'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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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.
$80,000 is an awfully large debt, how did you accumulate that much. Did they not cancel the carer payment, that's nearly three years payment.
Wouldn't you have realised something was not right?
 
i had this happen to me many years ago in 2000 - every fortnight without fail i submitted my payslips and every fortnight without fail I rang to tell them I had been overpaid, and every fortnight without fail I was told no I wasn't and so yes being a single mother with 2 children I used the money. Roll forward to 2003 when I notified Centrelink of my son's death, they deemed I had been overpaid. I got taken to court and when the barrister for Centrelink opened my file they realised that all the documents I had claimed were submitted to Centrelink were actually in my file, whalla 3 years of payslips.

This happened the year my son was murdered and the Barrister deemed it was "not in the public interest" to pursue the debt. but what about my interest, the hell they put me through.

now roll forward 15 years later I had reason to apply for centrelink, and whoosh I get a letter saying they are going to pursue the debt. not on your life nelly. As if it was that easy, the next time i got a tax return it was all taken to pay for the debt. Yes I applied to centrelink to have the debt reviewed and the outcome in no uncertain terms, I should of gotten copies of the pay advices that were stamped when I was advised, and as I had known I was overpaid I should of returned the money to centrelink at the time. Case closed.
How dreadful and sad to loose your son that way and if you feel you can share what happened l'm sure some of us would be interested
 
Apparently, the Centrelink payment to a single mother with two children (and this is the most you can get) is $1007.50 per fortnight + $12.00 energy supplement, which equates to $509.75 per week.
If she saved $20,000 over two years, that equates to $192.30 per week saved.
So take $192.30 away from $509.75 and it leaves $317.45 for her to:
1. Pay Rent (She has some rent assistance),
2. Buy Food for 1 Adult and 2 Children,
3. Buy clothes and children's needs,
4. Pay Electricity, Gas & Water bills (She has an allowance of $12.00 per week),
5. All children's entertainment (If Any),
6. Buy Petrol for her car
7. Car repairs (She stated that the old one kept breaking down - somehow it had to be repaired)
8, All other things I have missed.
She could not have afforded childcare, so there was not much chance of working.
Unless she may have carried out some work from home - but this MAY have decreased her $509.75 per week from Centrelink.
All in all, I find it difficult to accept the statement of saving $20,000 over 2 years.
Not to say that it cannot be done, but you would have to be a well organised miser, and the children would have to go without many things that other children would get and have.
 
Apparently, the Centrelink payment to a single mother with two children (and this is the most you can get) is $1007.50 per fortnight + $12.00 energy supplement, which equates to $509.75 per week.
If she saved $20,000 over two years, that equates to $192.30 per week saved.
So take $192.30 away from $509.75 and it leaves $317.45 for her to:
1. Pay Rent (She has some rent assistance),
2. Buy Food for 1 Adult and 2 Children,
3. Buy clothes and children's needs,
4. Pay Electricity, Gas & Water bills (She has an allowance of $12.00 per week),
5. All children's entertainment (If Any),
6. Buy Petrol for her car
7. Car repairs (She stated that the old one kept breaking down - somehow it had to be repaired)
8, All other things I have missed.
She could not have afforded childcare, so there was not much chance of working.
Unless she may have carried out some work from home - but this MAY have decreased her $509.75 per week from Centrelink.
All in all, I find it difficult to accept the statement of saving $20,000 over 2 years.
Not to say that it cannot be done, but you would have to be a well organised miser, and the children would have to go without many things that other children would get and have.

Why would she buy a car when she states she doesn’t drive this story has more holes in it than a target at a shooting range, I don’t believe a word of it plus it’s years old it’s been posted on here before.☹️
 
I'm so pleased I declined the offer of receiving a carer's allowance for my mother, before she passed away last year. Carer's allowance is means tested, and I thought it wouldn't be worth the angst for dealing with Centrelink.
 
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 did they continue paying you careers payment after you told them. Is this the money you have to pay back
 
Why would she buy a car when she states she doesn’t drive this story has more holes in it than a target at a shooting range, I don’t believe a word of it plus it’s years old it’s been posted on here before.☹️
What was posted before was
I agree with some others that this is not the full story. Surprised she did not set up a GoFundMe site 🌷
Maybe she has !
 
