‘My claim had been denied': Centrelink mistake that almost cost a young mum $15,000

News.com.au

2 days ago

A simple paperwork error on a Centrelink form turned into a 'nightmare' and almost cost an Aussie mum $15,000.
Lexi, 26, explained that when she was filling out her Centrelink paperwork in 2022 for her maternity leave, she made one mistake that almost cost her the entire payment.
'It was an absolute nightmare. I had filled it all out before my son arrived, after my son got here, I sent through all the documentation I needed to,' she said in a video shared on TikTok.
'Three weeks later, I was sent an email from Centrelink saying that my claim had been denied because my husband earned too much money.'
Lexi told news.com.au that it was 'devastating' to receive the letter that said she was
denied the payment.
'We had been counting on that money and we knew it'd be a struggle without it,' she said.
The young mum was applying for parental leave pay, a government benefit for primary carers of newborns.
You can be entitled to receive up to $915.80 weekly for up to 22 weeks, but this is dependent on your taxable income.
As of 2023, couples can earn a combined income of up to $364,350 a year and still be entitled.
You must have also worked for 10 of the 13 months before your child's birth and be either a permanent visa holder or an Australian citizen.
The 26-year-old had done her research and thought she and her partner qualified for the benefit and the couple were then 'gutted' to be denied the payments.
'We were counting on that money. We knew it was coming and, honestly, to be denied it, we were just in a spiral,' she said.
At that point, Lexi didn't know she'd made a mistake. She just assumed they couldn't qualify and they'd have to deal with the $15,000 loss.
It wasn't until she spoke to a mate, who was also about to go on maternity leave, that she learned about a standard error people make.
On the form there's a box you can tick that means you're applying for both paid parental leave and the family tax benefit. If you tick the box for both, your entire claim will be denied if you're ineligible for just one of the benefits.
Lexi had also applied for the family tax benefit but wasn't eligible for it, so her entire claim was denied.
'This wrong box gets ticked all the time. I can't imagine the amount of people going around thinking they're not eligible for this money when they actually were,' she said.
Lexi argued that there are likely so many people who have no idea they just ticked the wrong box because people get denied with 'no explanations' and don't realise their mistakes.
'If they'd turned around and said 'yes you're eligible for this part' but 'not this part', I would have been fine,' she said.
'They said a blanket 'no', so I thought I wasn't entitled.'
General Manager of Services Australia, Hank Jongen, told news.com.au that it is important to remember different payments have different criteria.
'You don't need to submit a separate claim for Parental Leave Pay and Family Tax Benefit if you want to claim both,' he said.
'The payments have separate eligibility criteria, in particular, different income tests, so what you are eligible for depends on your circumstances. You may be eligible for one, both or neither.
'Our' having a baby' website page is a great place to start researching your eligibility, but it's important to not self-assess. When you are completing your claim online, you can select what payments you want us to assess you for, and we'll check your eligibility.'
Mr Jongen said that you'll be notified about the outcome of your claim by sending you a letter or to your MyGov inbox.
'If you don't agree with the outcome of your claim, you can ask us for an explanation or to review our decision,' he said.
Parental Leave Pay has changed over the years and is increasing. For children born from 1 July 2025, it will be up to 24 weeks and 26 weeks for children born after 1 July 2026. From 1 July 2025, it will also include superannuation.
You need to meet an income test, a work test and the residence rules to be eligible.
Family Tax Benefit (FTB) is a 2-part payment available to low and middle income families to help with the day-to-day cost of raising children.
How much you get depends on your situation, including how many kids you have and the level of care. Your payment is worked out based on the FTB rate and income test for the current financial year.
You may be eligible for one part and not another, it depends on your circumstances. You cannot get Family Tax Benefit Part B while you are getting Parental Leave Pay.
Lexi has previously gone viral for sharing that she's a stay-at-home mum and has always wanted to be financially dependent on her husband.
The young mum previously told news.com.au that she's frustrated people assume she's somehow not financially savvy purely because she's not the one making money.
'Some people think there's an 'issue' with what I've chosen to do or that it must not be a choice or it isn't the right choice or it isn't a smart one,' she said.
'Just because I'm financially dependent on my husband doesn't mean I'm financially unaware.'
Lexi stressed that she and her husband make financial decisions together and are very open about money.
'My husband and I have complete transparency. Just because I'm not earning the income doesn't mean I don't get to have a 50/50 say in how we spend it,' she said.