Showing posts with label big data. Show all posts
Showing posts with label big data. Show all posts

Thursday 13 April 2017

Australian Dept. of Human Services and Centrelink sink to a new low


An automated Dept. of Human Services-Centrelink debt recovery system that launched an est. 230,000 investigations into client welfare paymentsin 2016-17, then used an error-prone “income averaging” method to decide that more than 133,000 clients had incurred a debt owed to Centrelink and sent them a bill which included a recovery fee.


During this entire debacle spokespersons for the Turnbull Government, the Department and Centrelink have attempted to mislead and misinform welfare clients, mainstream media and the general public.

Now we have been told that for months, perhaps years, the software program being used by Centrelink to run its access to online services portal left users vulnerable to phishing attacks which can steal their credentials including names, addresses, bank account details.

If this is yet another example of the innovative and agile government information technology Liberal and National Party MPs boast about - then gawd help us all!

Comment  on office of the Minister for Human Services, Mr Alan Tudge

By an IT consultant.......


That Victorian Legal Aid saw it necessary to update its advice to clients to warn them that their personal information is no longer safe with the Department is an extraordinary situation. This is not advice from tinfoil-hat-wearing conspiracy theorists. This is sober advice from legal professionals that a major part of the Australian Government cannot be trusted. I cannot stress enough how bad this is.

This behaviour from the Department has had a chilling effect, as I believe it was intended to. This chilling effect is not theoretical. I have personally spoken to individuals who have been reluctant to speak out against the Department, either to the media or to this Inquiry, because they fear repercussions from the Department as they are dependant in some way on income support.

At one point I discussed these matters with the office of the Minister for Human Services, Mr Alan Tudge, and was alarmed to discover that his office did not share my view that the Department has an asymmetric power advantage over individuals. They were of the view that if an individual is critical of the Department in the media, they become fair game.

The attitude from Mr Tudge’s office appeared to be one of a siege mentality where they were at a substantial disadvantage despite the vast array of resources at their disposal, particularly when compared to an individual reliant on income support. They felt that there had been a lot of false information being reported in the media and that it was time for them to “start fighting back.” This adversarial attitude, coupled with the astounding levels of secrecy from the Department, indicates major cultural issues in the Department and in the responsible Minister’s office.

The Department of Human Services exists to serve the humans in our society. The clue is in the name of the department. If individuals within the Department are unhappy with their role, then they should be encouraged to seek employment elsewhere.

By a Queen's Counsel.......

ABC News, 3 April 2017:

One of Australia's leading criminal barristers believes Human Services Minister Alan Tudge — or one of his staff — may have broken the law by supplying a journalist with a Centrelink client's personal information.

Robert Richter, a Queen's Counsel and former chairman of the Criminal Bar Association, believes the disclosure could lead to a prison sentence if it is tested beyond reasonable doubt in a criminal court.

Mr Tudge has dismissed the legal advice, saying the disclosure was approved by his department's lawyers and was necessary to correct misleading public statements.

"I received clearance to release the information from the Chief Legal Counsel of the Department of Human Services, who is intimately across the details of the case and the relevant laws."

Mr Richter's advice was commissioned by Labor MP Linda Burney and his findings were based on public information, rather than inquiries with Mr Tudge's office.

In his opinion, it is "reasonably clear that either the Minister or one of his office's staff had committed an offence".

"We cannot presently put it higher without knowing precisely the content of the information that was disclosed and by whom it was disclosed," Mr Richter said……

Thursday 30 March 2017

No Australia Card? Yes, Assistant Minister. Of course you are 100% believable


Hoping against hope I don’t have to eventually file this one under “How can you tell when Government is lying".

However, I suspect that the Assistant Minister for Cities and Digital Transformation is actually lying like the proverbial trooper, given the bare bones of the federated identity service and its attendent privacy & safety risks are on display at the Digital Transformation Agency.

The Register, 19 March 2017:

Australia's federal government is sticking with its plans for a federated identity service, but disruption minister Angus Taylor has moved to quell fears of a revived “Australia Card”*.

What first emerged last year looking like a “single identity” for all citizens across all Australian governments – before being dumped – isn't coming back.

Speaking at the Teach Leaders conference in the Blue Mountains on Sunday, Taylor – full title Assistant Minister for Cities and Digital Transformation – said the Digital Transformation Agency's (DTA's) identity project is now about setting standards rather than creating a single whole-of-government identity provider.

He also said the government considers it a citizen's right to have multiple digital identities for their interactions with government, if that's what they want.

Considering that last year, the then-DTA was trying to recruit state governments to its “federated identity” alpha (only getting the NSW government's support), the new direction looks like a considerable departure from the project's original ambitions.

Taylor said: “We don't see ourselves as creating a centralised solution that we'll roll out and everybody else has to come and play – that's not the answer. But we do need to agree on standards, and we do need to agree on principles as to how this will work.”

He also emphasised that the system had to be user-driven rather than top-down, and that citizens' consent is crucial to the model.

“I must be user-driven. If I want to have 45 identities across the Internet and across my applications, it should be my choice. If I want to have one, that's my choice too.”

He added that the “user-driven approach” has to extend to the citizen having a “genuine consent” about how they interact with a digital identity.

“That, to me, is essential to any solution, and the federal government won't endorse or be part of any solution that doesn't do exactly that.”

A formal announcement about the future of the federated identity project is coming “in the very, very near future.”......

*Comment: For readers unfamiliar with 1980s Australian politics – the “Australia Card” was proposed as a single ID for citizens in 1985.

Offered as an efficiency measure, it landed when “ID cards” in Nazi Germany and the Eastern Bloc were still fresh in many citizens' minds, especially for those who had arrived in Australia's first inrush of non-British immigration.

The uproar killed off the Australia Card after a two-year political battle, but not the concept: public service managers have never lost their love of tracking and identifying citizens.

From that point of view, Paul Shetler's DTO nearly achieved a huge social change by disguising it as “technological disruption”.

