Part A: Taskforce establishment and inquiry outcomes

1.1 Robodebt Royal Commission

A Royal Commission was established on 18 August 2022 to inquire into the establishment, design and implementation of the debt assessment and recovery scheme that became known as ‘Robodebt’. The Robodebt Scheme comprised the Pay As You Go (PAYG) Manual Compliance Intervention program, as well as its subsequent iterations in the Online Compliance Intervention, the Employment Income Intervention and Check and Update Past Income. The Robodebt Scheme ran from July 2015 to November 2019.[2]

The Royal Commissioner, Ms Catherine Holmes AC SC, submitted her Final Report to the Governor-General on 7 July 2023. The Final Report contained a sealed section which was provided to relevant Agency Heads. The sealed section contained a number of referrals for Code investigations.

1.2 Establishing the Taskforce 

Agency Secretaries, through the Secretaries Board forum, agreed that, following the completion of the Royal Commission and tabling of the Royal Commissioner’s Final Report, a centralised inquiry mechanism would be established. The centralised inquiry mechanism was known as the Centralised Code of Conduct Inquiry Taskforce. The role of the Taskforce, established within the APSC, was to support the Independent Reviewers to inquire into suspected breaches of the Code by current and former APS employees and former Agency Heads, relating to the Robodebt Scheme. The Taskforce formally commenced operation on 7 July 2023 for an initial 12 month period upon release of the Final Report although some administrative arrangements were put in place prior to that date. This time permitted careful and diligent, independent consideration of all material pertinent to the inquiry and allowed for procedural fairness in individual cases.

1.3 Composition of the Taskforce

To maintain the robustness and consistency of this centralised mechanism, the Commissioner delegated his powers in accordance with sections 78(5) and 78(5A) of the Public Service Act to Mr Stephen Sedgwick AO and Ms Penny Shakespeare as Independent Reviewers. This delegation enabled Mr Sedgwick and Ms Shakespeare to conduct Code inquiries. 

Mr Sedgwick was appointed to review suspected breaches of the Code under paragraphs 41(2)(n) of the Public Service Act and make determinations with respect to current and former APS employees referred by their current or last employing Agency Head.

Ms Shakespeare was appointed to review suspected breaches of the Code under paragraphs 41(2)(k) and (m) of the Public Service Act and make determinations with respect to former Agency Heads as referred by the Minister for the Public Service.

The Taskforce team, led by a senior public servant, was established to support the Reviewers. Other officers were recruited from a range of APS agencies on either temporary transfer or secondment arrangements. These officers had a range of classifications, experience, and capability. At its peak, the Taskforce had ten officers however staffing was scaled back during the duration of the Taskforce to accommodate fluctuating levels of work.

Additionally, Ms Cheryl-Anne Moy and Ms Elizabeth Kelly PSM, were appointed by the APS Commissioner in the role of Independent Sanctions Advisors. Ms Moy and Ms Kelly were tasked with making sanction recommendations to the relevant Agency Head if a Reviewer determined that a breach of the Code had occurred for current APS employees. As with the Reviewers, it was important that the sanctions advisers were independent from the agencies within which the individuals were employed and had no conflicts of interest with respect to the individuals that were subject to inquiry.

1.4 Referrals to the Taskforce

The Royal Commission only referred individuals to the APS Commissioner in the sealed section of its Final Report who, if found to have breached the Code, could be subject to a sanction. This meant that Royal Commission referrals were confined to current APS employees who may be subject to sanctions.

Referrals to the Taskforce inquiries were not limited to the individuals referred by the Royal Commission for further assessment. A number of individuals who, while not the subject of a direct referral from the Royal Commission, were the subject of adverse commentary in the Final Report. Agency Heads had the option to refer any current or former APS employee, whose conduct they assessed warranted investigation. A number of individuals were also referred by the Minister for Public Service on the advice of the Secretary for Prime Minister and Cabinet. Ultimately, the Taskforce received 16 referrals. For the purposes of the inquiries and this report, these individuals are referred to as ‘respondents’.

1.5 Referrals of former Agency Heads

A small number of former Agency Heads were referred by the Minister for the Public Service acting on the advice of the Secretary of the Department of the Prime Minister and Cabinet, Professor Glyn Davis, and the APSC. Ms Penny Shakespeare, was appointed to make inquiries into the conduct of former Agency Heads.

As the inquiries progressed, and in response to submissions made by a number of former Agency Heads, it became apparent that the Public Service Act was not clear with respect to conducting inquiries, and making determinations, into alleged breaches of the Code by former Agency Heads. Government acted on the advice of the APSC to urgently amend the Public Service Act to provide this clarity. 

On 26 August 2024 the Public Service Amendment Act (No 2) 2024 received Royal Assent. The Act clarified that the Commissioner can conduct inquiries and make determinations with respect to alleged breaches of the Code of Conduct by current and former Agency Heads. The Act includes provisions to validate reviews into the conduct of former Agency Heads where those reviews commenced under paragraph 41(2)(k) of the Public Service Act after 7 July 2023. This was intended to enable the finalisation of reviews into the conduct of former Agency Heads involved in the Robodebt Scheme.

1.6 Independent process

Throughout the inquiry, the Reviewers and Taskforce have operated independently from the broader APSC. The Taskforce was physically separated from other APSC offices and staff. The Taskforce had autonomy within the APSC to conduct operations without interference or monitoring. Taskforce IT systems were digitally partitioned so that non-Taskforce staff were unable to access or view Taskforce files.

Clayton Utz were selected as external legal advisers to the Reviewers and Taskforce, with additional legal advisers appointed in the case of conflicts of interest with Clayton Utz.

The Taskforce inquiries have been a separate process from the Royal Commission. All information relevant to these Code cases, including documentary information and evidence obtained in the course of the Royal Commission, has been independently considered.