ACOSS has welcomed the government's announcement that it will provide resolution payments of up to $600 for people affected by unlawful income apportionment.
Income apportionment was an historical practice used by the government that saw people's earnings incorrectly averaged over two fortnights (or more) by Centrelink, resulting in inaccurate debt assessments.
"We have long called for these debts to be waived and welcome the government's decision to provide payments to people affected," said ACOSS CEO Dr Cassandra Goldie.
"We also welcome reform of the small-debt waiver provisions, lifting the threshold to waive small, accidentally-incurred debts to $250 from $200.
"For people living on the lowest of incomes, being hit with a debt notice causes extreme stress and hardship.
"Many suffer sleepless nights, worrying about how to put food on the table and pay money they simply don't have because their incomes are inadequate to cover basic costs.
"This is a sensible reform that means people are no longer unfairly pursued for small, unintentional overpayments," said Dr Goldie.
"It also means that many more people will be able to access advance payments and other payments in our social security system that are not available to people with a debt.
"More broadly, we welcome the government amending the Social Security Act to make it fairer for people on very low incomes. We urge the government to continue this work and reinstate the 6-year statute of limitations as recommended by the Robodebt Royal Commission.
"Almost ten years on from when the statute of limitations was removed by the then Coalition Government, ensuring people receiving social security have the same rights with respect to debt recovery as others in the community is long overdue.