Monday 27 March 2017

Australia Card Mark 3: Surprise! Without justification we will be collecting biometric data to create one centralised identity for each and every one of you and we will be retaining your metadata for an indefinite period at our discretion


The Turnbull Government received the Commonwealth Digital Transformation Agency (DTA) preliminary report, Initial Privacy Impact Assessment (PIA) for the Trusted Digital Identity Framework (TDIF) Alpha, in December 2016.

The origin of this particular digital identity proposal was a recommendation by the Financial System Inquiry set up by then Treasurer Joe Hockey in December 2015, with an inquiry committee dominated by representatives of banks and the financial services sector.

This preliminary Privacy Impact Assessment is the latest step in establishing a single digital identity for each and every Australian citizen, with all the same privacy and security risks as the formerly proposed Australia Card and Access Card.

It is proposed that an individual’s digital identity information will initially be made available to federal government departments/agencies and later to state government departments/agencies that apply to join the TDIF.

As yet there is no underlying legal authority for the Trusted Digital Identity Framework, much of the security arrangements for this framework are apparently not yet developed and a full independent risk assessment has either not been completed to date or is not publicly available.

Cross-border data transfers of personal information held on Australian citizens may occur under this framework.

It is expected that complaints and correction requests may cause some difficulties in the TDIF because multiple participants may each hold part of the relevant data and responsibility for dealing with complaints and corrections may be difficult to determine.

On 24 March 2017 The Canberra Times reported:

The federal government is experimenting with a system that would allow Australians to use selfies to log onto Centrelink, Medicare and other Commonwealth services.

Prime Minister Malcolm Turnbull's digital re-invention agency is designing a system that would use "bio-metric" facial recognition technology to allow easy log-ins while protecting accounts from identity thieves.

The Digital Transformation Agency insists that no collection or data base of images would be built, the system would be voluntary and the strictest privacy safeguards would be in place.

But privacy activists are worried the idea is simply a high-tech version of the unpopular "Australia card" plan, resurrected more than 20 years after the national ID scheme was dumped.

The government is determined to improve to access to its services online, to save time and money, and to step-up the automation of many of its core activities, particularly in the expensive health and welfare sectors.

But security and privacy has been a huge issues, with many of the problems associated with the much-maligned myGov portal put down to the complex and glitch-prone log-in protocols……

A user of the proposed new system, after establishing their account, would log-in by scanning their traditional forms of ID and as a fail-safe against hacker and identity thieves, take a selfie and upload it from their mobile, tablet or computer.

Central [to] the architecture of the scheme would be an online "identity exchange", a portal that would confirm to a government agency, Centrelink for example, that a user's identity had been verified and cleared to use their account but would not supply the photo or any other data used to make the confirmation.

But talks with "stakeholders" including state and federal privacy authorities as well as online privacy campaigners, have begun to reveal the full complexity of the privacy problems facing the TDIF.

Many of those consulted were surprised they had not already heard of such a game-changing project  and questioned the motivation for the decision.

"Stakeholders queried whether due consideration had been given to the failure of previous centralised models in the Commonwealth identity field, such as the Australia Card and the Access Card," Galexia reported.

There were worries that various parts of the system "would obtain, over time, a large and rich source of personal data that will be attractive to third parties for surveillance...or subject to external attack (e.g. hackers), and  or subject to accidental breach."

"The consequences of surveillance or a breach were likely to be significant," Galexia noted.

""Some stakeholders predicted that, over time, each [agency] would collect biometric information (photographs) and contribute to the development of a national data set of photographs.

"Although there is no intention to retain photographs in the TDIF, and they are destroyed as soon as a verified match has been made, stakeholders believed that 'it was only a matter of time' before the system was changed and photographs were retained and shared."

A prototype of the TDIF system is expected to be ready for testing in mid-2017….

Key stakeholders consulted sometime in October-November by Galexia Pty Ltd for its 5 December 2016 report:

Australia Post
Australian Communications Consumer Action Network (ACCAN)
Australian Privacy Foundation (APF)
Commissioner for Privacy and Data Protection Victoria (CPDP)
Department of Finance, Services and Innovation NSW (DFSI)
Digital Rights Watch           
Information and Privacy Commission NSW (IPC)
Office of the Australian Information Commissioner (OAIC)
Office of the Information Commissioner QLD (OIC)
Queensland Government Chief Information Office (QGCIO)
Queensland SmartService (Digital Productivity and Services Division)
Service NSW

According to Galexia on Page 27 of its report:

In the consultation conducted for this PIA, the following views were expressed on this issue:

* Stakeholders questioned where the decision had ‘come from’ as it appeared to take nearly all stakeholders by surprise;
* Stakeholders queried the link between the decision to establish a single Commonwealth IdP and the recommendations of the Murray Report (which in part endorses the development of multiple IdPs in order to foster competition, choice and innovation);
* Stakeholders queried whether due consideration had been given to the failure of previous centralised models in the Commonwealth identity field, such as the Australia Card and the Access Card. Although stakeholders recognised some differences between those proposals and the TDIF in relation to the overall framework and the Identity Exchange, they viewed the decision to establish a single Commonwealth IdP as a ‘throwback’ to those earlier proposals. Even after detailed discussions and explanation on the details of the TDIF most stakeholders still viewed the single Commonwealth IdP as an updated version of the Australia Card / Access Card;
* Stakeholders were strongly of the view that such an important and far-reaching decision should have been the subject of extensive community consultation and debate, with many stakeholders calling for a public discussion paper and / or legislation; and
* Almost all stakeholders struggled to see any justification for the establishment of a single IdP – a common question was “what is the problem that needs to be solved?”.

Friday 3 March 2017

#NotMyDebt: it has spite writ large all over it


Despite any current or future ministerial or departmental denials, ‘explanations’ or excuses, I find it hard to believe that this 22 February 2017 end of business day release of a Centrelink client’s personal, sensitive, protected information to a journalist was accidental.

Particularly as this act was clearly repeated.

It has spite writ large all over it.

The Guardian, 2 March 2017:

The office of human services minister, Alan Tudge, mistakenly sent a journalist internal departmental briefings about a welfare recipient’s personal circumstances, which included additional detail on her relationship and tax history.

Senior departmental figures were grilled at Senate estimates on Thursday about the release of welfare recipient Andie Fox’s personal information last month.

