Federal Court Rules on Income Apportionment
The Albanese Labor Government acknowledges the decision of the Full Court of the Federal Court in Matthew Chaplin v Secretary, Department of Social Services.
Income apportionment is a historical practice which ran from the early 1990s to 2020. It is not used today. It has never been used by the Albanese Labor Government.
Income apportionment was a method used by Centrelink to calculate debts in circumstances where they did not have detailed information about days and hours worked. This methodology reduced unreasonable reporting burdens and paperwork on welfare recipients and was a genuine misinterpretation of the law.
The median affected debt was $330 and the average age of debt is 19 years. Not all income support recipients were disadvantaged by income apportionment.
The Chaplin decision has re-confirmed that the process of income apportionment was not lawful. It also confirmed that the process used to calculate debt since 2020 is valid.
The Government will now evaluate its impact and develop a suitable response.
Anyone who believes they have a debt which was affected by income apportionment can call the dedicated Services Australia helpline on 1800 560 870 or visit the Services Australia website.
A statement released by Department of Social Services Secretary Michael Lye is available from the Department of Social Services website.
https://ministers.dss.gov.au/media-releases/18251