Appendix 1

Summary of Recommendations

First Interim Report

Recommendation
Implementation status
The committee recommends that the Senate adopt the following resolution requiring the production of documents:
That there be laid on the table by the Minister representing the Minister for Government Services no later than 10 am on 24 February 2020, responses to all questions placed on notice by Senators Siewert and O'Neill relating to legal advice and Centrelink's compliance program. This includes, but is not limited to, questions about:
meetings and/or briefings between the Minister and Services Australia in relation to the current legal proceedings regarding Centrelink's compliance program;
the frequency and dates of legal advice obtained by Services Australia from the Solicitor-General, Australian Government Solicitor, departmental lawyers, and external counsel and/or solicitors in relation to any aspect of the compliance program and, specifically, whether a debt or debt components is able to be founded on extrapolations from Australian Taxation Office records;
legal advice about the lawfulness of debt or debt components solely based on extrapolations from Australian Taxation Office records;
legal advice in relation to liability for the death of any Australian who received a debt notice under the compliance program; and
the cost of legal advice in relation to the compliance program.
Resolution adopted by the Senate.1
The Minister for Aged Care and Senior Australians, Senator the Hon Richard Colbeck, tabled a letter to the President of the Senate from the Minister for Families and Social Services (Senator Ruston), dated 24 February 2020, responding to the order, and attachment. Correspondence made a PII claim concerning all information.2

Second Interim Report

Recommendation
Government response
Recommendation 1
The committee recommends that Services Australia immediately terminate the Income Compliance Program.
Not supported.
‘Income compliance activity will continue. However, as announced by Government on 19 November 2019, Services Australia will no longer raise debts based solely on averaging of Australian Taxation Office (ATO) income information.’3
Recommendation 2
The committee recommends Services Australia ensure its communication strategy relating to the repayment of unlawfully-raised compliance debts takes into consideration the additional needs of and provides appropriate supports to:
vulnerable populations, such as people with disability or who are experiencing homelessness;
people with low literacy and numeracy; and
people for whom English is not a first language.
Supported in principle.
‘Refunds of Income Compliance Program debts to current and former customers commenced in July 2020. Services Australia developed and implemented a comprehensive communication strategy to inform current and former customers about their refunds.’4
The Government response also referred to strategies to assist vulnerable groups.
Recommendation 3
The committee further recommends Services Australia immediately allocate additional staff to focus on contacting customers who have not engaged with the refund process in order to ensure the repayment of all unlawfully-raised compliance debts to all affected individuals is completed in a timely manner.
Noted.
‘The Government notes this recommendation as not needed.’5
‘The Government will continue to take all reasonable steps to ensure that eligible former customers have ample opportunity to confirm or update their details and receive their refund.’6
Recommendation 4
The committee recommends that Services Australia immediately reviews its evidentiary responsibilities for raising overpayment debts in all of its compliance programs, with particular reference to:
the responsibilities of the agency under sections 1222A and 1223 of the Social Security Act 1991 for proving an overpayment debt is due to the Commonwealth; and
whether section 66A of the Social Security (Administration) Act 1999 provides an appropriate legal basis for requiring individuals to update income information where there has been no change in circumstances.
Noted.
‘The Government notes this Recommendation. Payment integrity activities will continue, with a strong focus on prevention of debt. Services Australia will continue to engage with customers, and third parties, to ensure they receive the correct payments.’7
Recommendation 5
The committee recommends that an independent review is immediately initiated into the policy, design, administration and impact of Centrelink's compliance program, including the Income Compliance Program.
Not supported.
‘The Government notes that the current Senate Inquiry into Centrelink’s Compliance Program is an independent process of inquiry, as was the Senate Inquiry on the “Design, scope, cost-benefit analysis, contracts awarded and implementation associated with the Better Management of the Social Welfare System initiative” during the last Parliament. The Ombudsman has conducted multiple investigations into the Program, including its reports of April 2017 and April 2019, both titled “Centrelink’s Automated Debt Raising and Recovery System”.’8

