Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Minister for Government Services, Senator Gallagher. The former coalition government's robodebt program illegally pursued Australians for debts that they didn't owe. The chapter was the worst failure of public administration in Australia's history. The Royal Commission into the Robodebt Scheme made clear the devastating impact this scheme had on individuals and their families, after the former coalition government hunted them down for money that they didn't owe. Could the minister update the Senate on the settlement outcome that has been reached with the victims of robodebt today?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Dolega for the question, and I also acknowledge the role that your union and mine played in advocating against the robodebt scheme and raising concerns around robodebt, particularly the impact it had on your constituents in Tasmania.

We all remember, and we will never forget, the failed robodebt program that those opposite, when they were in government, established to hunt down—I think that was the language used by ministers—people that owed money for them to pay it back to the Australian government. Of course, the major problem with that was the majority of the 450,000 that were affected by robodebt didn't owe any money. Their government raised debts they never owed and pursued them, using language like 'we will hunt you down and jail you for debts' that they never owed. Not only were they pursuing debts that people didn't owe and demonising some of the poorest and most vulnerable Australians in the language and the way they prosecuted robodebt; they were also using robodebt as a budget savings measure. It was to repair their budget. They made a lot of promises about that.

We see the end result of this—the people that lost their lives; the families traumatised; the individuals who will never, ever get over the biggest failure of public administration in this country, which those opposite presided over. We now know the ongoing harm that has happened to those people affected by robodebt and we have sought to settle this legal matter. The decision taken demonstrates our commitment to address the harms caused by robodebt.

Opposition Senators:

Opposition senators interjecting—

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Senator Canavan, I will give you leave to stand here and explain why you think the victims of robodebt should be ridiculed— (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Dolega, first supplementary?

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

How is the Albanese Labor government continuing to clean up the mess left behind by the coalition's unlawful and disastrous robodebt program? What has the robodebt scheme cost Australian taxpayers to date?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

Thank you, Senator Dolega, for the supplementary. The settlement we have reached, which is subject to court approval, will make $475 million available to compensate those affected by the unlawful robodebt scheme. In addition to that, when we look at the total costs, the coalition, when in government, using this scheme to balance their budget, told taxpayers it would save them $4.7 billion, but in the end it cost over half a billion dollars, not counting the money refunded. To break this down, the scheme was budgeted to save $4.7 billion. It only delivered a saving of $406 million, if you'd like to call it that, and it cost $971 million to implement. That gives you a bit of an idea of the failed budget strategy, in addition to the huge and devastating human cost. The Commonwealth agreed to a $1.8 billion settlement over the illegal scheme, covering the repayments of debts totalling $1.76 billion and the initial class action of $112 million.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Dolega, second supplementary?

Josh Dolega (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Why is it so important to have a well-resourced and capable public service to ensure that this terrible chapter that was robodebt never happens again?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank Senator Dolega for the question. The total cost of the robodebt scheme has now impacted the budget to the order of $2.9 billion. This includes the legal settlement cost, including that which is subject to court approval. I note that those opposite went to the last election wanting to slash the Public Service. It shows they haven't learnt the lesson. They haven't learnt the lesson of robodebt, which is not to reduce the capability of the Public Service or diminish them so that they are not able to provide frank and fearless advice or respond to bad policy coming out of executive government. That is the approach that those opposite took to the last election. They were against a well-resourced independent and functioning Public Service. We know what they did when they were last in government, and we've got a great example in robodebt of the costs of the approach that they took.