'If you’ve made a mistake, then fair enough that you have to pay back money. But, with robo-debt, no one can explain whether you’ve made a mistake. No one tells you anything. They just say you’ve got a debt and you have to pay … But now I know that the Government tries to make people pay debts that they don’t understand and might not owe. It harasses and intimidates people. It’s just so upsetting'
– legal aid client Janine.
Janine is one of thousands of people around Australia who’ve been trapped in Centrelink’s flawed robo-debt system.
In a new submission to the Senate Community Affairs References Committee with National Legal we have called for robo-debt to be stopped and replaced with a fairer, accurate system people can trust.
Legal aid commissions (LAC’s) are the main providers of legal assistance services in Australia. In the 2017–18 financial year, LAC’s provided over 2.3 million services to people across the country.
Over half a million debts have been raised against Australians through robo-debt. The system is causing severe hardship for people, causing people to repay money they do not owe, and undermining trust in the social security system.
The submission shares stories from 11 people who were assisted by LAC’s. They illustrate the systemic flaws with the current program:
- the stress and hardship robo-debt causes, including undermining people’s mental health.
- the inaccuracy of robo-debt, including the frequency with which debts decrease upon recalculation and the very real risk that people are paying money to Centrelink that they do not owe.
- the unfairness of robo-debt’s ‘reverse onus’ where the responsibility lies with people to prove they do not owe the amounts claimed.
- the lack of clear information provided by Centrelink in correspondence about how the debt was calculated for people trying to understand and resolve their alleged overpayments.
10 recommendations for a better system
Informed by our direct work with clients, we call for a rethink of robo-debt and for 10 changes to help deliver a fair and accurate system that people can trust:
- Stop robo-debt and co-design a fairer system.
- End averaging.
- Make sure Centrelink establishes that the amount is correct before claiming a debt.
- Improve client focussed communication and service provision.
- Embrace client-centred design and use of technology.
- Ensure an accessible, transparent right of review.
- Promote access to advice and assistance.
- Stronger safeguards before seizing tax returns.
- Ensure proper, limited use of penalty fees.
- Follow fair, appropriate debt collection practices.
The senate committee has until March 2020 to report.
Robo-debt and our clients
The National Legal Aid submission contains 11 stories that show the stress and hardship caused by the unfairness and inaccuracy of robo-debt.
- Janine's story – ‘That letter was the start of a hellish process’
- Melissa's story – a private debt collector’s actions ‘doing my head in and making me suicidal’
- Rachel's story – a grieving mother in a remote Aboriginal community confused by Centrelink correspondence
- David's story – his tax incorrectly garnished
More information
- We currently have two cases before the Federal Court of Australia testing the legality of robo-debt. Read the latest news about the case.
- Read the National Legal Aid's Submission to the Senate Community Affairs References Committee Inquiry into Centrelink’s Compliance Program – September 2019.
- Read our Submission to the Legal and Constitutional Affairs Legislation Committee inquiry into the Impact of changes to service delivery models on the administration and running of Government programs – August 2019.
Disclaimer: The material in this print-out relates to the law as it applies in the state of Victoria. It is intended as a general guide only. Readers should not act on the basis of any material in this print-out without getting legal advice about their own particular situations. Victoria Legal Aid disclaims any liability howsoever caused to any person in respect of any action taken in reliance on the contents of the publication.
We help Victorians with their legal problems and represent those who need it most. Find legal answers, chat with us online, or call us. You can speak to us in English or ask for an interpreter. You can also find more legal information at www.legalaid.vic.gov.au
Reviewed 05 May 2022