If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.

Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.

Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.

In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.

This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.

How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.

Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

• Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
• This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
• Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.

Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.

 

[Veggiepatch]

I only told my son the other day to go into their office and talk face to face, he replied " and where would that be mum "

Every week he gets at least 2 letters from child support and these he rips up straight away

Up to 8 months ago he was paying triple to what he should have, he gave what his ex wanted , plus he paid for the girls clothes ect.
He had them every Sunday and every second week end plus every Wednesday. He also had them whenever she needed someone to look after them.

Then she started seeing a new man and then wanted my son not seeing the girls just so they could bond with the new dude.

Then the new dude moved in.
We then found out what the correct ammount of child support was and he started paying that and paying through child support.

He hasn't seen his girls in 8 months and he hasn't paid child support in 8 months. He says why should I pay if I can't see them ! I told him because they are your girls but he then says and how fo I know she is using it in them.

I want to know what can happen by him not paying it.

Unless your son is employed in a cash job, the CSA will get him through ATO and Centrelink records. All these government agencies are intricately interwoven.

They even take their bit out of Jobseeker payments - on THEIR terms, not yours. I'm a victim of their heavy handed tactics without a opportunity for recourse.

I'm not sure if they can garnish Disability or Aged Pensions but I wouldn't put it past them.

 

[Trudylee]

If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.

Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.

View attachment 33434

Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.

In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.

This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.

How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.

Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

• Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
• This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
• Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.

Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.

What incompetence and callousness we have an excessive Public Service under The Communist Labor Govt, that screeched at the other Party for a similar issue ,People's lives are at stake here it's a matter of putting Food on their Table

 

[Veggiepatch]

What incompetence and callousness we have an excessive Public Service under The Communist Labor Govt, that screeched at the other Party for a similar issue ,People's lives are at stake here it's a matter of putting Food on their Table

Oh dear!!

 

[Veggiepatch]

Just a general warning to those of working age AND over 55 who want to withdraw on their superannuation.

While you are not taxed on such withdrawals, you can be liable for Child Support if you have a child under the age of 18 AT THE TIME of withdrawal.

In my case, a withdrawal of $95000 was made on which I had to pay $13000 in Child Support arrears as the withdrawal was made two months BEFORE my son turned 18. He will be 26 in December this year. If I had waited two more months, I wouldn't be paying a cent.

This CSA debt was not brought to my attention until 2009. So the CSA can retrospectively grab your money at their whim.

$5000 down....$8000 to go.

 

[matann551]

I'm so sorry you have gone through all this, not many people could deal with one of these.
Please talk to someone at centrelink , you deserve this money. They don't always make mistakes and I think they are so much more careful now.
As I said you deserve it

Center Link make mistakes all the time. Then they blame you. There should be a place to go to to get help so you know if it has been worked out properly.

 

[Suzanne rose]

Just a general warning to those of working age AND over 55 who want to withdraw on their superannuation.

While you are not taxed on such withdrawals, you can be liable for Child Support if you have a child under the age of 18 AT THE TIME of withdrawal.

In my case, a withdrawal of $95000 was made on which I had to pay $13000 in Child Support arrears as the withdrawal was made two months BEFORE my son turned 18. He will be 26 in December this year. If I had waited two more months, I wouldn't be paying a cent.

This CSA debt was not brought to my attention until 2009. So the CSA can retrospectively grab your money at their whim.

$5000 down....$8000 to go.

Wow, have you asked for a review!! That works our $6500 amonth for the last 2 months before he turned 18

 

[Veggiepatch]

Wow, have you asked for a review!! That works our $6500 amonth for the last 2 months before he turned 18

I will check if there is any avenue for appeal. Drawn super is treated as taxable income and taxable income is subject to CSA deductions.

 

[Knell]

I will check if there is any avenue for appeal. Drawn super is treated as taxable income and taxable income is subject to CSA deductions.

Yes unfortunately. Super would have made a general advice to seek independent advice from a Financial Advisor or Accountant....as if everyone can afford the expense of that - although in hind sight...a very good warning. Like insurance - it's the what if..... Offer to pay back (if required) at $5 a fortnight

 

[Knell]

Just a general warning to those of working age AND over 55 who want to withdraw on their superannuation.

While you are not taxed on such withdrawals, you can be liable for Child Support if you have a child under the age of 18 AT THE TIME of withdrawal.

In my case, a withdrawal of $95000 was made on which I had to pay $13000 in Child Support arrears as the withdrawal was made two months BEFORE my son turned 18. He will be 26 in December this year. If I had waited two more months, I wouldn't be paying a cent.

This CSA debt was not brought to my attention until 2009. So the CSA can retrospectively grab your money at their whim.

$5000 down....$8000 to go.

Super Funds should provide more free advice for people - it is very confusing.

 

[Veggiepatch]

Yes unfortunately. Super would have made a general advice to seek independent advice from a Financial Advisor or Accountant....as if everyone can afford the expense of that - although in hind sight...a very good warning. Like insurance - it's the what if..... Offer to pay back (if required) at $5 a fortnight

Currently almost $60 a fortnight and apparently increases in accordance with the CPI. Started off in the mid $40 range and has been steadily increasing ever since.

 

[Veggiepatch]

Center Link make mistakes all the time. Then they blame you. There should be a place to go to to get help so you know if it has been worked out properly.

It's called the local munitions depot....

