Centrelink

More than one-third of Centrelink debt recovery cases have been overturned by the Administrative Appeals Tribunal.

It has set aside 960 Centrelink debt decisions out of 2699 appeals lodged from March last year and a further 132 were “varied”.

The data shows a steady rise in decisions from January when the government’s controversial “robo debt” measures were introduced.

A Centrelink decision can be “set aside” because the debt was incorrectly calculated or if it would cause the Centrelink recipient serious financial hardship.

The recent federal budget announced a terrible new policy — drug testing 5000 new recipients of Youth Allowance or Newstart. The drugs tested for will be cannabis, methamphetamine and MDMA.

Prime Minister Malcolm Turnbull has defended the policy as "aimed at stabilising the lives of people with alcohol and drug abuse problems by encouraging them to participate in treatment as part of their Job Plan". At the same time, people with diagnosed substance abuse disorders have been excluded from disability benefits.

On April 19, the first anniversary of the tragic death of Josh Park-Fing at his Work for the Dole site in Toowoomba, the Australian Unemployed Workers' Union held rallies in Sydney and Melbourne to demand Justice For Josh and that the dangerous, discriminatory and exploitative Work for the Dole and Community Development Program be shut down. 

The Australian Council of Social Services (ACOSS) said on March 7 it feared the system’s treatment of welfare recipients was scaring individuals away from exercising their right to claim income support.

Speaking as the Senate inquiry into the Centrelink debt recovery system began, ACT ACOSS Director Susan Helyar described the system as an abuse of government power that was undermining confidence in public administration.

“Some of our members have wondered whether individuals are being encouraged to stay out of the welfare system,” she said.

The federal government announced changes to Centrelink’s controversial automated debt recovery system on February 14.

The changes include no longer demanding immediate payment from people who dispute a debt; allowing people to use bank statements, instead of hard-to-obtain payslips, to prove their income; making it easier to contact Centrelink; and allowing people to by-pass the MyGov portal to review their debt.

But unions, community groups, Labor, the Greens and GetUp! have all warned the changes do not address fundamental flaws with the system.

Community and Public Sector Union (CPSU) members in the federal Department of Human Services (DHS) have launched six days of rolling industrial action over the stalled enterprise bargaining process and the Centrelink robo-debt crisis.

Centrelink, Medicare and Child Support workers will strike and take other forms of industrial action over February 13 to 24.

About 200 people rallied in Melbourne on January 31 against the Turnbull Government's new practice of sending computer-generated debt notices to people who have received or are receiving Centrelink payments.

Up to 90% of these debt notices are false. Many people have received debt notices demanding they repay thousands of dollars that they dispute owing. Centrelink staff have been instructed not to fix any obvious errors unless the person complains.

The government has not made a mistake with the Centrelink robo-debt notices. It knows it is sending out incorrect notices.

Centrelink staff warned management the notices would be wrong and the new debt recovery system would incorrectly claim overpayments.

The Australian Council of Social Service (ACOSS) has urged Prime Minister Malcolm Turnbull to immediately halt Centrelink’s automated debt recovery system, protect government whistleblowers and end an ongoing “abuse of government power” that is causing distress and financial hardship to some of Australia’s most vulnerable people.

ACOSS joined a wide range of charities, welfare groups, legal bodies, unions and advocacy services, which have all expressed serious reservations about the accuracy and fairness of the debt recovery system.

The federal Coalition government has unleashed robots to illegally extort $4.5 billion from poor people. The money for politicians’ perks, tax dodging by the rich and corporate hand-outs — such as the $1 billion dollars given to coal giant Adani — has to come from somewhere.

I became aware that Centrelink were trying to pin a cooked-up “robo-debt” of $5558 on me through a text message from the aptly named Probe group debt collection agency.

There resources about how to dispute a Centrelink debt letter, including GetUp! which has a page that sends a bunch of letters to key places in one go. 

It would surprise the federal Coalition government — that assumes we dislike welfare recipients as much as it does — that one of its biggest problems at the start of the year is the Centrelink debt fiasco.

Over the past six months, 170,000 people received debt notices from Centrelink, with the number gradually rising to 20,000 a week.

By comparison, only 20,000 debt notices were issued for the whole of 2015.