- Published:
- Wednesday 15 August 2018 at 12:00 am
We are concerned about a new development in Centrelink’s flawed robo-debt system – a process that has already significantly impacted tens of thousands of vulnerable people.
Centrelink has extended its scheme of sending targeted debt raising letters to people that it has identified are vulnerable – including those with mental health issues and intellectual impairment.
Our Executive Director of Civil Justice, Access and Equity Rowan McRae said the scheme ‘has real human consequences for people who are already in very vulnerable situations.’
‘This is an intimidating debt raising process that causes anxiety and harm to people experiencing homelessness, mental health issues, drug dependencies and other vulnerabilities.’
‘Previous reviews have shown that when debts are challenged, one in five were wrong and the debt was incorrect – causing tens of thousands of people unnecessary pain,’ Rowan said.
‘Despite their known inaccuracy, people managing other issues in their lives will be unable to meet the demands of the robo-debt process. In practice, this could mean people are paying debts that they don’t actually owe.’
The methods employed by Centrelink match payment history with ATO records and then require people to prove they don’t owe that alleged debt. This is unreliable and inaccurate. We know asking people to produce evidence of income from several years prior causes great distress. It’s confusing and difficult to navigate Centrelink’s system. People are unable to find relevant documents like payslips and are left overwhelmed.
‘Placing the burden of proof on a group of mostly vulnerable people is not just harmful but we’re also concerned it contravenes the Social Security Act.’
‘All kinds of people need social security from time to time. They do not deserve to be intimidated and unfairly threatened with debt.’
We have previously raised concerns and joined broader calls to end this harmful debt collecting process.
We continue our call to Government to end this harmful scheme and put the wellbeing of vulnerable Australians first.
Media enquiries
For media enquiries contact Program Communications Manager Sophie Griffin on 0427 916 923 or sophie.griffin@vla.vic.gov.au
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