Unexpected twist in Centrelink saga: How incorrect calculations put two people in jail
- Replies 32
The Australian welfare system is under scrutiny as two individuals remain incarcerated due to potentially unlawful calculations of their welfare benefits by Centrelink, according to a report by the Ombudsman.
This revelation has sparked a debate about the fairness and accuracy of the welfare system and the potential for wrongful convictions based on flawed calculations.
The Ombudsman's report, released on Monday, December 4, highlighted the issue of the 'income apportionment method' used by Services Australia to calculate Centrelink payments.
This method, which divides a recipient's employment income into fortnights to determine their Centrelink payments, could lead to flawed calculation and over or underpayment of benefits.
‘This may have led Services Australia to raise social security debts or refer customers for criminal prosecution for alleged fraud or obtaining financial advantage, based on unlawfully calculated social security payments,’ the report suggested.
It also revealed that two individuals, whose identities and circumstances remain unknown, were convicted based on these potentially incorrect debt calculations.
The Commonwealth Director of Public Prosecutions (CDPP) was made aware of these cases in mid-November 2023.
‘Services Australia has since advised the [CDPP] made it aware in mid-November 2023 that there were two people convicted for matters involving income apportionment who remain subject to current custodial sentences,’ it said.
In turn, the agency informed the legal representatives of the individuals but said that it ‘is a matter for each person to obtain legal advice’ on the next steps.
‘We will continue to review our disclosure obligations in light of any advice received from Services Australia,’ CDPP declared.
The report also mentioned that ‘the existence of a social security debt can have direct and indirect negative impacts on a person’—including criminal prosecution—‘which is traumatic in itself, and in the event of a conviction have serious consequences and repercussions for individuals’.
Dr Chris Rudge, a welfare law academic at the University of Sydney, criticised the CDPP's response, stating that it is insufficient if someone is in jail due to potentially erroneous evidence.
‘If someone is convicted on the basis of evidence now known to be erroneous, then surely there should be a facilitation of a review of their circumstances,’ he pointed out.
‘They should facilitate appeals…these are probably wrongful convictions,’ he added.
Dr Rudge emphasised the importance of accurate debt calculations to support charges. The use of unlawful income apportionment could lead to quashed convictions.
‘If [they’re] screwing up the amount, you might not have a debt at all. You couldn’t have knowledge of an overpayment if there is no overpayment,’ he argued.
This issue of miscalculated debts dates back to at least 2003 and continued until December 2020, according to the Ombudsman's findings.
The incorrect understanding of Social Security Law has led to numerous criminal prosecutions being paused and subsequently dropped. The offence of obtaining financial advantage carries a penalty of up to a year in prison.
The report called on Services Australia to waive the 100,000 debts that may have been incorrectly calculated.
The Social Services Minister, Amanda Rishworth, acknowledged the complexity of the income apportionment issue, which has affected debts over a 20- to 30-year period.
She stated that the practice had been stopped in 2020 and that she had asked the department to settle the outstanding legal advice about calculating debts.
‘I want to see this issue resolved as quickly as possible. It’s a historic issue. It’s one where there are still some legal questions, but I am seeking the resolution of this as quickly as possible,’ she said.
What are your thoughts on this issue, members? Have you or someone you know been affected by Centrelink's income apportionment method? Share your experiences and opinions in the comments below.
This revelation has sparked a debate about the fairness and accuracy of the welfare system and the potential for wrongful convictions based on flawed calculations.
The Ombudsman's report, released on Monday, December 4, highlighted the issue of the 'income apportionment method' used by Services Australia to calculate Centrelink payments.
This method, which divides a recipient's employment income into fortnights to determine their Centrelink payments, could lead to flawed calculation and over or underpayment of benefits.
Two people are in jail due to Centrelink’s unlawful debt calculations. Credit: Ron Lach/Pexels
‘This may have led Services Australia to raise social security debts or refer customers for criminal prosecution for alleged fraud or obtaining financial advantage, based on unlawfully calculated social security payments,’ the report suggested.
It also revealed that two individuals, whose identities and circumstances remain unknown, were convicted based on these potentially incorrect debt calculations.
The Commonwealth Director of Public Prosecutions (CDPP) was made aware of these cases in mid-November 2023.
‘Services Australia has since advised the [CDPP] made it aware in mid-November 2023 that there were two people convicted for matters involving income apportionment who remain subject to current custodial sentences,’ it said.
In turn, the agency informed the legal representatives of the individuals but said that it ‘is a matter for each person to obtain legal advice’ on the next steps.
‘We will continue to review our disclosure obligations in light of any advice received from Services Australia,’ CDPP declared.
The report also mentioned that ‘the existence of a social security debt can have direct and indirect negative impacts on a person’—including criminal prosecution—‘which is traumatic in itself, and in the event of a conviction have serious consequences and repercussions for individuals’.
Dr Chris Rudge, a welfare law academic at the University of Sydney, criticised the CDPP's response, stating that it is insufficient if someone is in jail due to potentially erroneous evidence.
‘If someone is convicted on the basis of evidence now known to be erroneous, then surely there should be a facilitation of a review of their circumstances,’ he pointed out.
‘They should facilitate appeals…these are probably wrongful convictions,’ he added.
Dr Rudge emphasised the importance of accurate debt calculations to support charges. The use of unlawful income apportionment could lead to quashed convictions.
‘If [they’re] screwing up the amount, you might not have a debt at all. You couldn’t have knowledge of an overpayment if there is no overpayment,’ he argued.
This issue of miscalculated debts dates back to at least 2003 and continued until December 2020, according to the Ombudsman's findings.
The incorrect understanding of Social Security Law has led to numerous criminal prosecutions being paused and subsequently dropped. The offence of obtaining financial advantage carries a penalty of up to a year in prison.
The report called on Services Australia to waive the 100,000 debts that may have been incorrectly calculated.
The Social Services Minister, Amanda Rishworth, acknowledged the complexity of the income apportionment issue, which has affected debts over a 20- to 30-year period.
She stated that the practice had been stopped in 2020 and that she had asked the department to settle the outstanding legal advice about calculating debts.
‘I want to see this issue resolved as quickly as possible. It’s a historic issue. It’s one where there are still some legal questions, but I am seeking the resolution of this as quickly as possible,’ she said.
What are your thoughts on this issue, members? Have you or someone you know been affected by Centrelink's income apportionment method? Share your experiences and opinions in the comments below.
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