Read The Times Australia

Daily Bulletin

Danger. Election 2016 delivered us Robodebt. Promises can have consequences

  • Written by: Terry Carney, Emeritus Professor of Law, University of Sydney
Danger. Election 2016 delivered us Robodebt. Promises can have consequences

Campaign promises can seem like so much noise and distraction; this morning’s announcement replaced by another by the afternoon and forgotten before bedtime. But as the “robo-debt” saga showed, such announcements can have devastating consequences if not properly scrutinised, once the election rush has passed.

In December 2015 in the lead up to the mid-2016 election the Coalition announced a “crack-down” on welfare overpayments, to be brought about by matching taxation data with Centrelink records.

In the leadup to the election Scott Morrision, then social security minister, spoke of it as a “more bespoke way of dealing with people’s arrangements”. It would “cut red tape, and ensure that mistakes are minimised”.

It began as a promise

Data matching had long been used, but only to identify possible overpayments. Centrelink staff then verified and properly calculated any such debts, using its powers to compel banks or employers to provide precise fortnightly earnings records if the person hadn’t kept them.

The new scheme “automated” that key stage.

Instead of finding out what a person actually earned each fortnight so their rate of social security could accurately be worked out, it robotically apportioned to each fortnight the annual employment income reported to the tax office. Each fortnight the person receiving benefits was said to have earned form employment one 26th of what they had earned over the year, making it look as if they had been working all year even if they had not.

Debts were asserted and put in the hands of debt collectors unless the person could produce pay-slips or other fortnightly earnings records, often from as far back as 2010. The Centrelink website had only advised people to keep records dating back six months.

Government oversight was weak

The scheme was to begin on July 1, 2016, which as it happens was the day before the election. The election victory was narrow, and for a while uncertain, meaning the bureaucracy was left with more responsibility than usual for making sure it was delivered as promised.

And as events transpired, it proved to be unable to design a scheme that completely met the tests of being lawful (it reversed the onus of proof on the esistance of debts), accurate (the bulk of its assessments were either totally false or grossly inflated ), meeting the integrity standards expected of government (hiding from public scrutiny details about appeals that overturned its decisions), or meeting the pub test of morality.

It frankly beggars belief that standards of government implementation could fall so far and so low.

And Centrelink staff must have known it

It cannot possibly have been unknown within government that it was legally impossible to reverse the onus of proof of establishing a debt. The legislative provision was crystal clear that debts can be raised “if and only if” the law creates it as a debt.

Even the lowest-level employee within Centrelink knew that most people on benefits had several different jobs, of varying durations and hours with erratic and fluctuating earnings and that the law required the person’s rate to be determined every fortnight, not on the basis of some extrapolated “average” over a year.

Hardly anyone could not know that basic maths tells us that an “average” never speaks to its constituent parts unless a person has a single job at an unchanged pay rate.

Read more: What 1,100 Australians told us about the experience of living with debt they can't repay

And every senior bureaucrat ought to have understood their obligation to behave as a “model litigant”, which includes not continuing to raise debts that regularly overturned as illegal on appeal, and not to “hide” those decisions by never once challenging them by appealing to the next level where decisions would become public, or reportedly seek to “settle” a Federal Court challenge to the process rather than have it come to a public hearing.

All of these things were part and parcel of this botched implementation.

Bull-headedly, government continued with it 18 months after it became clear several things were wrong.

Promises have consequences

The economic cost to citizens of a program which effectively uses the might of the state to frighten them into paying up what the Ombudsman’s report found to mainly be non-existent or highly inflated “debts”, is now estimated as A$3.7 billion over the budget estimates.

The cost to the government’s reputation for integrity is incalculable, because the irony is that automation is the way of the future, and competently designed and implemented it can benefit social security clients and the public.

Elections are a time when not only the promises but also the professionalism and integrity of their implementation are on public display. If you don’t take note, you might end up getting something that looks appealing (such as a “crackdown” on welfare fraud) but ends up targeting you in a way that is illegal or immoral. You might even have voted for it.

Authors: Terry Carney, Emeritus Professor of Law, University of Sydney

Read more http://theconversation.com/danger-election-2016-delivered-us-robodebt-promises-can-have-consequences-117191

Business News

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...

When Should You Speak with Divorce Lawyers in Sydney?

Divorce involves more than completing an online application. It can affect parenting arrangements, p...

How to Choose a Reliable Hot Water System Installer on the Gold Coast

Choosing a reliable installer is just as important as choosing the right hot water system. A qualifi...

How Microtask Platforms Support Modern Digital Promotion

Digital promotion has become increasingly complex. Businesses communicate with customers through w...

Cosmetic Dentistry Options From a Brisbane-Based Dental Team

You cover your mouth when you laugh. You skip the group photo. Maybe you edit pictures to soften a...

Essential Steps to Handle Sudden Tooth Pain and Dental Crises

A sudden, throbbing toothache can totally stop your whole day, with no warning. When severe pain, ...