The major $2.1 billion crackdown coming to Centrelink
A major Centrelink overhaul would be able to save the government $2.1 billion by adapting the way welfare recipients report their employment income.
Over 1.2 million people receiving welfare payments could soon be made to specifically report the actual fortnightly income to Centrelink, rather than giving a calculation based on their wage and hours worked.
Minister for Families and Social Services Anne Ruston says she hoped the proposal will make the process simpler.
“We want to make sure that Australians who need financial support are able to get the support that they are eligible for – no less and no more,'” Minister Ruston said.
“The current system of calculating earnings can be confusing and lead to misreporting especially when accounting for overtime or penalty rates.
“These changes will make accurate reporting much easier for people getting a social security payment.”
Under the system currently in place, welfare recipients are required to report their or their partner’s earnings based on the number of shifts they have worked and their hourly rate.
The coalition hopes that by simplifying the reporting system, it will become more accurate and prevent those receiving payments being left owing money or having to repay the government for being overpaid.
The new change would additionally allow employment and income data to be pre-filled online, as it is also occurs with online tax returns.
Draft legislation detailing the changes will be released for consultation this week.
The coalition has hopes to bring the proposed laws to parliament when it resumes next week.
The new system, which has already been dubbed “robodebt 2 on steroids”, comes months after robodebt was deemed unlawful after a legal challenge in the Federal Court.
The government has wound back on the original scheme, which is also facing a potential class action lawsuit.