Fox had written an opinion piece critical of Centrelink and its handling of her debt, which ran in Fairfax Media in February. The government released her personal details to Fairfax journalist Paul Malone, who subsequently published a piece attacking Fox and questioning the veracity of her claims.

Two responses were given to the journalist, one from the department of human services and the other from Tudge.

The department said its response – three dot points containing only minimal detail on Fox’s personal history – was cleared by lawyers and was lawful. The minister’s office then added two quotes from Tudge and sent its own response to Malone.

Guardian Australia can now reveal that the minister’s office also accidentally sent the journalist two internal briefing documents, marked “for official use only”, which had been prepared by the department.

Those documents contained additional information on Fox and her personal circumstances, which went beyond the dot points prepared by the department. They included further detail of her relationship history, including when she separated from her partner.

Those documents were then sent to Malone. The documents were also mistakenly sent to Guardian Australia when it raised questions about the disclosure of Fox’s personal information.

No mention of those documents was made in Senate estimates on Thursday, despite repeated questioning of what the minister had disclosed to Malone. Tudge’s office has now conceded the documents were sent to Malone in error. But the office says it was of no consequence, because all of their contents had been legally cleared by the department.

A welfare recipient’s personal details are considered protected information under social security law, and any unlawful disclosure is considered a criminal offence. Earlier, the department told estimates that social security law only allowed it to disclose the minimal amount of information needed to correct the public record. [my highlighting]

On 2 March 2017 Labor MP for Barton and Shadow Minister for Human Services, Linda Burney, wrote to the Australian Federal Police Commissioner requesting an investigation into the personal/sensitive information release by the minister and/or his staff:


BACKGROUND



http://northcoastvoices.blogspot.com.au/search?q=centrelink
Protection of personal information



Our obligations under the Privacy Act 
This policy sets out how we comply with our obligations under the Privacy Act 1988 and the Australian Privacy Principles which are set out in a Schedule to that Act. 

The Australian Privacy Principles (APPs) regulate how the department, as an APP entity, must collect, use, disclose and store personal information. The APP

What personal information and sensitive information is

The terms 'personal information' and ‘sensitive information’ come from section 6 of the Privacy Act.

References to personal information throughout the Privacy Policy include sensitive information unless otherwise indicated.

‘Personal information’ means: 
Information or an opinion about an identified individual, or an individual who is reasonably identifiable:
a) whether the information or opinion is true or not; and 
b) whether the information or opinion is recorded in a material form or not.

‘Sensitive information’ means: 
a) information or an opinion about an individual’s:
i. racial or ethnic origin
ii. political opinions
iii. membership of a political association
iv. religious beliefs or affiliations v. philosophical beliefs
vi. membership of a professional or trade association
vii. membership of a trade union
viii. sexual orientation or practices
ix. criminal record. 
b) health information about an individual
c) genetic information about an individual that is not otherwise health information

d) biometric information that is to be used for the purpose of automated biometric verification or biometric identification e) biometric templates


Sky News, 2 March 2017:

It was also confirmed Centrelink staff trawl social media for complaints about the welfare agency and may refer serious gripes to the responsible minister.

Senior bureaucrats responsible for Centrelink say their workers sift through print, broadcast and social media for individual complaints.

Deciding on whether to report grievances to the human services minister depended on the circumstances of each case.

Sunday 5 February 2017

The Turnbull Government doesn't even bother to pretend it cares about an individual's privacy anymore


Buzz Feed, 25 January 2017:

According to the Herald Sun, in May a contractor had stumbled upon the open dumpster outside the recently closed Melbourne office belonging to self-dubbed “job queen” and Liberal donor Sarina Russo.
The open dumpster was overflowing with thousands of jobseekers’ confidential files which, according to the report, included, “bank details, phone numbers, home addresses, employment histories and education records”.
It was outside the government-contracted agency of Queensland businesswoman Sarina Russo, who in recent weeks has been thrust into the limelight for her cosy relationship with the most senior members of the federal government.
Sussan Ley was forced to resign when it emerged she’d been flouting the generous politicians’ expenses system, including charging the taxpayer for attending Russo’s opulent NYE parties.

BuzzFeed News has also reported on Russo’s personal access to the prime minister and senior government ministers, and the eye-watering $600 million contract she won in 2015, which led to her expanding from 25 Australian offices to 95 in the space of 90 days.
At the time of the dumpster incident, employment minister Michaelia Cash ……announced her department would launch an investigation into how the confidential data had found its way onto the footpath.
Responding to a request from BuzzFeed News about the results of the departmental “investigation”, a spokesperson said the matter was now resolved, with the blunder blamed on “human error”.

Wednesday 1 February 2017

Thousands of jobs have gone from Dept Human Services & Centrelink in last five years and the headcount was down to 30,210 by May 2016


It is no accident that the post-September 2013 drive to slash public service numbers and funding was significantly impacting on the Dept. Of Human Services at the same time it sought to fully automate as much of Centrelink’s service delivery as possible.

Between its 2012-13 annual report and 2015-16 annual report the department had lost 5,628 staff due to budget cuts and make do measures were not meeting service delivery needs.

It was also foreseeable that Turnbull & Co would choose Centrelink clients as guinea pigs in an attempt at fully automating data matching with a view to further departmental cost-cutting – after all welfare clients are apparently considered the lowest of the low by a majority of Liberal and Nationals parliamentarians.

Given the fact that this federal government had also decided to be digitally ‘agile and innovative’ - which appears to be code for fast and sloppy - the debacle which followed was almost inevitable.


BACKGROUND

Government News, 2 May 2016:

Charities, welfare groups and unions have pleaded with Treasurer Scott Morrison to release the pressure on the Department of Human Services (DHS) by funding more staff and better IT systems in the federal Budget.

In a joint statement, 14 organisations: Carers Australia, St Vincent de Paul, the Welfare Rights Centre the Community and Public Sector Union, Australian Council of Social Services, Children and Young People with Disability Australia, ACT Council of Social Services, National Union of Students, Fair Go For Pensioners, Combined Pensioners and Superannuants Association, People With Disability, the Consumer Action Law Centre and Financial Counselling Australia demanded the government “properly fund” the DHS to “provide the Australian public with the Medicare, Centrelink and Child Support services they need and deserve.”

