Showing posts with label class warfare. Show all posts
Showing posts with label class warfare. Show all posts

Wednesday 22 March 2017

Indue Limited, the Healthy Welfare Card and IBM


Image from Crikey.com.au

Indue Limited has been awarded at least $324 million in Dept. of Human Services and Centrelink contracts since 2009, including contracts to supply the infamous Basics Card and Healthy Welfare Card income management cards.

In it 2015-16 annual report it boasted a $5.1 million profit before tax.

According to Indue it exists to deliver financial payment products and settlement services that impress our clients and holds an Authorised Deposit-taking Institution (ADI) licence.

Its subsidiaries are:

Indue Securitisation Pty Ltd
Indue Aggregation Services Pty Ltd
Indue Data Services Pty Ltd Australia
Ivey Pty Ltd
Trinity Securities Pty Ltd
Lynx Financial Systems Pty Ltd

Although the company’s 2015-16 annual report lists director on pages 12-14 and key personnel elsewhere in the document, it is rather coy about the names of shareholders.

From 2008 to 2013 National Party member Larry Anthony sat on the Indue board and for much of that period he was also Senior Vice President Australia of the Nationals.

The company also remains coy about its future direction:

Information on likely developments in the operations of the Group and the expected results of operations have not been included in this annual financial report because the Directors believe it would be likely to result in unreasonable prejudice to the Group.

Indue Limited currently operates the Centrelink Cashless Debit Card Trial (CDCT).

The Indue cashless debit card hold 80% of a Centrelink client’s pension, benefit or allowance and can be used for purchases via eftpos or online, but cannot be used to buy alcohol or to gamble.

On 9 February 2017 Orima Research reported:

Participation in the Trial is mandatory for all working age ISP recipients in the selected Trial sites. In addition, wage earners, Age Pensioners and Veterans’ Affairs Pensioners who live in the Trial sites can opt in to the CDCT.

More participants said the CDCT had made their lives worse than made it better (49% compared to 22%). Family members of trial participants gave a similar pattern of answers….

participants and family members both felt that the overall level of humbugging had gone up since the Trial started….

The Turnbull Government is extending this trial and there is talk of eventually rolling the cashless debit card out nationally.


International Business Machine Corp (IBM) is developing a global history of failure.

Currently IBM ‘expertise’ and software supports programs including the hapless myGov interface for the Australian Taxation Office, Centrelink, Medicare and My Health Record.

Welfare payments and a company using yet more IMB software?

What could possibly go wrong for Centrelink clients?

A little Indue background

The company has its representatives on the following:

Boards
eftpos Payments Australia Limited (Indue has formed an alliance with Cuscal for representation on this board – Cuscal is representing both organisations until the October 2016 AGM)
ATM Access Australia Limited

APCA Committees
Australian Payments Forum
APCA Management Committee 2 (BECS)
Card not Present Fraud Implementation Steering Committee
APCA Fraud in Banking Forum

BPAY Committees
BPAY Management Committee
BPAY Fraud Sub-Committee
BPAY Marketing Sub-Committee

Visa Committees
Visa Client Operations Committee
Visa Regional Risk Executive Council

MasterCard Committees
MasterCard Advisory Council

New Payments Platform
Program Delivery Authority (PDA)
Design Authority (DA)
Planning and Reporting Working Group (PWG)
Testing Working Group (TWG)
Operational Procedures Working Group (OWG)
ICS Working Group (IWG)
Transition to Live Working (T2L)

Other Committees and Working Groups
Cashcard Network Advisory Council
Australasian Card and Risk Council
Cashcard Network Members Forum
Industry Security Steering Committee
eftpos Payments Australia Limited Member Advisory Council

