A Ballarat woman has been forced to hunt down five-year-old payslips over Christmas while caring for an elderly relative in order to challenge thousands of dollars she allegedly owed to Centrelink.
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Ballarat MP Catherine King’s office has seen a spike in complaints in the lead up to Christmas after the government agency mobilised an automated debt recovery system, which its own employees have said is unable to take into account intermittent or casual work.
Ms King said the woman, who was among several to contact her office over the Christmas break, had to chase down 36 payslips from an employer who was now defunct.
Debt collectors have been charged with accruing outstanding funds, some of them debts with deadlines set just days after Christmas.
Some letter recipients have been been unable to give proof of their income because former employers have failed to hold on to their employment records for the required seven-year period.
Others have had to wait for their former employers to return to work from the festive break, all the while being contacted weekly by debt collecting agencies.
Ms King said the system had created a “dragnet” effect and should be immediately suspended.
“I’ve had people who have been caring for elderly relatives over the summer and that can be difficult in and of itself and then having to navigate a system which is completely un-user friendly, unclear about when debt collectors are going to turn up at their door,” she said.
“It’s put incredible stress on people over a fairly stressful time plus it is increasingly clear it is hitting people who have been casual workers.”
Social Services Minister Christian Porter has defended the system, which he said earlier this week was working “incredibly well”, having attracted $300 million since July last year.
The department has sent $169,000 review letters since July, only 0.16 per cent of which had resulted in complaints, he said.
Mr Porter said the letters, which recipients claim include the threat of jail if the debt goes unpaid and a 10 per cent late fee, were polite.
As yet the minister has refused to release the number of people challenging the debt letters.
Legal Aid Victoria is also calling for the system to be suspended.
For assistance with debt notices contact Social Security Rights Victoria on 1800 094 164 or ssrv.org.au