'They are lying’: Single mum blindsided by massive $8,000 Centrelink debt
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Financial surprises are rarely welcome, but when they come in the form of an unexpected government debt, the consequences can be overwhelming.
One young mother found herself in just that situation, facing a hefty bill she claims is the result of a bureaucratic mistake.
What unfolded next was a frustrating battle for answers, accountability, and financial stability.
A young Queensland mother found herself in financial turmoil after being hit with an unexpected $8,000 debt from Centrelink—one she insists was not her fault.
Susie, a 23-year-old single mother of two, had been receiving approximately $800 per week in welfare payments for over two years.
She previously experienced homelessness in early 2022 but later secured a subsidised rental through the Queensland Department of Housing.
Carefully budgeting her payments, she ensured her children had everything they needed while also managing to save over $20,000 in two years.
Part of her savings went towards purchasing a new car, as her previous vehicle was unreliable and frequently broke down.
Feeling financially stable, she enrolled in university, believing she could now manage the associated costs.
However, in January 2024, she was blindsided by a letter stating she had been wrongly receiving rent assistance and now owed Centrelink thousands.
Susie claimed the debt resulted from an administrative mistake, as she had been assured in 2022 by a Centrelink employee that she was eligible for rent assistance.
‘I walked into a Centrelink office and they gave me rent assistance, assuring me that I was eligible,’ she said.
Shocked by the sudden debt, she contacted Centrelink for answers and to prevent such an issue from happening again.
‘The lady over the phone, this was a Centrelink officer, she sounded so mad, not at me, at the system,’ she said.
‘She literally said to me this is no fault of your own, whoever gave you this rent assistance made a severe error.’
Centrelink later claimed that in October 2022, Susie reported living in private rental accommodation.
They alleged she had provided a lease agreement to support this—something she vehemently denied.
‘I would love to see that lease agreement because I have only ever lived in this one unit through the department of housing, now through social housing. I have never been able to afford private rent,’ she said.
‘They are lying. Surely someone is going to get fired after all this goes down. It is easily provable that that is a lie.’
‘I hope someone loses their job because they are tampering with our lives.’
To counter Centrelink’s claim, she publicly shared a copy of her lease agreement, showing she was in government housing.
Speaking to the media, Susie said Centrelink had yet to provide any proof of the alleged lease agreement.
‘I requested that they put forth the evidence over the phone to the debt department that wrote the letter,’ she said.
‘I actually spoke to the woman who told me she wrote that particular letter and she refused to answer my questions.’
Services Australia said that they had been in contact with Susie but could not comment on individual cases due to privacy reasons.
‘Customers have a right to ask for an explanation or a formal review of any decision we make. As part of a review of a decision we’ll consider whether it’s appropriate to waive a debt,’ Services Australia General Manager Hank Jongen said.
‘If a debt still stands after the review, customers can set up a flexible repayment arrangement.’
‘If the customer disagrees with the outcome of the review, they can apply to the Administrative Review Tribunal (ART) for an independent review. Their debt repayments can be paused until the ART’s review is complete.’
Susie challenged the debt and awaited an appeal through the ART, a process that could take up to three months.
Despite the pending appeal, she was required to make payments towards the debt, reducing her weekly income to approximately $586 after rent deductions.
‘This debt has taken serious funding away from my food bill and childcare. How can I afford to re-enter the workforce if I can’t afford more days at daycare? My only option is to study and do work placement,’ she said.
‘To add, my children’s father has been exempt from paying any child support, the government has sent me a debt despite it being their employees’ fault and I am still battling chronic vertigo as of 2023.’
She had been vocal online about her struggles, sharing her experience of living on welfare and budgeting as a single mother.
While she received significant support from people outraged by the situation, others were less sympathetic.
Some questioned why she remained on Centrelink, but she insisted she had no choice.
‘I have nothing in my super account. I have a child who requires special therapy during school hours for their needs in order to be ready for school. And no support, nothing,’ she said.
‘No one to help with the children when I can’t drive, no one to help me.’
‘I’ve worked since the age of 15 to 22, I’ve always been doing something.’
At her current repayment rate, she estimated it would take nearly a decade to clear the debt.
Her initial video on social media gained over 500,000 views and 1,200 comments, with many sharing similar experiences.
Watch the video below.
‘I hate how they do this, similar thing happened to me,’ one person wrote.
Another claimed they had been placed on the wrong type of payment twice and were forced to pay back money as a result.
‘I live in constant fear of getting a debt sent to me even though I haven’t been on Centrelink for over a year,’ another said.
Others argued she should not be responsible for the debt at all.
‘Nah that’s on them, they GAVE it to you. I would keep fighting that. do not pay them a cent. it’s ON THEM,’ one comment read.
‘This is appalling. They can send the bill to the staff member who stuffed up if they’re so keen to get their money back,’ another said.
Here’s the latest on her Centrelink debt—watch now!
Facing an $8,000 debt due to an alleged administrative error, Susie’s struggle has sparked debate about accountability in government payments.
