Public Sector union calls for immediate suspension of Centrelink debt recovery scheme

News Corp Australia Network/AAP Jan. 10, 2017 11:09am

Claire Bickers

CENTRELINK’S controversial debt recovery system must be urgently suspended, according to the public sector union which has warned staff are already struggling to cope.

The CPSU says service standards have already dropped to “unacceptable levels” following thousands of job cuts in the Department of Human Services, and now the latest scandal is piling on more pressure.

“This scheme is an absolute nightmare for thousands of Centrelink customerswho’ve done absolutely nothing wrong, and the staff who are bearing the brunt of this mess,” assistant national secretary Michael Tull said.

Mr Tull said the union held serious concerns about Centrelink’s ability to cope in coming months, with the annual surge in students applying for support as well as dealing with complaints about letters falsely claiming welfare recipients owe money or exaggerating the amount.

The Commonwealth Ombudsman yesterday agreed to investigate the debt recovery system after a glitch in the new automated data matching system resulted in inaccurate requests for repayments.

The federal government introduced the system in a bid to claw back $4 billion in overpayments from welfare recipients.

“This debt recovery scheme needs to be urgently suspended until the significant problems with it can be identified and fixed, and particularly with an even more heavy caseload coming for staff because of the pension cuts and as people need Centrelink’s support to commence their studies,” Mr Tull said.

“An important first step in fixing the debt recovery scheme would be consulting with staff as should have been done in the first place.”

Mr Tull said there was at least one case of a welfare recipient being sent a debt notice for $9000 when it should have been $90.

Last week, Social Services Minister Christian Porter said about one in five people who received one of nearly 170,000 letters sent out did not owe a debt.

“In 80 per cent of instances the debt is repayable to the Commonwealth, in the final 20 per cent of instances the matter is resolved, generally speaking, by people simply providing information online,” Mr Porter said.