The short answer
Social Security and Other Legislation Amendment (Responding to Robodebt) Bill 2025 [No. 2]: what the bill would change
The Social Security and Other Legislation Amendment (Responding to Robodebt) Bill 2025 [No. 2] is a private senator's bill introduced by Greens Senator Penny Allman-Payne on 26 August 2025. It would respond to the recommendations of the Royal Commission into the Robodebt Scheme by amending four key Acts: the A New Tax System (Family Assistance) (Administration) Act 1999, the Social Security Act 1991, the Social Security (Administration) Act 1999, and the Student Assistance Act 1973. The bill seeks to reform how social security debts are calculated, raised and recovered, and to constrain the use of automated data-matching in debt recovery processes. As a private senator's bill, it is currently before the Senate.
This is a federal system guide. State constitutions, parliaments and local-government laws can allocate comparable functions differently.
The useful question is not only “what is the rule?” but also “who administers it, which document controls it, and when might it change?” That distinction prevents an accurate general explanation from becoming wrong advice in a particular election, chamber or policy setting.
Evidence review
Background: the Robodebt Royal Commission
The Robodebt scheme was an automated debt recovery programme operated by the Australian Government between 2015 and 2019. It used data-matching between the Australian Taxation Office (ATO) and Centrelink to identify discrepancies between reported income and welfare payments, and automatically issued debt notices to welfare recipients based on averaged income data rather than individual earnings.
The scheme was found to be unlawful by the Federal Court in 2019. The government ultimately refunded over $750 million to hundreds of thousands of welfare recipients and abolished the scheme. A Royal Commission into the Robodebt Scheme was established in 2022 and delivered its final report in July 2023, making 56 recommendations for reform.
The Royal Commission made scathing findings about the scheme's design, implementation, and the conduct of senior public servants and former ministers. It recommended significant changes to how social security debts are raised, calculated, and recovered, and to the culture and governance of the public service agencies involved.
Evidence review
What the bill proposes
The Social Security and Other Legislation Amendment (Responding to Robodebt) Bill 2025 [No. 2] is Senator Allman-Payne's attempt to implement certain recommendations of the Robodebt Royal Commission through legislative reform. The bill's 'No. 2' designation indicates it is a reintroduced or revised version of an earlier proposal.
The bill would amend four Acts to reform debt recovery processes in the social security system. It addresses how debts are calculated — requiring that individual circumstances are considered rather than using averaged or automated income assessments. It constrains the use of automated data-matching as the sole basis for raising debts, requiring human oversight and verification of data before debt notices are issued.
The bill also amends provisions relating to the recovery of debts from family tax benefit recipients, student assistance recipients, and other social security beneficiaries, with the aim of ensuring that debt recovery processes are fair, transparent, and consistent with administrative law principles.
Evidence review
The four Acts affected
The bill targets four pieces of legislation that govern social security payments and debt recovery. The A New Tax System (Family Assistance) (Administration) Act 1999 covers the administration of family tax benefits and childcare subsidies. The Social Security Act 1991 is the principal legislation for pensions, allowances and benefits; the Social Security (Administration) Act 1999 is its companion administration Act. The Student Assistance Act 1973 covers payments including Youth Allowance, Austudy and ABSTUDY.
Amending these four Acts addresses the full spectrum of Commonwealth payments that were affected by the Robodebt scheme. Debt recovery under each Act operates under similar principles but with scheme-specific variations, and the bill's amendments would harmonise protections across all four.
Evidence review
The politics of Robodebt reform
The Robodebt scheme remains a politically sensitive issue. The Coalition government that created and operated the scheme has acknowledged it was unlawful, while the current Labor government inherited the task of implementing the Royal Commission's recommendations. The government accepted in principle all 56 recommendations, but legislative implementation has been partial.
Senator Allman-Payne's bill comes from the Greens, who have consistently criticised both major parties over social security policy. The bill's reintroduction as 'No. 2' suggests that the government has not prioritised the legislative elements of the Royal Commission's recommendations, prompting Senator Allman-Payne to reintroduce her private senator's bill.
As with other private senators' bills, its prospects depend on securing government or sufficient crossbench support. The bill may be used to pressure the government to introduce its own legislation or to accept amendments to government bills.
Evidence review
Evidence and uncertainty
The Royal Commission's report provides the evidence base for the bill's proposed reforms. The Commission's findings about the unlawfulness and human impact of automated debt recovery are well established and have been accepted by government. The question is not whether reform is needed — the Royal Commission established that — but what form it should take.
Uncertainties include the government's preferred legislative approach, the operational implications for Services Australia (which administers Centrelink), and the interaction between the bill's proposed safeguards and existing administrative review mechanisms such as the Administrative Appeals Tribunal. The bill's specific provisions should be checked against the Explanatory Memorandum and the government's response to the Royal Commission.
Common questions
Before you rely on the answer
What was the Robodebt scheme?
Robodebt was an automated debt recovery programme that used ATO income averaging to identify supposed overpayments of Centrelink benefits between 2015 and 2019. The Federal Court found it unlawful because it used averaged income data rather than individual earnings to calculate debts. The government refunded over $750 million and the Royal Commission delivered a damning report in 2023.
Why is this bill called 'No. 2'?
The '[No. 2]' designation indicates this is a reintroduced or revised version of an earlier bill introduced by Senator Allman-Payne. Bills may be reintroduced after lapsing at the end of a parliamentary session or after revisions following consultation or committee consideration.
Has the government implemented the Robodebt Royal Commission recommendations?
The government accepted all 56 recommendations in principle, but implementation has been partial. Some administrative changes have been made, but comprehensive legislative reform of social security debt recovery processes has not yet been enacted by the government.
Source spine
Primary material used for this guide
- Bill homepage — Parliament of Australia — checked 2026-07-17
- Bill text — Parliament of Australia (ParlInfo) — checked 2026-07-17
Review trigger: Review if the bill passes, is amended, lapses, or if the government introduces its own Robodebt reform legislation.
Archive note: This article reviews a private senator's bill as introduced on 26 August 2025. The bill responds to findings of the Royal Commission into the Robodebt Scheme, which delivered its final report in July 2023.
Primary links are provided without affiliate or tracking parameters. Confirm that the source still applies to the bill, sitting date, jurisdiction or reporting period before relying on it.