Officials from the Department of Human Services told a Senate inquiry last Thursday that the department had referred more than 1,000 Centrelink debts under $50 to external debt collection agencies for recovery.

Human Services deputy secretary Malisa Golightly was asked by Nick Xenophon Team senator Skye Kakoschke-Moore about the smallest debt that Centrelink would refer to an external debt collection agency:

Human Services deputy secretary Malisa Golightly: But for, in terms of going to debt collectors, there may well have been a larger debt, but if there’s a remaining balance, some of it might have been paid off and then the person just stopped paying, um and lost contact, then they can be referred, and sometimes the balance is quite small on those. Senator Skye Kakoschke-Moore: When you say small, how small is small? MG: I have to check, but I think it could be as small as $20. SKM: Really? MG: But we... it’s part of a larger debt is the issue. SKM: But, you would put somebody through the stress of being contacted by an external debt collector for $20? MG: Well, this is something that we’re having a look at, and um a definite, you know, going forward.



The department said it considers each debt worth $50 or less on a case by case basis, in order to determine if it is economical to refer it to an external debt collector.

This Australian Tax Office only refer debts from $500 to $50,000 to external collectors.