As part of its review of the Government's Covid-19 response, the Corporate Services Scrutiny Panel has published a report examining the Co-Funded Payroll Scheme (CFPS), which was established to support individuals adversely impacted by the pandemic. The Panel found that:
- The Government did not always succeed in its efforts to ensure that the Scheme's criteria and application guidelines were understandable
- Delays in auditing payments led to some unexpected requests for repayments
- Individuals felt unduly accused by the communication of repayment demands, with delays in correspondence adding to undue stress
- Payment or repayment decisions are not entitled to a right of appeal
In turn, the Panel has recommended that the Minister for Treasury and Resources provides a right of appeal for all outstanding repayment cases before 10 May 2022 and for future business support schemes:
- Auditing is carried out within three months
- Guidance on the criteria and application is better tested to aid understanding
- The review process for applications and the extension of payment terms for debts are fully communicated
The Panel welcomes that, in line with its suggestion, payment terms for the CFPS have been extended from 30 days to two years, and up to five years if evidence of financial hardship can be provided. However, the Panel is of the view that further communication is needed to make businesses and individuals aware of this.
Chair of the Corporate Services Scrutiny Panel, Senator Kristina Moore, said: "As was appropriate in such exceptional circumstances, the Government stepped in to provide support for businesses during Covid 19. However, worrying evidence given by members of the public about the Co-Funded Payroll Scheme raised concerns which have become the focus of our review of the Government's Covid-19 response.
"It is imperative that an appeal process is provided to assist those who have experienced issues in the demands for repayment and that the protracted process and poor communication of this Scheme is not extended to future business support schemes. We very much hope that the Government will take on board the points raised by the Panel and resolve any outstanding issues in a compassionate manner to ensure those affected are not unduly penalised."