Bass Liberal MHR Bridget Archer says the government's overhaul of the robo-debt system is proof they "have been listening to Australians", more than three years after the automatic debt collection system effectively started.
This week, Social Services Minister Stuart Robert confirmed that all existing debts would be reviewed, and current debt recovery processes would be frozen while a review was carried out.
The system of income-averaging would be abandoned, and Centrelink would need to provide more proof before the debt recovery process started.
Robo-debt has been heavily criticised by social service organisations since the automated process started in July 2016, including at a hearing in Launceston this month, when TasCOSS detailed the psychological harm is was causing vulnerable Tasmanians.
Ms Archer said the government had responded to concerns like these.
"I think what the government will say is that they have been listening to Australians, certainly that's what's been happening here in Bass," she said.
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"We've had a number of conversations about that around the wider social security system over time, this is another example of what I've previously said where we need to look at the entire system and not just cherry-pick elements of that.
"We've got to be listening to what our constituents say and responding appropriately."
TasCOSS also claimed the higher levels of casualisation in the Tasmanian workforce meant Tasmanians were at greater risk of accruing a robo-debt as it was more difficult to calculate exact incomes when reporting to Centrelink.
Ms Archer disputed whether there was a link.
"I'm not sure that I would necessarily link those two issues," she said.
"As I've previously said, these issues are complex, people are complex, and their circumstances are different and individual, and I think therein lies the challenge."
Ms Archer has earlier called on a more holistic approach to issues in Australia's social welfare system, taking into account the varying needs of the unemployed and underemployed, rather than focusing solely on Newstart. Her office regularly fields constituent questions about robo-debt.
The government's decision to abandon key aspects of the robo-debt system came just days before Gordon Legal commenced a class action in the Federal Court in regards to 400,000 debt notices issued by Centrelink, which it described as an "illegal clawback".