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Centrelink debt letter surge to resume as government promises tweaks to the system

11 January 2017
Tom McIlroy
SMH

Centrelink will resume posting controversial debt recovery letters to thousands of Australians, as Human Services Minister Alan Tudge has defended efforts to recoup incorrect welfare payments and denied the agency made fundamental errors.

Standard procedures saw a halt to initial letters being sent to welfare recipients on December 3 last year, but thousands of Australians have reported receiving debt demands over the Christmas and New Year period, including some for tens of thousands of dollars. 

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Asked if Prime Minister Malcolm Turnbull had intervened in the controversy or sought assurances from Centrelink, Mr Tudge said only that he had constant conversations with Mr Turnbull.

"Probably like all ministers, you're always on really, even if you're on leave," he said. "I think all ministers have ongoing conversations with the Prime Minister at all times."

Mr Tudge said the government would continue to improve the system, and indicated one possible change could be to ensure welfare recipients had received the first letter requesting information. 

"There is a legal obligation upon us to send it to the address which they have on their Centrelink file, but perhaps we can do that as well as take other initiatives to ensure that they receive that first letter," he said. 

Independent Andrew Wilkie said he was "shocked and baffled" by Mr Tudge's claims that debt recovery systems were working fine, after the government acknowledged about 4000 incorrect debt notices were sent out each week.

He accused the government of being out of touch with the community and public interest.