'We're not bad people': How Robodebt victims reacted after 'gross betrayal' was laid bare

These are the lessons victims of the "gross betrayal" that was robodebt say need to be learned following the release of a royal commission's blistering final report into the scheme.

A split image. On the left is a photo of Phoebe Autumn. On the right is a photo of Nicole Hibbert-Smith

Phoebe Autumn (left) and Nicole Hibbert-Smith were both victims of the robodebt scheme. Source: SBS News

Phoebe Autumn was "incredibly upset" when she opened a letter in 2018 that claimed she owed a Centrelink debt.

Autumn was struggling with her gender, her "marriage was failing", and she was being "dragged through the family court" over a matter following her father's death in 2016.

"I was incredibly upset. I had no income, I was struggling with a variety of personal problems. I certainly didn't feel like I could turn to Centrelink for help... it was terrible," she told SBS News.

She was among the 400,000 victims of the so-called robodebt scheme which has been under the microscope of a royal commission called by the Albanese government in September last year.
A woman wearing glasses and a dark top standing next to a tree
Phoebe Autumn said she had 'no income' when she was issued a false debt notice.
Robodebt, implemented by the former Coalition government, ran for four years from 2015 and recovered $750 million through an income-averaging process that matched Australian Tax Office data with income reported to Centrelink by welfare recipients — a method the federal court ruled unlawful in 2019.

On Friday, the inquiry handed down its damning final report which found former minister Alan Tudge and government departments failed to properly consider the personal heartbreak and harm stemming from the scheme.
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Autum said she was told she was owed about $200, with the debt recalculated at around $70 after she provided additional information.

She said that while that wasn't much compared with debts raised against others, she had no income and wasn't offered a payment plan.

The report has left Autumn feeling "incredibly vindicated", but she still doesn't "trust the social services system".

But she has hope.

"I have hope that on the back of this... social services groups have more of a need to deal with injustice as in the system to stop putting public servants against welfare recipients," she said.

Nicole Hibbert-Smith could not access legal “support and guidance” she believes would have helped her when was threatened with legal action until she repaid her debt.

Hibbert-Smith had received a letter in 2016 threatening her with legal action unless she repaid more nearly $3,000, which she described as an “incredible amount of money at the time”.
Woman in glasses in light blue blazer.
Nicole Hibbert-Smith says she was forced to borrow money to repay her debt.
“I just scrambled and did exactly what I was told. So I got the information they needed, the debt was recalculated, and I then paid the debt back by borrowing money,” she said.

Hibbert-Smith said that meant she was unable to claim compensation, despite taking part in a successful class action against the robodebt scheme.

She said the report had laid bare the need for an “overall shift in the way we see” welfare recipients.

“We’re not bad people. We're not people that are trying to blow off the government. We just need support when things might have gone wrong,” she said.
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Coalition ministers deny being referred for prosecution

In a sealed chapter, the report recommended some individuals involved in the robodebt scheme face criminal and civil prosecutions.

It did not reveal their identities for fear of prejudicing potential future trials, and SBS News does not suggest any ministers named in the report have been referred.
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Former prime minister Scott Morrison, the former social services minister, repeated his regret over robodebt's "unintended consequences", which he said gave "important lessons" for future schemes.

"I reject completely each of the findings which are critical of my involvement in authorising the scheme and are adverse to me. They are wrong, unsubstantiated and contradicted by clear documentary evidence presented to the Commission," he said in a statement.

The report accused former social services minister Alan Tudge of engaging in a "reprehensible" media strategy to stifle criticism of the scheme: using social security recipients' information in the media.
Man crosses arms as he holds a pen.
Alan Tudge strongly denied the report's finding that he used the media to attack robodebt victims. Source: AAP / Mick Tsikas
Tudge "strongly" rejected the finding in a statement on Friday afternoon, saying it was "part of a minister's role to publicly defend government policy when that policy is criticised".

He claimed he had chosen to identify one debt notice recipient who publicly and falsely claimed they did not owe a debt, a decision he took to "correct the record".

"At no stage did I seek to engage in a media strategy that would discourage legitimate criticism of the scheme," it said.

Tudge said he had not received a notice of referral, and his legal team had not identified any basis on which could be successfully prosecuted.

Stuart Robert, another former social services minister singled out for criticism, said he had “worked hard” to improve the system and welcomed the report’s “sensible recommendations”.

“I have NOT received a notice of inclusion in the ‘sealed section’ and I understand they have all gone out,” he said in a statement.
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'Shaken down': How Labor is reacting

Speaking an hour after the report’s release, Prime Minister Anthony Albanese said the bravery of robodebt victims who told their stories “stands in stark contrast to those who sought to shift the blame, bury the truth and carry on justifying this shocking harm”.

“The robodebt scheme was a gross betrayal and a human tragedy. It pursued debt recovery against Australians who in many cases had no debt to pay,” he said.

“It was wrong, it was illegal, it should never have happened and it should never happen again.”
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Social Services Minister Bill Shorten said the Coalition had “betrayed the trust” of Australians for four-and-a-half years.

“The previous government and senior public servants gaslighted the nation,” he said.

“[The report] fundamentally says that [the Coalition] has broken the sacred trust that when citizens give some of their power to the government, the government will make sure that it helps, not hurts, citizens.”

Shorten said the Coalition had “literally shaken down” robodebt victims, who were treated “as guilty until proven innocent”.

“For those who had the temerity to complain, they were subjected to vile political tactics. Today is about these victims,” he said.
Man in suit holds up a document.
Bill Shorten said the former Coalition government "gaslighted" Australians. Source: AAP / Lukas Coch

Department chief: ‘We can’t shy away’ from damning report

The Guardian reported that the current secretary of the Department of Social Services, Ray Griggs, told staff the report made for “sobering reading”.

“It lays bare the damage the robodebt scheme caused. For all of us … the report’s content demands both deep reflection and action,” he wrote in an email to staff.

“We cannot shy away from, or in any way try to diminish, the difficult truths about the scheme’s impact on our fellow citizens and our department’s role in its design and implementation.”
The report found then-Social Services secretary Kathryn Campbell knew the "misleading effects" of a proposal taken to cabinet but "chose to stay silent".

Campbell now holds a Defence role with a $900,000 annual salary. SBS News has contacted Defence for comment.

SBS News does not allege Campbell has been referred for either criminal or civil prosecution.

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6 min read
Published 8 July 2023 6:30am
By David Aidone, Finn McHugh, Soofia Tariq
Source: SBS News


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