Three million Australians have three months to claim Centrelink debt
The Income Apportionment Resolution Scheme closes on 29 January 2027. Eligible Australians can apply for one-off compensation until then.
Centrelink is giving three million Australians three months to apply for compensation for unlawfully calculated debts. The Income Apportionment Resolution Scheme offers payments up to $600.
Debts under $200 are fully covered by the compensation. The scheme closes 29 January 2027.
Anyone who has not applied by then loses the payout. But they must still repay the original debt.
The Federal Court found Centrelink broke the law. It used an income apportionment method that was wrong.
The method assumed recipients' pay matched their reporting periods. But often it did not.
The method was used from the early 1990s until 2020. Social Services Minister Tanya Plibersek called the practice "a genuine misinterpretation of the law."
Services Australia will send reminder letters 28 days before debts resume.
- 3 million
- Eligible Australians
- $600
- Compensation ceiling
- 29 January 2027
- Scheme closes
- early 1990s to 2020
- Method used
Why it mattersMissing the deadline means losing free money you are legally owed. Yet you still have to repay the debt.
AustraliaThree million Australians on Centrelink can claim compensation, but only if they act within the next quarter, making this a time-critical issue for many low-income households across the country.
✓ Claims checked against the source. checked 2 h ago
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