The Federal Authorities is straight away halting a key a part of the controversial robodebt scheme to get well money owed from welfare recipients and can freeze some current money owed, in what seems to be a serious backdown within the operation of the scheme.
In an pressing e-mail circulated to all Division of Human Companies compliance workers at this time, seen by 7.30, the overall supervisor of the debt attraction division wrote:
“The division has made the choice to require further proof when utilizing revenue averaging to id over funds.
“This implies the division will not elevate a debt the place the one data we’re counting on is our personal averaging of Australia Taxation Workplace revenue information.”
The averaging course of has lengthy been some of the controversial elements of the scheme.
Authorized teams have mentioned that it causes inaccuracies within the debt quantities, and wrongly shifts the burden of proof onto alleged debtors.
The e-mail additionally units out that the division would undertake a sweeping overview of all money owed the place averaging was used.
“Buyer compliance division will methodically work by means of earlier money owed recognized as a part of the web compliance program and reply to their requests for clarification,” it mentioned.
The division will even be writing to affected prospects.
“For patrons who’re affected, the division will freeze debt restoration motion as CCD identifies them and appears at every debt. The division will even write to affected prospects to allow them to know,” the e-mail mentioned.
7.30 has contacted the Minister for Authorities Companies and the Division of Human Companies for a response.
Extra to return.