Centrelink is deliberately ripping-off thousands of Australians caught up in its data matching "robo-debt" program, with managers telling public servants at the agency to enforce debts they know are bogus, according to explosive new claims.
Another whistleblower has come forward with an insider's account of how the "debts" are being pursued, alleging that glaring errors are being deliberately ignored by Centrelink to allow it to extract money from its clients.
Others are being told they must repay "fictitious payments"; money that they never even received, according to the allegations.
Centrelink denied all the allegations on Thursday saying the claims "do not accurately represent how the system works."
Pensioners and other struggling members of the community are being hounded for "recovery fees" unfairly added on top of their debts by Centrelink, according to the whistleblower's statement, published on Thursday by left leaning advocacy group Get-Up and Centrelink's main workplace union the CPSU.
The union says it has independently verified some, but not all, of the whistleblower's allegations.
The insider, who has defied public service bosses' threats on leaking against the program, also alleges that Centrelink managers are well aware that bogus debts are being pursued and are ignoring pleas from compliance staff to take a fair approach to the debt recovery process.
"We are struggling with our consciences and pushing back against our leaders daily," the whistleblower wrote.
"We are telling the...helpdesk that what we are doing is wrong.
"I see these reviews every day and I am horrified at what I am being directed to do."
Centrelink has been contacted for comment on Thursday morning.
The insiders alleges that the rip-offs operate in five main ways:
Doubling income, where a person's entire income from the same employer is counted twice, creating an "overpayment".
Non-assessable Income, where money that should not be counted as assessable income by Centrelink is counted and overpayments raised against the victim.
Fictitious payments; where system generates debts based on payments that Centrelink never made. The whistleblower alleges it is even possible to have a debt claim larger than a person's total Centrelink payment.
False recovery fees; recovery fees are being regularly applied when they shouldn't and can be much larger than the set fee of 10 per cent.
Corrupted review; compliance officers are directed not to fix these errors, even when there is evidence, and their work is rejected when they do.
But Centrelink media spokesman Hank Jongen denied the accusations in a statement posted online on Thursday, saying the claims about doubling income, non-assessable income, fictitious payments, false recovery fees and corrupted reviews were all incorrect.
"Some of our staff believe that intensive one-on-one management of recipients is always required," the spokesman said.
"As with other online initiatives in Centrelink, this intensive support is still available for those recipients who need it and complex cases.
"Many recipients prefer to manage through an online system, in their own time, rather than dealing with a staff member.
"Also, some staff do not welcome technology driven change."