Major partners
First Data International – Indue partners with First Data International for card switching and processing.
Visa – Indue is a principal member of Visa and licensed to issue all Visa card products including credit, debit, prepaid, commercial and premium cards. These cards can be used in ATMs and eftpos terminals throughout Visa’s global network of 24 million point-of-sale terminals and 2.1 million ATMs.
MasterCard – Indue is a principal member of MasterCard and licensed to issue MasterCard card products including credit, debit, prepaid, commercial and premium cards. These cards may be used in ATMs and eftpos terminals throughout MasterCard’s global network of 32 million acceptance locations, including 24 million point-of-sale terminals and in excess of one million ATMs.
eftpos – Indue is a member of eftpos and licensed to issue eftpos card products. These cards may be used in ATMs and eftpos terminals throughout the domestic Australian eftpos network.
Placard – We have partnered with Placard for the manufacturing and personalisation of all card products.
Computershare – Our statements and mail house services are provided by Computershare.
Westpac – Westpac provides clearing and settlement facilities to Indue as well as cheque reading services.
BPAY – Indue is a member of BPAY allowing us to offer both payer and biller facilities to our clients.

Monday 13 March 2017

The optics are bad for the Turnbull Government in 2017


On 9 December 2015 the Tenterfield Star reported that Federal Nationals Leader and Deputy Prime Minister Barnaby Joyce had been spending big on electoral offices and travel:

BARNABY Joyce has gone on the defensive after he skyrocketed to the top of the pile for claimed expenditure.
The Member for New England has registered $1,073,991.45 in expenses over the first six months of 2015, new documents have revealed.

A year later and, in addition to another hefty bill for office facilities, from January to June 2016 Joyce received the following payments from the Dept. of Finance:

$76,459.42 air travel costs for self & family members
$23,668 accommodation in Canberra & when travelling
$17,907.20 private car costs
$12,123.98 chauffeured car for self & family members.

So it comes as no surprise that this meme appeared in March 2017:

Following hot on the heels of these media reports.

News.com.au, 8 March 2017:

Figures provided to the department today show Human Services launched more than 103,000 assessments into overpaid welfare recipients in November and December alone.
The department ramped up its recovery efforts in September with the number of assessments increasing from 844 in August to more than 62,000 the next month.
Overall, about 216,000 investigations were launched from September to December and 133,078 debts were recovered.
More than 97,000 people were charged a “recovery fee”as they had not provided information about their income or a reasonable explanation for the lack of information.
Five and a half thousand people had their debts waived as they were under $50 and were not cost effective to pursue or because there was an administration error or unusual circumstances.
Greens Senator Rachel Siewert, chair of the senate inquiry, said the government “should be ashamed” of calling in debt notices over Christmas.
“A large portion of those had a recovery fee applied, meaning struggling Australians are paying debts they may not owe as well as additional recovery fees,” she said.
“I continue to hold deep concerns that people are complying and paying debts off that don’t exist - 2875 people so far have had their debts reduced to zero since the program began but I suspect many people are still in the process of reassessment and review.
“Unfortunately the Department couldn’t provide these figures and took that question on notice.
“I fear far more people did not challenge the debt so the figure could be far worse.
“It is a shame the Department has steadfastly supported the system with some adjustments despite overwhelming evidence that it is causing great distress to struggling Australians.”
Centrelink’s “aggressive” debt collection tactics came under fire at the Senate inquiry.
The inquiry heard elderly welfare recipients have received inaccurate debt notices of thousands of dollars, generated by the automated system, before it was confirmed they owed just $50.
Senators also heard private debt collectors, engaged by Centrelink to recover debts, have threatened to seize clients’ assets or take them to court if they failed to pay what was owed to the agency.
The Community and Public Sector Union raised concerns Centrelink staff have faced increased aggression from welfare recipients since the scheme launched.
Staff have dealt with swearing, threats, physical aggression and spitting as clients faced increased financial stress from debt recovery notices, CPSU national deputy president Lisa Newman said.
The union is pushing for the scheme to be suspended while the government reviews it.
Australian Council of Social Services bosses raised concerns that Centrelink was not subject to consumer protection laws.

