A Hunter woman who was incorrectly told she owed thousands of dollars to the federal welfare agency has welcomed the announcement of a royal commission into the robodebt saga.
Emma Meldrum, from the Maitland area, received a notice in 2017 that Centrelink had overpaid her $11,912.98 while she was receiving Youth Allowance during her time at university.
It was one of many cases that came to light involving Centrelink's income compliance program between 2015 and 2019 - overseen by Coalition governments - in which thousands of people were chased for welfare debts they did not owe.
Prime Minister Anthony Albanese on Thursday announced a royal commission into the issue, to be led by former Queensland judge Catherine Holmes, with a report to be handed down next April.
After receiving her debt notice, Ms Meldrum said she had her case reviewed twice - the first reducing the bill to $9000 and the second to $4000 - in a process of being handballed from one person to another that she described on Thursday as "disgusting".
She eventually paid the $4000, but after taking her case to Shortland MP Pat Conroy the money was returned to her.
"I was struggling financially and my mental health took a huge nose-dive," she said.
"I had reported my earnings every fortnight, never missed a reporting date, never withheld what I earnt, and they made me feel like I had cheated the system or intentionally misled them to get a payment."
Ms Meldrum said she believed the saga needed the scrutiny of a royal commission.
"Those members responsible for coordinating it and advocating for it need to be held accountable and they need to acknowledge the effect this had on so many," she said.
"I genuinely just hope they look into this and don't cover anything up. So many people were negatively impacted and have lasting mental health issues as a result."
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