Centrelink issues 2016-17 debt notices for clients in the Wimmera but some dispute agency's findings

The federal government has run an initiative since July to identify and recover money that Centrelink believes was overpaid or paid in improper circumstances.

That initiative appears to have gathered pace in December, with many clients taking to social media with debt notices from Centrelink.

Some of the notices refer to payments from years ago and ask the clients to provide copies of payslips and other financial paperwork.

Federal Social Services Minister Christian Porter has said the debt recovery system is working well, but acknowledged that 20 per cent of the 169,000 notice sent out have needed corrections.

Stawell resident Amy Rhodes said Centrelink had told her to start paying back $2000 or face a debt collector, even though staff recognised that an error had probably been made.

“I’ve been asked to repay my sickness allowance from four and a half years ago,” she said.

Ms Rhodes said she had resigned from her previous job and taken three months off work due to illness.

“They said I needed to provide a letter from my previous employer, which I know Centrelink already has because they asked for that letter to claim the payments in the first place,” she said.

“They said my information didn’t match information from the tax office. I know I can prove I don’t owe the money but it’s really frustrating.

“Centrelink said I needed to start paying the money back right away or they would send a debt collector.”

Ms Rhodes has to pay $60 per fortnight until she can get another letter from her previous employer.

“Even after I send them the letter, they said it would take some time before they can process it so I can get a refund,” she said. 

A Horsham woman, who asked not to be named, has been told she owes $10,000.

She claims the issue originated from Centrelink 

“I was studying in Ballarat last year doing my certificate III in early child care,” she said.

“Once I started studying I took in all the appropriate documentation and showed a Centrelink adviser. This adviser told me I would receive my payment whilst completing the study.

“Apparently the service adviser entered the details wrong and claimed I shouldn't have been receiving a payment.”

The Department of Human Services and the Administrative Appeals Tribunal has denied the woman’s request for a review of the debt.

She has now started repaying the money while trying to start an appeal.

One mother from Warracknabeal, who asked not to be named, said she was asked to pay back almost $1700.

“I have had a fair amount taken off me as they think my kids’ father was working and earning an incredible amount but nearly the whole time he was on a Centrelink payment,” she said.

“I even told them ring people he was meant be working for but they wouldn’t and I lost the appeal somehow.”

A Horsham woman said an old issue with unemployment payments had been reopened despite being resolved more than a year ago.

The woman, who asked not to be named, said she had claimed Centrelink payments while being unemployed between jobs for several months prior to 2013.

“I received a Centrelink letter claiming that what I had reported to them didn't match my gross income from my 2013-14 tax return, and that they would be looking into the situation,” she said. 

“I then received another letter claiming that they had found no discrepancies and everything was in order.

“I then received another letter claiming that the last one was mistakenly sent to me, and that they were still looking into everything.”

The woman said she had received an email and MyGov online notice in December stating she owed more than $700.

Some clients who received debt notices had a theory about how mistakes might have happened, based on the fact that Centrelink is crosschecking with tax records to find possible over-payments.

The clients believe the automated system has unable to tell the difference between someone who was working in some months and claiming payments in others versus someone who was constantly working.

Ms Rhodes said Centrelink staff told her that the $2000 debt was probably related to the automated checking system turning her tax return information into an average over 12 months instead of nine.

“That’s exactly what they said happened. They said it was probably an error but I still had to start repaying,” Ms Rhodes said.

Social Services Minister Christian Porter said the system was working well.

“The complaint rate is running at 0.16 per cent, that's only 276 complaints from 169,000 letters and that process has raised $300 million worth of money back to the taxpayer,” Mr Porter told ABC radio.

Mr Porter said welfare recipients had a responsibility to keep and supply information about their income.

Mr Porter did not say how many people out of the 169,000 had challenged the debt notices without making a complaint but acknowledged that mistakes were possible.

“I don’t think that most Australians would find it unreasonable that you go back and cross reference information that an individual has given to the Australian Tax Office with information that the same individual has given to Centrelink,” he said.

“If there’s a discrepancy then there’s a polite letter and you are given plenty of time to go online and correct the issue if a correction needs to be made.”

Mr Porter later said that 20 per cent of the debt notices had needed corrections.

“In 80 per cent of instances the debt is repayable to the Commonwealth.

“In the final 20 per cent of instances, the matter is resolved, generally speaking, by people simply providing information online. That’s it.

“Only in 2.2 per cent of occasions was documentary evidence, of any type, required.”

Shadow minister for human services Linda Burney has called on the government to stop sending out notices.

“If there are mistakes in the system, an automated system, then I think the responsibility of any government is to stop using that system until they get it right,” she said.