URGENT UPDATE: Labor is under fire for failing to implement critical reforms to the controversial Robodebt system, with independent MP Andrew Wilkie and the Greens’ Penny Allman-Payne set to introduce a Bill in both houses of Parliament today, demanding immediate action. This comes two years after a Royal Commission outlined vital recommendations to rectify the debacle, which has affected thousands of Australians.
The proposed legislation includes reinstating a six-year time limit on debt recovery, enhancing protections for vulnerable welfare recipients, and limiting the use of automation in decision-making processes. This push follows alarming findings from the Commonwealth Ombudsman, revealing that 964 Jobseeker payments were unlawfully terminated between April 2022 and July 2024 due to IT glitches.
Wilkie described the government’s inaction as “shameful,” stating, “Robodebt was a catastrophic failure of government administration that destroyed the lives of thousands of Australians.” He emphasized that more than $1.1 billion in welfare payments were obtained through unlawful income apportionment methods, affecting up to 160,000 recipients.
Penny Allman-Payne accused Labor of continuing to treat welfare recipients as criminals, adding, “Getting hit with a dodgy debt notice can be catastrophic.” The urgency of this issue is underscored by the ongoing hardship faced by those struggling to make ends meet.
The Royal Commission’s findings, released in July 2023, laid bare the failures of the Department of Social Services and called for sweeping changes. However, more than a year later, many recommendations remain unaddressed, raising concerns among advocacy groups. Kristen O’Connell from the Anti-Poverty Centre stated, “The current system of ‘debt’ collection is untenable,” urging the government to act swiftly.
The Bill aims to ensure that future welfare administration does not lead to the same devastating outcomes witnessed during the Robodebt crisis. The reforms would also expand access to a special circumstance debt waiver for those experiencing coercive control and financial abuse, addressing gaps that have left vulnerable Australians unprotected.
As the debate unfolds in Parliament, all eyes will be on Labor to see if they will heed the calls for change and enact these overdue reforms. The outcome of this legislative push could determine the future of welfare administration in Australia and the lives of countless individuals relying on government support.
WHAT’S NEXT: The introduction of this Bill today marks a critical moment in the ongoing struggle for reform. Stakeholders are calling for immediate action from Labor to ensure that the failures of the past are not repeated. As the situation develops, the public is urged to stay informed and advocate for necessary changes in the welfare system.
