Centrelink debt hammers family

By Alison Noonan
KIRRILY Briet was shocked to discover she was pregnant with twins.
She was even more stunned when she was fired while on maternity leave and was forced to find another job immediately.
But she always notified Centrelink each time her situation changed.
The Narre Warren South woman is one of thousands of Victorians who owe money to the Government after being overpaid under the Family Tax Benefit Scheme.
The worst hit area is the electorate of Holt, which includes Cranbourne, Endeavour Hills and Hampton Park, where families have an average of $1141 debt.
“My estimate for the Family Tax Benefit Scheme was thrown out a bit because I didn’t expect to have twins,” Mrs Briet said.
“But every time my situation changed or even looked like it would I contacted Centrelink. I was always honest and upfront.
“Never once did they say ‘you have been overpaid’.”
Mrs Briet, who is now a fulltime mum to three children under four, said she received a bill for $3500 two days before Christmas.
She said there was no explanation of how she had incurred the debt and no way she could repay the money.
“It just snowballed from there. I rang them and disputed it and it went to a review. It was declined so I went to review again. It was declined a second time.
“During that time they said they would get the debt collector onto me.
“It was a very stressful situation,” she said.
Mrs Briet said her $600 per Child Family Tax Benefit supplements were also taken from her without any notification, leaving the family struggling to make ends meet.
“I put all the new things for the twins on my credit card thinking I would have $1800 in payments but now I don’t have the money and can’t afford to pay off the card.
“We are going to have to sell our house and downsize because we can’t afford it any more,” she said.
Holt MP Anthony Byrne said he sympathised with the Briets, saying the Family Tax Benefit Scheme was ‘fundamentally flawed’.
“Family Tax Benefit debt is a massive drain on family budgets at a time when families are struggling with the high cost of petrol, paying for their mortgage and raising their children,” he said.
Mr Byrne said the problems associated with the scheme could be easily fixed.
“Where a change of income is reported during the year it should not affect the rate of payment made up to that point.
“If steps are taken to fix the system more of the Family Tax Benefit and $600 per Child Family Tax Benefit supplement will be assisting families rather than being taken in debt,” he said.
Centrelink general manager Hank Jongen said it was extremely important for customers to advise Centrelink as soon as their circumstances change.
“Some people may assume we will know of a change in their circumstances. We don’t unless they tell us and if people are paid too much, Centrelink is required by law to recover the overpayment,” he said.
He said Centrelink had a thorough and fair review and appeal processes to ensure customers’ best interests were protected.
“Centrelink encourages customers who disagree with our decision to seek a review.
“The first step is to ask the officer who made the decision to review it and if you are not satisfied with the outcome, an independent review process is available free of charge to all Centrelink customers,” he said.
He said customers can update their details at their local Centrelink office or phone 13 62 80.