The Sydney Morning Herald, editorial excerpt, 11 March 2017:
More than 36,000 of those letters did not result in any debt to Centrelink. What's more, about 6600 welfare recipients first learnt of their alleged debt from debt collectors.
Mr Tudge blamed those people for failing to update addresses on their Centrelink files.
While his department head Kathryn Campbell claims the system has been adjusted to reduce that risk, she also blamed welfare recipients – for not replying to the initiating letters.
Worse, Ms Campbell said she would not discuss potential solutions to systemic flaws with the Australian Council of Social Service or unions representing staff who have to handle the backlash.
The justification Ms Campbell gave for not meeting with unions or ACOSS was that the media was interested in the issue. The justification Mr Tudge gave on ABC radio was that unions and ACOSS "frankly have a philosophical objection" to widespread compliance checks.
 The Herald suspects Mr Tudge and his department have a philosophical objection to legitimate public scrutiny.
Thank goodness the media are holding the department and the minister to account because, failing that, thousands of people would be demonised in secret and there would be no Senate committee inquiry exposing the flawed process.
The committee began public hearings this week into the error rates of debt notices; the government's response to concerns raised by affected individuals; whether the debt recovery scheme complies with Australian privacy and consumer laws; and the adequacy of the data matching of Centrelink and ATO information.
Deputy Commissioner of Taxation Greg Williams told the inquiry the ATO had "reached out" to the Human Services Department as flaws emerged in the robo-debt system, but was told its help was not required. 
"We are involved in identity matching and the provision of data, but we are not involved in the data-matching that occurs on the DSS/DHS side," Mr Williams said. "We are trying to maintain the level of integrity in the role of the ATO in this exercise."
The Senate inquiry is also accepting submissions from people who have been forced to deal with the system. 
The first submission on the committee's website comes from a "a teacher, university lecturer and single mother who has been working part-time since my son was nine months old". She tells how the system "impacted my mental health and caused significant stress over the Christmas period. Not only did I suffer, but my inability to fully engage with family at this time also impacted them." She spent eight hours on the phone with Centrelink only to find that her debt was $0. "Apparently this was a mistake and a day later … it was up to over $1300," the submission says. "On receipt of the second letter I broke down in tears again ... it turned out I had been overpaid by Centrelink less than $1.80 a week. I am hard-working, smart and determined to fight this because I knew I reported my income to the best of my ability. There will be a lot of people who are not in the mental headspace, or have the ability to work out that Centrelink are wrong."
The price of a system with insufficient human oversight and flawed safeguards is too great. The Senate committee should propose alternatives that offer taxpayers value for their welfare dollar without demonising innocent people.

Wednesday 22 February 2017

What were they thinking?



The  Sydney Morning Herald, 15 February 2017:

What were they thinking? On Monday three members of cabinet called a press conference to pressure the Senate to cut the dole. That's right, to cut the dole. At just $13,750 per year plus an $8.80 per fortnight energy allowance, it's already so low the Business Council believes it "presents a barrier to employment and risks entrenching poverty." The Organisation for Economic Co-operation and Development, the research arm of the world's richest economies, says Australia's unemployment benefit has reached the point where it may no longer be effective in "enabling someone to look for a suitable job".

Even a Coalition-dominated inquiry found a "compelling case" for boosting it.

But the three ministers wanted to deny the energy supplement to new entrants on the spurious ground that this would merely remove "carbon tax compensation for a carbon tax that no longer exists". It wouldn't. The Newstart cost of living increase was cut 0.7 per cent when the energy supplement came in to avoid double counting. If the energy supplement went but the cut remained, new entrants to Newstart would be worse off than if the whole thing had never happened.

And they wanted to withhold Newstart from newly-unemployed Australians aged 22 to 25, paying them instead the lower $11,375 Youth Allowance. The under 25s would have to wait longer too – five weeks instead of the present one.

Rather than spend time arguing the merits of cutting a benefit already so low it can barely be lived on, Treasurer Scott Morrison, Social Services Minister Christian Porter and Education Minister Simon Birmingham delivered instead what amounted to a threat: if the Senate didn't cut the unemployment benefit, they might not fully fund the National Disability Insurance Scheme.

But not at first. In a burlesque twist, they opened the press conference spruiking the case for an unfunded massive company tax cut.

