Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

I rise today to speak about the government's Centrelink robo-debt debacle and the impact it is having on everyday Australians, including many good people who live in my electorate. Over the course of this year my office and many other MPs' offices have received numerous calls from members of the community who are confused about the Turnbull government's intentions. They are confused at having received letters demanding payments for Centrelink debts that originate from many years ago. They are confused that the letters fail to properly outline the nature of the debt and often incorrectly calculate the debt. And they are confused that Prime Minister Turnbull and the Minister for Human Services would endorse a 'debt collector at the door' style shakedown of vulnerable Australians.

I particularly want to refer to the experience of one of my constituents, Leah Haines. Leah has advised my office that she received a letter from Centrelink, dated 16 January this year, indicating that she had a debt of over $10,000 from the period 9 August 2011 to 13 June 2012. Of the $11,734.23 of disability support pension she received five years ago, Leah is now being told she needs to repay over 90 per cent of that.

When Leah was receiving DSP, her husband worked for Startrak Express. Initially he was employed as a casual employee and then later as a permanent staff member. As a result, like many Australian families, their income changed from week to week, because they were trying to do the right thing by their family and by the economy. Each fortnight, as she needed to do, Leah faithfully reported the family income to Centrelink. As a result, her DSP payments were varied each fortnight. As I said before, five years later, Leah received a debt notice. Leah appealed Centrelink's claim that she has a debt, and early February I forwarded Leah's concerns to the minister and asked that he respond. Leah has since been advised by Centrelink that her appeal has been rejected. Subsequently, she has lodged an appeal with the AAT.

Most concerning to me is the most recent advice Centrelink has given to Leah and which she has relayed to me. Leah has been advised that she had indeed reported her income at the time, as she was required to, but there was a processing mistake and, as a result, the debt still stands. This is Centrelink's story. So, even on their own accounting, the problem was not created by Leah but was created by Centrelink's processing error. Their position is that Leah should have second-guessed Centrelink's advice at the time. Because she trusted Centrelink to get it right, the government is now punishing her for their mistakes.

This is having a terrible impact on Leah's family and on her health. Because of the debt that has been created against them, there is uncertainty. They are unable to get a loan to have their family car fixed, which means that they are not able to easily take their son, who requires special medical care, to his appointments. They also cannot buy a new fridge which they need. They have been left in an unacceptable situation and a situation of uncertainty, and I call on the minister to work with Leah and her family to resolve their case.

The minister must take a new approach to this matter. If the Commonwealth identify a debt from a long time ago they need to be more understanding in working through the circumstances with those involved and reaching a fair outcome. If there are debts, they should be repaid but this should be done through a mechanism that is fair for the family involved. It is unacceptable that someone who appears to have done the right thing, as in Leah's case, to have reported their income as required and to have trusted Centrelink to pay them correctly, has been left so exposed by the minister's robo-debt debacle.

I note today that the minister has finally conceded that his debacle of a system is not working and he has announced changes. But the minister needs to go further and heed Labor's call to suspend the program until all of these issues can be worked out. And the minister must assist all of those people who have already been caught up in this debacle and help them navigate through this government's terrible mess.