Robodebt could happen again: research
In new research, Dr O’Brien and her team pointed to evidence that many Government agencies are still using inappropriate methods to recover debts:
Despite the shocking revelations of the Robodebt Royal Commission in 2023, government debt collection is still causing harm to Australians from all walks of life.
“The Albanese Government rightly condemned the Robodebt scheme as a ‘gross betrayal and a human tragedy,’” says Dr Lucie O’Brien, post-doctoral research fellow with Melbourne Law School.
“But federal, state and local government agencies are still using heavy-handed tactics to recover debts. These actions cause real harm, especially to people who are already struggling.
“This problem affects almost everyone: people who are out of work, pensioners, veterans, taxpayers, families with children in day care and small-business owners.”
In new research, Dr O’Brien and her team pointed to evidence that many Government agencies are still using inappropriate methods to recover debts:
- Services Australia (which now includes Centrelink) is still causing distress with vague and intimidating debt notices. When people try to contact Centrelink for more information they face long wait times and sometimes can’t get through at all. In July and August 2023, only 23 per cent of calls to Centrelink were answered, with the rest either abandoned by the caller or cut off with a pre-recorded ‘congestion message’.
- The Australian Taxation Office (ATO) has been repeatedly criticised for its aggressive debt collection tactics. In March 2024, the Commonwealth Ombudsman pointed to the ATO’s recent ‘debt awareness campaign’ as an example of ‘what not to do’.
- In August 2024, the New South Wales State Government was accused of ‘hounding’ business owners to repay micro-business grants issued during the COVID-19 pandemic.
“We need much stronger action to prevent another Robodebt,” warns Dr O’Brien. “Currently, there are very few legal safeguards to protect people when they are pursued for a debt by the Government. Public agencies should be required to treat people fairly and with dignity.
“We need an overarching legal framework requiring government agencies to be consistent, transparent and ethical when collecting debts in the name of taxpayers.
“And consumer advocates must be adequately funded, to help people understand their rights and to help them challenge their alleged debts, when Government agencies make mistakes.
“It is deeply concerning that, even after Robodebt, community legal centres with expert knowledge in this area are being forced to cut back their services, due to inadequate funding.”
Dr O’Brien said the Albanese Government had made some important changes in response to the Robodebt Royal Commission but warned, “We need to do much more to make sure it never happens again.
“Without ambitious reforms, there is a risk the catastrophe of Robodebt could be repeated. The risk is especially acute for the most disadvantaged Australians.”