* Images found at Google Images

Friday 10 February 2017

Not content with last year's omnibus bill, Turnbull unleashed his inner b@stard on the poor again in 2017


Pick a paragraph, almost any paragraph - if you are from a working class family someone you care about is likely to find themselves affected.

The First Omnibus Bill……

Turnbull Government, Budget Savings (Omnibus) Bill 2016 as passed by both the House of Representatives and the Senate on 15 September 2016, assented to 16 September 2016:

Summary
Amends:
the Higher Education Support Act 2003 to establish a minimum repayment threshold for HELP debts of two per cent when a person’s income reaches $51 957 from the 2018-19 financial year; and replace the Higher Education Grants Index with the consumer price index for the purposes of indexing all grants and regulated student contribution amounts; the Higher Education Support Act 2003 and Income Tax Assessment Act 1997 to discontinue the HECS-HELP benefit from 1 July 2017;
the Social Security Act 1991Social Security (Administration) Act 1999Farm Household Support Act 2014 and Income Tax Assessment Act 1997 to discontinue the job commitment bonus;
the Australian Renewable Energy Agency Act 2011 to reduce the agency’s available appropriation;
the Private Health Insurance Act 2007 to pause the income thresholds for the Medicare levy surcharge and the government rebate on private health insurance for a further three years from 1 July 2018;
the National Health Reform Act 2011 to abolish the National Health Performance Authority; the Aged Care Act 1997 to: increase the secretary’s compliance powers in relation to reviews of care recipient appraisals submitted by aged care providers to receive Commonwealth subsidies;
abolish adviser and administrator panel arrangements; and require approved providers to notify the secretary of certain changes to any key personnel in certain circumstances;
the Age Discrimination Act 2004Dental Benefits Act 2008 and Human Services (Medicare) Act 1973 to close the Child Dental Benefits Schedule from 31 December 2016 and establish the Child and Adult Public Dental Scheme from 1 January 2017;
the Social Security Act 1991Social Security Legislation Amendment (Newly Arrived Resident’s Waiting Periods and Other Measures) Act 1997 and Farm Household Support Act 2014 to remove the exemption from the 104 week newly arrived resident’s waiting period for new migrants who are family members of Australian citizens or long-term permanent residents;
the Social Security Act 1991Social Security (Administration) Act 1999 and Student Assistance Act 1973 to cease the student start-up scholarship payment from 1 July 2017;
five Acts to apply an interest charge to outstanding debts owed by former recipients of social welfare payments who have failed to enter into, or have not complied with, an acceptable repayment arrangement;
five Acts to enable the making of departure prohibition orders to prevent certain social welfare debtors from leaving the country;
the A New Tax System (Family Assistance) (Administration) Act 1999Paid Parental Leave Act 2010Social Security Act 1991 and Student Assistance Act 1973 to remove the six-year limit on welfare debt recovery; the Social Security Act 1991 and Veterans’ Entitlements Act 1986 to provide that parental leave payments and dad and partner pay payments are included in the income test for income support payments;
the A New Tax System (Family Assistance) Act 1999Income Tax Assessment Act 1936 and Social Security Act 1991 to change the way fringe benefits are treated under the income tests for family assistance and youth income support payments and for related purposes; the Social Security (Administration) Act 1999 to align carer allowance and carer payment start day provisions;
the A New Tax System (Family Assistance) Act 1999 and Paid Parental Leave Act 2010 to pause indexation for family tax benefit (FTB) Part A, the primary earner income limit for FTB Part B and the Paid Parental Leave income limit for a further three years from 1 July 2017;
the Social Security Act 1991 and Veterans’ Entitlements Act 1986 to remove the pension income and assets test exemptions currently available to pensioners in aged care who rent out their former home and pay their aged care accommodation costs by periodic payments;
the A New Tax System (Family Assistance) Act 1999 and Social Security Act 1991 to remove the exemption from the income test for FTB Part A recipients and the exemption from the parental income test for certain dependent young people receiving youth allowance and ABSTUDY living allowance;
the Social Security Act 1991 to provide that certain persons cannot be paid social security payments when they are in psychiatric confinement because they have been charged with a serious offence;
six Acts to prevent new recipients of welfare payments or concession cards from being paid the energy supplement from 20 March 2017;
the Income Tax Assessment Act 1997 to reduce the refundable and non-refundable rates of the tax offset available under the research and development tax incentive for the first $100 million of eligible expenditure;
six Acts to require larger entities to provide payroll and superannuation information at the time it is created through the single touch payroll reporting framework; and
the Military Rehabilitation and Compensation Act 2004 to create a single appeal path for the review of original determinations made by the Military Rehabilitation and Compensation Commission.

