'They are lying’: Single mum blindsided by massive $8,000 Centrelink debt

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.


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Single mum blindsided by massive Centrelink debt. Image source: Tiktok/_arcane_02


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!



Key Takeaways
  • Susie, a 23-year-old single mum, was hit with an unexpected $8,000 Centrelink debt despite being told she was eligible for rent assistance in 2022.
  • Centrelink claimed she provided a private rental lease, which she denied, but they failed to prove their allegation.
  • While appealing the debt, she was forced to start repayments, reducing her weekly income to $586 and straining her finances.
  • Her story went viral on social media, with many supporting her and criticising Centrelink’s handling of the error.

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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same thing happened to me but who can fight centre link
But if you know you're being overpaid the smart thing to do would be to make an appointment and go in there and sort it out with someone more senior than the person sitting on the front desk not just ignore it.
I have had three major run ins with Crntrelink, each time their error. Each time I insisted on seeing someone with seniority and got it sorted out.
It is very frustrating and shouldn't happen as often as it does.
I must admit, last time, I asked this big knob from Perth. who was accusing me of fraud, if everybody who worked for Centrelink had a Degree in Stupidity.
 
She lost me when she said it would take her a decade to repay the debt but at the start of the article she saved $20K and bought a car and enrolled in uni ?
Uni probably wouldn’t cost anything upfront. Would be a spare $200 a week to save $20k in 2 years! That surprised me.
 
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We had a similar incident with C/Link. we provided documentation and they still got it wrong. We later received a letter stating that we had been overpaid. We disputed the overpayment based upon us supplying all of the documentation. C/Link reduced the debt,. However, we still had around $500.00 to pay to clear the debt. This is not good enough from a government department. You supply all of the documentation, and you rely on the c/link employees to know they are doing so we as customers do not get into these sorts of situations when it is not our fault.
 
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She lost me when she said it would take her a decade to repay the debt but at the start of the article she saved $20K and bought a car and enrolled in uni ?
Me too. She's living in subsidised public housing and thinks she's entitled to rent assistance as well.
Surely nobody is that stupid. It was her responsibility to have her rent assistance cancelled.
 
My oldest son was born in 1990 & in 2005 I received a letter from Centrelink saying I owed thousands of dollars in family tax benefit, as my son had not been in my care since 1992! I went there with my son & asked them what they think I did with him when he was 2yrs old. They had stuffed up & entered data about another child on my records.
 
Imagine being widowed after 59 years. Receiving a pension . After years recryived a $21,000 debt. Apparently they gave me a full pension instead of apart pension.
My pension had become a single pension , I didn’t have a clue how much I was supposed to have.
It was their mistake not mine.
However I had had the money solikeit or not I had to pay it back taken 20 years and still owe $6000 , told my kids if I die dont you dare odyssey it off.
Made it quite clear I will pay it but if they won’t take $50 a month they can put ne in jail.
This young woman needs to get onto a current affair it is a voting year.
Get onto Current Affair about what.
She obviously thinks she is smart enough to go to Uni .but she's not smart enough to figure out she's been double dipping.

You don't get subsidised public housing and get rent assistance as well. Even dumb Freddy knows that.

She was well aware of what she was doing. She rolled the dice and now she's got to pay the price.

I don't believe, as stupid as some people at Centrelink are, that anyone told her she could do that.

She is wasting her time appealing it, she's only delaying the inevitable.
 
We had a similar incident with C/Link. we provided documentation and they still got it wrong. We later received a letter stating that we had been overpaid. We disputed the overpayment based upon us supplying all of the documentation. C/Link reduced the debt,. However, we still had around $500.00 to pay to clear the debt. This is not good enough from a government department. You supply all of the documentation, and you rely on the c/link employees to know they are doing so we as customers do not get into these sorts of situations when it is not our fault.
Unfortunately, Centrelink are a law unto themselves.
 
