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Centrelink puts 6-month freeze on debt recovery

  • April 09 2020
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Centrelink puts 6-month freeze on debt recovery

By Grace Ormsby
April 09 2020

Government debt recovery activities related to social security payments, the family tax benefit and child care subsidies are set to be paused for the duration of the coronavirus pandemic.

Centrelink puts 6-month freeze on debt recovery

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  • April 09 2020
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Government debt recovery activities related to social security payments, the family tax benefit and child care subsidies are set to be paused for the duration of the coronavirus pandemic.

Centrelink puts 6-month freeze on debt recovery

According to Services Australia, Centrelink debt won’t be referred to external collection agencies for the next six months.

Tax refunds also won’t be chased for the purpose of settling government debts.

The government agency said it won’t be asking Australians to repay any monies owed “unless the debt relates to fraud or serious non-compliance”.

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“This means that during these difficult times, you can focus on your personal situation.”

Centrelink puts 6-month freeze on debt recovery

The pause will initially last for a six-month period – until October 2020.

For those individuals who already have a payment arrangement in place and can continue to pay off such debts, this pause will not apply.

For anyone who does need to reduce or stop their repayments for a period, they are encouraged to contact Centrelink’s debt line.

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About the author

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Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

author image
Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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