Third Interim Report

Recommendation
Implementation status
Recommendation 1
The committee recommends that the Senate adopt the following resolution:
That the Senate requires the Minister representing the Minister for Government Services to attend the Senate at the conclusion of question time on 6 October 2020 to provide an explanation, of no more than 10 minutes, of:
the government’s continued reliance on a rejected claim of public interest immunity in answers to questions on notice provided to the Community Affairs References Committee on 24 February 2020 in relation to the inquiry into Centrelink’s compliance program;
whether it was the intention of the Minister for Government Services, or of officers of Services Australia, to show disregard for the 11 February 2020 resolution of the Senate by providing answers relying on that rejected claim for public interest immunity; and
the Minister for Government Services’ failure to respond to that committee’s correspondence of 6 April 2020 seeking clarification in relation to this matter.
Resolution adopted by the Senate.9
Pursuant to order, the Minister representing the Minister for Government Services (Senator Ruston) provided an explanation relating to PII claims of made during the Community Affairs References Committee’s inquiry into Centrelink’s compliance program.10
Recommendation 2
The committee recommends that the Senate adopt the following resolution requiring the production of documents:
That there be laid on the table by the Minister representing the Minister for Government Services, by no later than 12.00pm on 6 October 2020, either:
revised responses to all questions relating to legal advice and the Income Compliance Program which have been subject to rejected claims of public interest immunity during the Community Affairs References Committee’s inquiry into Centrelink's compliance program; or
a letter confirming that these responses will provided in camera to the Community Affairs References Committee by no later than 5pm on that same day.
In the event that the Minister fails to table these documents, the Senate requires the Minister representing the Minister for Government Services to attend the Senate at the conclusion of question time on 6 October 2020 to provide an explanation of the Minister’s failure to table the documents.
Resolution adopted by the Senate.11
Pursuant to order, the Minister representing the Minister for Government Services (Senator Ruston) provided an explanation relating to PII claims made during the Community Affairs References Committee’s inquiry into Centrelink’s compliance program.12
Recommendation 3
The committee recommends that the Senate adopt the following resolution requiring the production of documents:
That there be laid on the table by the Minister representing the Minister for Government Services, by no later than 12.00pm on 6 October 2020, either:
a copy of the Executive Minute to the Minister for Social Services, dated 12 February 2015, as referenced in the Commonwealth Ombudsman's April 2017 report into Centrelink’s automated debt raising and recovery system; or
a letter confirming that this Executive Minute will provided in camera to the Senate Community Affairs References Committee by no later than 5pm on that same day.
In the event that the Minister fails to table either of these documents, the Senate requires the Minister representing the Minister for Government Services to attend the Senate at the conclusion of question time on 6 October 2020 to provide an explanation of the Minister’s failure to table the document.
Resolution adopted by the Senate. 13
Pursuant to order, the Minister representing the Minister for Government Services (Senator Ruston) provided an explanation relating to PII claims made during the Community Affairs References Committee’s inquiry into Centrelink’s compliance program. 14

Fourth Interim Report

Recommendation
Implementation status
The committee recommends that the Senate adopt the following resolution requiring the production of documents:
That there be laid on the table by the Minister for Government Services, no later than 12.00pm on 24 August 2021:
revised responses to all questions relating to legal advice and the Income Compliance Program which have been subject to rejected claims of public interest immunity during the Community Affairs References Committee’s inquiry into Centrelink's compliance program; and
a copy of the Executive Minute to the Minister for Social Services, dated 12 February 2015, as referenced in the Commonwealth Ombudsman's April 2017 report into Centrelink’s automated debt raising and recovery system; or
a letter confirming that the above responses relating to legal advice and the Executive Minute will be provided in camera to the Senate Community Affairs References Committee by no later than 5.00pm on that same day.
In the event that the minister fails to table these documents, the Senate requires the minister to attend the Senate at the conclusion of question time on 25 August 2021 to provide an explanation of the minister's failure to table the documents.
Resolution adopted by the Senate.15
The Assistant Minister to the Attorney-General (Senator Stoker) tabled a letter to the President of the Senate from the Minister for Government Services (Senator Reynolds) responding to the order and raising public interest immunity claims.16
Pursuant to order, the Minister for Government Services (Senator Reynolds) provided an explanation concerning non‑compliance with the requirement to table documents relating to the income compliance program.17


