The robodebt scheme was conceived in 2015 under then-Social Services Minister Scott Morrison. Evidence found it falsely accused welfare recipients of owing money to the federal government.
It issued automated debt notices after miscalculating welfare recipients' average weekly earnings. Savings of more than $1.7 billion over five years were projected into the 2015 federal budget, and debt collectors were engaged. In the end, the scheme wrongfully recovered more than $750 million from 381,000 people.
The federal court declared the scheme illegal in 2019 and an out-of-court settlement of $1.2 billion followed.
Counsel Assisting the Royal Commission, Justin Greggery, has vowed not the prejudge matters based on previous reports and inquiries.
But Royal Commissioner Catherine Holmes has pledged to provide accountability.
"Not much has been revealed about why, about what advice or consultation or reasoning or response to criticism was occurring behind the scenes at any stage."
The Royal Commission was a key election promise of the present federal government.
Federal Minister for Government Services Bill Shorten says the previous government was careless at the very least.
"Despite the warnings, despite the hardship, despite the trauma, the robodebt scheme was relentlessly implemented by the Morrison government. So, this Royal Commission is to find out: how could there have been such a massive failure of public administration? How could the government of Australia unlawfully raise debts against nearly 400,000 of our fellow Australian citizens, alleging $1.7 billion was owed to the Commonwealth? The scheme was unlawful. The warning signs were ignored. Trauma occurred."
Those directly affected by it say they just want answers. The first witnesses are due to give evidence on the 31st of October.
The Royal Commission is due to report in April of next year.
