A $31,000 Burden Lifted When It Mattered Most

When Alice* first contacted Alteris, she was trying to manage both the emotional and practical challenges of her mother’s finances following her move into permanent residential aged care in late 2021. She had been doing her best to keep up with Centrelink, aged care fees and the steady flow of paperwork, but shared something I hear often:

“I’m overwhelmed. I need help with Centrelink.”

Centrelink pension entitlements can change over time, and it’s important to update as there are changes. For families already stretched thin, it can be confusing to understand what’s needed, especially when there are major life changes such as moving to aged care.

Our team was there every step of the way to help Alice navigate Services Australia for both the pension as well as the aged care fees.

Alice made the decision to keep her mother’s former home and understood from the advice she received that the age pension would only be paid for two years. However, the age pension did not stop as expected, and instead stopped over a year later. When the pension is overpaid, Centrelink has the right to recover overpayments. However, our team had communicated regularly with Services Australia and provided all updates.

The challenge

Three months later in February 2025, Services Australia notified Alice that her mother had a $31,513.60 debt. When Services Australia initially reviewed the case, they looked back over the period from October 2023 to November 2024 and raised a debt for all pension payments made during that time.

Already dealing with her mother’s rapidly declining health, receiving the debt notice was overwhelming. She contacted us immediately.

What had happened

Alice’s mother entered permanent residential care in October 2021.

After being in care for two years, unless there’s a spouse in the property then Centrelink assesses the former home as an asset.

• Based on the property’s value, the Age Pension should have ceased in October 2023, but payments continued until late 2024
• A debt of over $31,000 was raised in February 2025
• A formal appeal was lodged in response
• Alice’s mum passed away several months later
• Alice, as executor of her mother’s Will had the responsibility of ensuring debts were paid.

For Alice, it wasn’t just being notified of the debt but the extended period of not knowing what to do that was an added burden during an already difficult period.

How we supported

As soon as the debt was raised, our team began a full review. We:

• Reviewed the full timeline and prior information provided
• Formally requested a review of the debt decision
• Continued to manage all contact and regularly followed up until the matter was resolved 11 months later, in January 2026

When we requested a formal review, we accepted that while cancelling the pension was correct, there had not been a failure to provide information and to meet all requirements.

We handled all communication with Services Australia, kept Alice informed and ensured the matter remained active until a final decision was made.

What was the outcome?

Following their review, Services Australia officially confirmed:

• the pension cancellation was correct, but
• the entire $31,513.60 debt would be waived

When I shared the good news, Alice was relieved. While the debt remained outstanding, her mother’s estate could not be finalised, and the unresolved amount had added significant stress at a time of grief and uncertainty. Receiving confirmation that the debt had been waived allowed the estate to be finalised, bringing closure after a prolonged and difficult period.

Why it matters

Centrelink assessments can be complex. Families navigating health issues and major life changes can’t be expected to monitor every detail.

Our Client Service team helps ensure clients:

• receive the correct pension
• aren’t asked to repay money incorrectly
• aren’t underpaid
• and are charged the correct aged care fees

Some cases are straightforward; others require persistence and careful follow‑up. We are there every step of the way and stay involved until a clear outcome is reached.

This is one recent example. Every situation is different but our role remains consistent: providing steady, experienced support when people need it most.

If dealing with Services Australia feels overwhelming, you don’t have to manage it alone. Our team can step in, and advocate on your behalf, just as we did for Alice when she needed support most.

Reach out if you need support

If you have any questions or need guidance on any aspect of the aged care finance journey, please do not hesitate to get in touch. With a specialist division of financial advisers who are accredited in aged care advice, we have a team that can talk you through the various options and explain the various financial considerations. Our team can also connect you with trusted organisations who can help guide you through the care choices that best align with your unique care situation. Learn more about our Lifestyle and Care team.

*Names changed for privacy

Download our guide to aged care

Our exclusive booklet illustrates examples where specialist financial advice may assist in significantly improving financial outcomes. Complete the form below and your copy will be emailed to you.