Parents across Australia have described the ‘kick in the gut’ from receiving debt notices with no explanations, as the government promises reprieve.
She’s one of many families across Australia who have contacted news.com.au since it broke the story abouttrying to recoup thousands of dollars in childcare subsidies for periods extending back years.
Tyne, a Sydney mum of two, gave birth earlier this year but suffered from postnatal depression before her mental health recently improved.The first was for the 2018/19 period demanding $6000, while the 2019/20 financial period requires her to cough up $4063 in overpaid childcare subsidies for her son, who was attending daycare five days a week.
In the last phone call, she was told Centrelink “thinks it’s something to do with their system not reading my husband’s income information and raising a debt”. “In my role I work in complaints and internal reviews and we have to have an outcome within 30 days – that’s understandable as a month allows them to investigate but to be told 50 days, why do you need that long? It’s more than six weeks, it’s pretty lengthy,” she said.
“I’m refusing to lodge a tax return for this year until this is settled as I don’t want them to take anything if I do potentially get a refund.”It’s a situation dad-of-four Mark Bridge knows all too well. He recently received a letter stating that he owed $2300 from the 2015/16 financial year for overpaid childcare subsidies and while collection had ceased due to Covid-19, it was now recommencing.
“I operate a business and if I started sending them a bill and I said ‘It’s $2300 but I’m not sure how it arose seven years ago, you haven’t paid it since so I’m just going to garnish your wages now’ — the legal system wouldn’t allow it.” The mum-of-two said she can’t even fathom how they owe that much money and is “absolutely petrified” to lodge her latest tax return.
She added she was hugely stressed and was not looking forward to spending hours on the phone to Centrelink to find an explanation. He added Services Australia knows at times customers may not understand why they were overpaid or they may disagree with a decision they have made. She spent an hour and a half on the phone to Centrelink on Tuesday, where they offered to set her up with a payment plan.
“We understand people are still doing it tough and that the pandemic continues to have an impact on family budgets,” Minister Reynolds said. “The easiest way to change existing repayment options is online through Services Australia’s Money You Owe tool.” “A specialist from Centrelink was meant to follow-up back in May. No one has contacted us yet, but when they do they’ll expect repayment immediately. It’s an absolute joke,” he said.There have been calls for a review into the childcare subsidy system and if its fair.
For QLD mum of two Simone Crowther* she “cried” when she received a bill for almost $14,000 from Centrelink in July and was told she had until 11 August to organise a payment plan. For that period, Ms Crowther said her business ran at a loss and her accountant filed a non-lodgement form to reflect her financial situation.
Mum of three Georgie Dent has been hit by a $7000 bill and has called for a review of the system. Picture: SuppliedServices Australia uses adjusted taxable income to work out how much Child Care Subsidy a family is entitled to, according to Mr Jongen.
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