DHS has fielded a range of allegations over the past year, including:
·         Centrelink bunging Youth Allowance and Austudy payments
·         Call waiting times of more than an hour to get through to Centrelink
·         One-quarter of all 57 million phone calls to Centrelink, Medicare and Child Support agencies last year going unanswered (Auditor General’s report 2015)Complaints up almost 19 per cent on last year, and customer satisfaction is down by per cent (DHS Annual Report)
·         An avalanche of customer complaints about online services, particularly myGov
·         A litany of complaints about mobile apps for child support, Medicare and Centrelink

In its statement, the coalition of not-for-profit groups said the federal Budget should:
·         Restore adequate funding to DHS
·         Invest in high quality, in-house IT systems so clients can access a reliable online service
·         Increase DHS permanent staff numbers so that claims and queries are processed quickly and clients who need over-the-phone or in-person services can get them
·         Ensure rural and regional Australia has fair access to government services.

The statement said:
“Millions of people in Australia rely on the Department of Human Services every day, for essential services including social security payments, Medicare, child support and aged care.
“Australia needs these essential services to be both accessible and of high quality, and employees of DHS resourced to do the best they can for everyone needing assistance.
“However, after years of budget cuts, DHS systems and staff are under extreme pressure.
“People who rely on Centrelink expect and deserve high quality public services. Employees in DHS must have the resources to deliver high quality public services. People are trying to do the right thing and reports changes as required, but the system is letting them down…….

The Canberra Times, 10 May 2016:

Department of Human Services officials have confirmed that 918 workers will be shed in 2016-17….

The federal government service-delivery workhorse, which runs Centrelink, Medicare and the Child Support Agency, will see also see its funding reduced by $100 million year-on-year, thanks in part to a "special" efficiency cut of $20 million a year….

Mr Jenkin also confirmed the budget papers got the department's headcount wrong, reporting 30,102 when it should have been 30,210.

The department's finance boss said the staff cuts were a direct result of the budget cuts.

In the Dept. of Human Services Annual Report 2015-16 overall staffing levels were shown as:

NOTE: It is likely that as many as est. 3,796 of these staff were non-ongoingat the start of the 2015-16 financial year.

The results of payment discrepancies released for action in the 2015-16 financial year were:

* 109,355,545 data matches undertaken by the department [DHS Annual Report 2015-16, p.241];

* cost of the data matching program (including departmental salaries) was $8,327,500 [ibid, 243];

* 4,904 payment discrepancy notices sent out to clients and 1,657 (or 33.78%) of these notices were later found to be false debts [op.cit., p.241]; and


* an unspecified number of debt notices were waived for reasons not stated.

Since Centrelink began sending out fully automated payment discrepancy/debt notices in mid-2016 there have been 169,000 initial letters sent.

Based on Dept. of Human Services 2015-16 admissions, this suggests that at least an est. 57,088 of these letters contained inaccurate payment discrepancies/false debts which can be verified as such by paperwork held by Centrelink clients and/or their previous employer (if the business holds such records indefinitely).

Centrelink clients telling their own stories can be found at www.not.mydebt.com.au.

Monday 9 January 2017

#NotMyDebt: stories from the trenches


When a government declares war on its citizens…….
 News.com.au, 5 January 2017:

Like many Australians, Catherine Herir, from Brisbane, was sent a letter just last month telling her she owed thousands in overpaid unemployment benefits.

In FY2011 to 12, she claimed benefits after leaving her admin job for full-time study, but Centrelink’s new automated system — introduced in October to claw back money from claimants — had spread her wage across the whole year and calculated she needed to pay back $4500 she claimed while not working.

The 27-year-old told news.com.au she spent a month trying to sort out the issue online, making calls to Centrelink and chasing up old employers from five years ago.

“They suggested that I start a payment plan even before my review was complete to avoid being taken to a debt collector and they would reimburse me later if they found the debt was incorrect, which I refused to do because I knew it was wrong. Maybe that is what they are talking about their ‘recovery success rate’ because people start paying to avoid worse outcomes.

“I finally had enough and had a lengthy conversation with a Centrelink rep where the phone call went on for over an hour. I wouldn’t take no for an answer, so she did my review manually in minutes and then, sure enough, found I was not guilty at all. Human common sense overriding an incorrect computerised system.

“I was stressed and anxious about the debt and my case was straightforward, I couldn’t imagine any pensioner, person with a disability or illness trying to manoeuvre this system.”

Ms Herir’s ordeal is finally over, after she received a letter today confirming she owed nothing. The young woman is one of the lucky ones. Thousands of Aussies are being forced to pay back welfare payments because of suspected Centrelink computer errors.

News.com.au has been contacted by scores of scared and angry Australians who say they or their loved ones have been falsely accused of owing money to the social security program, and even pursued by private debt collectors. Several said they had begun paying the unexplained debt because of short timeframes given to sort out the mess, but others do not have a cent to spare.

They include people with autism, those in care, a woman undergoing chemotherapy, the elderly and people with other mental and physical disabilities.

The Guardian, 4 January 2016:

I received a letter from Centrelink two weeks before Christmas that resulted in a $3,197 debt. I knew that was wrong, so I documented how I believed the mistake happened.

In 2013/14 – the year Centrelink claimed I was overpaid – I earned $26,642. Centrelink divided this amount into 26 fortnights and falsely claimed I had earned $1,021 each fortnight, including the three months where I had no work and so claimed Newstart. You cannot give the necessary level of detail to avoid this error on the Centrelink web portal. They simply don’t give you the option to say anything other than your total annual income, essentially forcing you to go into debt. Then have to take complicated steps to have that false debt taken away. That’s when I contacted the media to tell them what was happening.

On Wednesday, my phone rang. The caller gave his name – the same name as an (in)famous radio shock jock. Oh no, are we on air, is he about to yell at me for being a bludger?

Phew, no, it was a different man with the same name, from Centrelink’s appeals department ringing to review my debt claim. He started by saying that Centrelink’s records showed that when I first applied for Centrelink back in 2013, as part of my approval process they had contacted my employer and confirmed that I was let go due to lack of clients at the time.

