of Human Services between 2008 and 2017 and was found to have misled the cabinet about how the process of income averaging was described to them. “There is no evidence that Mr Withnell took any steps to ensure that cabinet was properly informed of the averaging component of the measure.”
OUTCOMES
The sealed section of the report has not been released to the public yet but it reportedly makes referrals for both civil and criminal prosecution.
REACTIONS
Prime Minister Anthony Albanese has stated the Robodebt scheme to have been “a gross betrayal and a human tragedy. It pursued debt recovery against Australians who in many cases had no debt to pay. It was wrong. It was illegal. It should never have happened and it should never happen again."
Bill Shorten who is the Government Services Minister accused the former government and public servants of having “gaslighted the nation and its citizens.”
Scott Morrison released a lengthy statement after the findings were released basically saying everything in the report was wrong, literally using the words “They are wrong.”
Alan Tudge also released a statement rejecting the comments of the commission. "I reject that finding in the strongest term. At no stage did I seek to engage in a media strategy that would discourage legitimate criticism of the scheme.”
Stuart Robert issued a statement post-report release "As the minister that worked hard to get the legal advice and close down the income compliance scheme, I welcome the royal commission report and its sensible recommendations.”
Christian Porter is yet to speak.
The government has said it will not fully consider the report and how to go from here. However, Commissioner Holmes has said expected that compensation was not feasible as different people suffered different harms.