 

[Knell]

Currently almost $60 a fortnight and apparently increases in accordance with the CPI. Started off in the mid $40 range and has been steadily increasing ever since.

Argue financial hardship to have it reduced...that is one of their trigger phrases. I made a similar mistake - cost me a fortune in tax. Just try to minimise the weekly impact and don't let it get you down.

 

[Veggiepatch]

Argue financial hardship to have it reduced...that is one of their trigger phrases. I made a similar mistake - cost me a fortune in tax. Just try to minimise the weekly impact and don't let it get you down.

It's OK. I don't give a rat's arse actually!

 

[Knell]

Argue financial hardship to have it reduced...that is one of their trigger phrases. I made a similar mistake - cost me a fortune in tax. Just try to minimise the weekly impact and don't let it get you down.

p.s. However there should be at least a fairer proportioning over a longer period of time, at the very least. Still worth submitting a request for amendment under circumstances. Dealing with them is not something I would wish on anyone though. Written communication only - I would rather poke myself with a sharp stick than conversing over the phone - and even refer to ombudsman (lame also however).

 

[Veggiepatch]

p.s. However there should be at least a fairer proportioning over a longer period of time, at the very least. Still worth submitting a request for amendment under circumstances. Dealing with them is not something I would wish on anyone though. Written communication only - I would rather poke myself with a sharp stick than conversing over the phone - and even refer to ombudsman (lame also however).

1000% agree with the bolded.

 

[Macarj]

18 years ago I was receiving family tax benefit and parenting payment for a short time . Hubby worked on commission only which I would report . Apparently there was a $2000 that I never reported which I knew I did but had to pay back $5000 for getting $2000

I can't even write about my problems with Centrelink I just get too upset

 

[Zorro56]

If you've ever received a scary letter from Centrelink demanding repayment of a welfare debt (that you believe is not accurate), you know how stressful it can be.

Good news for some Australians facing these demands: Services Australia has stopped collecting repayments from 86,000 people because they suspect these debts might not be valid.

Let's take a step back to better understand the situation. In August, the Commonwealth Ombudsman revealed that over the last two decades, around 100,000 debts, or potential debts, were wrongly calculated by incorrectly distributing the income of welfare recipients.

In response, Services Australia initially stopped creating new welfare debts for income earned before December 2020.

Now, they've taken an extra step by halting the repayments for those they had previously claimed owed them money.

View attachment 33434

Services Australia paused 86,000 Centrelink repayments due to legal concerns. Credit: Shutterstock.

In the past week, the NotMyDebt campaign has received numerous reports from people who previously faced income support payment-related debts. These debts have now disappeared from the 'Money you owe' section on the Centrelink website.

In fact, a news source has verified two cases where people's debts vanished, one of which involved a former income support recipient who was initially told they owed $4,000.

This new issue is said to be different from the notorious Robodebt scheme, where debts were calculated by averaging annual employment income over 26 fortnights, which was later found to be largely unfair and unlawful by a royal commission.

In response to concerns raised by the Commonwealth Ombudsman, Services Australia has paused debt repayments and internal reviews related to income apportionment before December 7, 2020.

According to Services Australia's website, the agency is ‘Working closely with the Department of Social Services to get a clear position. The pause will stay in place until we have advice on the next steps.’

The agency also added that this pause does not mean your debt has been cancelled.

This means that, while these debts may not appear in the 'Money you owe' section of your Centrelink online account during the pause, they will still appear in your debt statement.

How did this happen?

According to reports, Services Australia sometimes used payslips that didn't match the reporting periods for calculating welfare debts. When this happened, they came up with an 'average' daily income.

The ombudsman discovered that in a process called 'apportionment', the agency divided a person's employment income across multiple reporting periods. These periods are essential for determining Centrelink payments like Jobseeker.

However, this approach violated the Social Security Act.

As a result, Services Australia stopped around 13,000 debt reviews, and there may be up to 87,000 more cases affected.

Services Australia is reaching out to people whose debts have been paused first via SMS and then by letter, providing details about the specific debts on hold.

They said: ‘If you get a payment from us, we'll stop deducting repayments for the debt that has been paused. If you have a direct debit arrangement set up with us, we'll stop the arrangement while your debt is paused.’

‘If you have other debts that aren't impacted by the pause, recovery action will continue for those debts.’

Key Takeaways

• Services Australia has paused Centrelink repayments for 86,000 individuals over concerns that welfare debts may be unlawful.
• This response comes after the Commonwealth Ombudsman revealed that up to 100,000 debts were incorrectly calculated over two decades.
• Service Australia clarified these debts have not been waived and will still appear in recipients' debt statements.

If you're facing a situation like this or need more information, consider reaching out to Services Australia. You can contact their customer service department or, even better, visit their website for more details.

Although Services Australia is working to fix these repayment errors, it's uncertain how long this process will take. If you're expecting income support repayment, it's a good idea to keep an eye on your finances and make sure your debts are accurate when they're finally addressed.

What are your thoughts on this news, members? Let us know in the comments below.

Services Australia, in particular Centrelink, are currently in one hell of a mess. I updated my finances as required, via MyGov almost four months ago, and those figures have still not been assessed. These updated figures are likely going to reduce my pension. I am concerned that if that is the case, they will be hunting me for overpayment for the last four mths. etc, because they have failed to reassess my situation in a timely manner.

 

[v_joyce]

I’m sick to death of speaking with people from c/link that don’t understand English