Centrelink miscalculates debts again
We are eager to see the outcome of a key test case currently before the Federal Court on income apportionment - Centrelink’s past practice of calculating and raising welfare debts. A 2023 Commonwealth Ombudsman report found this practice to be unlawful, with up to two million Australians affected, and many facing serious financial and emotional distress.
This case will address important questions: when can Centrelink lawfully raise a debt, and how should debts be properly calculated?
We believe that Centrelink must have clear, robust processes and strong standards of evidence when determining whether a debt is owed. The outcome of this case could have far-reaching consequences for millions of Australians who rely, or have relied, on social security - many of whom face financial hardship and depend on these payments to live safely, with dignity, and fully participate in society.
The Robodebt Royal Commission made it clear that that a fair and transparent approach is essential to maintaining public trust in the government’s administration of social security. |