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No I’m pretty sure we agree that it’s a bad thing.

I’m pointing out the intention of those involved. The intention is not to assume everyone is a cheat, rather the intention is to make it difficult to make a claim.

the structural design assumes everyone is a welfare cheat until proven otherwise

I disagree. I work in a related industry and sadly see a lot of people trying to interact with centrelink.

Over the years I’ve developed a strongly held belief that their processes are designed to be invasive and difficult to follow in order to discourage claimants. Dealing with centrelink is your last, worst option, and that is by design.