Recipients have 21 days to dispute a debt but problems with online service have left some unable to lodge a dispute

Problems with Centrelink’s online service portal have prevented some welfare recipients from challenging debt notices, prompting fears they will be automatically referred to debt collectors just before Christmas.



The government has intensified its efforts to retrieve debts from low-income Australians since mid-2015, when it began using a new automated data-matching system to detect overpayments. Since the system was introduced the number of compliance letters being sent by Centrelink has jumped from 20,000 a year to 20,000 a week.

Facebook Twitter Pinterest Two screenshots showing errors with Centrelink’s online service that have prevented welfare recipients from disputing debts. Photograph: Centrelink

Recipients are given 21 days to dispute the debt online, forcing them to track down payslips and employment history from up to six years ago to prove they did not wrongly claim benefits.



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“If you do not respond, it will be assumed no reasonable excuse applies and the 10% recovery fee may be added to the debt amount,” the letter warns. But problems with Centrelink’s online service have left some users unable to lodge a dispute.

One user, Timothy Heywood, was told in late November he owed Centrelink thousands of dollars, a debt he disputes. Heywood told Guardian Australia he had attempted to log in to the online service every day for the past month, but had received a “service unavailable” error every time.

Heywood said he tried to deal with the debt at a Centrelink office and over the phone, but was told all compliance issues had to be dealt with online. The errors left him unable to lodge a dispute within the 21-day period, which ended on Friday, and he now fears he has been referred to a debt collector.

Asked whether the process had caused him anxiety, Heywood said: “A lot. It’s an uphill battle because you are guilty until proven innocent, and when you aren’t given a voice or an appeals method that doesn’t cost money or a lawyer to organise ... you’re screwed,” he said.

The Department of Human Services confirmed it had experienced problems with its online system, but said they had been fixed.

General manager Hank Jongen said it had affected only a “small group” of customers.



“A certain specific set of circumstances was impacting a small group of customers, resulting in them receiving an error message,” Jongen said. “We apologise for any inconvenience caused.”

The data-matching system Centrelink is using to detect overpayments has also been experiencing problems, according to some welfare recipients. The new system compares data held by Centrelink with data from other government agencies, including the tax office, to determine whether a person has wrongly claimed welfare.

Last week, independent Andrew Wilkie called on the government to suspend the automated compliance system while reports of errors were investigated. Other welfare recipients have since spoken to Guardian Australia about claims for debts they say have been incorrectly issued.

One man, who asked not to be named, was told he owed $2,200 because the ATO’s information did not match the income he had reported to Centrelink. He said he claimed benefits for only part of the year, and believed the ATO’s information on his annual income had been mistakenly used to suggest he worked the entire year.

“I believe no government department could be so incompetent to not recognise the glaring problems with matching data that is on completely different scales (yearly vs fortnightly),” he said. “To me this means it has been purposely done.”

The department said last week it believed the automated system was working without error. It said there had been no increase in the rate of appeals received.