So Centrelink’s computer records this whole time has known that I legitimately wasn’t working for the whole year. Perhaps that’s something that the automated computer system could have flagged in the first place, before sending me a $3,197 bill.

The Centrelink staff member and I spent a few minutes on the phone as I talked through my payslips and I read out the amounts. All the amounts matched the information I had given to Centrelink at the time. He said he thought there would be little or no debt, but that he’d go over the numbers properly and call me back in half an hour. Mr Shockjock was lovely to deal with. The staff at Centrelink are victims in this situation too.

I asked if he was calling because of the appeal request I submitted through the Centrelink website, or because I’d been kicking up a stink in the media? He said the former, that it was a standard review process. I know that friends of mine who started an appeal before I even received my debt haven’t been phoned yet, but who knows – there are lots of kinks in the system. He then said that someone had informed him my case was sensitive as I had been taking my story to the media.

About 45 minutes later, he called again. I missed the call but he left a message to call him back. I was terrified dialling his number and waiting. I knew I was in the right but it was still scary.

He told me my debt had been reassessed, and he had confirmed with another staff member to be doubly sure, I suppose because my case is sensitive. He confirmed that my new corrected debt amount was $54.

This is a legitimate debt. He explained that it was to do with my restarting employment on a Monday, and my day of the week to report earnings (which is different for everyone, depending on when you sign up) was, I think, Tuesday. Then I had some working credit saved up in the system, which is why the amount came down to $54.

Working credit is a system where when in fortnights you make no income, it adds to the credit, so that when you start work you have a buffer before receiving your first pay slip. It means that the system will deduct from your working credit before they deduct from your Newstart payment. Without it, people who have started a full time job could find themselves not eligible for Newstart whilst their first pay packet may be weeks away.

Centrelink had my working credit data saved and used it in my appeal. But as I understand the automated system doesn’t use the working credit data, which if true is itself leading to extra false debts.

I’d like to tell Malcolm Turnbull and Christian Porter and Hank Jongen that I’m very keen to pay that legitimate debt back. I’d tell Alan Tudge too, but lord knows where he is right now. I hope that he’s having a lovely holiday. I like to imagine him coming in through the front door, Hawaiian shirt, sun tan, saying, “Country, I’m hoooommmeee! I wonder if anything happened while I was gone. Ooh, let’s check my messages.”

Mr Shockjock and at least one of his staff spent a few hours just on my own claim. It probably cost a thousand dollars in wages and admin, just to recover a debt of $54.

Read the full article here.
NITV, 4 January 2017:

Indigenous Australians have fallen victim to the growing Centrelink debt notice scandal, in which hundreds of thousands of people have received official letters demanding welfare money be repaid; only many of the alleged ‘debts’ have turned out to be wrong. NITV News has been inundated by stories from more than 100 people claiming they were erroneously told they owed Centrelink money. 

Since July 2016, a total of 170,000 debt recovery notices have been sent out to Centrelink recipients informing them they had committed fraud for underreporting their income and demanding they pay back thousands of dollars or face debt collectors. In some cases, the alleged outstanding balances exceeded $20,000.

Rachel Singe’s husband Travis received a letter demanding $23,000 from Centrelink in 2016, claiming the couple had not reported their income correctly.

“We went through all our tax reports and payslips and were told that he had not reported properly when he was working casually, even though we both reported every fortnight and usually reported that we had earned more than we actually did,” she told NITV News.

“It's so frustrating when you do everything by the rules and get a higher paying job so you no longer need Centrelink payments, and then get stung with a fine like this.”

The demands for non-existent debts come as a result of a new information sharing agreement between Centrelink and the Australian Tax Office (ATO), which is averaging people’s annual income across a whole year. Periods where people reported no income have now been incorrectly recorded against them by Centrelink as income earning periods.

The algorithm used is unable to differentiate between fortnightly reported income and the total income earned in a financial year. It’s been reported that no one at Centrelink foresaw the problems this would create.

School teacher Nicholas Kuilder received Newstart payments for 6 months in 2012 while looking for new work after relocating to a new city. Once he obtained work he cancelled Centrelink and thought nothing more of it.

“I then receive a letter claiming I owe Centrelink over $3800 from that financial year,” he told NITV News.

“This didn't seem right as I always reported my income correctly and was pretty diligent with my paperwork.

“Once I was able to get a hold of someone, I spoke with a person who seemed to have the ‘guilty until proven innocent’ stance, they were incredibly hostile over the phone.”


Nicholas had to wait another two weeks before he could get someone on the phone.

“We then found that the fault in the problem was that their system did not recognise that the schools I was reporting as having worked at all fell under the banner of the Department of Education, and were not separate ABN's from my Payslips. So essentially, they had doubled all of my reported earnings from the time I was on Centrelink,” he said.

“They also did not take into account that I was only on Centrelink for 6 months and that the previous 6 months were where a majority of my earnings from the financial year took place.”…..

Many people said they had repaid debts they did not owe because the challenge of going back over many years of tax returns and pay slips was either too much or they found the Centrelink process for challenging the debt extremely difficult.

Daniel Hayes told NITV News he was halfway through repaying the debt when he started seeing news articles about the debt scandal. He has since stopped paying Centrelink.

“I’m in the middle of repaying them $3350 for apparently not declaring correctly in periods where I didn’t even have a job. When I asked for proof, they told me I had to go through my bank records, so I’ve paid it for a year down to $1600,” he said.

Other people reported receiving Centrelink payments during part of the year and correctly declaring, then going off Centrelink once they found work. Because that work occurred in the same financial year as the Centrelink payments, the new algorithm has taken that income and averaged it out evenly, so it appears recipients had earnings whilst receiving Centrelink payments. The result is a demand for a debt that never actually existed.

Davis Darren is seeking legal advice after receiving a debt notice for $2,500 for allegedly failing to declare income for periods he was not working.

“The dates they say I failed to declare I wasn't actually working, and they are impossible to call and deal with. I don't have time during the day to go to a centre due to working. I don't understand why this has come up four years later,” he told NITV News.

