Wendy Askew (Tasmania, Liberal Party) Share this | Hansard source

Here we go again—it's Groundhog Day once again. We've been here before, and those opposite are using the valuable time of this chamber to make their political points again. Minister Reynolds has made a claim for public interest immunity in respect of the deliberations of cabinet and the disclosure of legal advice in relation to the Centrelink income compliance program. As has been said in this chamber every time this topic has raised its head—and despite what those on the other side might say—it has been a longstanding practice of successive Australian governments, of both political persuasions, not to disclose the fact or content of privileged legal advice. We have heard previously, even today, that Labor minister Senator Joe Ludwig told Senate estimates in 2011 that he would refuse to provide the Labor government's legal advice for the same exact reason. As we also heard earlier, it was confirmed by another Labor luminary, the Hon. Gareth Evans QC, in 1995. Furthermore, we all know that successive governments have upheld that deliberations of cabinet and its committees should be conducted in secret. This ensures the freedoms of cabinet deliberations can be preserved, as it is not in the public interest to disclose those deliberations. I reiterate: this is a long-established basis for a public interest immunity claim.

As the minister stated in the order-for-production letter, even though the class action has resolved and was recognised by the Federal Court on 11 June 2021, not all potential claims arising out of the income compliance program will be resolved through the class action. This is because a significant number of class members opted out of the class action and are free to bring their own individual claim should they wish to. As everybody in this chamber knows, the income compliance program has been subject to extensive scrutiny already, including by the Commonwealth Ombudsman and within parliamentary inquiries, including through the Community Affairs References Committee. As you are aware, the Community Affairs References Committee recently tabled its fourth interim report and has already held nine public hearings on it. This committee will be holding another hearing, the 10th, later this week. The process has also been subject to decisions of the Federal Court.

As announced in November 2019, the agency no longer raises debts by averaging ATO income information, without other information, on the basis that it is not sufficient. This relates to the sufficiency or adequacy of information used in making an administrative decision—specifically, whether or not there is enough information to make that decision. The government respects the decision of the court, including the finding of His Honour Justice Murphy that the settlement agreement proposed was fair and reasonable, and has approved the settlement. Group members who objected to the settlement will be given a further opportunity to opt out of the class action by 17 September 2021. Information about the opt-out process has been sent to objecting group members from 26 July this year. Once this process is complete, further information will be sent to class action group members on whether they are eligible for a settlement payment. And I note that a web portal and telephone line will be established so class action members can review their information and raise a query or a dispute.

Importantly, in the class action settlement agreement, Gordon Legal and the Commonwealth acknowledged that the settlement is not an admission of liability by the Commonwealth and it does not reflect an acceptance by the Commonwealth of the allegations that the Commonwealth or any of its officers had any knowledge of the unlawfulness associated with the income compliance program. The Federal Court similarly found that there is little in the materials placed before the court that could have sustained such an allegation.

Once it became clear that the basis upon which the debts were being raised—through the sole use of average ATO income data—was insufficient, Services Australia paused in-scope debts as they were identified. As at 20 August this year, about $736.6 million has been refunded, which is about 98.1 per cent of the estimated total of $751 million. Around 423,000 people have had their debts refunded and/or reduced to zero. Everyone who has responded has either been refunded or is in the process of being refunded. In cases where people haven't responded, their eligibility for a refund will remain on their record but Services Australia is unable to pay them until they provide up-to-date details so the transaction can be processed.

The government is focused on ensuring that the settlement agreement is implemented. The continued rhetoric from the opposition and crossbench that the government is not assisting those who need assistance is a falsehood. It is typical of their political games that have so frequently been used to scare the most vulnerable in our community. Frankly, it is no different than 'Mediscare'. Within the social service space, the Morrison government is focused on supporting all Australians as the economy recovers from the coronavirus pandemic. From 1 April this year, working-age payment rates, including JobSeeker payments, were increased by $50 and the income-free threshold was increased to $150 a fortnight. This was done to support jobseekers as they secure employment and re-enter the workforce. This reform has been the single biggest year-on-year increase to the rate of unemployment benefits since 1986 and represents an increase of 9.7 per cent between 1 April 2020 and 2021.

While the opposition has claimed otherwise, the truth is that our social security system has served Australians very well. Prior to the global COVID-19 crisis, we saw the proportion of working-age Australians reliant on welfare payments drop to just 13.5 per cent, the lowest level recorded in more than 30 years. No government has done more for Australians doing it tough than the Morrison government. At the height of the pandemic, we provided $32 billion in emergency support payments. This was on top of the previously mentioned increases in welfare payments. The Morrison government's key focus is creating jobs and getting people back into work. We know that getting a job is the best way to improve the living standards of people and their families. And it's not just about the money; it's about self-respect too; providing for your family promotes self-respect. The conduct of the opposition and crossbench is frankly appalling.

Finally, I would like the Senate to note that, as outlined in our dissenting comments on the interim report, during the interlocutory hearings in the class action the Australian Federal Court upheld claims of public interest immunity in relation to documents such as cabinet materials. This includes the executive minute to the Minister for Social Services dated 12 February 2015. Thank you.