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Editorial: Admit Centrelink system is broken and then fix it

6 January 2017
The Editor, The Courier-Mail
The Courier Mail

When a government agency tasked with assisting some of the most vulnerable Australians is reduced to suggesting on Twitter that clients seek help via Lifeline, perhaps it is time to acknowledge there might be a problem.

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The problem is that there is mounting evidence that thousands of innocent Australians are being informed they are liable for debts that don’t exist due to issues with Centrelink’s now automated compliance system. One key issue relates to a data matching system Centrelink is now using to marry its information with that held by the Australian Taxation Office and other agencies.

In some cases this system is incorrectly concluding a person was working two jobs when they had only declared one, perhaps due to a minor paperwork discrepancy. In others, where a person may have been unemployed for a period and receiving Newstart, the system is then averaging wages earned over the remainder of the year over the whole 12 months – including the period when no or little work was undertaken.