Record-Keeping Deficiencies Exposed in Robodebt Royal Commission Report

The recently published findings of the Royal Commission into the Robodebt Scheme have brought to light critical record-keeping failures as a major contributing factor to the program's eventual downfall.

The Robodebt Scheme, initially proposed by the Department of Human Services (DHS) as a budget measure in 2015, aimed to recover alleged welfare overpayments from recipients dating back to the 2010-11 financial year. It heavily relied on the controversial method of "income averaging" to assess income and benefit entitlement, but unfortunately, this approach yielded inaccurate results and failed to comply with the income calculation provisions of the Social Security Act 1991 (Cth).

Despite facing intense public criticism since 2016, the scheme continued until November 2019, when it was finally announced that debts would no longer be raised solely based on income averaging. In 2020, a class action settlement was reached, resulting in the reduction of all debts raised through averaging to zero. Additionally, then Prime Minister, the Hon Scott Morrison MP, issued an official apology for the scheme in June 2020.

The Royal Commission, established through Letters Patent on August 18, 2022, under the Royal Commissions Act 1902 (Cth), was tasked with investigating various aspects of the Robodebt Scheme. These included the establishment, design, and implementation of the scheme, how risks and concerns were addressed, the management of complaints and challenges by the government, the involvement of third-party debt collectors, and the overall human and economic impacts of the program.

The comprehensive report, spanning nearly 1000 pages, extensively references record-keeping issues encountered throughout the implementation of Robodebt. Former Secretary of the Department of Defence, Renee Leon, testified during the inquiry, highlighting instances where ministerial expectations discouraged clear written briefs on sensitive matters. The report emphasizes the importance of maintaining transparent and comprehensive records within the Australian Public Service.

Chapter 23 of the report, titled "Improving the Australian Public Service," specifically delves into Section 7, focusing on the record-keeping failures of Robodebt, offering detailed insights into the shortcomings observed.

The full report of the Royal Commission into the Robodebt Scheme Report of the Royal Commission into the Robodebt Scheme  is available for public access and scrutiny.

As the findings become widely known, it is expected that lessons from the Robodebt Scheme's record-keeping failures will serve as a valuable guide for better governance and transparency in future government initiatives.