Say Goodbye to Third Party Debt Collectors: Centrelink Takes Control with Major Overhaul!
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Have you ever had to navigate the maze of government services such as Centrelink? If you have, you know it can be frustrating and time-consuming.
But what if, on top of that, you were also faced with a Centrelink debt that you needed to repay? That could quickly become overwhelming, especially if you don't know where to turn for help when you’re unknowingly being rorted.
However, changes are coming that could make repaying Centrelink debts much more manageable.
The Australian government has announced a significant overhaul of how Centrelink debts are managed, bringing much-needed relief to those struggling with the burdensome system.
Government Services Minister Bill Shorten recently revealed that outsourcing welfare payment debt collection will end on June 30.
This means that those with Centrelink debts won’t be at the mercy of third-party debt collectors and can put their trust in the agency’s in-house debt-recovery team.
'We have to look at the reality of who is affected – it’s often very vulnerable Australians, people who have gotten on government payments in the first place because they are at a vulnerable time in their lives,' Shorten remarked.
He said that the process of raising debts should be done in a humane manner, taking into account the difficult circumstances in which many people find themselves.
Shorten continued: ‘We have to stop giving their information to private companies and ensure the debt-recovery process is lawful, fair and transparent.’
‘The Royal Commission into [the] Robodebt [Scheme] has put on full display the unfettered cruelty with which debt-collection agencies were unleashed against vulnerable Australians. We cannot let this happen again.’
According to Shorten, the Australian government prioritises protecting Australians from being exploited while holding accountable those who try to cheat the system.
Services Australia aims to handle the debt-recovery process transparently to achieve this goal and utilise all available tools.
He said: ‘We are not naïve to the fact that, wherever there is government money, there will be some opportunistic behaviour - but Centrelink is already fully capable of recovering debts and has multiple tools at hand.’
‘However, the power to raise lawful debts against citizens needs to be exercised judiciously and at every stage afford citizens the right of reply and not reverse the onus of proof from the government to the individual.’
‘Government should never start from the position that the existence of an alleged debt means the citizen is guilty until proven innocent.’
From June 30, Centrelink will be in contact with those who have outstanding debt and help them make the necessary transition.
'Flexible repayment options, short-term counselling, information and referrals to support systems may be provided,' said Shorten.
While some Australians expressed concerns about how the lengthy wait times for accessing welfare services could get longer given that Centrelink will have more workload following the change, Shorten has reassured the public that the agency is well-prepared to handle any additional workload resulting from the proposed changes.
‘The expense previously attributed to the use of these debt collectors will be diverted to Centrelink in-house capacity. So, we believe that'll cover the cost of additional agency staff for debt-recovery activities,’ he added.
So, there you have it, folks! It's important to stay informed about the changes to Centrelink and how they may impact you.
If you think you may be affected and need to repay a debt, please contact Centrelink for guidance and assistance.
What are your thoughts on these major changes? Do you think it’s high time for Centrelink to take responsibility for debt collection?
But what if, on top of that, you were also faced with a Centrelink debt that you needed to repay? That could quickly become overwhelming, especially if you don't know where to turn for help when you’re unknowingly being rorted.
However, changes are coming that could make repaying Centrelink debts much more manageable.
The Australian government has announced a significant overhaul of how Centrelink debts are managed, bringing much-needed relief to those struggling with the burdensome system.
Government Services Minister Bill Shorten recently revealed that outsourcing welfare payment debt collection will end on June 30.
This means that those with Centrelink debts won’t be at the mercy of third-party debt collectors and can put their trust in the agency’s in-house debt-recovery team.
'We have to look at the reality of who is affected – it’s often very vulnerable Australians, people who have gotten on government payments in the first place because they are at a vulnerable time in their lives,' Shorten remarked.
He said that the process of raising debts should be done in a humane manner, taking into account the difficult circumstances in which many people find themselves.
Shorten continued: ‘We have to stop giving their information to private companies and ensure the debt-recovery process is lawful, fair and transparent.’
‘The Royal Commission into [the] Robodebt [Scheme] has put on full display the unfettered cruelty with which debt-collection agencies were unleashed against vulnerable Australians. We cannot let this happen again.’
According to Shorten, the Australian government prioritises protecting Australians from being exploited while holding accountable those who try to cheat the system.
Services Australia aims to handle the debt-recovery process transparently to achieve this goal and utilise all available tools.
He said: ‘We are not naïve to the fact that, wherever there is government money, there will be some opportunistic behaviour - but Centrelink is already fully capable of recovering debts and has multiple tools at hand.’
‘However, the power to raise lawful debts against citizens needs to be exercised judiciously and at every stage afford citizens the right of reply and not reverse the onus of proof from the government to the individual.’
‘Government should never start from the position that the existence of an alleged debt means the citizen is guilty until proven innocent.’
From June 30, Centrelink will be in contact with those who have outstanding debt and help them make the necessary transition.
'Flexible repayment options, short-term counselling, information and referrals to support systems may be provided,' said Shorten.
While some Australians expressed concerns about how the lengthy wait times for accessing welfare services could get longer given that Centrelink will have more workload following the change, Shorten has reassured the public that the agency is well-prepared to handle any additional workload resulting from the proposed changes.
‘The expense previously attributed to the use of these debt collectors will be diverted to Centrelink in-house capacity. So, we believe that'll cover the cost of additional agency staff for debt-recovery activities,’ he added.
Key Takeaways
- The Australian government has announced a significant overhaul of how Centrelink debts are managed, ending the outsourcing of welfare payment debts to third-party debt collectors on June 30.
- Government Services Minister Bill Shorten stated that this change aims to make the debt-recovery process lawful, fair, and transparent, prioritising the protection of vulnerable Australians.
- Centrelink will handle the debt-recovery process transparently and utilise all available tools for recovering debts while also providing flexible repayment options and other support to those affected.
- Shorten reassured the public that Centrelink is well-prepared to handle the additional workload resulting from these changes, with the expense previously attributed to debt collectors being diverted to the agency.
So, there you have it, folks! It's important to stay informed about the changes to Centrelink and how they may impact you.
If you think you may be affected and need to repay a debt, please contact Centrelink for guidance and assistance.
What are your thoughts on these major changes? Do you think it’s high time for Centrelink to take responsibility for debt collection?