In April last year, Michelle Lawson received an unpleasant surprise from the Department of Human Services: she apparently owed them more than $6000, from single-parent benefits received years earlier.
The Seven Hills mother-of-two declared her part-time income fortnightly and it was checked annually against her tax returns.
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“Everything feels like it’s a dead end,” Ms Lawson said.
“I do feel badly for the people that work there, but people are angry and people are desperate.
“The ironic thing is, the people that are being targeted [with debts] are the ones that are actually trying to do the right thing and trying to work.”
Department of Human Services general manager Hank Jongen could not comment on Ms Lawson’s case, but the Sun understands it is not related to the new online compliance intervention system.
The new process, which was initiated in July 2016, has drawn ire after the department admitted that up to 20 per cent of debt notices were issued in error.
“It’s important to note the department is legally obliged to pursue recovery of debts,” Mr Jongen said.
“The decision to raise and recover a debt remains in force even when a customer requests a review of the decision. The recovery of the debt should continue while the review or appeal action is in process.”