The federal authorities's debt restoration program, often called robodebt, has been described as a "shameful chapter" and a "huge failure in public administration".
Robodebt ran for four-and-a-half years - from July 2015 to November 2019 - and noticed $1.73 billion in illegal money owed raised in opposition to greater than 400,000 individuals.
Saying the main points of the $30 million royal fee probe in August, Prime Minister Anthony Albanese stated robodebt was "a human tragedy with very actual penalties for its victims".
He additionally laid blame on the previous authorities who carried out the scheme, calling it the "Coalition's brainchild".
What's robodebt?
For those who're not acquainted with the robodebt scheme, this is a fast rundown on what went down.
When robodebt was rolled out in 2015, it was hailed by the federal government as a key instrument for use in monitoring down welfare fraudsters.
The automated scheme made use of knowledge matching algorithms.
It assessed annual revenue information from the Australian Tax Workplace in opposition to fortnightly Centrelink welfare funds.
However robodebt's averaging system used to calculate money owed was problematic and in some instances inaccurate.
It additionally put the onus of proof on the recipients of the debt.
Robodebt was first challenged within the Federal Courtroom in a case introduced by Victoria Authorized Support in 2019.
The case led to a landmark ruling, with the courtroom discovering a robodebt given to Victorian lady Deanna Amato was illegal.
Across the similar time, Gordon Authorized's monumental class motion had been introduced and the authorized strain led to the federal government agreeing to repay the $751 million that was wrongly recovered from 381,000 individuals.
What is going to occur right this moment?
The royal fee's first listening to is ready to start at 10am.
No witnesses will likely be known as right this moment.
As a substitute, the commissioner, Catherine Holmes AC SC, and the senior counsel aiding, Justin Greggery, will make their opening statements.
The listening to will likely be held in Pullman Resort and in addition streamed dwell by way of the royal fee's web site.
A transcript will likely be accessible on the web site shortly after the listening to.
What is going to the royal fee cowl?
The inquiry will probe the implementation of the disastrous scheme by the previous Coalition authorities and the way it was allowed to proceed for greater than 4 years.
A key line of inquiry will likely be what authorized recommendation the coalition authorities obtained over the scheme and when.
Former prime minister Scott Morrison, who was social providers minister on the time robodebt was launched, is prone to be known as to provide proof.
Different former authorities ministers anticipated to be drawn into the investigation are Alan Tudge and Stuart Robert, who each acted as social providers minister throughout varied iterations the scheme, and former attorney-general Christian Porter.
Some members of the general public affected by robodebt can also be requested to provide proof.
The royal fee is accepting public submissions till February 3 subsequent yr.
Whether or not robodebt victims needs to be given compensation for his or her ache and struggling can be anticipated to be up for dialogue on the hearings.
Authorities Providers Minister Invoice Shorten stated a number of questions remained unanswered about robodebt.
"We by no means obtained to listen to how the scheme obtained to be conceived, designed," Shorten stated.
"It was illegal, there was no authorized energy to do what they had been doing, to take the people out of the system, to rehearse the onus of proof.
"We by no means obtained to listen to why did the federal government proceed it for 4.5 years?
"The federal government has by no means satisfactorily defined how this monster scheme obtained away from the system and simply had a lifetime of its personal."
These are the important thing phrases of reference for the inquiry:
The institution, design and implementation of the scheme; who was liable for it; why they thought-about Robodebt vital; and, any considerations raised concerning the legality and equity
The dealing with of considerations raised in regards to the scheme, together with hostile selections made by the Administrative Appeals Tribunal
The outcomes of the scheme, together with the hurt to susceptible people and the full monetary price to authorities
Measures wanted to forestall related failures in public administration