The Second Omnibus Bill……

Turnbull Government, Social Services Legislation Amendment (Omnibus Savings and Child Care Reform) Bill 2017, presented in the House of Representatives, 8 February 2017:

A Bill for an Act to amend the law relating to family assistance, social security, paid parental leave, veterans’ entitlements, military rehabilitation and compensation and farm household support, and for related purposes


This bill contains the following Schedules:
1. Payment rates
The family tax benefit Part A standard fortnightly rate will be increased by $20.02 for each FTB child in the family aged up to 19. An equivalent rate increase, of around $19.37 per fortnight, will apply to youth allowance and disability support pension recipients aged under 18 and living at home. These increases will apply from 1 July 2018.
2. Family tax benefits Part B rate
From 1 July 2017, the Bill will introduce a reform to family tax benefit Part B that removes entitlement to FTB Part B for single parent families who are not single parents aged 60 or more or grandparents or great-grandparents, from 1 January of the calendar year their youngest child turns 17.
3. Family tax benefit supplements
This Schedule will phase out the family tax benefit Part A supplement for families with an adjusted taxable income of $80,000 a year or less by reducing it to $602.25 a year from 1 July 2016, and to $302.95 a year from 1 July 2017. It will then be withdrawn from 1 July 2018. The family tax benefit Part A supplement has already been withdrawn for families with an adjusted taxable income over $80,000 a year under the Budget Savings (Omnibus) Act 2016. The family tax benefit Part B supplement will also be phased out. It will be reduced to $302.95 a year from 1 July 2016, and to $153.30 a year from 1 July 2017. It will then be withdrawn from 1 July 2018.
4. Jobs for Families Child Care Package
The purpose of Schedule 4 is to introduce key aspects of the Jobs for Families Child Care Package, as announced in the 2015-16 and 2016-17 Budget. The Schedule will, through the introduction of a new Child Care Subsidy and other enhancements, deliver a simpler, more affordable, more flexible and more accessible child care system for families.
5. Proportional payments of pensions outside Australia
This Schedule reduces from 26 weeks to six weeks the period during which age pension, and a small number of other payments with unlimited portability, can be paid outside Australia at the basic means-tested rate. 4 After six weeks, payment will be adjusted according to the length of the pensioner’s Australian working life residence.
6. Pensioner education supplement
This Schedule ceases pensioner education supplement from the first 1 January or 1 July after the day the Act receives Royal Assent.
7. Education entry payment
This measure ceases the education entry payment from the first 1 January or 1 July after the Act receives Royal Assent.
8. Indexation
This Schedule implements the following changes to Australian Government payments:
· maintain at level for three years from 1 July of the first financial year beginning on or after the day this Act receives Royal Assent the income free areas for all working age allowances (other than student payments) and for parenting payment single; and
· maintain at level for three years from 1 January of the first calendar year beginning on or after the day this Act receives Royal Assent the income free areas and other means test thresholds for student payments, including the student income bank limits.
9. Close the energy supplement to new welfare recipients
This Schedule ceases, from 20 September 2017, payment of the energy supplement to recipients who were not receiving a welfare payment on 19 September 2016 and closes the energy supplement to new welfare recipients from 20 September 2017.
10.Stopping the payment of pension supplement after six weeks overseas
This Schedule will stop the payment of pension supplement after six weeks temporary absence overseas and immediately for permanent departures.
11.Automation of income stream review processes
This Schedule will allow for the automation of the regular income stream review process by enabling the Secretary to require income stream providers to transfer a dataset to the Department of Human Services (DHS) on a regular basis. 5
12.Seasonal horticultural work income exemption
Schedule 12 to the Bill provides a social security income test incentive aimed at increasing the number of job seekers who undertake specified seasonal horticultural work, such as fruit picking.
13.Ordinary waiting periods
This Schedule makes amendments to extend and simplify the ordinary waiting period for working age payments.
14.Age requirements for various Commonwealth payments
This Schedule provides that young unemployed people aged 22 to 24 would no longer be eligible for newstart allowance or sickness allowance until they turn 25 years of age and would, instead, be able to claim and qualify for youth allowance. To enable this, youth allowance for all types of people who can satisfy the activity test, will be available to people who have not yet reached 25.
15.Income support waiting periods
This Schedule introduces a four-week waiting period, for job ready young people who are looking for work, to receive income support payments. During this fourweek period, job seekers under 25 years of age who have been classified as job ready (Stream A) by the Job Seeker Classification Instrument will also be required to complete assigned activities, through a new program, RapidConnect Plus, that will help them prepare for and find work.
16.Other waiting period amendments (Rapid Activation of young job seekers)
This Schedule implements the Rapid Activation of young job seekers 2015-16 Budget measure.
17.Adjustments for Primary Carer Pay
This and the following Schedule introduce the revised arrangements for the Paid Parental Leave scheme announced in the 2015-16 Mid-Year Economic and Fiscal Outlook and previously introduced in the Fairer Paid Parental Leave Bill 2016, which will now be withdrawn. The measure is changed in that the maximum PPL period for which a person may be paid parental leave pay is increased from the current 18 weeks to 20 weeks. The measure will commence on the first 1 January, 1 April, 1 July or 1 October that is 9 months after the date the Act receives royal assent, with an earliest commencement date of 1 January 2018.
18.Employer Opt-In (PPL) Schedule
18 removes the employer paymaster role in administering the Paid Parental Leave scheme.

