Centrelink debt rules could change after Robodebt
Senator Penny Allman-Payne has a private bill in the Senate. It would change how Services Australia, the agency that runs Centrelink, chases debts and uses computers to make choices. It aims to stop anything like Robodebt happening again.
Official name: Social Security and Other Legislation Amendment (Responding to Robodebt) Bill 2025 [No. 2]
- Debts caused only by a government mistake would always be wiped.
- Debts linked to family violence or being forced by someone could be wiped more easily.
- Centrelink could only chase a debt within six years.
- A person would have to check big computer decisions, such as cutting off a payment or raising a debt of $2,000 or more.
- You would have 14 days to claim a crisis payment after a crisis, up from 7.
Who it affects
- People on Centrelink payments: Choices made by computer would have to be flagged, and big ones checked by a person first.
- People with a Centrelink debt: Debts over six years old could not be chased. Debts caused only by a government mistake would be wiped.
- Victims of family or domestic violence: A debt caused by an abuser, or by being forced to give wrong facts, could be wiped.
- People in a crisis: Some people would get 14 days to claim a crisis payment. They include people leaving jail, fleeing home, staying after a violent family member is removed, or arriving on a humanitarian visa, given to refugees and others fleeing danger.
- Services Australia: The agency that runs Centrelink would have new duties to treat people with respect, and to report on its debt checks each year.
Robodebt fixes still not law
Robodebt was a government scheme that raised debts against people on welfare. A Royal Commission looked into it. That is the top level of public investigation in Australia. It found the scheme mostly broke welfare law.
The Royal Commission made many recommendations. Senator Penny Allman-Payne says some of them still need changes to the law, to stop Robodebt happening again.
She brought this private bill to the Senate, Parliament's second house, on 26 August 2025. A private bill is one not brought by the government. The [No. 2] in its name means it is the second bill with this title.
The bill changes four laws. They cover family payments, welfare payments, how welfare is run, and student payments. Most changes are made in each law, so they apply across all of these payments.
It is aimed at Services Australia. That is the agency that runs Centrelink and pays welfare.
Debts from government mistakes wiped
Right now, a debt caused by a government mistake can be wiped. But only if some extra tests are met.
The bill would remove those extra tests. If a debt was caused only by a mistake by the federal government, the head of the department would have to wipe it.
Say Centrelink types in the wrong income figure and pays you too much. If the mistake was all theirs, you would not have to pay it back.
The senator says this partly carries out recommendation 18.1. It calls for getting debts back in a way that is fair and not over the top.
Debts linked to family violence
Debts can already be wiped in special cases. The bill would add a note that these include being forced or pressured. They also include acting under the sway of family or domestic violence.
This covers a person who knew they gave wrong facts but did not want to. For example, a partner may have controlled them through fear. It also covers a violent partner who gave false facts on purpose to create a debt.
These changes would apply to debts from before or after the law starts.
Six-year limit on debts
Right now there is no time limit on when the government can start trying to get back a welfare debt.
The bill would bring back a six-year limit. There used to be one. The Royal Commission found that removing it was unfair and harsh. In recommendation 18.2 it said the limit should come back.
Rules for computer decisions
Robodebt relied on choices made by a computer system. The bill would make Services Australia tell you when a choice about you was made by a computer.
It would also have to explain clearly how to get more facts, and how to ask for the choice to be looked at again.
A person would have to check some choices before they take effect. These are cutting off a payment, or raising a debt of $2,000 or more. They also include choices where staff use their own judgement, and reviews of past choices. The last is asking the tax office to take money to repay a debt.
The senator says these choices can lead to people losing their homes, home loan stress and great distress. This carries out recommendation 17.1.
New duties for the department
The laws already list rules the department head must keep in mind when running payments. The bill would add the principles of good administration to that list. These are basic rules for running things fairly and well.
It would also add a need to respond to people living in country and remote areas.
The bill would add new duties for the department head to take care of people. These come from recommendation 10.1 of the Royal Commission. It is about designing policies with care for the stress people may be under.
Debt checks reviewed yearly
Centrelink checks to make sure people are paid the right amount. The bill would make these checks be reviewed every 12 months.
A report would go to the Minister. It would be given to Parliament within 15 days on which Parliament meets. The senator says this helps spot people who struggle with these checks. This is under recommendations 11.2 and 11.4.
More time for crisis payments
A crisis payment is a one-off payment for people doing it very tough after certain events. Right now you must claim within 7 days.
The bill would make it 14 days. This covers leaving jail or a mental health hospital, and being forced to leave home. It covers staying at home after a violent family member is removed. It also covers arriving in Australia on a humanitarian visa.
The senator says people in distress often struggle to know about these payments and apply in time.
Waiting in the Senate
If passed, the law would start the day after the Governor-General, the King's representative, signs it.
Senator Allman-Payne brought the bill to the Senate on 26 August 2025. The debate on its main idea was opened that day. There has been no debate or vote since.
It is still before the Senate. To become law, it must pass the Senate and the House of Representatives, where the government is formed. Then the Governor-General must sign it.
Its journey through Parliament
| 26 Aug 2025 | Senate: Introduced and read a first time |
| 26 Aug 2025 | Senate: Second reading moved |