Debt pause comes after watchdog found historical ‘income apportionment’ method breached social security law
Services Australia has paused repayments on thousands of potentially unlawful welfare debts but has warned income support recipients it’s too early to say if their debts will be waived.that up to 100,000 debts or potential debts were incorrectly calculated over two decades by “unlawfully apportioning” welfare recipients’ income.
Since Friday the NotMyDebt campaign has received hundreds of reports from people who had faced debts related to income support payments saying that their debts were now missing from the personalised “money you owe” section of theGuardian Australia has confirmed two cases of such disappearing debts, including one former income support recipient who had been told they owed $4,000.
In some cases the payslips relied on by Services Australia to calculate welfare debts don’t align with the fortnightly income reporting periods. In these situations, the agency creates a “daily” average.
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