Use of debt collectors for social welfare abolished
The Albanese Government will ensure Robodebt never happens again. The cessation of outsourcing social security welfare payment debts to external collection agents (ECAs) is one step being taken today. All debt recovery will now be done in house through Services Australia.
From 30 June 2023, Services Australia’s final contracts with debt collection agents ARL Collect Pty Ltd, Milton Graham/Recoveries Corporation Pty Ltd and Probe Operations Pty Ltd will expire. All outstanding debts will be transitioned in-house over these coming months.
Minister for Government Services and the NDIS the Hon. Bill Shorten MP said the process of raising debts need to be lawful, customer focused and handled with care and respect.
“We have to look at the reality of who is affected – it’s often very vulnerable Australians, people who have gotten on government payments in the first place because they are at a vulnerable time in their lives. We have to stop giving their information to private companies and ensure the debt recovery process is lawful, fair and transparent,” Minister Shorten said.
“The Royal Commission into Robodebt has put on full display the unfettered cruelty with which debt collection agencies were unleashed against vulnerable Australians. We cannot let this happen again.
“We are not naïve to the fact that wherever there is government money, there will be some opportunistic behaviour – but Services Australia is already fully capable of recovering debts and has multiple tools at hand.
“However, the power to raise lawful debts against citizens needs to be exercised judiciously and at every stage afford citizens the right of reply and not reverse the onus of proof from the government to the individual.
“Government should never start from the position that the existence of an alleged debt means the citizen is guilty until proven innocent.
“Service Australia collection agents will contact those with outstanding debts and assist them in the transition process. Flexible repayment options, short-term counselling, information and referrals to support systems may be provided.
“If anyone is experiencing financial hardship or are having difficulty repaying money, they should call the Centrelink Debt Recovery Line on 1800 076 072.”