Noel Mundy, Tasmania's state director for charity Mission Australia, told a Senate inquiry on Wednesday that his clients have become victims of domestic violence after receiving a Centrelink debt letter.

"We've unfortunately heard a couple of cases of domestic violence that [have] arisen out of this," Mundy said.

"The partner is saying, 'You should have paid this' – it just creates that tension in the household and very, very sadly children are being neglected in some cases."

Mundy has accused the government of breaching its duty of care by leaving vulnerable people isolated, anxious and distraught. He said it has pushed some people to the brink of suicide and violence.

"Sudden claims of massive debts can have a negative impact on people... especially those in strained family relationships," he said.



He said Mission Australian received a 20% increase in calls after the debt recovery program began last year.

"The longer term issues around mental health and physical health are massive from this," Mundy said.