Contributed by Ben Wilson
Misbehaviour of businesses profiting from the welfare system in Australia is well documented. It includes abuse by forcing those sent to them through meaningless activities, useless pretend training sessions, and subjecting them to unjust reporting for minor allege breeches that results in the suspension of payments.
Add to this those businesses abusing the Centrepay service. An investigation by the Australian Securities and Investment Commission (ASIC) found more than 40 percent had been con-compliant with their legal obligations. The most vulnerable Australians have paid the price.
Despite this, a federal government investigation has only looked into 4 percent of the businesses involved.
The problem is hat behind this is the privatisation of what were once Centrelink services. Employment services and Centrepay are part of the same package, in the sense of applying the wrong concept that the market is the best provider of services.
How can this be when employment services providers are paid on how many they get off the list rather than on placing people into jobs or opening doors for the greedy to rob the vulnerable. This is even worse when the government throws money in their direction.
![](https://the-pen.co/wp-content/uploads/2024/07/Rampage.jpg)
New retail chain expanding rapidly targets disadvantaged communities to exploit them through Centrepay and high prices
Both private providers and government have a vested interest in keeping the lid on this, and it figures that there is a strong reluctance against any proper investigation.
ASIC has repeatedly warned that this system is allowing predators an in.
Key abusers of Centrepay have been firms pushing rent-to-buy housing schemes, energy retailers imposing excessive charges, landlords, providers of whitegoods and other household necessities overcharging, and at times, even extreme religious groups forcing payments on the vulnerable.
None of this would be possible without a system that facilitates it.
ASIC has called for stronger enforcement of the rules. The problem is that the system has more holes than a fishing net. Almost nothing is done to capture wrongdoers.
Ending the problem requires the political will sand means to enforce it. Neither exists. Coalition and Labor governments have facilitated this. Their consensus is to maintain the system.
If Australia’s priority is going to be to lifting the vulnerable through the provision of genuine new jobs and the basics a standard of living acceptable in Australia, this consensus must go.
The alternative is a human Services Department that puts the wellbeing of those it is supposed to service as its priority. This means excluding private sector shysters, improving the quality of services delivered through Centrelink, and adequate oversite of the Centrepay system.
Be the first to comment on "Crackdown on businesses abusing Centrelink and Centrepay services needed"