Michelle Lotarski was hit with a staggering $25,000 debt demand relating to her parenting payment over a period of three years.

“In 2011 I was working part time when I made a parenting payment claim. There was no problem and I started receiving payments,” she said.

“They told me at my first interview for claim that I only had to provide my payslips and an estimate earned for the year. I submitted my tax each year, did Centerlink’s annual income estimate each year, was getting paid fine for three years, then all of a sudden I received my outstanding debt of a massively scary $25,000.”

ABC TV 7.30, 4 January 2017:

AMANDA STILBE: I feel like I've been treated like I'm a liar and a thief and that they just believe that I've done the wrong thing and they're making it extremely hard to do anything to rectify the situation.

PAT MCGRATH: Amanda Stilbe has been trying to explain to Centrelink that the $1,300 bill that it demands she pay is incorrect. The money is due in a month but she hasn't been able to make her case.

AMANDA STILBE: I went down to Centrelink and lined up and when I got to the front of the line, the lady just said, "No, you can't do that in person, you have to do it on the phone, because the people here don't have access to it".

PAT MCGRATH: The error, she believes, has been with the way Centrelink has matched the fortnightly income she declared during 2011/12 and her tax records from the same year.

AMANDA STILBE: Of course, there's going to be a discrepancy because I only started on partial Newstart at the end of December and I was working full-time, then went to part-time, then went to part-time with Newstart and then wasn't working at all. So of course the figures between the two aren't going to match. 


 The Age, 4 January 2017:

Janette Suffield was shocked when she received a letter out of the blue from Centrelink telling her she owed $2350 for payments she received in 2015.
The registered nurse who lives in Campbelltown in Sydney's west received a notice to repay the money in late November and has lodged an appeal.
Ms Suffield said the dispute is over payments she received in 2015 while she was on leave to recover from surgery.
"I seriously do not owe this money," she said.
"Since being alerted to this alleged debt I have been asked to report my income for the year in question no fewer than three times, both online and over the phone.
"I have been told I have to set up a payment plan to repay the debt or it will go to collections which to me seems ridiculous since I am appealing the debt."

The New Daily, 3 January 2017:

One former welfare recipient told The New Daily he received a letter five days before Christmas saying he “owed $2,105.17 including a $150.30 recovery fee” over payments made between 2011 and 2013.

“They have taken just over $1000 income earned from a single two-week contract and averaged it out to $72 per fortnight over a year,” the man, who did not want to be named, said.

Describing himself as “low-income”, the man has challenged the ruling but was told he would have to pay back $60 a fortnight while his case was being reviewed.

“I find the whole thing depressing, it taps into years of feeling powerless and on the edge of homelessness,” he said.

“While I was receiving benefits I did everything I could to get work. If I hadn’t worked or earned anything at all I wouldn’t be in this position.

“I think a lot of people will just submit and pay off incorrect debts out of fear.”

Another former welfare recipient, who preferred to be known only as Josh, told The New Daily he was now paying debts he believed he did not owe after Centrelink said it would go to his employer to garnish his wages if he did not agree to a repayment plan.

Josh said he first heard about the debt in August last year when he started receiving calls from a private debt collector, which told him he owed $4800 from the 2011-12 financial year.

Josh, who did not have access to all his payslips from the period, said he was now awaiting the results of a third review of his case.

“It’s one thing to fight them in private, but it’s a scary thought to think that I could lose my job or have my reputation tarnished because I was being accused of something I didn’t do,” he said.


Debt amount: 
$8786

Date debt issued: 
Tuesday, March 1, 2016

Period debt occurred: 
July, 2010 to June, 2011

Payment Type: 
Sickness Benefit

Appealing Debt?: 
Yes in process

How has this affected you? e.g. anxiety levels, financial and accommodation stress
The first that I heard that I had a debt was when the debt collection agency contacted me in January 2016.The debt collection agency gave me 48 hours to contact Centrelink to investigate why I had a debt. When I called Centrelink on 5 January 2016, I was told that Centrelink had sent me several postal letters, none of which I had received as I was no longer at the address Centrelink held for me. I had received a vague text message from Centrelink telling me to access MyGov, which I did only to find that there was nothing there. I assumed it was a mistake and they had sent the message to the wrong number as it had been so long since I had received any benefits. None of this information about the employment review, assessment, or outcome is available to me online, despite having a MyGov account, which is linked to Centrelink. 
I have felt upset that I was made out to be in the wrong - of defrauding the system and having a debt, when I had declared my income correctly. Centrelink had me working for the full financial year, when I had only worked five months of the year, presumably why it had flagged my income. When I was contacted by the debt collector, I was shaking and was unable to sleep all night worried that it would jeopardise my new job as a senior public servant and my credit rating. My partner stayed home with me comforting me as I worked on how to prove that I had done the right thing, gathering evidence from past employers and working on how to submit it to Centrelink. 
When I spoke to Centrelink they told me that I should fax the supporting documents to Centrelink as I did not have the level of access to the online portal that would allow me to upload documents as it had been so long since I had been on benefits. I couldn't even prove easily that I was in the right! A friend sent through the documents to Centrelink via fax, as otherwise I would have to go in to a Centrelink branch, prove my identity, get the level of access (if it worked) and then go back home to upload it myself presuming that I could access the system. 
It has been a very traumatic process, that has taken time and effort and grief to sort out.

How do you feel about the way the Government has handled this process?
It has been very poorly handled, with no attempt made to get in touch with me to find out the reasons behind the supposed overpayment. They had not only my correct address (from the ATO via MyGov) and my email and mobile phone, yet all communications is via letter. It's appalling that the first I hear about a debt is from a debt collector who actually bothered to get in touch with me, for particular reasons, but nonetheless...
When I spoke to the lovely Centrelink officer (I have nothing but respect for those officers who are doing a tough and thankless job), she said that it sounded like the reason why I had an alleged debt was because Centrelink had incorrect dates in the system. There should be a manual check by a review officer before it goes this far. The automated system doesn't work, trying to marry a fortnightly system (Centrelink) with the annual system (ATO), which more often than not raises fictitious debts.

