(image via Wikipedia)
One of Australia’s most influential social service representative groups has again called on the government to halt Centrelink’s debt recovery program, saying that the program was creating undue anxiety for thousands of people who were being caught up with notices that had potentially been overpaid and could owe money.
In a statement, the Australian Council of Social Services has called for an immediate end to the automated data-matching program of debt detecting and recovery.
This would include ending any existing debt recovery action that has arisen under the program along with any planned automated debt recovery programs.
ACOSS has also called for a roundtable of stakeholders to design a better debt recovery solution, an independent investigation into the current program and better resourcing of Centrelink and community legal assistance services which assist people with social security issues.
It said critical issues with the current system included:
- The reversal of onus of proof onto people who received payments to explain any and justify any discrepancy between employer data reported to the tax office and data reported to Centrelink
- A failure to adequately investigate the adequacy of automated data matching
- A continuance of debt recovery action where debts are being challenged
- A lack of human involvement in detection and calculation of alleged overpayments
- Requirements for people to gather evidence of their income from up to six years ago
- Automated debt recovery and deduction of amounts from people’s income support without human intervention
- An inability of people to make contact and speak with Centrelink staff
ACOSS call comes amid explosive allegations that Centrelink staff were being instructed to not correct errors associated with the system.
These allegations, contained in a letter from a whistle-blower to GetUp and subsequently released online, state that Centrelink compliance officers have been instructed not to fix errors in the matching system such as income from the same employer being doubled up, items being included as income which should not be, fictitious payments which Centrelink never made and recovery fees being applied where they shouldn’t be.
The government however, defends the system – which matches income related data received by the ATO from employers with that provided to Centrelink in welfare payment claims.
Where a discrepancy between the two data sets exists, the government says the system sends a letter out to welfare recipients informing them that there is a discrepancy and asking them for clarification with regard to why this might be the case.
These initial letters are not debt letters as such but rather letters outlining the discrepancy and asking them to explain the difference, it says.
The government says it is not unreasonable to require people to explain any discrepancies and that indeed this was an essential component of ensuring that people received only those amounts to which they were genuinely entitled.
