Robodebt royal commission findings released

The final report into the "crude and cruel" robodebt scheme made 57 recommendations in total, and included an additional sealed chapter which recommends referrals of individuals for civil and criminal prosecution.

Commissioner Catherine Holmes handed the 990-page report to Governor-General David Hurley on Friday morning, shortly before it was tabled in Parliament.

"Robodebt was a crude and cruel mechanism, neither fair nor legal, and it made many people feel like criminals," the commission wrote in the report.

"In essence, people were traumatised on the off-chance they might owe money. It was a costly failure of public administration, in both human and economic terms."

Prime Minister Anthony Albanese said the scheme was "a gross betrayal and a human tragedy".

"It was wrong, it was illegal, it should never have happened and it should never happen again," Mr Albanese said.

The Prime Minister paid tribute to the "courage of some vulnerable Australians" who blew the whistle on the scheme and criticised former Coalition government ministers who he accused of turning a blind eye to concerns being raised.

The report included a sealed chapter which has recommended criminal prosecution and civil action against a number of individuals, whose identity has not yet been publicly revealed.

Government Services minister Bill Shorten said the report showed the previous government and senior public servants "gaslighted" the public.

Mr Shorten said the scheme had "broken the sacred trust" between the public and the government.

The commission accused former prime minister Scott Morrison of "allow[ing] Cabinet to be misled ... because he took the proposal to Cabinet without necessary information ... and without the caveat that it required legislative and policy change".

The report also criticised the conduct of other former government ministers including Christian Porter, Alan Tudge and Stuart Robert.

The commission said Mr Robert went "well beyond" supporting government policy when he made public comments defending the scheme.

"He was making statements of fact as to the accuracy of debts, citing statistics which he knew could not be right," the report said.

"Nothing compels ministers to knowingly make false statements, or statements which they have good reason to suspect are untrue, in the course of publicly supporting any decision or program."

Mr Robert told the Canberra Times he had not received a notice of inclusion in the sealed section.

"As the Minister that worked hard to get the legal advice and close down the Income Compliance Scheme I welcome the RC report and its sensible recommendations," he said.

Speaking on Friday, the Prime Minister highlighted evidence given by ex-secretary of the Department of Human Services Renee Leon to the royal commission, that Mr Robert had initially dismissed her calls to axe the program.

The commission accused Mr Tudge of using the media to discourage criticism of the scheme and inhibit scrutiny and analysis of its flaws and said Mr Porter should "at least have directed his department to produce to him any legal advice it possessed in respect of the legislative basis of the scheme".

The Canberra Times has contacted the office of Scott Morrison for comment.

Among recommendations made in the three-volume report, Commissioner Holmes advised that mechanisms to hold senior public servants involved in the scheme to account should be strengthened.

The Public Service Act should be amended to make it clear the APS Commissioner can inquire into the conduct of former agency heads, the robodebt royal commission has found.

Not only should the Public Service Commissioner be able to inquire into the conduct of former agency heads, the Public Service Act should be amended to allow for a disciplinary declaration to be made against former APS employees and former agency heads.

The report also criticised public servants for "repeated failures ... to discharge their professional obligations and adhere to the values and standards that applied to their roles".

The royal commission also took aim at the structure and operations of the APS itself.

"But the behaviour of individuals is only part of the story," the commission said.

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"In the commission's view, many of the failures of public administration that led to the creation and maintenance of the scheme can be traced to features of the APS structure."

In particular, the commission identified problems arising from the separation of responsibilities between agencies, a lack of independence on the part of department secretaries, "woefully inadequate record keeping practices" and a lack of understanding of the APS' role, principles and values.

In a swipe at former Department of Human Services secretary Kathryn Campbell and the need for public servants to provide advice that is frank, honest, timely and evidence-based, the commission said that "when the [Robodebt] scheme was developed in 2015, the [proposal] was apt to mislead the Expenditure Review Committee and Kathryn Campbell did not take any steps to correct that misleading effect".

