Post by Banjo on May 18, 2020 6:04:19 GMT 7
Robodebt: Centrelink to issue hundreds of thousands of class action notices for trial
Commonwealth had hoped to settle case and has admitted 400,000 welfare debts were unlawfully issued
Hundreds of thousands of Australians affected by the government’s robodebt scheme will receive notices from Centrelink about an upcoming class action under orders from the federal court.
Guardian Australia last month revealed secret government advice showing the commonwealth hopes to settle the case and has privately admitted more than 400,000 welfare debts were unlawfully issued under the scandal-ridden “income compliance program”.
But the parties are yet to reach a settlement, setting up a potential trial as early as July where law firm Gordon Legal will seek interest and compensation as well as the repayment of debts unlawfully claimed by the government.
Under court orders issued in March, the government has been told to identify all potential class action members and send out notices via MyGov or by post about the upcoming court challenge by 25 May.
More than 12,000 people have registered with the firm, but under Australian law people identified as members of the “class” are considered part of the action unless they “opt-out”, which would allow them to pursue their own individual claim.
Labor’s government services spokesman, Bill Shorten, said the government should “settle this case immediately, restore public confidence in Centrelink by allowing the court to be the independent umpire, and pay the victims back their money as well as interest”.
“This would allow the hundreds of Centrelink workers working on limiting the government’s robodebt exposure to be moved back to the frontlines of helping their fellow Australians with their social security needs in this time of national challenge,” he told Guardian Australia.
Since July 2015, more than 600,000 debt notices had been sent out under the scheme, which the government conceded was unlawful in federal court in November, while thousands more received letters demanding they prove they were not overpaid by Centrelink.
Some debt recipients had their tax returns seized over the debts, while others were also forced to pay a 10% “recovery fee” on top of the alleged debt.
Gordon Legal believes the case would represent one of the largest class actions in Australian history.
Late last week, the government declined to answer several written questions about the robodebt scheme, successfully applying for public interest immunity in the Senate.
Services Australia declined to answer how many debts had been issued using the unlawful “income averaging” method or whether it would repay victims, including debts recovered from deceased estates.
“This question relates to a court case that is currently before the federal court of Australia,” the agency said. “Services Australia will abide by any decision of the court.”
But a ministerial submission to cabinet, leaked to the Guardian, revealed the government hopes to settle the case and that Services Australia expects to “administer 449,500 refunds determined under the programme”, worth $555.6m.
The robodebt class action notices come as the government pushes ahead with plans for an inquiry into class actions in Australia.
Porter last week claimed a “lack of regulation governing the booming litigation funding industry is leading to poor justice outcomes”.
But Labor has argued the inquiry is a response to Gordon Legal’s class action against the robodebt scheme.
If the parties do not reach a settlement, a trial is expected between July and September.
www.theguardian.com/australia-news/2020/may/18/robodebt-centrelink-to-issue-hundreds-of-thousands-of-class-action-notices-for-trial
Commonwealth had hoped to settle case and has admitted 400,000 welfare debts were unlawfully issued
Hundreds of thousands of Australians affected by the government’s robodebt scheme will receive notices from Centrelink about an upcoming class action under orders from the federal court.
Guardian Australia last month revealed secret government advice showing the commonwealth hopes to settle the case and has privately admitted more than 400,000 welfare debts were unlawfully issued under the scandal-ridden “income compliance program”.
But the parties are yet to reach a settlement, setting up a potential trial as early as July where law firm Gordon Legal will seek interest and compensation as well as the repayment of debts unlawfully claimed by the government.
Under court orders issued in March, the government has been told to identify all potential class action members and send out notices via MyGov or by post about the upcoming court challenge by 25 May.
More than 12,000 people have registered with the firm, but under Australian law people identified as members of the “class” are considered part of the action unless they “opt-out”, which would allow them to pursue their own individual claim.
Labor’s government services spokesman, Bill Shorten, said the government should “settle this case immediately, restore public confidence in Centrelink by allowing the court to be the independent umpire, and pay the victims back their money as well as interest”.
“This would allow the hundreds of Centrelink workers working on limiting the government’s robodebt exposure to be moved back to the frontlines of helping their fellow Australians with their social security needs in this time of national challenge,” he told Guardian Australia.
Since July 2015, more than 600,000 debt notices had been sent out under the scheme, which the government conceded was unlawful in federal court in November, while thousands more received letters demanding they prove they were not overpaid by Centrelink.
Some debt recipients had their tax returns seized over the debts, while others were also forced to pay a 10% “recovery fee” on top of the alleged debt.
Gordon Legal believes the case would represent one of the largest class actions in Australian history.
Late last week, the government declined to answer several written questions about the robodebt scheme, successfully applying for public interest immunity in the Senate.
Services Australia declined to answer how many debts had been issued using the unlawful “income averaging” method or whether it would repay victims, including debts recovered from deceased estates.
“This question relates to a court case that is currently before the federal court of Australia,” the agency said. “Services Australia will abide by any decision of the court.”
But a ministerial submission to cabinet, leaked to the Guardian, revealed the government hopes to settle the case and that Services Australia expects to “administer 449,500 refunds determined under the programme”, worth $555.6m.
The robodebt class action notices come as the government pushes ahead with plans for an inquiry into class actions in Australia.
Porter last week claimed a “lack of regulation governing the booming litigation funding industry is leading to poor justice outcomes”.
But Labor has argued the inquiry is a response to Gordon Legal’s class action against the robodebt scheme.
If the parties do not reach a settlement, a trial is expected between July and September.
www.theguardian.com/australia-news/2020/may/18/robodebt-centrelink-to-issue-hundreds-of-thousands-of-class-action-notices-for-trial