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Urgent: Labor Faces Pressure to Act on Robodebt Reforms Now

UPDATE: Just announced, independent MP Andrew Wilkie and Penny Allman-Payne, the Greens’ spokesperson for social services, are introducing a critical bill in both houses of Parliament on Monday. The bill demands immediate action from the Labor government on the long-overdue recommendations from the Royal Commission into the Robodebt crisis, a scandal that has affected thousands of Australians.

This urgent move comes as the government has been accused of dragging its feet for over two years, failing to implement key reforms agreed upon following the release of a damning 900-page report in July 2023. The recommendations include reinstating a six-year time limit on recovering debts and establishing a duty of care for welfare recipients, which could profoundly impact the lives of vulnerable Australians.

The push for reform has gained momentum after the Commonwealth Ombudsman revealed the unlawful termination of 964 Jobseeker payments between April 2022 and July 2024 due to serious glitches in the controversial Target Compliance Framework. Ombudsman Iain Anderson criticized the Department of Employment and Workplace Relations for a shocking 10-month delay in addressing these issues.

In addition to limiting debt recovery, the proposed legislation aims to tackle the automated decision-making processes that have led to these injustices. The call for reform also emphasizes the need to enhance protection for individuals facing hardship, especially those affected by coercive control and financial abuse.

Wilkie expressed his frustration, stating, “Robodebt was a catastrophic failure of government administration that destroyed the lives of thousands of Australians.” He urged the Labor government to step up and implement these critical changes: “It’s been two years since the Royal Commission and, shamefully, we are yet to see any meaningful legislative change from this federal government.”

Senator Allman-Payne echoed these sentiments, highlighting the ongoing struggles of welfare recipients. “If you’re struggling to pay the rent or put food on the table, getting hit with a dodgy debt notice can be catastrophic,” she said. “The Greens are urging Labor to walk the walk on Robodebt and end the cruelty in the welfare system for good.”

The ramifications of these proposed reforms could extend to the reassessment of up to 160,000 welfare payments, which amount to a staggering $1.1 billion in unlawful debts accrued between 1979 and 2020.

With public pressure mounting, the Anti-Poverty Centre’s spokesperson, Kristen O’Connell, has called on the government to act swiftly, emphasizing that ongoing inaction is now a failure of the current administration. “The decision to agree to all Royal Commission recommendations showed that the government knows the current system of ‘debt’ collection is untenable,” O’Connell stated. “But accepting recommendations means nothing to welfare recipients without action.”

As the bill’s introduction approaches, all eyes will be on the Labor government. Will they finally take the necessary steps to rectify the injustices of the Robodebt system? The urgency for reform has never been clearer, and the outcome could significantly affect the lives of many Australians struggling to navigate the welfare system.

Stay tuned for updates on this developing story as the political landscape shifts and the call for action intensifies.

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