I received an SMS late September 2016, asking me to confirm my income reported to the ATO, and that it didn't match what I reported to centrelink while receiving Newstart in 2014. I checked over the ATO records and declared it as correct. Later in October I received an online assessment that informed I had an $837 debt with a $43 revery fee. I knew it was a mistake and immediately went online and selected an option that indicates you do not agree it was calculated correctly and you need an explanation. I was then informed I would receive a call in 7 days with an explanation of the debt. I didn't receive a call and after waiting a couple of weeks I called the office.
From hear on my story gets interesting....
When I called up the debt payments number, I spoke to an operator that informed me I'd receive a call from someone within the week to explain it to me and review it. They couldn't see why I had a debt. I was informed to go on a payment plan while I waited for someone to call me, to look into it. They did make a point that if I didn't make any payment, I would be referred to debt collectors... I waited another week and still hadn't received a call. I called a few times before the repayment due date and was just given the same information. I called the debt number the day my debt was due and informed them I could afford 5 dollars a month to repay the $880. The lady said that amount was too low and asked me some questions about my living costs and income and put me on hold for 30 minutes while she spoke to her manager. I was then hung up on! I went online and realised I had the option of paying $16.93 per week. So I started paying that amount off. I made a few more calls over the next week or so and nobody could tell me any information regarding this and then someone just put it in for a reassessment. So now I waited about a month.
I then got a nice little surprise via SMS. "Your Employment Income reassessment is complete, please log on to your centrelink online account to view the outcome." I then log on....... $5,854.93 + $43.50 recovery fee!!! I was shocked anxious and fedup. I decided to get the ball rolling and seek legal help if I couldn't get anywhere with Centrelink. There was no proof what so ever, that I didn't report my income and I was issued with an official debt notice and email. I called Centrelink and asked to speak to a supervisor and Informed I was making a complaint. They informed me I.T would look over it and it was a mistake and I'd get letter within a week. I did get an online letter with worse news. It said my new debit was now $7191!!! Seriously?
I called Vic Legal Aid and got an appointment in a couple of weeks, later learning from the lawyer that I was not the only one in this situation. In the meantime, I called centrelink and was informed that an actual person.. that's right a person, not a computer.., looked over it and the new debt was $319 + 10% recovery fee.
So, in summary - $880 > $5898 > $ 7191 > $ 351. So when the Minister for Social Services Christian Porter says the system is working well, he is full of it!
I then appealed that debt of $351 and I am currently in the process of getting a review from a Subject matter expert.
All in all, this has been a very stressful ordeal. Basically hours of my time has been spent fighting a false debt made from a defective computer system. I have been stressed, thinking I'd have to pay back thousands of dollars I don't have.
On behalf of the allegedly 20% of the 169 thousand recipients with incorrect debt notices - some of whom are living tough... YOU NEED TO STOP THIS!!
Basically, as many others have experienced - Guilty until you prove to Centrelink you are innocent. I spent hours of my time waiting on the phone. I was told I would receive calls, but never received them. I was hung up on. I am still repaying a debt that's not mine.
The government has implemented an extremely poor system of recovering debt and in the process, caused hardship upon thousands of people. People need to be called and have their situations resolved now. The system needs to be fixed so people who need help get it and people who rort the system, don't get away with it!