Can Centrelink access your bank account?

You may have heard stories of Centrelink accessing people’s bank accounts to check on them if fraud is suspected, but is this something it can actually do? 

According to Services Australia, the agency that delivers government payments and services, the truth is that it can check your banking details and information are accurate as part of its compliance program.

This may look like:

• Comparing the bank information you provided
• Comparing the bank interest the Australian Taxation Office (ATO) advises that you were paid in past financial years

For example, if you report to Centrelink your annual income is $25,000, but at tax time you report your income as $50,000 with the ATO, it’s likely you’ll be ‘red flagged’. In this instance, you will be contacted by Services Australia to verify your details.

What happens if the information you provide to Centrelink is different to what the ATO says?

If the information you’ve provided Centrelink with does not match the information that the ATO provides, such as reporting different income amounts, it is likely that Services Australia will send you a letter asking you to confirm your bank information.

This does not mean that “Centrelink” is logging into your bank accounts willy-nilly to check for any instances of fraud, but instead this could look like Services Australia using data-matching to check that you are doing the right thing, or request for bank statements, term deposit statements and internet statements.

It is essential that this is clarified, as you may have been paid the wrong payment or amount in the past.

You may be sent a letter to confirm your bank information, according to Services Australia, if:

• “you have account based financial investments, such as bank accounts and term deposits, and/or
• you’ve given us different information to what the ATO told us.”

You will be contacted via your myGov Inbox, or by registered mail. You may receive reminder messages via SMS or email. Unfortunately, if you cannot be contacted, your payments may be suspended until you contact the organisation, as part of the Social Security (Administration) Act 1999.

If you have received a letter about a bank interest review, get in contact with Services Australia within 28 days on 1800 064 586. Ensure you’ve gathered all the relevant documents required, including:

• Bank statements, including current internet statements
• Term deposit statements or renewal documents

This information will be used to confirm that Services Australia paid you the right payment and amount in the past. If you do in fact owe money, you will be sent another letter outlining why you owe the funds, how much is owed, when you must repay the debt and how.

Keep in mind that Centrelink does not have the authority to take money out of your account. You will typically be given written notice to repay any debt.

However, your benefits could be reduced until you’ve paid back what you owe. In extreme cases, your wages and assets (including money in your bank account) could be garnished until your debt is repaid.

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