Payne likened the debt recovery effort to robo-debt in the way the communication came as a shock to taxpayers. “Because there was a void of information about what can you do and where can you go for help, people will fill that void with their own catastrophes,” she said.

The ATO resumed chasing uneconomical-to-pursue debts after a 2023 report by the Australian National Audit Office (ANAO) recommended the tax office ensure its compliance with legal requirements to offset debts with credits…