Post by rowdy on Apr 11, 2012 21:52:25 GMT 7
Centrelink enlists spies, debt collectors to recover taxpayer funds
CENTRELINK is using debt collectors to try to recoup $2.8 billion in overpayments.
Family tax benefits and parenting payments account for more than half the nation's social security debt - and are equivalent to the federal government's promised $1.5bn budget surplus next year.
New data released through the Senate estimates process reveals that Centrelink is chasing $2.8bn in debts, and has referred nearly $500 million in debts to the private collection agencies Dun & Bradstreet and Recoveries Corp.
The two agencies recovered $123m in debts between July 2010 and December last year.
The new data shows that the Department of Human Services spent nearly $1m spying on 637 clients using "optical surveillance" during the 18 months to the end of last year, but almost one in three cases "warranted no further action".
Centrelink received 158,378 tip-offs about social security fraud to its "dob-in" hotline over 18 months. But only 2444 tips - or 1.5 per cent of the total - were investigated with a view to prosecuting, while 1446 - less than 1 per cent - led to payments being cancelled.
Another 2996 tip-offs resulted in payments being decreased - although 365 people were given higher payments as a result of an allegation of fraud.
The departmental data shows that Centrelink recovered $1.8bn in debts during the 18 months to last December, on top of what it is still trying to reclaim.
And 323,737 debts totalling $1.2bn are owed by Australians who no longer receive Centrelink payments - forcing the government to garnishee tax refunds or resort to debt collectors to retrieve the funds.
Half those debts, totalling $349m, "were not under recovery arrangement as at 31 January, 2012", the department has told the Senate estimates committee.
Department of Human Services general manager Hank Jongen said yesterday the debt had not been written off.
Of the debts incurred during 2010-11, half were due to what Centrelink described as "automatic overpayments".
And $1bn is owed by families who were paid too much Family Tax Benefit, after underestimating their annual income when applying for fortnightly payments.
Mr Jongen said Centrelink cross-checked families' estimates against their actual tax returns.
In addition to the $2.8bn in welfare debt, the department has identified an additional $262m in "potential overpayments".
National Welfare Rights Network president Maree O'Halloran said yesterday overpayments were at "endemic proportions". "Mistakes and errors - by both Centrelink clients and staff - happen far too frequently," she said.
Ms O'Halloran said simple misunderstandings, such as confusing gross and net income, sometimes led to overpayments.
And casual workers who relied on Centrelink payments to supplement low wages, were caught out if they worked extra shifts or wrongly guessed their annual earnings.
Source : www.theaustralian.com.au/national-affairs/centrelink-enlists-spies-debt-collectors-to-recover-taxpayer-funds/story-fn59niix-1226324290228
CENTRELINK is using debt collectors to try to recoup $2.8 billion in overpayments.
Family tax benefits and parenting payments account for more than half the nation's social security debt - and are equivalent to the federal government's promised $1.5bn budget surplus next year.
New data released through the Senate estimates process reveals that Centrelink is chasing $2.8bn in debts, and has referred nearly $500 million in debts to the private collection agencies Dun & Bradstreet and Recoveries Corp.
The two agencies recovered $123m in debts between July 2010 and December last year.
The new data shows that the Department of Human Services spent nearly $1m spying on 637 clients using "optical surveillance" during the 18 months to the end of last year, but almost one in three cases "warranted no further action".
Centrelink received 158,378 tip-offs about social security fraud to its "dob-in" hotline over 18 months. But only 2444 tips - or 1.5 per cent of the total - were investigated with a view to prosecuting, while 1446 - less than 1 per cent - led to payments being cancelled.
Another 2996 tip-offs resulted in payments being decreased - although 365 people were given higher payments as a result of an allegation of fraud.
The departmental data shows that Centrelink recovered $1.8bn in debts during the 18 months to last December, on top of what it is still trying to reclaim.
And 323,737 debts totalling $1.2bn are owed by Australians who no longer receive Centrelink payments - forcing the government to garnishee tax refunds or resort to debt collectors to retrieve the funds.
Half those debts, totalling $349m, "were not under recovery arrangement as at 31 January, 2012", the department has told the Senate estimates committee.
Department of Human Services general manager Hank Jongen said yesterday the debt had not been written off.
Of the debts incurred during 2010-11, half were due to what Centrelink described as "automatic overpayments".
And $1bn is owed by families who were paid too much Family Tax Benefit, after underestimating their annual income when applying for fortnightly payments.
Mr Jongen said Centrelink cross-checked families' estimates against their actual tax returns.
In addition to the $2.8bn in welfare debt, the department has identified an additional $262m in "potential overpayments".
National Welfare Rights Network president Maree O'Halloran said yesterday overpayments were at "endemic proportions". "Mistakes and errors - by both Centrelink clients and staff - happen far too frequently," she said.
Ms O'Halloran said simple misunderstandings, such as confusing gross and net income, sometimes led to overpayments.
And casual workers who relied on Centrelink payments to supplement low wages, were caught out if they worked extra shifts or wrongly guessed their annual earnings.
Source : www.theaustralian.com.au/national-affairs/centrelink-enlists-spies-debt-collectors-to-recover-taxpayer-funds/story-fn59niix-1226324290228
