Debt in grief: Centrelink's ‘insensitive’ letter adds pain to mourning daughter’s loss

When people lose a loved one, the grief can be all-consuming.

The last thing they need during such a time is additional stress, especially from unexpected and insensitive bureaucratic demands.

Yet, this is precisely what happened to a Victorian woman named Casey, whose experience with Centrelink has sparked a wave of sympathy and outrage across the nation.


Casey was already grappling with the profound loss of her mother to an aggressive form of lung cancer when she received a letter from Centrelink that added insult to injury.

The letter expressed condolences for her loss but simultaneously demanded the repayment of a $668.80 overpayment that her mother allegedly owed from December 2022.

The timing of this letter, arriving a full year after her mother's passing, struck Casey as not only insensitive but also absurd.


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Casey expressed her frustration on social media after receiving a letter from Centrelink demanding repayment of her late mother's debt. Credits: Shutterstock


Taking to social media, Casey shared her disbelief and frustration with the world.

‘Apparently, they've just noticed they've overpaid her. She has been dead for a year and they're only now coming for a debt from two years ago. I'm really, really glad to have the sympathy of Centrelink right now, she said sarcastically, before describing the letter as 'dog s***'.

Casey said she was ‘gobsmacked that this was even something I needed to worry about’.

‘Honestly, all I want is an apology, and time to heal. It's just such a traumatic situation to have continually brought up and rubbed in my face,’ she continued.

The mourning young woman, who has a younger brother, stated that her mum, who succumbed to an aggressive type of lung cancer, 'was a stay-at-home mum our whole lives'.

‘She had no savings, her estate had nothing in it,’ Casey added.


Hank Jongen of Services Australia, responsible for overseeing Centrelink, clarified that when a deceased individual has an outstanding debt, ‘we are legally required to contact the executor of their estate to see if there are sufficient funds in the estate to repay the debt’.

He mentioned that they cease pursuing debts when the estate is closed or if there are insufficient funds in the deceased person's estate to cover the outstanding amount.

‘We sincerely apologise for any distress caused and have a dedicated team available to help people experiencing difficulties,’ Mr Jongen added.


The comments on Casey's video revealed that her experience is not an isolated one.

Many Australians shared their own stories of receiving similar letters from Centrelink after the death of a loved one.

‘The same thing happened to my mum. I gave them the address of the cemetery so they could go and collect it from her,’ one commenter said.

‘We were in a similar situation, not your debt, not your problem. do not pay,’ another advised.

Yet, there were also those who defended Centrelink's actions, suggesting that the agency was simply following protocol.

‘They have rules they have to obey,’ one pointed out.

‘It's a business and they need to make sure the books are correct. Just business, don't (take) it personally. You are in Australia,’ another said, to which Casey replied, ‘If the government is so strapped for cash they should probably try taxing mining companies instead of bothering the families of deceased people for money.’

You can watch Casey’s video here:


Source: Tiktok / @seagooseeee

Casey’s story sheds light on the challenges many Australians encounter when dealing with government agencies.

While Centrelink aims to assist individuals with services like the age pension, many experience concerning issues with the agency.

Thousands of seniors are left waiting for their age pension, enduring agonising waits due to bureaucratic processes and system inefficiencies.

Additionally, numerous Centrelink customers have reported months of frustration with call hang-ups and lack of assistance, highlighting a broader issue of accessibility and customer service within the government department.
Key Takeaways
  • A Victorian woman named Casey was heartbroken after receiving a letter from Centrelink demanding repayment of her deceased mother's debt.
  • Centrelink expressed sympathy for the loss but insisted on recovering the $668.80 overpayment from December 2022.
  • Hank Jongen from Services Australia stated that they are legally required to contact the executor of an estate about outstanding debts if funds are sufficient.
  • The issue has sparked a public backlash, with many sharing similar experiences, although some acknowledge Centrelink's legal obligations.
Have you or someone you know faced a similar situation? How was it resolved? We encourage you to share your thoughts and experiences in the comments below.
 
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My wife's parents, who we had living with us for the final 20 years of their lives so that we could look after them, had both passed within 3 months of each other. The final 5 years were difficult as they both needed constant 24/7 care. Although my mother-in-law was assessed as needing a Level 4 Care Package by Aged Care (apparently that was the highest at that time) and was allegedly put on a "priority" waiting list, we heard nothing. Four months after she passed, my wife got a phone call saying congratulations! Your mother's package has been approved! Can you imagine my wife's reaction? It was so distressing - again. I know it wasn't Centrelink, but after similar treatment, all the government departments seem to blur into the same heartless bureaucratic organization. By the way, to show at least Centrelink is consistent, about a year after they had passed, we received a letter and a cheque from Centrelink for about $40 (which brought back some sadness too), saying that my mother-in-law had been underpaid at some time. Mind you it was such a drama trying to even cash it, as the cheque was in my mother-in-law's name, and my in-laws had no "estate" - that's why they were living with us - and their accounts etc had been closed shortly after they passed. I know no one deliberately sets out to hurt people, but let's hope better systems can be put in place in the future.
 