Australian Financial Review graphic, 9 February 2017:


A Plea to see reason……

Australian Council of Social Service (ACOSS), media release, 8 February 2017:

ACOSS urges Parliament to reject latest attempt to cut incomes of poorest in new Omnibus Bill

ACOSS today urged the Federal Parliament to stand firm against measures in the new Government Omnibus Bill that will cut the incomes of some of the poorest people, including families, to fund child care reforms.

“This is the latest attempt by the Government to push through harsh cuts that will rip $7 billion from the social security budget. It includes previously rejected ‘zombie’ measures, such as the five-week wait for unemployment payments, further cuts to family payments, and abolition of the energy supplement, which will slash the incomes of two million future recipients of income support,” said ACOSS CEO Dr Cassandra Goldie.

“The so-called concessions the Government has made will be wiped out by other changes in the Bill, leaving many low-income people worse off.

“Of course we all want greater support for families to get better quality childcare but it cannot be funded on the backs of some of the most disadvantaged people in our country.

“This is not the way to build a strong community – caring for each other through all stages of our lives has served our nation well. This new bill risks weakening our social fabric.

“The increase to the Family Tax Benefit Part A for families with children by $10 a week does not make up for cuts to the supplements. A sole parent with two children aged 13 and 15 will still lose between $14 and $20 per week, or around $1,000 a year.

“Although this is less of a hit than under the previous proposal, it will still severely impact single parents, most of whom are struggling to keep a roof over their heads and feed their children as well as provide for them in the new school year.

“We are concerned the new Bill also includes unfair measures previously and repeatedly rejected by Federal Parliament and the broader community, such as making young people who become unemployed wait five weeks to receive income support.  This measure will not create jobs and merely punishes people who lose one.

“Abolishing the energy supplement will cut between $4-$7 a week from people on the lowest incomes, including pensioners, students, families, and people locked out of paid work.

“We have been consistent in our opposition to any watering down of paid parental leave and oppose any weakening of the current system, which currently ranks second to last in the OECD.

“This zombie Bill would only serve to increase poverty and inequality in Australia and Parliament must reject it,” Dr Goldie said.

