Centrelink childcare subsidy continues to cause chaos
Centrelink is quick to hit families with debt notices and demand overpayments are rectified, but it is a very different story when money is owed to families. Here’s the latest in the childcare subsidy saga.
National
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Parents have been forced to repay $60 million in just three months as the chaos from the change in childcare subsidy hits.
But those who were underpaid are being told they may have to wait until the end of June to get the money they’re owed by Centrelink.
Last week the Sunday Herald Sun revealed problems plaguing the new system, which came into operation last year, has seen parents wrongly ordered to pay back up to $5000.
Since 1 July nearly 250 parents nationwide have successfully challenged Centrelink after being wrongly hit with debts.
But the number is expected to soar as more of the 117,000 parents hit with debt notices dispute the money they are owed.
This week Services Australia revealed to a senate committee that as of 4 October, $64.4 million had been paid back by parents who had been overpaid.
It accounts for almost 15 per cent of parents who got the subsidy in the last financial year.
Services Australia told the committee that almost a quarter of the 116,402 parents who have asked for additional childcare subsidy were waiting more than 28 days to have their claims processed.
Rebecca Diounysius filed her tax return in early August but is still waiting for Centrelink to balance her childcare subsidy which she estimates will see her paid around $1300.
She lodged a customer complaint with Centrelink in early November.
“They’ve just told me to be patient,” Ms Diounysius said.
“It’s disappointing as I was hoping to pay my credit card off before Christmas.”
Last month her local MP was advised by Centrelink they have given themselves until 30 June to reconcile childcare records.
According to the government the average waiting time to speak to staff working on the Family and Parenting Line is almost 24 minutes.
Labor’s spokeswoman for Early Childhood Education and Development, Amanda Rishworth, said the government had been relentless in recouping debts despite known flaws in the system.
“This government is quick to take money out of the pockets of Australian families, but has no urgency when they’re the ones owing money,” she said.
“This delay is repaying families is causing significant stress, especially around the Christmas period when household budgets are tight.”
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A spokesman for Education Minister Dan Tehan said so far 833,000 cases had been finalised by the government and that less than 1 per cent of people who had lodged their tax return were still waiting.
“We’ve appreciated families’ patience and to want to reassure them that we are balancing childcare subsidy payments as quickly as we can,” he said.
Originally published as Centrelink childcare subsidy continues to cause chaos