DO NOT TRUST CENTRELINK! I have recently been battling them over the valuation of assets, and the recording of assetts we had not owned for over 20 years. They admitted that the invalid assetts had been removed 20 years ago but then added again from the time we received a pension. These bogus assets made a significant difference to the amount we were receiving. It took numerous phone calls and one year to finally have them removed, with no backdating of our lost pension amount. NO STAFF take any responsibility. If they say they will fix it, don't trust them. If you make a mistake, it is your responsibility. If they make a mistake, no one is responsible. The staff are poorly trained and will promise anything to get rid of you. And you can never track that person down.
You are not allowed to speak with the same person at Centrelink. When hubby and I were disputing his pension being cancelled we managed to find a lady that was very helpful. When we had to return with all and sundry she said we needed we asked to see her and were told that was not allowed hence seeing someone new we had to basically start from scratch again with our story and some workers there are well ummmmm you fill in the blanks
 
You are not allowed to speak with the same person at Centrelink. When hubby and I were disputing his pension being cancelled we managed to find a lady that was very helpful. When we had to return with all and sundry she said we needed we asked to see her and were told that was not allowed hence seeing someone new we had to basically start from scratch again with our story and some workers there are well ummmmm you fill in the blanks
Had a similar experience myself recently
I had moved house. Advised the details of sale of house and new address.
I Advised where I had invested the additional funds from the sale.
Next thing I know my pension was reduced.
They had put the new house, where we were living down as an asset when your
home is not meant to be included.
I had a three hour drive to their office.
Had to supply all the paperwork again.
It got straightened out but I’ve never been reimbursed the hundreds of dollars they had diddled me out of.
 
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There is so much more to this story.

Firstly if she is correct and centrelink made a mistake they will fix it. Otherwise she can go to her local member.

Secondly how can someone save $20,000 for a car in two years while on centrelink?

She had saved for a car yet she states she doesn't drive.
She's full of it. you can shoot peas through her story.
Even if it is Centrelinks fault you still have to pay it back. No ifs or buts.
 
WELL done Suzie. listening to you, it sounds like you have dotted ALL the Is & CROSSED ALL THE Ts. sounds like you have KEPT ALL RECORDS. BUT..........is that enough.?? knowing how the gov, works,?? they will PROABLY weazle their way out. IF by chance ...you do win, hope you will post it.? ALL THE BEST.
 
I don’t want my name to be used please. But I have been paying off a debt that Centrelink said I owed for $80,000.00 over payments then they dropped it to $40,000.00 and that was at the same time of the Robo payments were being done. I informed them that I was no longer eligible for the carers allowance as my father had just passed and that the company that both my parents had was in the process of being disbanded as it no longer had anything and was in the hands of the accountant. But they said that I hadn’t told them anything about that in a call. I did that at the same time as the carers payments to be stopped. I have now paid well over half the amount but I believe that they owe me that money back as I wasn’t the one that made that mistake. And I’m on a disability pension, This is not fair for anyone to try and live like this thank you.
 
WELL done Suzie. listening to you, it sounds like you have dotted ALL the Is & CROSSED ALL THE Ts. sounds like you have KEPT ALL RECORDS. BUT..........is that enough.?? knowing how the gov, works,?? they will PROABLY weazle their way out. IF by chance ...you do win, hope you will post it.? ALL THE BEST.
She won't win because whether it was her error or Centrelinks she will have to pay the money back.
Like it or not that is how the system works.
It was her responsibility to make sure her rent assistance was cancelled. She can't be that stupid that she could think that she can live in SUBSIDISED public housing and also get rent assistance .
Get real!!
 
I don’t want my name to be used please. But I have been paying off a debt that Centrelink said I owed for $80,000.00 over payments then they dropped it to $40,000.00 and that was at the same time of the Robo payments were being done. I informed them that I was no longer eligible for the carers allowance as my father had just passed and that the company that both my parents had was in the process of being disbanded as it no longer had anything and was in the hands of the accountant. But they said that I hadn’t told them anything about that in a call. I did that at the same time as the carers payments to be stopped. I have now paid well over half the amount but I believe that they owe me that money back as I wasn’t the one that made that mistake. And I’m on a disability pension, This is not fair for anyone to try and live like this thank you.
So sorry for you but, unfortunately, no matter whose fault it is Centrelink always get their money back.
The only way you win at the Tribunal is if you can prove there wasn't an overpayment. The Tribunal don't care who caused the error to be made.
 

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