Calls to shutdown Centrelink debt scheme

Independent MP Andrew Wilkie has made an unsuccessful call in parliament for the immediate shutdown of Centrelink's debt recovery program.

A Centrelink logo

An independent MP has called for the immediate shutdown of Centrelink's debt recovery program. (AAP)

An independent MP has tried to stall business in federal parliament to call for the immediate shutdown of Centrelink's automated debt recovery system.

Andrew Wilkie told the lower house on Tuesday the program had had a severe financial and emotional toll on thousands of people.

He asked Human Services Minister Alan Tudge to convene a round table to design a fairer, more humane system of debt detection and recovery.

"This can't be dealt with next week or next month or next year, it must be dealt with today," he told parliament.

Mr Wilkie called on the federal government to axe the program and replace it with a better, more accurate, one.

He claims about 4000 incorrect debt notices are being issued each week, with some people contacting his office and talking of self-harm.

Greens MP Adam Bandt said dozens of voters had also contacted him, and accused the government of hurting some of Australia's most vulnerable.

"It is absolute cowardice to turn the machinery of government onto those who are unable to defend themselves,."

But Mr Tudge said the government will not be scrapping the system, which is based on a method that has been used since 1990.

He said those who receive a debt notice have ample opportunity to query it and correct the record.

"The system, yes, has to be reasonable to the welfare recipient but it also has to be fair and reasonable to the taxpayer," the minister told parliament.

A number of improvements have already been made to the system, and Mr Tudge suggested additional refinements were in the pipeline.


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Source: AAP


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