CENTRELINK'S automated debt recovery system has again come under fire as many Bundaberg welfare recipients who appealed their recovery notices had their debts reduced or wiped entirely.

Social Services Minister Alan Tudge revealed, in a nine-month period across the country, there had been 7456 debts reduced to zero and another 12,524 partially reduced between July last year and March.

Bundaberg's 4670 postcode tops the nation where Centrelink debts were reduced to zero, with 43 recipients advised they don't owe anything.

A further 55 Bundy welfare recipients had their debt reduced, behind only the New South Wales region of Lismore with 59.

Labor human services spokeswoman Linda Burney says the figures reveal the extent to which Mr Tudge has fudged the management of the robo-debt debacle.

"Over a nine-month period, the government erroneously and unnecessarily set debt collectors on 20,000 innocent and vulnerable Australians who were in need of income support at that point in their lives,” he said.

"Minister Tudge made them feel frightened, anxious and like criminals, and he should apologise.”

Mr Tudge said the ombudsman did a full review of the system and found the system calculates debts accurately.

"Of course, if someone provides new accurate information, then a different debt figure is calculated.

"Our compliance system is aimed at ensuring there is integrity in the system - we want to be fair and reasonable to welfare recipients but also fair to the taxpayer who funds welfare payments.”