'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.
Hi….Not sure but I don’t think you can post anonymously here….But you can call yourself anything you like and you don’t have to put up a photo of yourself, any other kind of picture would do…….your email address has to be correct though……If you look at other people’s ‘names’ and pictures you’ll get an idea…..hope you don’t mind me pointing this out….
 
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.☹️
Is it! When was it published before…..It’s not really ‘Newsy’ if it’s not current…
 
It is amazing how someone with 2 Children and bills to pay can manage to save 20K in such a short period.
I am single with bills like everyone else but I certainly cannot save that sort of money.Maybe She should show us how !
I notice She says “ This debt has taken serious funding away from my food bill and childcare “
What about the 20k ? Something definitely not right here maybe She is hoping someone
Will do a “ GO FUND ME “ I am not one of them..
 
And yet thousands of dead beat dads don’t get any retribution for not paying their child support. They are not followed up and they say they are unable to claim. Some of these have up to nine children
 
So many single mothers these days and the fathers of these children are getting away with not having to pay any child support!
These men should have to show some responsibility towards these children and help financially to raise them, instead of the tax payers.
Maybe men on unemployment benefits don't have any responsibility, in which case, why would they look for a job. 😡
 
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 had no problems with Centrelink when I applied for the pension and when I was waiting for the NZ super to be granted and paid I was on their case constantly as it was a direct deduction from the Australian pension. Several months went by before they finally reviewed it but they waived the debt because I rang them the day I got the letter and every month I got a payment from NZ. They were at fault and took responsibility.
 
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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.
Plus I pay the debt with the monies saved to be debt free.
I must say though I go into the Centre Link offices and talk face to face instead on line. I also make a note of our conversation.
You have to CYA these days.
 
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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.
So sorry for the loss of your son, Centrelink have ZERO empathy and understanding.
 
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.
Your name is on your post!
 
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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.
She shouldn't get rent assistance at all, she's in public housing!
 
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If this is true then the govt are paying people way too much. Shouldn't be able to save $20k over 2 years on Centrelink payments. Payment amounts should only be enough to cover essential costs of living & that's all. It's only an emergency payment, not a replacement wage! Want a replacement wage to take over payments when sick, pay for income insurance!
The pension does not cover the rent, short $890.00 a month.
How can she save $2,000 in 2 years?
 
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Every c/link recipient knows that when in a dept of housing dwelling, renting , the rent is already rebated. So a person is not entitled to rental assistance, this only applies to a person paying private rental. It sounds like this person informed c/link that she was with dept of housing, but with c/link you need to keep ringing or going in with the paperwork of acceptance of the gov't housing that you are now living in - if it's not in their face and copies given to them - they just don't seem to get it.
Now you have a debt after receiving 2 yrs? worth of receiving a rent assistance - if c/link say they have a lease agreement from you for a private rental - then you should be able to seek access of what information they claim they have with a freedom of information application, and if it is entirley c/links mistake then you need to seek the community legal assistance in your city.
I'm not sure about her story?
 
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