Post by Banjo on Dec 7, 2010 20:51:02 GMT 7
Welfare errors may be waived
WELFARE recipients who are overpaid entitlements would have their debts waived where Centrelink was found to be responsible for the mistake.
A Senate Legal and Constitutional Affairs Reference inquiry into Centrelink debts has found cross-party support for overhauling harsh rules that make people pay debts even if they were because of a Centrelink error.
Centrelink debts are the main source of complaint for the 6.8 million Australians who receive payments from the agency. In 2009-10, there were 2.2 million overpayments, worth $1.747 billion.
According to random sample studies, between 2 and 15 per cent of Centrelink payments are incorrect but welfare groups say the true level of error is not known and a new debt system should determine this.
Under current rules, even if Centrelink is found to be 99 per cent responsible for a debt, it cannot be waived because of the recipient's 1 per cent contribution to the error. Centrelink investigates who is responsible for the error.
It is even harder to have a debt waived when it relates to Family Tax Benefit. FTB debt legislation provides that, even when Centrelink is 100 per cent at fault for the debt and the person received the payments in good faith, to have the debt waived, the person must prove that they would suffer "severe financial hardship" if it were not waived.
The Senate committee has proposed that the federal government review the "waiver of debt" provisions in social security legislation and consider amendments where the current provisions could cause unfair outcomes for welfare recipients.
Labor senators on the committee declined to put forward a dissenting report, which is unusual in situations where a Senate report calls for such dramatic changes to the law.
Families Minister Jenny Macklin told The Australian she was committed to fixing problems with overpayments.
"I want to make sure that the social security system is working as fairly as possible, so my department will both review the report and its recommendations," Ms Macklin said.
www.theaustralian.com.au/news/nation/welfare-errors-may-be-waived/story-e6frg6nf-1225967247671
WELFARE recipients who are overpaid entitlements would have their debts waived where Centrelink was found to be responsible for the mistake.
A Senate Legal and Constitutional Affairs Reference inquiry into Centrelink debts has found cross-party support for overhauling harsh rules that make people pay debts even if they were because of a Centrelink error.
Centrelink debts are the main source of complaint for the 6.8 million Australians who receive payments from the agency. In 2009-10, there were 2.2 million overpayments, worth $1.747 billion.
According to random sample studies, between 2 and 15 per cent of Centrelink payments are incorrect but welfare groups say the true level of error is not known and a new debt system should determine this.
Under current rules, even if Centrelink is found to be 99 per cent responsible for a debt, it cannot be waived because of the recipient's 1 per cent contribution to the error. Centrelink investigates who is responsible for the error.
It is even harder to have a debt waived when it relates to Family Tax Benefit. FTB debt legislation provides that, even when Centrelink is 100 per cent at fault for the debt and the person received the payments in good faith, to have the debt waived, the person must prove that they would suffer "severe financial hardship" if it were not waived.
The Senate committee has proposed that the federal government review the "waiver of debt" provisions in social security legislation and consider amendments where the current provisions could cause unfair outcomes for welfare recipients.
Labor senators on the committee declined to put forward a dissenting report, which is unusual in situations where a Senate report calls for such dramatic changes to the law.
Families Minister Jenny Macklin told The Australian she was committed to fixing problems with overpayments.
"I want to make sure that the social security system is working as fairly as possible, so my department will both review the report and its recommendations," Ms Macklin said.
www.theaustralian.com.au/news/nation/welfare-errors-may-be-waived/story-e6frg6nf-1225967247671