"This is due to system limitations on the size of daily payments,"the spokesman said but declined to say what the dollar limits on payments was. One source close to Services Australia,the government department that administered the program,who did not want to be named for fear of jeopardising her employment,said the limit was about $10,000 per transaction.
Mr Robert's spokesman said payments would be made on consecutive days if they were too big to be paid in one go. He denied a claim on social media that some refunds would be made in $80 instalments,calling it"categorically false".
The government is facing a class action over the scheme from law firm Gordon Legal – despite the refunds – that is due to go to trial in September. The Federal Court in November last year found the income-averaging method was inaccurate and unlawful. Andrew Grech,a partner at the firm,said government's approach would"muck people about"and the court had the power to stop parties to class actions confusing plaintiffs.
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"We will be writing to the government's legal representatives,the Australian Government Solicitor,and asking them to clarify the[refund] process that’s being undertaken,"Mr Grech said. If that failed,he said Gordon Legal could ask the court to force the government to clarify its position.
The government estimates it will refund about $720 million it clawed back from welfare recipients through the robo-debt process,which used averaged income data rather than real earnings to assess whether people had been paid too much welfare. The Gordon Legal claim wants court-ordered interest and damages for its clients,on top of refunds.
A Services Australia spokeswoman said the department had already made a small number of repayments to test the system,with more from the middle of the month and most refunds expected to be completed by November.