Aston MP Alan Tudge appeared before the Royal Commission into Robdebt, with the former Minister for Social Services’ knowledge of the lawfulness of the scheme under scrutiny.
Mr Tudge, who was Minister for Human Services from February 2016 until December 2017, appeared at the Robodebt Royal Commission on Wednesday 1 February and Thursday 2 February.
During his first day appearing at the Royal Commission, Mr Tudge said he never saw advice that the scheme was unlawful and didn’t ask for it when questioned by Justin Greggery KC.
“The Department’s lawyers, the Social Services lawyers would have had to form a view that it was lawful and on top of that, the Attorney-General’s Department has to form a view in relation to the legalities of this initiative,” he said.
“I don’t accept the proposition that I was responsible for an individual not making a choice to not raise a matter with her counterpart in a different Department.”
Mr Tudge went on to say he accepted he was responsible for the lawful implementation of the scheme.
In 2016, Centrelink introduced an automated system to detect overpayments to past and current social security recipients, using information from the Australian Taxation Office and other government agencies compared to the income the person reported.
Centrelink recipients received letters advising people of potential debt if the system found an estimated difference between the two, asking for the person to submit payslips and further information.
If the person didn’t respond to the letter, Centrelink used income information from the ATO and averaged it to determine the amount of debt owed by the person.
On May 29 2020, the Coalition Government — which Mr Tudge was a part of — announced it would refund 470,000 debts, to the cost of $721 million. This figure later grew to $1.2 billion, after the government settled a class-action lawsuit.
A $1.8 billion settlement including repayment of debts paid, wiping of outstanding debts and legal costs was approved in federal court in June 2021 in a ruling against the government.
Mr Tudge said he was aware that the Robdebt scheme could produce inaccurate debts, but was unaware it was unlawful.
“I didn’t know the full context in relation to the legalities. It just had not crossed my mind until I read about it in the newspaper, I think, following the Federal Court case,” he said.
As the member for Aston, Mr Tudge represents people in Bayswater, Boronia, Ferntree Gully, Knoxfield, The Basin and parts of Sassasfras and Upper Ferntree Gully in federal parliament.
