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.
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In this month’s article, we share a client story where recent changes to social security law had a significant impact, resulting in a client’s Centrelink debts being waived.
Cathy
Cathy, a 32-year-old mother of three, was referred to us by a financial counsellor. Her partner had recently gone to prison. Despite the fact that her youngest child was nine years old, Centrelink had told her that she was not eligible for Single Parenting Payment, only JobSeeker Payment. Cathy also believed she had some Centrelink debts, but she was unsure of the details.
An SSRV lawyer met with Cathy and her financial counsellor and used the Advocates Channel to clarify her Centrelink position. SSRV confirmed that Cathy had significant Centrelink debts because she had not informed Centrelink about her partner some years earlier.
At a subsequent appointment, the lawyer learned that Cathy and her partner had been in an on-again, off-again relationship for many years. Her partner had been in and out of prison throughout their relationship, and Cathy had also experienced ongoing family violence from a previous partner.
When Cathy informed Centrelink that her partner had gone to prison, a Centrelink officer advised her that if she completed a Mod S form to notify Centrelink that she had separated from her partner, she would be eligible for Single Parenting Payment. However, Cathy did not consider herself separated, as she was supporting her partner emotionally and financially while he was in prison. She also feared incurring another debt if her partner was released from prison.
Cathy’s lawyer identified that the combination of issues she had experienced could amount to circumstances that Centrelink may consider to be “unusual, unforeseen and exceptional”, and that her failure to disclose her relationship previously could be considered “justified in the circumstances”. The lawyer advised Cathy that they could apply for her Centrelink debts to be waived on this basis.
Cathy and her lawyer completed a statement for Centrelink outlining the circumstances of her debt and gathered evidence of the family violence she had experienced, as well as the support she had provided to her children during a difficult period. Cathy also worked with her financial counsellor to demonstrate her current severe financial hardship.
The SSRV lawyer requested that Centrelink prioritise the debt review through the Advocates Channel. Within days, an Authorised Review Officer contacted the SSRV lawyer to confirm that all of Cathy’s debts would be waived, and that she would be refunded the amount already deducted from her Centrelink payment.
In total, Cathy had more than $15,000 in debts waived and received a refund of close to $4,000. This enabled her to repair her car and pay outstanding utility debts.
Please don’t hesitate to get in touch if you have any questions about Cathy’s story or about Centrelink’s discretionary special circumstances debt waiver provisions.