Fifth Interim Report

Recommendation
Implementation status
Recommendation 1
The committee recommends that Services Australia distributes the settlement sum in accordance with the Implementation Plan for Distribution Scheme, as a matter of priority.
Recommendations adopted by the Senate.18
Distribution of the settlement sum is due to be completed by ‘late September [2022]’.19
Calculation of the sum owed to each eligible group member is currently being calculated. Group members will be notified of the sum of any repayment due to them by ‘mid 2022’.20
Recommendation 2
The committee recommends that following the finalisation of the Implementation Plan for Settlement Distribution Scheme, Services Australia publicly release the following data:
the number of class action Group Members in each category;
the total value of the debts of Group Members, broken down by category; and
the average share of the settlement sum eligible Group Members received.
Recommendations adopted by the Senate.21
Distribution of the settlement sum is due to be completed by ‘late September [2022]’.22
Calculation of the sum owed to each eligible group member is currently being calculated. Group members will be notified of the sum of any repayment due to them by ‘mid 2022’.23
Recommendation 3
The committee recommends that the Senate adopt the following resolution.
1. That the Senate notes that the Senate Community Affairs References Committee has rejected the Minister for Government Services' explanation regarding public interest immunity claims on several occasions.
2. That there be laid on the table by the Minister for Government Services, by no later than 1pm on Wednesday, 24 November 2021:
revised responses to all questions relating to legal advice and the Income Compliance Program which have been subject to rejected claims of public interest immunity during the Community Affairs References Committee’s inquiry into Centrelink’s compliance program; and
a copy of the Executive Minute to the Minister for Social Services, dated 12 February 2015, as referenced in the Commonwealth Ombudsman’s April 2017 report into Centrelink’s automated debt raising and recovery system; or
a letter confirming that the above responses relating to legal advice and the Executive Minute will be provided in camera to the Senate Community Affairs References Committee by no later than 2pm on that same day.
3. In the event that the Minister again fails to table these documents:
the Senate requires the Minister to attend the Senate at the conclusion of question time on Wednesday 24 November 2021 to provide an explanation of the Minister’s failure to table the documents;
at the conclusion of the Minister’s explanation, or in the event that the Minister fails to provide an explanation, any senator may move to take note of the explanation or the failure to provide an explanation;
any motion under the above paragraph may be debated for no longer than 60 minutes and have precedence over all other business until determined, and senators may speak to the motion for no more than 10 minutes each.
Resolution adopted by the Senate.24
The Minister for Government Services (Senator Reynolds) tabled a letter to the President of the Senate from the Minister for Government Services (Senator Reynolds) responding to the order and reiterating public interest immunity claims, and attachment.25
Pursuant to order, Senator Reynolds provided an explanation relating to the response.26
The explanation was in similar terms to that provided on 25 August 2021, to the effect that she had personally reviewed the public interest grounds asserted by the Government and concluded ‘that it would not be in the public interest to disclose the information over which the claim is being reiterated in relation to legal advice and also to the deliberations of cabinet.’27
  • 1
    Journals of the Senate, No. 40, 11 February 2020, p. 1326
  • 2
    Journals of the Senate, No. 43, 24 February 2020, p. 1420.
  • 3
    Government Response to Second Interim Report, tabled 11 February 2021, p. 3.
  • 4
    Government Response to Second Interim Report, tabled 11 February 2021, p. 3.
  • 5
    Government Response to Second Interim Report, tabled 11 February 2021, p. 4.
  • 6
    Government Response to Second Interim Report, tabled 11 February 2021, p. 5.
  • 7
    Government Response to Second Interim Report, tabled 11 February 2021, p. 5.
  • 8
    Government Response to Second Interim Report, tabled 11 February 2021, p. 5.
  • 9
    Journals of the Senate, No. 65, 2 September 2020, pp. 2246–2247.
  • 10
    Journals of the Senate, No. 67, 6 October 2020, pp. 2329.
  • 11
    Journals of the Senate, No. 65, 2 September 2020, pp. 2246–2247.
  • 12
    Journals of the Senate, No. 67, 6 October 2020, pp. 2329.
  • 13
    Journals of the Senate, No. 65, 2 September 2020, pp. 2246–2247.
  • 14
    Journals of the Senate, No. 67, 6 October 2020, pp. 2329.
  • 15
    Journals of the Senate, No. 113, 12 August 2021, p. 3936.
  • 16
    Journals of the Senate, No. 115, 24 August 2021, p. 3971.
  • 17
    Journals of the Senate, No. 116, 25 August 2021, p. 3984.
  • 18
    Journals of the Senate, No. 127, 23 November 2021, p. 4282.
  • 19
    Robert McKellar, National Manager, Integrity Strategy, Engagement and Policy Branch, Services Australia, Committee Hansard, 27 August 2021, p. 9.
  • 20
    Services Australia, Implementation Plan for Settlement Distribution Scheme (15 March 2022) https://www.servicesaustralia.gov.au/implementation-plan-for-settlement-distribution-scheme (accessed 12 April 2022).
  • 21
    Journals of the Senate, No. 127, 23 November 2021, p. 4282.
  • 22
    Robert McKellar, National Manager, Integrity Strategy, Engagement and Policy Branch, Services Australia, Committee Hansard, 27 August 2021, p. 9.
  • 23
    Services Australia, Implementation Plan for Settlement Distribution Scheme (15 March 2022) https://www.servicesaustralia.gov.au/implementation-plan-for-settlement-distribution-scheme (accessed 12 April 2022).
  • 24
    Journals of the Senate, No. 127, 23 November 2021, p. 4282.
  • 25
    Journals of the Senate, No 128, 24 November 2021, p 4294.
  • 26
    Journals of the Senate, No 128, 24 November 2021, p 4294.
  • 27
    Senate Hansard, 24 November 2021, p. 6626.

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Past Public Hearings

27 Aug 2021: Canberra
20 Aug 2021: Canberra
19 Aug 2021: Canberra