‘Disgrace’: Centrelink targets almost 150k over unpaid debts calculated by once ‘unlawful’ method

Key points

• Services Australia is restarting repayments on about 147,000 debts calculated using income apportionment, a method a Federal Court test case once found unlawful. New legislation has validated those debts, and repayments paused since 2023 are being restarted progressively.
• Some affected people say the debts are inaccurate, with one Adelaide mother saying debts from more than a decade ago have reappeared after six years. Services Australia says the scheme is not Robodebt and that the debts were calculated from actual earnings.
• A compensation scheme allows claims of up to $600, with applications open until January 29, 2027.