Debt amount: 
$523

Date debt issued: 
Friday, December 16, 2016

Period debt occurred: 
July, 2016 to December, 2016

Payment Type: 
Family Tax Benefit

Appealing Debt?: 
Yes & I won

How has this affected you? e.g. anxiety levels, financial and accommodation stress
We both work on contracts and don't get paid over the Christmas break and are under enormous financial stress. We tried calling repeatedly but with a demanding baby we had to hang up around the 30 minute point. We were then contacted by debt collectors, so waited 45 mins to get through to Centrelink who explained that (despite our called to rectify this problem several times) our medicare and Centrelink records were not linked and our payment was being recalled as we had not had our son immunised. Our son has had all of his immunisations and we have even sent them documented evidence of this. Despite it not being our error, we were then told that although we would not have to make the payment we would have to call the debt collectors to 'call off the hounds'. We're still on hold Probe Group trying to sort it all out.

How do you feel about the way the Government has handled this process?
Why couldn't they have detailed why we were being asked to make the payment in the letter? It would have been far better, we'd have known it was an error straight away, rather than feeling like the Government thought we were thieves. Then to have to manage the debt collection agency ourself... The government can not be efficient in managing our son's immunisation records through their agencies, making repeated errors, but they can get a debt collection agency on to us to retrieve a legitimate payment in no time at all. It's a disgrace, it shows a contempt and distrust that this government reserves for low income earners. When you consider the perks and rorts of parliamentarians, it just makes you give on believing the government is capable of anything good. The government reduce us to units, consumers and burdens on the system, they hate us.

Background

The Dept. of Human Services and Centrelink decided that a form of profiling based on socio-economic status accompanied by an implied threat of arrest was the best way to kick of its debt recovery program, which is now producing evidence of numerous false debts being created by the automated software program in use.



Image from No Place for Sheep

The Advertiser, 20 March 2016:

WELFARE recipients from areas identified as being at high risk of fraud or noncompliance are about to get a shock, with stern letters arriving in the mail from the police telling them to update their details.

The letters started arriving at the weekend from Taskforce Integrity, the joint Australian Federal Police/Department of Human Services operation targeting welfare fraud.

The letters contain the AFP logo next to the Centrelink one, and are designed to remind people that intentionally giving wrong details to Centrelink is a crime.
It is the first time a police logo has been included in correspondence with welfare recipients.

Human Services Minister Alan Tudge said those who received welfare payments must ensure their information is correct.

“Australians should be proud that we have a strong social security safety net, but we must remember welfare payments come from taxpayers, who have a right to expect integrity in the system,’’ he said.

“There are serious consequences for those who deliberately defraud the system. The Australian Federal Police have partnered with us to crack down on welfare cheats.’’

Australia’s welfare bill currently stands at $150 billion a year and is tipped to grow to almost $190 billion over the forward estimates.

The Government is using firm integrity and compliance measures to rein in the growth and is targeting those who commit fraud, or who fail to provide full details of their earnings when claiming welfare.

The first batch of letters is now arriving in letterboxes and email inboxes in southern Queensland and will then be rolled out to other geographical areas around Australia considered to be at high risk of fraud or noncompliance.

Legislation.gov.au, August 2016:
The Guardian, 6 January 2017:

The man handpicked by Malcolm Turnbull to head the government’s digital transformation has said the error rate in Centrelink’s data-matching process is so unfathomably high that it would send a commercial enterprise out of business.

Paul Shetler, the former digital transformation office head, criticised the government’s response to its latest IT crisis, telling Guardian Australia it was symptomatic of a culture of blame aversion within the bureaucracy.

“It is literally blame aversion, it is not risk aversion,” Shetler said. “They’re trying to avoid the blame, and they’re trying to cast it wide.

“The justifications that have been given I think are just another example of the culture of ‘good news’, reporting only good news up through the bureaucracy.

“I’m sure that the bureaucracy was being told at every single level that everything was OK.

“That’s how it works in the bureaucracy. Bad news is not welcomed, and when bad news comes, they try to shift the blame.”

It is the first time Shetler, formerly the government’s chief digital officer and a former chief digital officer for the UK ministry of justice , has broken his silence on the series of IT failures that have plagued the government in recent months: the census debacle, the failure of the Australian Tax Office systems and now Centrelink’s debt recovery problems.


He said it was difficult for him to watch successive IT failures, which he described as “cataclysmic” and “not a crisis of IT” but a “crisis of government”.

“I said when I came in that this would be happening, I said this was already happening, I said it was unacceptable and I made that case the entire time I was at the DTO [digital transformation office], and the DTA [digital transformation agency],” he said.

“I was very explicit about it internally, not nearly as much so externally. It was a fight that I fought from day one, not an easy fight to win, because you’ve got an entire bureaucracy of IT bureaucrats who are backed by large vendors, who have large numbers of staff, and because ministers, I’m going out on a limb here, very quickly become captive to the departments that they deal with.”

Shetler said the consequences of the failures of the Centrelink system were different from problems with the census or the ATO because they were felt by those least able to deal with it.
He said data-matching systems must have human oversight to deal with mistakes.

“The way they did it, obviously it’s dangerous, because their algorithms are flawed in the first place,” Shetler said.

“Secondly, you have to be careful with data. Much of the data that’s in the federal government, how good is it really? There is this sort of a blind faith in data.”

The government has continued to deny any problem with its automated compliance system, which relies on data-matching income reported to Centrelink with tax office records.

The Huffington Post, 4 January 2017:

People are reporting having to make hundreds of calls to Centrelink before the phone line even connects, and spending hours on hold once their call actually goes through, as the nation's welfare debt recovery saga continues…..

Understandably, people are trying to contact Centrelink to ask questions, provide more information or dispute the debt -- but some say they have made hundreds of calls to various Centrelink phone lines only to spend hours on hold…..

Dan Buzzard, from Perth, showed the Huffington Post Australia evidence he had called 132 490 -- for enquiries about Austudy, the Low Income Health Care Card, the Pensioner Education Supplement and Youth Allowance -- 350 times on Tuesday before even getting a dial tone, being rejected with messages that the line was busy.

"I went into the office four times but they wanted me to do it online or on the phone. [On Tuesday] I tried the phone, the line was busy, and it took 24 attempts to even get through the first time. Then I spent an hour on hold and the line went dead," he told HuffPost Australia.

