The government’s decision to pause Services Australia’s debt raising and recovery activities will be welcomed by welfare groups, Labor and the Greens, who have been demanding the agency focus on dealing with an unprecedented number of jobseeker payment claims during the Covid-19 crisis.

Last week, the Guardian revealed that although it was working on a secret plan to refund people hit by the botched robodebt scheme, Services Australia staff were continuing to pursue people over potential debts, just as thousands of Australians were queuing around the block outside Centrelink offices.

That is despite the government assuring the Greens senator Rachel Siewert that all resources had been directed to helping process new dole claims.

The announcement today to pause debt recovery for six months means people should no longer be contacted by Services Australia over alleged welfare overpayments. And it means that staff who were working on issuing debts to Australians can now be redeployed to help deal with the increased demand for assistance.

It also means that people who are currently repaying a debt – either directly or by having their welfare payments docked – can apply to have these arrangements paused.

However, the minister’s press release also notes: “Work relating to fraud and serious non-compliance will continue in order to maintain the integrity of the welfare system.”

The pause will last for an initial six months.










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