My 89yr old mother passed away last month. There's a form that requires relatives/people to advise Centrelink of a death. The instructions are that you can't just make a phone call and tell them. You can fill the form out online and print it, or print the form and fill it out. The form needs to be physically returned via Australia Post.
It wouldn't surprise me if a letter turned up from Centrelink in the future, because that's what they do.
 
When my mother passed I informed Telecom, by phone, that the phone would no longer be required. THE FIRST WORDS FROM THE PERSON WHO ANSWERED SAID, "WHO SHOULD WE SEND THE BILL TOO"? IT WAS FOR $15.00 I JUST HUNG UP.. This is how they train their staff to reply .
 
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My 89yr old mother passed away last month. There's a form that requires relatives/people to advise Centrelink of a death. The instructions are that you can't just make a phone call and tell them. You can fill the form out online and print it, or print the form and fill it out. The form needs to be physically returned via Australia Post.
It wouldn't surprise me if a letter turned up from Centrelink in the future, because that's what they do.
My deepest sympathies 🌹🌹🌹
 
There are only two certain things in life - death and taxes. Centrelink broke few rules in their manual by doing this - the root cause of this problem that even without AI letter was generated by computer system and never was reviewed by human. This is not a separate case because our government purposely without any hesitation weaponise IT systems against their clients - it seem to be that major criteria of their operation (KPIs) is how much money they can legally NOT TO SPEND and how much money they can demand to pay back. It is technically Robodebt 2.0 schema and nobody would personally accountable for its introduction because it was a decision by committee.
 
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So many years ago, after my Dad died suddenly, my Mum received a letter from the Social Services department at that time, telling her she had to return his Government supplied hearing aids. Why? It was awful, I went with her to the office and we had to wait an hour before she could hand them in. What were they going to do with them?
 
My deepest sympathies 🌹🌹🌹
This is ridiculous - Centrelink is fully integrated with Birth, Marriage and Death registers in each territory and state. So if person is deceased and appropriate record is created in state register, any any government agency would have access to retrieve a death certificate that stored digitally even without consent of relatives. The whole process is broken - Centrelink demand information that agency already has on their fingertips. System simply is optimised to stop any payments to people who recently died.
 
This is ridiculous - Centrelink is fully integrated with Birth, Marriage and Death registers in each territory and state. So if person is deceased and appropriate record is created in state register, any any government agency would have access to retrieve a death certificate that stored digitally even without consent of relatives. The whole process is broken - Centrelink demand information that agency already has on their fingertips. System simply is optimised to stop any payments to people who recently died.
It doesn't work that way, but it should.
 
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If they can't contact within a few months then it's time that Centrelink improved their standards, after that time it's plain ignorant and rude. Such an inefficient organisation would be hard to find elsewhere. If it was the other way around the money would never be forthcoming.
 
This is ridiculous - Centrelink is fully integrated with Birth, Marriage and Death registers in each territory and state. So if person is deceased and appropriate record is created in state register, any any government agency would have access to retrieve a death certificate that stored digitally even without consent of relatives. The whole process is broken - Centrelink demand information that agency already has on their fingertips. System simply is optimised to stop any payments to people who recently died.
Hey? A strange reply to my offering of commiserations to a well liked fellow SDC member....
 
My 89yr old mother passed away last month. There's a form that requires relatives/people to advise Centrelink of a death. The instructions are that you can't just make a phone call and tell them. You can fill the form out online and print it, or print the form and fill it out. The form needs to be physically returned via Australia Post.
It wouldn't surprise me if a letter turned up from Centrelink in the future, because that's what they do.
So very sorry for your loss.
 
When my Dad passed away, I physically had to go into Social Services and take the death certificate and other documents to prove he had passed away. I wasn't well at the time, but you only had a very short window to inform Social Services of your relative's passing or they took the pension money out of the estate.
 
My 89yr old mother passed away last month. There's a form that requires relatives/people to advise Centrelink of a death. The instructions are that you can't just make a phone call and tell them. You can fill the form out online and print it, or print the form and fill it out. The form needs to be physically returned via Australia Post.
It wouldn't surprise me if a letter turned up from Centrelink in the future, because that's what they do.
too bad if you haven't got a printer or computer. What then?
 

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