Centrelink warning over $631 cash boost: 'A bit dodgy'
Welcome to legal column where lawyers Alison and Jillian Barrett from Maurice Blackburn tackle problems everyday Aussies face — whether it be consumer, property, money matters impacting relationships or work. This week, a welfare recipient has expressed concerns about an overpayment.
Question
"I've been on Centrelink for about six months after being made redundant from my old job. I didn't get a very good pay out as I was casual and I've been thinking about training to make a career swap. I noticed last week that my Centrelink payment was $631 more than it should be. I've found it a bit daunting to think about earning less while going back to TAFE and this bit of extra cash could help me out. If they've sent me the money, surely I can keep it? Or is it likely they will catch me out? Would I have to pay any extra back as interest? The whole Robodebt thing has me a bit worried but I do know this is a bit dodgy." Stephen, Victoria.
Answer
While you might be tempted to keep the extra money you received from Centrelink, we recommend that you don't.
Centrelink payments are governed by strict regulations to ensure that recipients receive the correct amount based on their circumstances.
It is an offence to keep a payment that you know is more than the amount you should have received.
It is a form of fraud.
If you break this law then you may have to repay the amount to Centrelink, potentially with interest, and you can be charged with a criminal offence.
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Even if you pay the money back you could still be charged with a criminal offence which could result in a fine, or even imprisonment.
Other actions that could be a criminal offence with Centrelink include:
Giving false or misleading information to Centrelink
Knowingly completing a form incorrectly
Receiving a payment that you know you're not entitled to and not reporting it
Centrelink has methods of verification and systems in place to detect discrepancies.
So while you might think you've got away with it, they will end up identifying the overpayment and make you pay it back.
If you're concerned about the financial impact of repaying an overpayment, Centrelink offers options to set up a repayment plan that suits your situation.
You can contact them to discuss your options and find a manageable solution.
You've mentioned the Robodebt scandal, which involved the unlawful recovery of debts through automated processes.
The Robodebt issues heightened awareness around Centrelink's debt recovery practices and the government has taken steps to address these practices.
If you report the overpayment to Centrelink now, you'll be able to focus on your career transition and training at TAFE without the concern of a potential criminal charge hanging over you, which could impact your future career prospects.
This legal information is general in nature and should not be regarded as specific legal advice. If you need legal advice, you should consult a solicitor.
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