All successful relationships rely on give and take. It’s necessary in marriage, business and with any financial service relationships. And, with 70% of older Australians on an Age Pension. You would also expect it to work well with Centrelink, the agency that manages Age Pension entitlements for about 70% of retirees.
Sure, you think. But theory is a wonderful thing and reality can be different.
The Robodebt debacle occurred between 2015 and 2019 when around half a million incorrect ‘debts’ to Centrelink were pursued using a method called ‘income averaging’. According to the subsequent royal commission into this method of questionable debt recovery, the system was ‘unlawful, cruel and a failure of public service accountability’. This failure has severely damaged Centrelink’s reputation. It has also eroded the trust that many older Australians had in in the belief they would get a ‘fair go’ in their dealings with this government agency.
Robodebt has been back in the news in recent weeks as the book written about this episode, Mean Streak by Rick Morton, has just won the Prime Minister’s Literary award for non-fiction. And a two-part documentary on how this punitive program was rolled out, The People vs Robodebt, is screening on SBS (and available to watch on SBS on Demand).
Given the level of distress and concern caused by this chapter in Australian social benefits, we thought it timely to revisit the topic of your rights and Centrelink.
- What are your rights?
- What can you do
- What can Centrelink do
We asked these questions of Steven Sadler who heads up the Retirement Essentials Customer Services Team. No one knows this detail like Guru Steven, so here is an edited overview of his wisdom.
What does Centrelink already know about your financials?
As always there is the myth that Centrelink can see everything all the time or request updates from your bank, super fund, or other financial organisations at any time. This is not the case. The only information Centrelink receives from external sources about your financial assets is in the twice yearly updates from superfunds, showing your account balance. This means that the onus is on you to update Centrelink as any financial changes occur. Amounts below $2000 are not significant – but anything above needs to be reported within 14 days if you receive any government benefits.
Is what you spend your own business?
It is also commonly thought that Centrelink will critique and potentially penalise you for how you spend your money. This is not true. You will be asked for evidence of money spent – but not because Centrelink cares how or where it was spent. It is to verify that the funds were actually spent and not, instead, either gifted or stored away in another account or asset type that you are trying to hide from them. You also don’t have to account for every dollar spent. For instance, if you say you have spent $50,000 on renovations then supply just $40,000 worth of receipts, they will usually be happy to presume the rest was also spent on household needs.
What happens if you get a knockback?
You retain the right to appeal an outcome with Centrelink. If your application or claim is rejected and you genuinely believe it is a mistake, then you can request a review of any outcome or decision. This is not a quick or easy process, as it can take about as long as the initial review of the claim. Often the outcome is ‘no mistake made, outcome is correct’ so it’s good to modify your expectations. But if you do believe a mistake has been made, you have every right to call up, request a review and state your concern.
What is good practice when applying for benefits
In short, three main things stand out:
- Know the rules and check your benefits using the free Retirement Essentials Age Pension Entitlements Calculator before you fill in any application, be it for the Age Pension or commonwealth seniors Health Card or similar
- Remember you do not have to be 67 to apply for Age Pension benefits. You can apply up to 13 weeks prior and if successful, your benefits will start from your birthday!
- One of the greatest hindrances to speedy application approval is the need for Centrelink to seek extra information – often documents you should have supplied at the time of application. Do ensure you have everything to hand, and that these documents are in the preferred format (i.e. PDFs not screen shots which are not admissible).
What is good practice for your ongoing entitlements conversation at Centrelink?
Remember, as mentioned above, the onus is on you to update Centrelink with all major financial changes. This may seem like a lot of work, but it can often work to your benefit, if, for instance, your assets have reduced – by keeping Centrelink up to date you may receive higher benefits, sooner. Also, having an old Centrelink Reference Number (CRN) or outdated superannuation records can lead to delays in processing your claim. It’s always best to double-check your details before applying.
Is there a benefit from going into an office? Or is online or phone contact just as useful?
In person, online or by phone … what’s the best way to contact Centrelink?
There really is no easy way to answer this as one person’s experience may be the total opposite of that of another. Centrelink’s wait times and volume of calls per year have been well reported. These statistics do seem to be declining, but that’s of little comfort to those who have waited far too long, only to be disconnected. Steven suggests you phone first thing, as the lines open, to minimise your wait time. You can now do a lot more through the myGov portal and this is where your notifications from Centrelink will be sent, so checking in here is a good first step. Not everyone has easy access to a Centrelink office, but if you do, you may find talking to a ‘human’ helps cut through any confusion much more quickly. Again, be outside the office from 10 minutes prior to opening time so you are one of the first to be seen. Lunchtime waits can be very frustrating.
What happens if you are really unhappy?
Centrelink offers a Feedback and Complaints line on 1800 132 468. Online communications can be shared through your myGov account. And if your issue is not resolved to your satisfaction, you can escalate this complaint to the Commonwealth Ombudsman.
How Retirement Essentials can support your needs with Centrelink
Many retirees miss out on benefits simply because they don’t know what they’re eligible for or how to apply. Retirement Essentials offers tailored support to help you navigate the process.
You can start by using the free Age Pension Entitlements Calculator to get a quick, confidential snapshot of what you may be entitled to.
You can also book a consultation with a Retirement Essentials specialist for help applying, checking eligibility, or understanding how to maximise your benefits.
And don’t forget to stay informed – Centrelink rules change regularly. Sign up for the Retirement Essentials newsletter to get expert insights and explanations straight to your inbox.
Do you have frustrations with government entitlements processes?
If so, how did you choose to resolve them?
