KEY POINTS:
- Robodebt victim tells inquiry debt notification 'turned my life upside down'.
- The scheme was found unlawful in 2019.
- Former ministers Christian Porter and Alan Tudge to give evidence.
A pensioner has revealed her "sheer terror" after being told she had less than a month to pay the Commonwealth $65,000, only to discover the warning was incorrect.
Another victim told he was left with thoughts of self-harm after erroneous demands for money he had "not a chance" of repaying.
The inquiry is exploring how the scheme, which was found to be unlawful in 2019, was allowed to continue despite .
Monday’s hearing was the first in the latest block of witnesses, which will also involve testimony from former Coalition ministers Christian Porter and Alan Tudge, along with Mr Tudge’s former staffer Rachelle Miller.
Rosemary Gay, 76, regularly broke down as she recounted a "very dark period" during which chunks of her age pension were stripped away, as she paid back a debt eventually wiped over errors in the calculation process.
The robodebt scheme was administered through Centrelink. Source: AAP / Julian Smith
'Sheer terror'
The pensioner, who worked part-time at a transport and logistics company, was shocked to be told in late 2016 that she had three weeks to repay a $64,998 Centrelink debt.
Her reported income had been erroneously doubled between 2010 and 2016, an error she warned had the potential to "destroy people's whole lives".
"It was just sheer terror to me. I had no idea what to do next ... It was an impossible amount for me to owe," she said.
"Everything that I had worked for in my 70 years, I just saw it all going away instantly ... It couldn’t be possible that I owed them any money."
Ms Gay said she was transferred around the department as she attempted to dispute the debt, but was eventually referred to a senior official - nicknamed God - who blamed a "glitch" for the error.
She broke down as she recounted having more than $100 deducted from her age pension each fortnight - placing her under "financial strain" - despite the dispute remaining unresolved.
"It was a very dark period of time for me and one that is very difficult to re-live. My mental health and physical health at that stage were at a very low ebb," she said.
The debt was eventually scaled down to $6,683 - roughly a tenth of the initial figure - after a manual reassessment, before being scrapped entirely in 2020.
"It was a trauma I never, ever want to experience again... to me, [it was] immoral and unethical," Ms Gay said.
The scheme falsely recovered over $750 million from nearly 400,000 people, leading the Commonwealth
'Struggling to stay afloat'
Ricky Aik revealed he had “no idea” how Centrelink produced a debt notice for $5,255 in 2018, having accurately reported his fortnightly income.
Mr Aik described himself as “struggling just to stay afloat” at the time, saying there was “not a chance” he would be able to repay that amount.
The debt notice had a profound impact on his wellbeing, including depression and thoughts of self-harm, he said.
“Every cent of income I had was going out, just to be able to live, survive ... [I] didn’t feel like eating much, didn’t want to socialise. [I] just didn’t want contact with anybody,” he said.
Robodebt victim Ricky Aik says he was left with thoughts of self-harm.
Mr Aik asked for a review of the figure after discovering advocacy group Not My Debt. He said Centrelink rejected his request.
He eventually struck a payment arrangement of $15 per week to "get them off my back".
After his debt was eventually expunged in mid-2020, Mr Aik felt a “dark, cloudy day” had turned to “pure sunshine”.
Asked what impact the scheme had on his life, he said: “I wouldn’t wish it upon anyone”.
“It was just so hard to be yourself. It made you withdraw, scared. It was probably one of the worst times of my life,” he said.
Former ministers to appear
The inquiry is expected to hear from former Coalition ministers Alan Tudge and Christian Porter in early February.
As human services minister in 2016, Mr Tudge was tasked with overseeing the scheme when questions over its methods were first raised.
He repeatedly dismissed criticisms of robodebt, which used an automated system to determine whether Australians owed a debt to the Commonwealth, before a Federal Court in 2019 ruled it was unlawful.
The appearance will come just days after his former adviser Rachelle Miller takes the witness stand.
after accusing Mr Tudge of being abusive towards her during a consensual relationship, claims he strenuously denies. An inquiry last year .
As social services minister in 2017, Mr Porter insisted the automated debt recovery scheme was working "incredibly well".
He has not made a public appearance since resigning from politics at the May federal election.
Former prime minister Scott Morrison in December of departmental advice saying the scheme would be unlawful if left unchanged.
