This month we look at a client story from Amir, who was experiencing homelessness and expecting a significant arrears payment from Centrelink. This demonstrates how financial counsellors can assist their clients when Centrelink has withheld lump sums to go towards the payment of Centrelink debts.

The Integrated Services Project (‘ISP’) is a partnership between FCVic and Social Security Rights Victoria (SSRV), to improve client outcomes through financial counsellors and social security lawyers working together. Our Worker Help Line service is open for your calls Monday to Friday on 03 9481 0655.

Amir’s Story

Amir was living in a rooming house with his car as his only asset when he contacted SSRV for help. He had previously been caring for his grandfather and receiving Carer Payment. Since his grandfather passed away, Amir had to move out of his grandfather’s home and was facing challenges getting JobSeeker payment, so had been without an income for five months. Amir had incurred a debt from receiving Carer Payment when he was no longer caring for his grandfather, but this debt was not in dispute.

Amir had been aligned with a trust in his father’s name when he was fourteen years old. Although he was not receiving a benefit from the trust, Centrelink had asked him to provide extensive information, which had held his JobSeeker application up for five months. Once JobSeeker was approved, Amir was contacted by Centrelink and told that he would receive a $7,000 arrears payment, dating back to his original JobSeeker application. Amir had borrowed money from friends and family to survive for the past five months and was distressed when, instead of the $7,000 payment, he only received $3,000, as Centrelink had withheld $4,000 for Amir’s Carer Payment debt.

SSRV’s financial counsellor contacted Centrelink to get clarification on why the funds had been withheld. The financial counsellor provided information to Centrelink about his current severe financial hardship, that he was experiencing homelessness, and his history of poor mental health. The financial counsellor also outlined that Amir needed the funds for urgent car repairs and insurance, first aid qualifications, and study expenses to enable Amir to work and make his way out of poverty.

Centrelink was able to refund the full amount withheld to Amir’s account; they also placed debt recovery on hold for six months due to Amir’s financial circumstances.

For broader information about Centrelink debts, including having Family Tax Benefit (FTB) lump sums that have been withheld for debt recovery refunded, revisit Intermediate Social Security Law presented by SSRV, available on FCVic’s CPD library.

This article presents a summary and general overview of the topic/s covered and is not legal advice.

As always, if you have any questions at all, please call our Worker Helpline on 03 9481 0655.