It’s common for people who unexpectedly receive a Centrelink debt notice to experience anger, disbelief, and fear. Most people who incur a Centrelink debt do so unknowingly, and it is possible to appeal the decision, but there’s some things you should consider first.
What will the decision-maker consider?
When reviewing a Centrelink debt, the decision-maker will usually consider:
- Whether you have been overpaid and whether the debt amount is accurate.
- If recovery of the debt should be ‘written off’ for a period of time.
- If recovery of the debt should be waived.
- Whether the debt has been caused by fraud and should be investigated further.
Not all of these things will be relevant to every debt, and in for some debts there may be other things the decision-maker needs to consider. An example of this is member of a couple debts, or debts related to the percentage of care of children.
Why might a decision-maker decide I wasn’t overpaid?
Centrelink calculates payments and debts using the information available to them. A debt based on wrong or incomplete information may be calculated incorrectly. If you correct the information, Centrelink may decide you were not overpaid after all, that your debt amount should change, or that your debt amount should increase.
Example 1: Centrelink receives information about your income. They use this to recalculate how much you should have been paid, and they find that you have been paid too much. They ask you to repay a debt.
You may be able to challenge this kind of debt by giving more accurate or up to date information about your income (such as payslips). Centrelink may recalculate how much you should have been paid. This may mean the debt is recalculated to $0. It could also mean that your debt is recalculated to a higher amount, or to the same amount originally thought.
Example 2: Centrelink receives information about your past study arrangements. They find you were not eligible for a student payment you received because you weren’t undertaking full-time study. They ask you to repay a debt.
You may be able to challenge this kind of debt by giving Centrelink more accurate or up to date information about your study (such as records from your school, TAFE or university). Centrelink may recalculate how much you should have been paid. This may mean the debt is recalculated to $0. It could also mean that your debt is recalculated to a higher amount, or to the same amount originally thought.
The decision-maker may waive recovery of a debt if there are ‘special circumstances’
Special circumstances mean the situation is unusual, uncommon, or exceptional, and this makes it unfair for Centrelink to ask you to repay the money.
Some circumstances you may wish to raise for Centrelink to consider are:
- Family violence.
- Mental, physical and other health issues.
- Disability.
- Financial hardship.
- Homelessness or insecure housing.
- Language and literacy barriers.
- Substance misuse issues.
- Imprisonment.
- Family instability.
- Refugee and migrant status, and reasons for fleeing/migrating such as civil unrest, violence, and persecution.
- Child protection involvement.
- Impacts of a disaster.
- Difficulty engaging with Centrelink and their systems.
- Entitlement to another Centrelink payment (this is referred to as ‘notional entitlement’).
- Centrelink mistakes (these may also contribute to special circumstances, even if the administrative error waiver doesn’t apply).
- Any other factors that make your situation unusual, uncommon, or exceptional.
Financial hardship can be a special circumstance, and you will usually need to be experiencing financial hardship before Centrelink will waive a debt. However, it can’t be the only special circumstance.
The special circumstances waiver is not available where the debt was caused by someone ‘knowingly’ misleading Centrelink or failing to comply with social security legislation. This means if you or someone else gave Centrelink information knowing it was wrong, or didn’t give Centrelink information knowing the information was required, you might not be able to have your debt waived under these rules.
You may be able to explain to Centrelink what you knew at the time, or why you thought the information you gave was right. However, providing new information to Centrelink has risks. This is because Centrelink may use the information in a way you don’t expect, such as to raise a further debt, increase the debt amount, or for a fraud investigation.
Are there risks with seeking a review?
1: Risk of fraud investigation and prosecution
If Centrelink believes a debt was caused by fraud – that is, they think you deliberately lied in order to gain a benefit – they may investigate you. This could lead to criminal charges against you. It is possible to receive a prison sentence if you are convicted of fraud.
You should be aware that any information and evidence you give Centrelink can be used against you.
2: Risk of the amount you owe increasing
Challenging a Centrelink debt involves a decision-maker looking closely at your situation and the circumstances of your debt. They may discover errors in how the debt was calculated. They may recalculate the debt and find you owe more money than originally thought. If this happens, the decision-maker will likely change the decision and ask you to repay more money.
If you have been issued with a Centrelink debt and are considering seeking review of the debt, your first step should be to visit SSRV’s Social Security Debt Help website.
Social Security Debt Help helps people with a Centrelink debt, or those supporting them, understand what might have gone wrong, what their options are, and where they can get help. Using the Self Help Tool, you can simply enter information about your situation and in response you are given a kit. This kit includes important information for you to consider, and questions you can ask a lawyer, financial counsellor or support person, to help you obtain advice tailored to your circumstances. This kit includes important information for you to consider, and questions you can ask a lawyer, financial counsellor or support person, to help you obtain advice tailored to your circumstances.
