What to do if you get a Centrelink debt letter   
Thousands of Australians have been left reeling in recent days after receiving an unexpected and unwelcome debt letter from Centrelink in the mail.

News.com.au
AUGUST 13, 2021

Thousands of Australians on Centrelink have been left reeling in recent days after tax lodgements and other end of financial year reviews landed them on a list of people owing the Government money.

The Government believes some Centrelink recipients have been overpaid and are now being asking for part of that money back.

Last week, news.com.au revealed Centrelink was sending out letters trying to recoup amounts of up to $10,000 in childcare subsidies for periods extending back years.

And just days later, Services Australia told Senate estimates they had issued debt letters to 11,771 people who owed them $32.8 million cumulatively, from overpayments to do with the JobKeeper program because income had been misreported.

It comes less than a month after the Robodebt saga – which unlawfully matched tax and Centrelink data resulting in thousands of bogus debt claims against recipients – concluded with a $1.7 billion settlement for its victims.

If you got one such debt letter in the mail recently, don’t panic just yet – the Government has plans in place for you to pay everything back over time.

And if you don’t think the fee is fair, there are ways to dispute it.

Here’s what to do if you get a debt letter in the mail.





Do I have to pay back the debt?

Not necessarily.

If you think there’s been a mistake and you don’t owe them anything, you may be able to get out of your debt.

“We understand you may not agree that you have a debt or need to repay money,” the Centrelink website states.

They encourage you to get in touch if you want to challenge the decision.

You can do this by calling the number in the debt letter, ringing your regular point of contact or calling the Centrelink Debt Recovery Line.

Your debt will be explained to you and they will consider any new information you can give them.

If this doesn’t sway them, you can request for a formal review into the decision to appeal it.

The review doesn’t cost you anything and they aim to have finished their investigation within 49 days.

An authorised review officer who is independent from Centrelink will look into your case and change the decision if it’s wrong.

Will I go to jail if I don’t pay it?


This week, thousands of Aussies received an unexpected and unwanted letter from Centrelink in the mail.   

There are several different forms of Centrelink Fraud under sections 134 and 135 of the Criminal Code Act 1995 (Cth).

According to Nyman Gibson Miralis Lawyers, you can’t be sent to jail for a debt of this nature unless they have reason to believe there has been deliberate wrongdoing.

If it’s a genuine mistake, you shouldn’t get into any trouble.

Centrelink can refer a debt to the Commonwealth Director of Public Prosecutions (CDPP) if they think you’ve lied or omitted information to turn a profit.

“If Centrelink suspects that you have committed an offence, they will first conduct an investigation. They may invite you to attend a formal interview or may come to your house. If they still believe you committed an offence, they will then refer the matter to the CDPP,” NGM Lawyers wrote on their website.

However, this is a very lengthy process and wouldn’t be undertaken lightly.

Although it’s unlikely your debt will become a criminal matter, there are other penalties if you’re late on your payments.

“Legally we have to recover money that’s owed to us,” Services Australia says.

It’s suspected that at least seven people took their own lives because of the thousands of dollars in debts they were wrongfully expected to pay back during the Robodebt debacle.   


If you’re late on a payment or haven’t organised a payment plan with them, they’ll start charging you interest.

They can then escalate it by going to your employer or bank, to have your money docked and sent to them instead.

Services Australia can also request that the tax office withhold your tax refund, so they can take that money to pay off your debt instead.

The Government cited a “last resort” option if you still haven’t paid off your debt, which will see them involving an external debt collection company.

You can rob the guy on the street.....and walk free and without debt

You can break into a house......And walk free and without debt

You can beat up someone......And walk free without debt.

But owe a few bob to the grubberment, even from manufactured fines
AND THEY WILL HOUND YOU TO YOUR GRAVE AND BEYOND.

Quote:


I'll bet Gerry Harvey didn't get one despite being overpaid millions

Now all someone has to do is talk about a welcome debt letter.

I got rid of a few shares earlier this year and expected to pay tax.

But I had a welcome refund because, as a self funded retiree, I pay no tax.
So I got money back from other sources and didn't have to pay anything, BONUS.

Should have retired years ago.

The best bit.....I'm not funding dole bludgers any more.

Baronvonrort wrote on Aug 17^th, 2021 at 6:48pm:


You can't say that.....it's not nice.
The dole bludgers really get uptight when you point that out.