Centrelink chases billions in decades-old debts despite waiver promises

Services Australia reports 1.34 million Centrelink debts amounting to $4.93 billion, including about 600 debts older than three decades and 76,800 debts from the past 15-30 years. The median size of the oldest debts is $5,451.49, while those aged 15-30 years average $2,197.64. Critics, including Economic Justice Australia and welfare scholar Christopher Rudge, say the calculations are untrustworthy and that pursuing such historic liabilities is impractical.

The government has pledged a six-year statute of limitations on debt recovery but has not set a rollout date, and it has rolled out a $300 million reform that expands small-debt waivers and introduces an Income Apportionment Resolution Scheme. Approximately 44,000 Australians have overpaid their Centrelink debts, some by $20,000 or more, and 147,773 debts were flagged as potentially unlawful last year. Officials maintain that debt collection must be legal, fair, and compassionate.