More information on ‘zombie’ measures:

Friday 20 January 2017

#NotMyDebt: "Treating Australians like crap is going to get you crap poll results"


The “false debt” disaster rolls on, with the Turnbull Government attempting some window dressing in the hope of reversing bad polling.

News.com.au, 16 January 2016:

AN Australian of the Year finalist has also become embroiled in the Centrelink debt recovery debacle, after being sent an incorrect debt notice due to the automatic debt recovery system.

Queensland medical researcher Dr Janet Hammill, who works voluntarily and lives off the age pension, was sent a debt notice for $7600, The Guardian reports.


The 76-year-old had reportedly received a $26,000 research over parts of 2011 and 2012, which she fully reported to Centrelink at the time.

But the system appears to have averaged the grant across 2012 and deemed her overpaid.

But Centrelink’s automated debt recovery system appears to have averaged the grant across all 26 fortnights of 2012, before deeming her to have been significantly overpaid.

Hammill said she had struggled to contact anyone at Centrelink.

“You feel so helpless, I mean for heaven’s sakes, you can look through my CV and see that I’m not helpless,” Hammill told The Guardian.

“But this puts you into another category of disempowerment. I can just imagine somebody who is not computer literate or is just managing to get by day to day, it’s just been so terribly frustrating,” she said.

“They made me feel as though I’m some sort of cheat, and I haven’t had an income since April 2012.”

Her story comes after whistleblowers revealed the “true horror” of the Centrelink debt recovery debacle, after a new poll showed the Turnbull Government took a hit over the ongoing saga.

A number of former Centrelink staff, who allegedly left over the debt recovery fallout, have written to independent MP Andrew Wilkie with reports that a high number of clients are suicidal over debt notices.

Other former workers have told of being given daily quotas of debt notices and being urged to work overtime and compete to haul in the most debts.

One single mother has told of having to start repaying an incorrect debt notice for $11,800 while she challenges the request.

Mr Wilkie has today written to the Commonwealth Ombudsman to report evidence from the whistleblowers, which he claims have described the “true horror” of what’s happening behind closed doors.

His letter, published on his website, outlines the insight of former staff members, including that employees are discouraged from questioning debts and from pausing debt repayments if customers are in financial hardship.

A “high” number of callers were contemplating taking their own lives, it said.

“The system’s a complete dud and must be fixed or binned,” Mr Wilkie said.

“Every day new cases of bogus debts are coming into my office which has received hundreds of complaints from people who have recounted deeply disturbing stories about Centrelink’s debt hunt.”

The Sydney Morning Herald, 16 January 2017:

Centrelink public servants who ask too many questions about their agency's controversial "robo-debt" recovery effort are being "managed" out of debt recovery units, according to independent MP Andrew Wilkie.

The Tasmanian independent also alleges public servants are being played against each other by managers, competing for the highest daily quota of debt notices.

But Centrelink is unhappy with Mr Wilkie's letter to Ombudsman Colin Neave, with the agency saying on Monday the the allegations are inaccurate or misleading. 

Centrelink says there are no quotas and that Mr Wilkie's accusations about the management of mental health issues among clients were overblown. 

Mr Wilkie said the former public servants had reported problems with suicidal clients and a breakdown in the systems that were supposed to support them.

"The number of customers who report feeling suicidal is high," Mr Wilkie wrote.

"It has been reported to me that that over a period of days there was an error in the system so that calls transferred to social workers were instead transferred back to casual workers on the general phone line that have no training in suicide prevention."

The Guardian, 16 January 2016:

Asked in the ReachTel poll how “errors with the Centrelink automated debt recovery system” affected their vote, 49.8% said it made them less likely to vote for the Coalition compared with 14.4% who said they were more likely to and 35.8% who said it would not impact their vote.

Asked which should be the Turnbull government’s priority, a large majority (82.2%) nominated cracking down on international tax avoidance, compared with recovering debts from Centrelink overpayments (17.8%).

