Post by Banker on Apr 5, 2011 17:09:58 GMT 7
Some Comments from WRG.
Centrelink unfair debt recovery rules called into question by Senate Inquiry
Friday, 28 January 2011 15:13
DID you realise that if Centrelink is 99 per cent responsible for a mistake with a payment and the income support recipient goes into debt, then the recipient may still have to repay the entire debt?
It’s even worse for people in receipt of the Family Tax Benefit, where if Centrelink is not only 99 per cent but 100 per cent responsible for the mistake and the recipient received the payments in good faith, the recipient must prove that repayment of the debt would place them in severe financial hardship.
Seems unfair?
That’s what organisations like the National Welfare Rights Network and CPSA have thought for quite some time.
Thankfully, the Senate Legal and Constitutional Affairs Reference Committee thought along the same lines and recommended that “the Australian Government review ‘waiver of debt’ provisions contained in social security legislation and consider amendments to that legislation where current provisions could cause unfair and unjust outcomes for welfare recipients.”
Jenny Macklin the Minister responsible, has committed to her department reviewing the arrangements.
It was reported that over two million overpayments were made by Centrelink in 2009/10, amounting to $1.7 million.
That’s quite a few overpayments being made, and it’s safe to say that quite a few may be Centrelink’s fault.
Welfare Rights, the organisation that works with income support recipients who are dealing with Centrelink and need assistance, states that “Our experience in providing casework services over the last 24 years shows that where a person in receipt of Social Security is advised of a debt they have become stressed, frightened, have difficulties sleeping and are traumatised by the event” (Welfare Rights ‘Rights Review’ December 2010, p. 7).
Losing part or all of one’s income when it is so small in the first place causes great undue stress, especially if responsibility lies with Centrelink.
CPSA supports the calls for a fairer system.
www.cpsa.org.au/index.php?option=com_content&view=article&id=296:centrelink-unfair-debt-recovery-rules-called-into-question-by-senate-inquiry-&catid=3:income&Itemid=45
Centrelink unfair debt recovery rules called into question by Senate Inquiry
Friday, 28 January 2011 15:13
DID you realise that if Centrelink is 99 per cent responsible for a mistake with a payment and the income support recipient goes into debt, then the recipient may still have to repay the entire debt?
It’s even worse for people in receipt of the Family Tax Benefit, where if Centrelink is not only 99 per cent but 100 per cent responsible for the mistake and the recipient received the payments in good faith, the recipient must prove that repayment of the debt would place them in severe financial hardship.
Seems unfair?
That’s what organisations like the National Welfare Rights Network and CPSA have thought for quite some time.
Thankfully, the Senate Legal and Constitutional Affairs Reference Committee thought along the same lines and recommended that “the Australian Government review ‘waiver of debt’ provisions contained in social security legislation and consider amendments to that legislation where current provisions could cause unfair and unjust outcomes for welfare recipients.”
Jenny Macklin the Minister responsible, has committed to her department reviewing the arrangements.
It was reported that over two million overpayments were made by Centrelink in 2009/10, amounting to $1.7 million.
That’s quite a few overpayments being made, and it’s safe to say that quite a few may be Centrelink’s fault.
Welfare Rights, the organisation that works with income support recipients who are dealing with Centrelink and need assistance, states that “Our experience in providing casework services over the last 24 years shows that where a person in receipt of Social Security is advised of a debt they have become stressed, frightened, have difficulties sleeping and are traumatised by the event” (Welfare Rights ‘Rights Review’ December 2010, p. 7).
Losing part or all of one’s income when it is so small in the first place causes great undue stress, especially if responsibility lies with Centrelink.
CPSA supports the calls for a fairer system.
www.cpsa.org.au/index.php?option=com_content&view=article&id=296:centrelink-unfair-debt-recovery-rules-called-into-question-by-senate-inquiry-&catid=3:income&Itemid=45