The scheme put the onus on those receiving Centrelink to prove that they didn’t owe the debt. In many instances people were falsely accused of owing debts.
In 2020,the federal government had to refund $721 million in debts that had been wrongly collected from 381,000 people.
And it paid $1.8 billion to settle a class action brought against by victims of the scheme but set aside just $112 million in compensation which equates to less than $300 per person affected.
Labor has long called for a royal commission,the highest form of inquiry with the powers to summon witnesses,and on Friday evening said it would have one started by the end of the year if elected to government.
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The opposition said it would begin consulting on a royal commission’s terms of reference immediately after May 21 if victorious.
The commission would examine who was responsible for establishing the scheme,how it was created and the handling of complaints and how much the scheme ended up costing taxpayers.