Respondents were asked given the “significant errors” in the system whether individuals should have to “defend themselves which may include accessing pay slips and employment records from up to five years ago”.

Most said the burden of proof should be on Centrelink (78.6%) not the individual (21.4%).

The poll was taken on Thursday after a week of revelations of taxpayer funded travel claims by ministers and MPs to attend sports events and Sussan Ley’s trips to the Gold Coast including one on which she bought a $795,000 apartment and two to attend New Year’s Eve events with multimillionaire Coalition donor Sarina Russo.


GetUp’s campaigns director, Mark Connelly, said the poor poll result was “no surprise” given revelations government ministers had been spending taxpayer funds on chartered flights and to go to polo matches “while sending tens of thousands of false debt-threat letters to everyday Australians”.

“Treating Australians like crap is going to get you crap poll results.”

ABC News, 16 December 2016:

The automated program — which compares Centrelink and Australian Taxation Office records — has issued 170,000 notifications since July with thousands of Australians incorrectly told they have outstanding debts.

After weeks of public criticism, Human Services Minister Alan Tudge has told his department to ensure welfare recipients can launch an internal review of their payments before debt proceedings are launched.

Disability pensioner Justin Burns last week told the ABC he disputed his debt and requested a review, but was still being forced to pay $40 a fortnight from his pension to repay the debt while the review was underway.

"I have had to borrow money off my parents, I have had to borrow money off my friends," he said.

"I thought, 'Holy, you know what, I don't believe I owe this money at all'."

Mr Tudge will also ensure Centrelink clients are informed of discrepancies in their accounts before being contacted by debt collectors.

"One of the issues has been that on some occasions, the address that Centrelink has on file hasn't been updated, so the first a person might hear about this is when there is a debt collector on their doorstop," Mr Tudge told 2GB radio on Monday.

"We are fixing that problem by ensuring that we use multiple different addresses, including a person's electoral roll address, to ensure they do get that letter and do get that opportunity to update their records."

Letters will now be sent by registered mail so Centrelink can track whether they have been received.

In some cases, the letter will be followed up with a phone call.

One client told the ABC they were contacted by debt collector Dun and Bradsheet about a $3,836 discrepancy, despite never being contacted by Centrelink.

Mr Tudge has also called on his department to simplify its language and ensure a contact number is printed on all notification letters, rather than being listed online.

Labor's shadow human services minister Linda Burney said the changes were a "stunning admission" given Mr Tudge's earlier claim the system was working.

"The system must be suspended until changes to make it fair are applied to everyone — that means those currently paying disputed debts should have the review completed before they are forced to pay," she said.

Unfortunately for Mr. Turnbull on 17 January 2017 The Sydney Morning Herald also carried news of his government's intention to expand this flawed debt recovery scheme:

The Coalition government is going to target more than 3 million of elderly and disabled Australians with its controversial Centrelink "robo-debt" campaign, Parliamentary documents show.

The mid-year economic forecast tables published last week shows the government has booked savings of $1.1 billion from data-matching the aged pension and another $400 million from the disability support pension.

The move will bring more than 3 million more Australians into the sights of the data-matching program, which uses an automated system to match information held by Centrelink and the Australian Taxation Office and calculate overpayments.

But the policy has been beset by errors and has been hugely controversial with many of those targeted for debt recovery saying they are being hounded by commercial debt collectors for money that they do not owe…..

The data matching effort so far has been concentrated overwhelmingly on mostly young people who have received the dole or Youth Allowance, although evidence is emerging that students have also been hit heavily.

But the supporting tables to the government's mid-year financial and fiscal outlook, published on Thursday by the Parliamentary Budget office, reveal that Coalition policy is to massively extend the data matching effort to the more than 2.5 million age pensioners and about 800,000 disability support pensioners.

"Relative to the 2016-2017 budget, policy decisions are expected to decrease expenses on the age pension by $1.1 billion to 2019-2020 primarily due to measures to enhance the integrity of social welfare payments including expanding and extending data-matching activities with the Australian taxation office," the document reads.

The papers also reveal that the government believes it will slash spending on the disability support pension using the same methods.

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:

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