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I'm so pleased I declined the offer of receiving a carer's allowance for my mother, before she passed away last year. Carer's allowance is means tested, and I thought it wouldn't be worth the angst for dealing with Centrelink.
You could have got the Carer's Allowance. Although it's not as much as the Carers Payment it's not means tested.
 
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Unfortunately, Centrelink are a law unto themselves.
Same as the Child Support Agency, but after nine years, I fixed their little red wagon when they accused me of owing them over $13000. Will I ever get my $5500 already paid back? NO WAY!

You wonder why the CSA doesn't have any bricks and mortar offices? Because their staff would all be DEAD!
 
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 ?
Re Uni:
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.

She may have a HECS debt and have to pay that out of her salary when she earns enough. They should take it out of her tax return if she is now working. I wonder if she was paid extra as a study allowance. If you ever speak to anybody at Centrelink ask for the person's name and a reference number . Also write down the date and time you spoke to them. I wonder if she grew her own vegetables that would save her money but not that much. I wonder how much she paid for the car and if the amount of $20,000 was before or after the car was bought.......I know somebody who got a hefty debt letter from ATO. They reckoned he owed more than the net amount he was paid after tax was deducted. There was hundreds of people who received similar letters with weeks of each other.
 
I hope this young womjan gets her problem with Centrelink sorted out ASAP and receives the rent assistance they have so far denied her together with some sort of compensation for her having to stop training for the job she so badly needs. Someone at Centrelink certainly needs more training and also the person who mislead her in the first place needs to be dismissed from the job as she is totally incompetent.
 
I'm dreading needing the pension in 3.5yrs time & having to deal with Centrelink due to reasons like this as well as all
I have found that i t depends on where you live as to whether or not the Centrelink people are helpful and check the facts first before making decisions. I have moved over the y ears from Tweed Heads to Lismore and finally Grafton and have found that the staff at Grafton are extremely helpful if you have a problem whereas at the Tweed Heads and Lismore offices they were so short staffed that they had no time to help.
 
How do you qualify for rent assistance in public housing? While I support welfare assisted living, in times of need, if u can save $10k/yr then people are on too much or it's not going where it's supposed to imo.
 
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I hope this young womjan gets her problem with Centrelink sorted out ASAP and receives the rent assistance they have so far denied her together with some sort of compensation for her having to stop training for the job she so badly needs. Someone at Centrelink certainly needs more training and also the person who mislead her in the first place needs to be dismissed from the job as she is totally incompetent.
You don't know what transpired between these people yet condemn the Centrelink employee as totally incompetent and should be sacked for a minor misdemeanour from which this woman benefitted. Thousands were affected and some lives were lost over Robodebt, and no one was ever even charged let alone punished. If I remember correctly the senior concerned went on to a better job at the Sub Corp.
 
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You could have got the Carer's Allowance. Although it's not as much as the Carers Payment it's not means tested.
Yes, true, but honestly I thought .. no. :cautious: It reinforced my opinion, because Centrelink wanted a payment of her part pension returned - due to the date of her death. Actually, they withdrew it from her back account. They moved swiftly before I closed it. ;)
 
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.
Downsize they say you won’t be penalised they say. The over 55’s unit we were moving into wasn’t ready (covid and all that crap put the build behind) so we banked the money for it. In the nine months till we could move in we had to pay rent…. Not penalised there hey. We asked the bank what interest we would get from the lump sum we banked and it was only $6000 which we thought wouldn’t affect anything at Centrelink but how wrong we were. They have a deeming rate of interest and said we would be getting $45000 in interest. I genuinely asked if they were going to pay us the difference between the bank and Centrelink and if looks could kill I would be pushing up daisies right now. Needless to say by midnight that night my hubbies pension was cut and nothing could be done about it
 
I’m not really sure how much money a single person with children would need per week to keep their head above water….She was getting $800 per week over 2 years, inclusive of rent assistance? at the time….that’s a total of $83,200 (if I’ve got my sums right) …I don’t think it’s a stretch to save $20,000 over the same 2 year period…….. but like I said, I don’t know how much a person in her circumstances would need….?
 
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