Document relating to Legal Compliance and Remediation Program Income Compliance Issue (LEX 90226). 1 document released in full. LEX 90226 Sections of the Act : N/A Exemptions : N/A

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Services Australia disclosed a compliance remediation document addressing historical errors from the Income Compliance Program (ICP), closed in 2019. The issue involves 530,630 debt records affecting 434,895 customers where averaged earnings from ATO data were incorrectly applied to historical records due to system limiting dates that prevent reassessment. While this does not impact current payments, affected customers may have been under or overpaid, with some records containing earnings incorrectly applied under social security law. Initial remediation (2020-21) corrected 184,357 debt records. The second phase targets records with ATO averaged and partially verified information, exploring risk-based remediation options considering customer impact, outcomes likelihood, time, and investment required. Remediation is ongoing on an ad hoc basis when customer records are modified. Completion date remains to be determined, with no legal or policy advice received and no legislative changes required.