January 10, 2026
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Technology

Robodebt made victim ‘feel like a cheat’, royal commission told

A robodebt sufferer has described how the botched program made him really feel like a legal and nonetheless impacts his psychological well being 5 years after the illegal money owed had been raised.

His proof got here as the previous chief authorized officer for the division of human companies overseeing the scheme, Annette Musolino, admitted she “ought to have executed extra” to comply with up on questions on its legality.

Matthew Thompson, who lives on a rural property in Tasmania, was incorrectly advised he owed $11,000 for accessing Newstart and the illness allowance between 2012 and 2015.

This included almost $1000 in “restoration charges” added by the division for declaring his earnings incorrectly.

Mr Thompson labored casually as a photographer for the Mercury newspaper in Hobart and had fluctuating shifts and pay.

Not too long ago recognized with generalized nervousness dysfunction, Mr Thompson advised the fee he had struggled along with his psychological well being all through his life and at instances it affected his skill to work.

He described feeling “shocked” at receiving two Centrelink letters in 2018 elevating the debt and needed to discover his pay slips from the interval, which took a number of time.

“Coping with Centrelink is a full-time job,” he mentioned on Wednesday.

Mr Thompson later had his Newstart debt lowered and finally wiped.

In August 2020 he obtained a letter saying Centrelink now not calculated money owed in the identical method and it had been lowered to zero.

“There was a little bit of aid however the injury had already been executed,” Mr Thompson mentioned.

He adopted the royal fee carefully and felt compelled to offer proof after he watched former prime minister Scott Morrison being questioned.

“After Scott Morrison’s look – I used to be watching the entire thing – that night time I could not sleep. I used to be livid and wound up,” he mentioned.

“The robodebt scheme has had a long-lasting impact on me because it has on many others. It made my psychological well being worse. It made me really feel like a legal and a cheat.”

He mentioned the way in which politicians talked about individuals who wanted help made him really feel “unhappy and sick”.

“It appears to me that the highly effective persons are all the time capable of benefit from weak individuals and the hole between wealthy and poor will increase… I hope this fee modifications that.”

Former chief authorized officer Ms Musolino, who now works as chief working officer at Companies Australia, gave proof to the fee for a second time.

The fee beforehand heard from former departmental secretary Renee Leon who mentioned Ms Musolino didn’t talk that she was conscious of authorized recommendation from the Australian authorities solicitor who questioned the legality of earnings averaging.

Professor Leon mentioned Ms Musolino assured her the division was assured of its legality.

But Ms Musolino mentioned she recalled neither this interplay with Professor Leon nor the draft authorized recommendation in January 2017, regardless of it being despatched to the chief counsel’s inbox.

“We had an entrenched view at that time that it was lawful,” she mentioned.

Ms Musolino mentioned, on reflection, the division relied too closely on this “entrenched view” relatively than investigating the legality of the scheme.

When criticisms had been raised in July 2017 by Peter Hanks, an professional in constitutional and administration regulation, Ms Musolino tasked different members of her crew to look at them.

“In hindsight, I ought to have executed extra. I ought to have been extra alert… I believed I had controls in place that if points or recommendation wanted to be introduced ahead, it might be,” she mentioned.



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