‘Severe error’: Young Aussie cops huge Centrelink bill

A young mum has shared her dismay after copping a brutal bill from Centrelink, after what she claims was a “severe error” on their end.

A young mum has shared her dismay at being hit with an $8000 bill from Centrelink for something that she says wasn’t her fault.

Susie, a 23-year-old, single mum-of-two who is living in Queensland, has been receiving about $800 a week in welfare payments for just over two years.

She has faced homelessness in the past, finding herself without anywhere to live in early 2022.

Eventually, that same year, she was able to find a rental that was subsidised through the Queensland Department of Housing.

Since then, Susie has been working hard to budget her weekly payments from Centrelink and ensure she and her children have everything they need to get by.

In fact, she even managed to save more than $20,000 over a two-year period, which she used, in part, to help buy a new car for her family as her other one was continually breaking down.

She was in a good routine and was finally in a position where she felt she could enrol in university and manage the associated expenses.

However, in January of this year she received a rude shock after getting a letter in the mail claiming she been wrongly receiving rental assistance and now had an $8000 debt to repay.

Susie said the debt is the result of an administrative error. Picture: @_arcane_02/TikTok

She has been left dismayed by the unexpected debt. Picture: NCA NewsWire / Andrew Henshaw

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Susie shared her frustrations in a recent TikTok video, revealing that in 2022 she was told by a Centrelink employee that she was eligible to receive rent assistance, despite her clarifying that she was on a headlease agreement through the Queensland government.

“I walked into a Centrelink office and they gave me rent assistance, assuring me that I was eligible,” she said.

Given this, the 23-year-old was understandably shocked to receive an $8000 bill and called Centrelink to find out what had gone wrong and how she could avoid something like this happening in the future.

“The lady over the phone, this was a Centrelink officer, she sounded so mad, not at me, at the system,” she said.

“She literally said to me this is no fault of your own, whoever gave you this rent assistance made a severe error.”

Susie later received another letter claiming she had advised Centrelink in October 2022 that she was living in a private rental and had provided a lease agreement to support this.

This is something the young mum completely denies.

“I would love to see that lease agreement because I have only ever lived in this one unit through the department of housing, now through social housing. I have never been able to afford private rent,” she said.

“They are lying. Surely someone is going to get fired after all this goes down. It is easily provable that that is a lie.

“I hope someone loses their job because they are tampering with our lives.”

Susie shared a copy of her lease agreement through the Queensland Department of Housing. Picture: @_arcane_02/TikTok

She hit back at the claim that she provided Centrelink with a copy of a private rental agreement. Picture: @_arcane_02/TikTok

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Speaking to news.com.au, Susie claimed Centrelink have, so far, not been able to send her any proof that she told them she lived in a private rental during 2022, despite them claiming she provided them with a lease agreement.

“I requested that they put forth the evidence over the phone to the debt department that wrote the letter,” the young mum said.

“I actually spoke to the woman who told me she wrote that particular letter and she refused to answer my questions.”

Services Australia told news.com.au that they have been in contact with Susie about this matter but they don’t comment on individual cases for privacy reasons.

“Customers have a right to ask for an explanation or a formal review of any decision we make. As part of a review of a decision we’ll consider whether it’s appropriate to waive a debt,” Services Australia General Manager Hank Jongen said.

“If a debt still stands after the review, customers can set up a flexible repayment arrangement.

“If the customer disagrees with the outcome of the review, they can apply to the Administrative Review Tribunal (ART) for an independent review. Their debt repayments can be paused until the ART’s review is complete.”

Susie has since pushed back against the debt and is currently waiting for her appeal to be heard through the ART.

However, this could take up to three months and, in the meantime, she said she is paying money towards the debt.

News.com.au understands that in order for the debt to be waived it must be solely due to an administrative error, the customer must have received the money in good faith and the debt must not have been raised within six weeks of either the first incorrect payment or the end of the customer’s 14 day notification period, whichever is later.

Between the debt payments and after her rent is automatically deducted from her pay, Susie is receiving about $586 a week.

“This debt has taken serious funding away from my food bill and childcare. How can I afford to re-enter the workforce if I can’t afford more days at daycare? My only option is to study and do work placement,” she said.

“To add, my children’s father has been exempt from paying any child support, the government has sent me a debt despite it being their employees’ fault and I am still battling chronic vertigo as of 2023.”

Susie has been open about her situation online, sharing her experience of living on welfare and how she makes it work as a single mum.

While she has been receiving a lot of support, with people branding the debt “appalling” and many others claiming they have had similar experiences, there are still those who aren’t so understanding.

Susie has lodged an appeal over the debt. Picture: Instagram

She said that people in her comment section often wonder why she stays on Centrelink, but the truth is, she doesn’t want to.

“I have nothing in my super account. I have a child who requires special therapy during school hours for their needs in order to be ready for school. And no support, nothing,” she said.

“No one to help with the children when I can’t drive, no one to help me.

“I’ve worked since the age of 15 to 22, I’ve always been doing something.”

Susie said, at the rate she is currently paying off the debt, it will take close to a decade before she is free of the repayments.

The 23-year-old’s initial video has been viewed more than 500,000 times and has gained more than 1200 comments, with many people sharing that they had found themselves in a similar situation.

“I hate how they do this, similar thing happened to me,” one person claimed.

Another person claimed they had been put on the wrong type of payment twice and was asked to pay the money back as a result.

“I live in constant fear of getting a debt sent to me even though I haven’t been on Centrelink for over a year,” another said.

Others were adamant that Susie shouldn’t have to pay back the money.

“Nah that’s on them, they GAVE it to you. I would keep fighting that. do not pay them a cent. it’s ON THEM,” one said.

“This is appalling. They can send the bill to the staff member who stuffed up if they're so keen to get their money back,” another wrote.