The commission said the Albanese government's steps to empower the APS, and particularly the senior executive service, do not go far enough.

It has urged the government to "revisit" Thodey Review recommendations about putting in place "robust processes" to appoint and dismiss department secretaries.

Other recommendations ranged from legislative reform, improving the public service, changing the way Services Australia deals with recipients, making it easier for advocacy groups and legal services to engage with Centrelink, and addressing failures in the budget process.

The Commonwealth was asked ensure current practices were lawful.

It was urged to seek legal advice on the end-to-end data exchange processes which are currently operating between Services Australia and the Australian Tax Office (ATO) to ensure they are lawful. The ATO and the Department of Human Services are asked to take immediate steps to review and strengthen their operational governance practices.

It was recommended that Services Australia develop a comprehensive debt recovery management policy, which would include that all recipients are treated fairly and with dignity. It is asked that all new programs and schemes are developed with a customer centric focus.

The government was asked to undertake an immediate and full review to examine whether the existing structure of the social services portfolio, and the status of Services Australia as an entity, are optimal. The Australian Public Service Commission is urged to deliver whole-of-service induction on essential knowledge required for public servants.

The Commonwealth was urged to consider legislative reform to introduce a consistent legal framework in which automation in government services can operate. It is also urged to consider establishing a body, or expanding an existing body, with the power to monitor and audit automate decision-making processes.

It was recommended that peak advocacy bodies are consulted before the implementation of any future projects involving the modification of the social security system.

The royal commission also recommends Services Australia put in place processes for "genuine and receptive" consultation with frontline staff when new programs are being designed and implemented.

It recommends that SES (Senior Executive Services) staff at Services Australia spend some time in a front-line service delivery role, and with other community partnerships. As well, it asks that the Public Service Act be amended to make it clear that the Australian Public Service Commissioner can inquire into the conduct of former agency heads. It is also recommended that the Public Service Act be amended to allow for a disciplinary declaration to be made against former APS employees and former agency heads.

The report includes numerous recommendations for the budget process to ensure no repeat of anything like Robodebt. It asks that all new policy proposals contain a statement as to whether the proposal requires legislative change in order to be lawfully implemented, as distinct from legislative change to authorise expenditure. It asks that a statement be included showing the Australian Government Solicitor has reviewed and agreed with the advice.

Royal commission heard from politicians, public servants, victims

The deadline for the report was extended from June 30 to July 7 in order for the commissioner to make referrals to the National Anti Corruption Commission, which began operating at the beginning of the financial year.

The Albanese government established the royal commission in August 2022, and across several public hearing blocks, it heard from 115 witnesses over 303 hours.

The scheme operated under the former Coalition government, from 2015 until 2019, when the Solicitor General found it to be unlawful.

It automatically raised debts against social welfare recipients by comparing their reported income with averaged annual pay data from the tax office.

People who received debt notices were expected to prove that they were incorrect, demanding huge efforts to gather payslips and other evidence.

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A class action lawsuit against the Commonwealth of Australia, settled in June 2021, resulted in the government paying more than $1.7 billion in financial benefits to 430,000 people.

Whistleblowers, public servants and those affected by the scheme told the royal commission of their plight as it was rolled out, and called for those responsible to held accountable by the royal commission.

In its final day, the royal commission heard from Kathleen Madgwick, the mother of 22-year-old Jarrad, who died by suicide in 2019, after learning of a $2000 debt raised against him.

It would also be a "difficult day" for many Australians, including frontline Services Australia staff, Community and Public Sector Union national secretary Melissa Donnelly said on Friday.

Former Centrelink workers told the royal commission their concerns about the unlawful scheme weren't listened to by senior officials.

Ms Donnelly said Services Australia staff wanted an apology from the government.

"We know it had devastating consequences, we know it was unlawful, and that no one has been held accountable.

"But the time for accountability is not behind us. It must start today."