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The Canberra Times

Dave Allen

A tax refund system was automated, and struggling families took a hit

ATO Services Australia the Department of Social Services

Government agencies have quietly agreed to adjust an automated debt-recovery system targeting tax refunds after an internal review found it failed to account for people experiencing severe financial distress.

The ATO, Services Australia, and the Department of Social Services used automated decision-making to recover family assistance debts from tax refunds without assessing financial hardship. Pictures by Sitthixay Ditthavong, Keegan Carroll, Shutterstock

Parents receiving welfare support for dependent children under the age of 15 through the Family Tax Benefit program were having overpayments clawed back from tax returns under the system, which the Administrative Review Tribunal (ART) flagged for review in September last year.

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