'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 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.
 
Something doesn't add up. How many people can afford to save $20,000 in two years? If so, why will it take so long to repay the money? Everybody knows that if payments are made in error, they have to be paid back regardless of who made the payments and that applies not only Centrelink. Surely while receiving payments she would have been reporting to Centrelink!! Sounds more like she accepted the money and hoped they wouldn't catch up with her. Tough!!
 
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.
same thing happened to me but who can fight centre link
 
Back in the 80's we were getting child endowment then when I got promoted I realized I earned too much to get child endowment so I told them to cancel it they said no you can still get it 4 years later they wanted the money back I said look it up I told you to cancel it and you told me I could still have it I refused to pay it in a lump sum so I payed it back the way the paid it to us over the next 4 years every year they tried to get me to to pay the lump sum but I never did a lot of workers in government departments should not be there if the can't do the job
 
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 ?
With the extra money she was getting she would have been able to save. Since then she says she has enrolled at uni. It costs to do that, she has also put her kids in child care, I assume so she can attend classes. With those additional costs and the loss of additional income, she has less money. If she has a new car I would assume she also has insurance.
I was lucky to have my parents around to help me with my kids when I studied. Child care has always been expensive. Even if she is doing a so called free course there are fees that have to be paid that aren’t covered.
 
Two sides to every story. This story sounds a bit untrue.
It’s happened before, I know someone that worked for Centrelink for over 40 years. New staff come in and don’t learn their job. I actually had a call from AFP, they asked when I last applied for rent assistance, it had been 1991, someone had somehow put in a claim for rent assistance, that person was known to me, I thought I’d been helping them with a gambling problem, they were taken to court, all had been sorted out and he had to repay the money, then I was hit with about $200 debt because that amount had been overlooked. Nasty piece of work said it was my fault.. I had to pay it.
 
  • Wow
  • Sad
Reactions: Dynamo and Iggydi
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.
 
Just makes me wonder how she managed to save $20,000 in just 2 years…along with buying a new car & also enrolling in University? Not to mention the childcare cost! Our daughter is married, paying rent where she lives (along with her husband & 2 children), yet they can’t save that much money. Something just doesn’t add up with this young mothers story.
 
Centrelink sent me notification that I owed them $75,000!!! My heart stopped beating for a full week,I swear! And then we went from the sublime to the ridiculous. My son is on the autism spectrum and has other issues. Until he was 16 I was his full time carer. When he turned 16 his dad had a major heart attack and had to stop working. Centrelink told me to be his carer. Now,I was already my sons carer but the said I could receive it for both of them which I flatly refused to do. I told them my son no longer needed me on a daily basis and just put me down for the hubby. Fast forward 10 years and my son applies for carers payment for his terminally ill wife. Centrelink tell him he can’t BE a carer when his mother is claiming for him……and that’s when the s&*t hit the fan!! Oh my goodness. Six months it took to sort out and I’m sure I turned grey during the process but finally common sense prevailed and the debt was wiped.
 
Ask for a review by an Authorised Review Officer. Take your written dot pointed reason why you believe the debt is wrong and also the repayment of the debt.
You must put everything in chronological order, dates, to whom you spoke, etc.
It's imperative you ask for a review of both the debt and repayment of the debt
 
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this was centrelinks mistake they should wear it
They don't, never have. I would think that anyone on any Centrelink payment should be well aware of this.
It's not the first time it's happened. It happens all the time She stated she saved $20,000 in two years on Centrelink
payments, but now it's going to take ten years to pay back $8,000.
I don't believe her BS story. You have never got rent assistance when you are living in government housing. That's double dipping.
I don't believe that someone from Centrelink told her she was entitled to both.
IMO she took the chance and got caught.
One thing it does prove however is how inefficient Centrelink systems and staff are. Surely that payment should have automatically been cancelled the minute she moved into public housing whether she advised them or not.
 
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.
 
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Reactions: Nantes and Iggydi
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!
 

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