Secretary of the Department of Human Services Kathryn Campbell
From July 1, more Australian pensioners will be targeted by the controversial Centrelink automated debt notice system despite the controversy the program faced over the past few months.
The program has continued operating, sending out over 200,000 notices and approximately 10,000 notices per week, despite a number of issues. These include a Commonwealth Ombudsman review, Information Commissioner audit, parliamentary committee and incorrectly issued debt notices to welfare recipients. Unlike the initial process, the letters are now sent by registered post, meaning the department could be spending in the vicinity of $50,000 on letters per week. This is to ensure the first a person hears about their alleged debt isn’t from a debt collector.
Officials from the Department of Human Service told a Senate committee yesterday it will plough ahead with a planned expansion of the debt notice system later this year. The expansion — first announced in the Mid-Year Economic and Fiscal Outlook late last year — is looking to claw back non-employment income and assets information into the online compliance system. This means the assets and non-employment income — such as dividends from shares and interest — will now be cross-matched with all welfare payments including pensions.
The new non-employment income data-matching program has been estimated by the government to return $300 million in the first year from 80,000 welfare recipients.
Department of Human Services deputy secretary Malisa Golightly told the committee that unlike the initial debt notice system, the changes from July 1 would be using data from the Australian Taxation Office (ATO) from recipients’ tax returns. Department secretary Kathryn Campbell said it was data provided to the government by the individual, rather than the Pay-As-You-Go income data sent by employers to the ATO.
“Importantly that is information the person has provided to the tax office and has signed off on,” she said.
The inclusion of new welfare recipient categories and new data fed into the system would not result in a rise in the number of letters being sent out per week, the department’s general manager of integrity modernisation Jason McNamara said, because the bottleneck was in the registered post system to send out the letters.
“At the moment we are constrained by the registered post system so probably not from July. I think from July we will still be doing 10,000 per week. Logistics of registered post means we are keeping it at 10,000,” he said.
Campbell indicated the department would use data analytics to try to target welfare recipients that were more likely to have declared their income and assets incorrectly to try to refine the process.
The process could do with some refining, the committee heard, as there have been five alleged debts waived after the department discovered it had sent notice letters to dead people.
The Office of the Australian Information Commissioner announced yesterday he would be overhauling Australia’s privacy code in the wake of the Centrelink debacle and other similar issues of Australians’ privacy, and would now require government agencies to undertake a privacy risk assessment before data matching, and that assessment would need to be made public.
So, has this vicious mob just given up hope of winning the next election, and just running with their nasty instincts now?
“Department of Human Services deputy secretary Malisa Golightly”
You have to be kidding me! Ironic?
So are they receiving debt notices, or has the department seen the light and sent out ‘please explain’ letters, which they should have done with the first round?
They were always “please explain” letters, it’s just that Centrelink’s borked portal gives you no options to actually do so, and they don’t answer their phones.
Tread on the power-dressing Malisa’s toe in the lift and she will hunt you down and destroy you. According to her reputation, that is!
DHS is continuing to use its faulty programs to hound a new cohort of welfare recipients, aged pensioners. There I have corrected your opening sentence.
The faulty programs haven’t been changed because the modifications are probably in builds that will be rolled out in December 2017. The external contractors won’t start specifying the changes until the department signs off the specifications, then the programs will be written, scheduled for a build, tested, then rolled into production. Hmmm make that the December 2018 build.
Of course the external contractors might not be working as they are paid by Plutus which wound up about a month ago
“Department secretary Kathryn Campbell said it was data provided to the government by the individual, rather than the Pay-As-You-Go income data sent by employers to the ATO.”
What a load of hooey!
The current working age robo debt debacle is nasty because of a timing issue. Many employers issue group certificates saying
Person X employed July 1 to June 30
Person X reports their income in the fortnight it was earned
Person X is paid in arrears, in 1996 Deakin University used to pay some lecturers a lump sum at the end of the semester
To determine if a person has been overpaid you need to match their fortnightly welfare payments against their fortnightly reported work history before raising false debts.
In this age of precarious employment Centrelink is unable to process welfare payments to people who take on precarious employment. Better to be paid cash in hand to avoid a robo-debt collector in 7 years time
Nobody seems to be at all concerned that our systems make so many incorrect payments in the first place; 10,000 notices per week seems awfully high. And do they top-up people who’ve been underpaid?