Government Senators do not support the Senate Community Affairs References Committee (committee) Final Report into Centrelink’s compliance program as presented by the Australian Labor Party and the Australian Greens Senators.
Government Senators note that this report is the sixth report tabled by the committee and that this dissenting report should be read in conjunction with previous dissenting comments.
The Income Compliance Program has been subject to extensive scrutiny including from the Commonwealth Ombudsman, through Parliamentary inquiries and has also been subject to decisions of the Federal Court. Those inquiries have supported practical, ongoing improvements to the delivery of income compliance.
Government Senators accept the evidence presented to the inquiry regarding shortfalls, particularly in the early iterations of the program, in relation to communications with customers at key stages of the compliance process. Extensive evidence has been provided to this inquiry about changes made to income compliance processes in response to these acknowledged problems. Improvements to the program have been informed by, and benefited from, extensive consultation.
There have been apologies from both the Government and senior officials for any hurt or harm caused by income compliance. Once it became clear that the basis upon which the debts were being raised through the sole use of averaged Australian Taxation Office (ATO) income data was insufficient, Services Australia paused in-scope debts as they were identified. On 29 May 2020 the former Minister for Government Services, the Hon Stuart Robert MP committed that debts would no longer be raised solely on ATO income data.
The Government is in the final stages of repaying eligible group members under the terms of the class action settlement distribution scheme. While both Gordon Legal and the Commonwealth acknowledge that the settlement is not an admission of liability by the Commonwealth, this settlement has meant that almost all current Services Australia customers who are eligible for a refund have been refunded or had their debt reduced to zero. To date, over 99 per cent of refunds have been made and approximately 429 000 people have received a refund or had their debts reduced to zero.
In view of the significant changes that have been implemented, including as a result of substantial external scrutiny, Government Senators see no compelling reason why any further review is required. Another review on the Income Compliance Program will only promote anxiety and undermine trust in Government services on the basis of issues that have been acknowledged and comprehensively addressed. The recommendation to establish a Royal Commission into the Income Compliance Program is unnecessary due to the scale of changes that have already been made to the program.
On this basis, Government Senators are strongly of the view that the recommendation of the majority final report be rejected by the Senate. Further, that Services Australia should be focused on the necessary action going forward of ensuring that the Settlement agreement is implemented.