"Then I had to make 350 calls before I even got a dial tone, then it was an hour and a half on hold before I even spoke to a person."

The Guardian, 5 January 2017:

Senior levels of government would have known the risks posed by Centrelink’s new automated debt recovery system before it was rolled out, according to a former high-ranking departmental official…..

Australians with a disability say they have been chased by debt collectors over inaccurate debts, and the Australian has reported that the visa status of asylum seekers has been threatened in instances of non-payment.

The main focus of complaints continues to be on the system’s automated comparison of an individual’s reported income to Centrelink and information held by the Australian Taxation Office.

The Department of Human Services source, who is no longer with the agency, told Guardian Australia the risks of using the automated data matching system in such a fashion would have been known at senior levels before it was rolled out.

“Knowing the process, a risk assessment would have been done,” they said. “The risks would have been discussed at very senior levels. The minister would have been briefed – if he wasn’t, it would be extremely rare.”……

The source said using data matching to detect potential overpayments could work but it needed manual oversight to ensure flaws and inaccuracies were weeded out.

Before July, Centrelink staff manually checked discrepancies and followed up with customers via telephone and letter, a process that was stopped to allow the government to ramp up its efforts to claw back $4bn of debt in the next four years.

The Sydney Morning Herald, 5 January 2017:

Linda Burney, Labor's human services spokeswoman, has written to the Australian National Audit Office requesting they investigate Centrelink's controversial $4.5 billion debt clawback project amid ongoing accusations that it is unfairly targeting people and miscalculating bills.

The opposition and community groups are maintaining pressure on the government as the new system, enabled by data-matching with Australian Taxation Office information, causes consternation by handing out mistakenly oversized debts and contacting some social security recipients who don't owe Centrelink any money.

Ms Burney's letter to Auditor-General Grant Hehir requests that, in light of "overwhelming" constituent complaints about the contentious process, the ANAO examine the effectiveness, risk management and planning of the system and the actual value of the resulting budget savings, including analysis of whether falsely calculated debts have already been banked.

"Recently the acting Minister for Human Services, Hon Christian Porter MP, stated that since the beginning of the financial year the program had made savings of $300 million but Mr Hank Jongan, General Manager of [the Department of Human Services], later claimed that this number represented the identified debts," she wrote.

"This discrepancy requires investigation given that the program has a failure rate of at least 20 per cent."

Australian Lawyers for Human Rights, 6 January 2016:


ALHR slams unethical behaviour of Centrelink as abuse of legal process

January 6, 2017
MEDIA RELEASE
For immediate release – 4 January 2017

 The current attacks upon past and present pension payment recipients by Centrelink and the Minister for Social Services are “wrong at so many legal levels that it’s hard to know where to begin,”, ALHR President Benedict Coyne said.

“At the most basic level, no entity should be issuing legal demands for money unless they are absolutely certain the money is owed and can substantiate this in court. It is for the creditor to prove any debt. It is also up to the creditor to ensure the alleged debtor receives the repayment demand. It is entirely wrong for Centrelink to put alleged debts in the hands of debt recovery agents when the debts are not proved and/or the alleged debtor never received the original claim, or to claim interest or process fees on money that is very probably not owing at all.”

“The whole procedure is quite unethical and a complete abuse of legal process,” he said

“In this case it appears clear from numerous reports that the computer software the Minister is relying on is flawed. Legally, it is for Centrelink as purported creditor to substantiate its calculations, not for individuals as alleged debtors to prove that Centrelink is wrong. But of course Centrelink threatens to cut off recipients if they don’t pay, putting them in a terrifying situation. This could well be described as ‘demanding money with menaces.’”

“It is also clear that Centrelink has made minimal efforts either to check its calculations, despite having the ability to cross check information with Tax Office records, or to track down current addresses of alleged debtors.”

“The situation is even worse in that Centrelink is targeting individuals with minimal resources who may be in particularly vulnerable situations, including asylum seekers and people with disabilities. According to a recent news article, asylum seekers have been reminded in their debt notices that ‘an outstanding debt to the commonwealth can affect future visa grants and/or re-entry into Australia.’ The repercussions, therefore, could be dire.”

Further, Centrelink is refusing to provide any means by which individuals or their solicitors can readily contact a human being at Centrelink to do what Centrelink is [wrongly] demanding, which is to prove that the individuals don’t owe the money being claimed.

This refusal on the part of Centrelink to facilitate normal methods of contact enormously exacerbates the emotional stress of those targetted and again indicates unethical behaviour and an abuse of process.”

“ALHR believes that the behaviour of Centrelink and the Social Services Minister involves numerous breaches of the human rights of those being targeted for alleged debts, contrary to Australia’s international law obligations. Under the Universal Declaration of Human Rights the following rights are being breached:
  • to be treated with dignity (Preamble, Article 1)
  • to the protection of the rule of law (that there must be proper laws, a legal system that allows appeal against government decisions, and the laws of the country must be properly enforced) (Preamble) and the related right to freedom from attacks upon one’s reputation (Article 12)
  • to non-discrimination on the basis of property (or lack of it, the persons being targeted being those who have received a government payment)(Preamble, Article 2)
  • to equal protection of the law without discrimination (Article 7)
  • not to be arbitrarily deprived of property (Article 17)
  • to equal access to the public service (Article 21)
  • to social security (Article 9 of the International Covenant on Economic, Social and Cultural Rights, ICESCR, which is binding on Australia)
  • to protection against unemployment and to have employment income supplemented ‘if necessary, by other means of social protection’ (Article 23)
  • to an adequate standard of living, including the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond one’s control (Article 25)
“ALHR calls on the Minister to immediately halt the operation of the current process and to refund, with interest, all moneys incorrectly claimed by Centrelink.”.....

Need Help?
Thousands of people all over Australia are receiving intimidating letters from Centrelink, many of which are falsely claiming debts are owed. If you have received one, or know someone who has, consider your options before paying. Our friends at Victoria Legal Aid have prepared something to help:

Sign a Petition
You may wish to sign a Change Org petition

North Coast Voices: