Federal government under Albanese to erase Centrelink debts for numerous Australians

The Australian government has announced a significant reform to its social security system, aiming to provide greater support for victims of domestic and family violence. The changes, spearheaded by Ministers Tanya Plibersek and Katy Gallagher, will ensure that the system works with victim-survivors, not against them.

Under the current rules, a social security debt can be waived where there are 'special circumstances', but not if a person knowingly makes a false statement or fails to comply with an obligation under social security law. However, the reform will extend this power to Services Australia, allowing them to take circumstances into account and do the right thing for victim-survivors.

One of the key changes is the waiving of social security debts incurred under abuse for domestic and family violence survivors. This reform is expected to prevent situations where social security payments of victims fleeing family violence have been reduced to repay debts, resulting in food being taken off the table.

Services Australia will now factor in situations where the information was provided as a result of coercive control or violence. Additionally, they will take into account circumstances such as mental capacity, the impact of natural disasters, and homelessness.

Minister Tanya Plibersek has emphasised the importance of victim-survivors feeling safe and trusting that the social security system will keep them safe, and not be part of the problem. She also highlighted that financial abuse is an 'insidious' form of violence and one of the reasons women feel it is impossible to leave an abusive relationship.

The reform has been widely welcomed by various organisations, including Economic Justice Australia, which has been advocating for this change for years. Cassandra Goldie, the Australian Council of Social Service chief executive, stated that victim-survivors should not be punished twice by being forced to repay debts that were never truly theirs.

In Australia, one in four women and one in 14 men have experienced physical and/or sexual violence from an intimate partner since the age of 15. These statistics underscore the need for such reforms to provide support and safety for those affected by domestic and family violence.

For those in need of support, phone numbers for 1800 RESPECT (1800 737 732), Lifeline 13 11 14, and Men's Referral Service 1300 766 491 are available.

This reform is a significant step towards creating a social security system that prioritises the safety and wellbeing of victim-survivors, ensuring they are not burdened by debts incurred under abuse. The changes, as announced by the Albanese government, are expected to provide much-needed relief to many in Australia.