Scott Morrison is staring down a class action into Centrelink’s controversial robo-debt welfare recovery scheme.
Lawyers are preparing to argue the commonwealth must repay debts collected and provide compensation to those affected.
Recipients of the debt letters are assumed guilty and must prove their innocence.
But more than 160,000 of the welfare agency’s automated debt notices are estimated to have contained errors.
The federal government has admitted more than one-quarter of the letters are found to have been wrong.
The prime minister argues many complaints against the scheme have been overstated.
“Where the system needs to be improved then we’ll always continue to do that,” he told the Seven Network on Wednesday.
“But we won’t make any apologies for actually making sure we recover overpaid taxpayers’ money.”