Services Australia needs more resources for social workers, training, Senate hearing on poverty told

Understaffing and a lack of specialists at the central welfare agency create red tape for those in desperate need, community lawyers told a Senate committee hearing on poverty in Australia.

Abby Cone, a solicitor at Townsville Community Law said she contacted Centrelink on behalf of a client with "extreme anxiety and PTSD" who was concerned the agency would raise a debt against her, which could have resulted in criminal prosecution.

Ms Cone told senators her client had been in a "long and very severe domestically violent relationship" and had told Centrelink that she was single, when she was partnered.

"We sent a letter through to Centrelink to say here is her circumstances, we do not consider that she should be taken as a member of a couple and a debt shouldn't be raised," she said.

Eight months later, after filing a complaint, Ms Cone was told the letter had been received, and that there were no plans to raise a debt, but no assurance could be given that a debt wouldn't be raised in future.

"So I then had to go back to this woman, with severe anxiety, who was worried she was going to go to prison, and say, '90 per cent chance that everything is fine, but that's as good as we can give you'," she said.

Economic Justice Australia law reform officer Sarah Sacher said resources were being funnelled into ensuring people paid debts, rather than providing support.

"When you have a system that is really, really focused on compliance, and ensuring people pay debts and all of those things, that's where the resourcing goes," she told senators.

The organisation has recommended Services Australia receive funding for more Mobile Service Centres, Indigenous Service Officers and Multicultural Service Officers, and allocate substantial funding for more Centrelink social workers.

"It often will save the system money to give people access to social workers at an early stage, because they can see what certain issues are before they snowball and become much bigger problems or legal problems," Ms Sacher said.

"We see from our member centres that it's just really hard for people to access social workers, even when they're in crisis."

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Ms Cone added that there was a need for more comprehensive training, noting that she had often spoken to people who had been given incorrect advice from Centrelink staff.

"One of the things I hear a lot [is], 'Well I expected Centrelink to know what they were doing, it's their job'," she said.

"Those staff members, they're not trained in every aspect of the law.

"It can be quite complex, there's so many different payments for them to have their heads around and so many different situations."

Greens senator Janet Rice, chair of the committee on community affairs, said the stories she had heard were "heartbreaking".

"It was just heartbreaking to hear that how that inefficiency and the core service from Services Australia was having such tragic impacts on people's lives," she said.

"Clearly there's a desperate need for more resources in Australia and to make sure that they have got the skills to be able to be providing the level of support to people that's necessary."

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