It’s that time of year when Centrelink balances its books, and for many single mums that dreaded notification that there’s a message waiting for you in your MyGov account. For some, that message will be a notification that you have accumulated a Centrelink debt that needs repaying. For many single mothers already juggling the pressures of raising children, managing household expenses and making ends meet, the news can trigger immediate stress and uncertainty.
The first thing to know is that receiving a Centrelink debt notice doesn’t mean you have no options. There are clear processes for understanding why the debt has been raised, checking whether it is accurate, requesting a review if you believe there has been a mistake, and exploring repayment arrangements if the debt is valid.
Social Security Rights Victoria has just released a series of factsheets to help with Centrelink Debts. Here’s an explanation of what a Centrelink debt is, the most common reasons debts occur, the steps you should take as soon as you receive a notice, and where to find free advice and support.
What are Centrelink debts?
A Centrelink debt is created when Services Australia determines that you have received more financial assistance than you were entitled to under the law. This can occur for a variety of reasons, including incorrect income or asset details, changes in your personal circumstances that were not reported, eligibility issues, or administrative errors. Don’t feel that receiving a debt notice is a personal judgement – most debts are the consequence of a complex and sometimes confusing system, and sometimes, as in the case of Robodebt, the result of an unlawful automated system.
Download the What are Centrelink Debts factsheet.
Getting your Centrelink debt reviewed
If you ask Centrelink to review a debt, they will reassess whether you were actually overpaid, whether the amount has been calculated correctly, and whether there are legal reasons the debt should not be recovered. This may involve considering new evidence, such as updated income records or study documents, that could change or even eliminate the debt. In some cases, Centrelink may temporarily stop pursuing repayment if you are unable to pay, the debt cannot legally be recovered, or it is not practical to collect it.
A reviewer may also consider whether all or part of the debt should be waived. This can happen if the overpayment resulted solely from a Centrelink administrative error and you had no reason to believe you were being overpaid, or if exceptional circumstances make it unfair to require repayment. Factors such as family violence, serious illness, disability, homelessness, financial hardship, language barriers or other significant personal challenges may be relevant.
If your debt has not been reviewed before, the first step is to ask for an Authorised Review Officer within Centrelink to review your debt. If your debt has already been reviewed by an Authorised Review Officer, you can seek further review by the Administrative Review Tribunal.
Download the What Happens if my Centrelink Debt is Reviewed? factsheet.
Repaying your Centrelink debt
If your Centrelink debt remains payable after you decide not to challenge it, or after a review confirms the debt, there are several ways to manage repayment. You can pay the amount in full, arrange affordable instalments through Centrelink, or, if you’re experiencing financial difficulty, ask for repayments to be reduced or temporarily suspended. Centrelink will usually assess your financial circumstances before agreeing to lower repayments, so having a clear budget or seeking assistance from a financial counsellor can be helpful. If you’re facing significant financial hardship, you may also be able to discuss other options, such as negotiating a settlement or obtaining independent financial advice about your broader circumstances.
Download the How do I Pay Back a Centrelink debt? factsheet.
Family violence and Centrelink debts
Family violence can have a significant impact on Centrelink payments, particularly where relationship status affects eligibility or payment rates. If a person separates from their partner, including while continuing to live under the same roof, they should notify Centrelink so their circumstances can be reassessed. In some situations, people experiencing family violence may be treated as single for payment purposes even if they are still living with their partner.
If a Centrelink debt has been raised, repayments may be paused while a review is underway, reduced to an affordable amount, or, in some circumstances, waived. Exemptions may also be available from certain requirements, such as seeking child support, where family violence is a factor.
Download the Family Violence and Centrelink Debt factsheet.
Income Apportionment Resolution Scheme
If you’ve been told you have a Centrelink debt relating to employment income from between 20 September 2003 and 6 December 2020, you may be eligible for a payment under the Income Apportionment Resolution Scheme. The scheme was introduced to recognise that, in some cases, the way employment income was allocated across reporting periods wasn’t consistent with the social security law at the time.
If you’re eligible, you can apply for a one-off payment of up to $600 for each affected debt, depending on the size of the debt as it stood on 30 January 2026. The payment isn’t taxable, won’t affect your Centrelink payments, and any repayments you’ve already made towards the debt won’t reduce the amount you’re entitled to receive. Applications are open until 29 January 2027, and if you have more than one eligible debt, you may be able to claim a payment for each one.
Download the Income Apportionment Resolution Scheme factsheet here.
If it turns out your Centrelink debt is valid, you will usually need to repay it. It’s important that you contact Centrelink as soon as possible – ignoring the debt won’t make it go away. Taking informed action early can make a significant difference and help you feel more confident about navigating the process.
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