Centrelink’s error, we pay?

[MelMel]

Not quite sure which forum to put this……..
A bit of a rhetorical question as it’s not worth disputing.
Mum receives a part Centrelink aged pension. She has received a letter saying she owes $51 because Centrelink overpaid her for the month of July. I’m assuming this is because they did not take into account the cpi increase on her Comm Super which occurred in July. Now it may be that Comm Super was slow in submitting data or Centrelink was slow in processing the data but either way it was out of her control. Seems a bit unfair that she has to pay?

 

[mrsterryn]

The onus is on the person to advise of changes within 14 days. The defined benefit schedule was sent out (I received mine )
Unfortunately she just hit the amount to have a debt $50+

 

[MelMel]

@mrsterryn Even for Commonwealth Superannuation? I thought they talked to each other. She has had to fill out a schedule for for her allocated pension (MLC investments) but never for changes in Commonwealth Super

 

[JohnK]

I'm not sure any of these government departments talk to each other.

I received an email they're getting ready to collect $400+ for child care benefit. No other information.

Went to Centrelink. We have no idea. That's collections. I tried calling them twice but they hung up on me. He called and I waited and finally got through.

What's the problem? Tax return. But I lodged my 2019 tax return. Yes we see that. Oh it's your wife's tax return. My wife didn't work. As she's a non lodger have to update the records.

So he updates the records but also need to chat family section. Another 30 minute wait on phone. Sorry we can't do anything you need to get in touch with ATO and once it's been updated it will filter through to our system. So why can't you update it? Not allowed. Kidding me right?

So now need to waste more time dealing with ATO. Amazing.

 

[muppet]

Not quite sure which forum to put this……..
A bit of a rhetorical question as it’s not worth disputing.
Mum receives a part Centrelink aged pension. She has received a letter saying she owes $51 because Centrelink overpaid her for the month of July. I’m assuming this is because they did not take into account the cpi increase on her Comm Super which occurred in July. Now it may be that Comm Super was slow in submitting data or Centrelink was slow in processing the data but either way it was out of her control. Seems a bit unfair that she has to pay?

It’s a hassle for sure and worth a whinge, but I can’t see how paying back money that isn’t yours could be considered “unfair”.

One of the downsides to availing oneself of welfare is you have to deal with Centrelink and play by its rules.

 

[mrsterryn]

@mrsterryn Even for Commonwealth Superannuation? I thought they talked to each other. She has had to fill out a schedule for for her allocated pension (MLC investments) but never for changes in Commonwealth Super

They do talk to each other and usually data match much earlier. However it still doesn't take away the requirement to notify.
Notwithstanding all that , odds are your mother would still have had the debt as correspondence (upload scanned images ) probably would not have been actioned.
Centrelink is being hammered with all the new payments and disasters etc.

 

[mrsterryn]

Johnk did your wife advise ATO she was a non lodger. To be honest I think people should just lodge that way they have a record of a tax return going forward. with FTB and child care makes it much easier I believe for datamatching.
Especially when someone may in future years go to work

 

[andye]

You've found a $50 on the floor. The proven rightful owner would like it back. Nothing unfair about it IMO.
(I am assuming the $51 is an overpayment and not some sort of fee or fine)

 

[JohnK]

Johnk did your wife advise ATO she was a non lodger. To be honest I think people should just lodge that way they have a record of a tax return going forward. with FTB and child care makes it much easier I believe for datamatching.
Especially when someone may in future years go to work

It's the first time in my 50 years in Australia that I've heard about needing to inform the ATO about being a non lodger.

And I'm guessing that needs to be done each year?

 

[mrsterryn]

Lodge a non-lodgment advice | Australian Taxation Office

Check what you need to do if you don't need to lodge a tax return.

www.ato.gov.au

This seems to indicates one does need to advise JohnK

 

[Pushka]

Not quite sure which forum to put this……..
A bit of a rhetorical question as it’s not worth disputing.
Mum receives a part Centrelink aged pension. She has received a letter saying she owes $51 because Centrelink overpaid her for the month of July. I’m assuming this is because they did not take into account the cpi increase on her Comm Super which occurred in July. Now it may be that Comm Super was slow in submitting data or Centrelink was slow in processing the data but either way it was out of her control. Seems a bit unfair that she has to pay?

I guess the reality is that your mum received a payment that she wasn't entitled to; had Centrelink picked up the change then your mum wouldn't have received it at the beginning. So I don't really see it as your mum 'having to pay'. If they were also charging a penalty then that might be different.

 

[ZigZagWanderer]

I

Lodge a non-lodgment advice | Australian Taxation Office

Check what you need to do if you don't need to lodge a tax return.

www.ato.gov.au

This seems to indicates one does need to advise JohnK

In my experience, it's wise to lodge a 'non-lodgement advice' if you do not need to lodge (ignoring the potential tautology). If you don't believe you'll ever need to lodge one again, eg on retirement, you can indicate this instead.

 

[Hvr]

An issue with childcare benefit is that it is paid to the mother by default. I'm sure you're not the first person to fall foul of this issue @JohnK

 

[JohnK]

An issue with childcare benefit is that it is paid to the mother by default. I'm sure you're not the first person to fall foul of this issue @JohnK

They knew in the beginning my wife did not work and was looking for work which was part of the conditions of getting the child care benefit payment.

My higher salary meant we received very small child care benefit which was only used for 2-3 weeks as my daughter could not get used to life without her mum.

There was never any mention we needed to inform ATO but that's beside the point.

 

[mrsterryn]

Child Care Subsidy - Services Australia

Assistance to help you with the cost of child care.

www.servicesaustralia.gov.au

It does mention in here that to ensure correct payment is made Centrelink needs to datamatch with ATO
Anyhoo back on original question

The debt sounds valid. It would have been auto generated when the data updated with the defined benefit scheme

 

[MelMel]

Child Care Subsidy - Services Australia

Assistance to help you with the cost of child care.

www.servicesaustralia.gov.au

It does mention in here that to ensure correct payment is made Centrelink needs to datamatch with ATO
Anyhoo back on original question

The debt sounds valid. It would have been auto generated when the data updated with the defined benefit scheme

Yep, no problem paying it back. Personally though I tend to own my “mistakes/delays” and would just cop it especially for such a small amount rather than going to all the hassle of recouping it. I appreciate that the money is not mums

 

[mrsterryn]

MelMel not sure if still current but under $50 (excluding family payments I believe ) used to be auto waived. So ...she was over by $1
The amount of funds to recoup the overpayment under $50 wasn't worth it

 

[andye]

Yep, no problem paying it back. Personally though I tend to own my “mistakes/delays” and would just cop it especially for such a small amount rather than going to all the hassle of recouping it. I appreciate that the money is not mums

Sorry for sounding harsh-in many spheres small erors do get waived but sounds like it's similar to the ATO where the books always have to be balanced

 

[anyonebutqantas]

This is why we would be better off with much less welfare so we wouldn't be bothered by all these rules and Centrelink bureaucracy.

 

[mrsterryn]

This is why we would be better off with much less welfare so we wouldn't be bothered by all these rules and Centrelink bureaucracy.

What would you do with the people on welfare? USA system?