Have you or someone you know experienced a similar situation with Centrelink? Let us know your thoughts in the comments.
One young mother found herself in just that situation, facing a hefty bill she claims is the result of a bureaucratic mistake.
What unfolded next was a frustrating battle for answers, accountability, and financial stability.
A young Queensland mother found herself in financial turmoil after being hit with an unexpected $8,000 debt from Centrelink—one she insists was not her fault.
Susie, a 23-year-old single mother of two, had been receiving approximately $800 per week in welfare payments for over two years.
She previously experienced homelessness in early 2022 but later secured a subsidised rental through the Queensland Department of Housing.
Carefully budgeting her payments, she ensured her children had everything they needed while also managing to save over $20,000 in two years.
Part of her savings went towards purchasing a new car, as her previous vehicle was unreliable and frequently broke down.
Feeling financially stable, she enrolled in university, believing she could now manage the associated costs.
However, in January 2024, she was blindsided by a letter stating she had been wrongly receiving rent assistance and now owed Centrelink thousands.
Susie claimed the debt resulted from an administrative mistake, as she had been assured in 2022 by a Centrelink employee that she was eligible for rent assistance.
‘I walked into a Centrelink office and they gave me rent assistance, assuring me that I was eligible,’ she said.
Shocked by the sudden debt, she contacted Centrelink for answers and to prevent such an issue from happening again.
‘The lady over the phone, this was a Centrelink officer, she sounded so mad, not at me, at the system,’ she said.
‘She literally said to me this is no fault of your own, whoever gave you this rent assistance made a severe error.’
Centrelink later claimed that in October 2022, Susie reported living in private rental accommodation.
They alleged she had provided a lease agreement to support this—something she vehemently denied.
‘I would love to see that lease agreement because I have only ever lived in this one unit through the department of housing, now through social housing. I have never been able to afford private rent,’ she said.
‘They are lying. Surely someone is going to get fired after all this goes down. It is easily provable that that is a lie.’
‘I hope someone loses their job because they are tampering with our lives.’
To counter Centrelink’s claim, she publicly shared a copy of her lease agreement, showing she was in government housing.
Speaking to the media, Susie said Centrelink had yet to provide any proof of the alleged lease agreement.
‘I requested that they put forth the evidence over the phone to the debt department that wrote the letter,’ she said.
‘I actually spoke to the woman who told me she wrote that particular letter and she refused to answer my questions.’
Services Australia said that they had been in contact with Susie but could not comment on individual cases due to privacy reasons.
‘Customers have a right to ask for an explanation or a formal review of any decision we make. As part of a review of a decision we’ll consider whether it’s appropriate to waive a debt,’ Services Australia General Manager Hank Jongen said.
‘If a debt still stands after the review, customers can set up a flexible repayment arrangement.’
‘If the customer disagrees with the outcome of the review, they can apply to the Administrative Review Tribunal (ART) for an independent review. Their debt repayments can be paused until the ART’s review is complete.’
Susie challenged the debt and awaited an appeal through the ART, a process that could take up to three months.
Despite the pending appeal, she was required to make payments towards the debt, reducing her weekly income to approximately $586 after rent deductions.
‘This debt has taken serious funding away from my food bill and childcare. How can I afford to re-enter the workforce if I can’t afford more days at daycare? My only option is to study and do work placement,’ she said.
‘To add, my children’s father has been exempt from paying any child support, the government has sent me a debt despite it being their employees’ fault and I am still battling chronic vertigo as of 2023.’
She had been vocal online about her struggles, sharing her experience of living on welfare and budgeting as a single mother.
While she received significant support from people outraged by the situation, others were less sympathetic.
Some questioned why she remained on Centrelink, but she insisted she had no choice.
‘I have nothing in my super account. I have a child who requires special therapy during school hours for their needs in order to be ready for school. And no support, nothing,’ she said.
‘No one to help with the children when I can’t drive, no one to help me.’
‘I’ve worked since the age of 15 to 22, I’ve always been doing something.’
At her current repayment rate, she estimated it would take nearly a decade to clear the debt.
Her initial video on social media gained over 500,000 views and 1,200 comments, with many sharing similar experiences.
Watch the video below.
‘I hate how they do this, similar thing happened to me,’ one person wrote.
Another claimed they had been placed on the wrong type of payment twice and were forced to pay back money as a result.
‘I live in constant fear of getting a debt sent to me even though I haven’t been on Centrelink for over a year,’ another said.
Others argued she should not be responsible for the debt at all.
‘Nah that’s on them, they GAVE it to you. I would keep fighting that. do not pay them a cent. it’s ON THEM,’ one comment read.
‘This is appalling. They can send the bill to the staff member who stuffed up if they’re so keen to get their money back,’ another said.
Here’s the latest on her Centrelink debt—watch now!
Facing an $8,000 debt due to an alleged administrative error, Susie’s struggle has sparked debate about accountability in government payments.
Have you or someone you know experienced a similar situation with Centrelink? Let us know your thoughts in the comments.
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