Centrelink will resume posting controversial debt recovery letters to thousands of Australians, as Human Services Minister Alan Tudge has defended efforts to recoup incorrect welfare payments and denied the agency made fundamental errors.
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Standard procedures saw a halt to initial letters being sent to welfare recipients on December 3 last year, but thousands of Australians have reported receiving debt demands over the Christmas and New Year period, including some for tens of thousands of dollars.
Days after returning from leave, Mr Tudge said Centrelink's systems were working "as intended" and indicated only the most minor of changes were anticipated by the government.
He dismissed calls from Labor and independent MPs for the system to be shut down because of the ongoing controversy and denied an investigation launched this week by the Commonwealth Ombudsman was an indication anything was wrong.
"I don't accept that the system is fundamentally flawed," Mr Tudge told Fairfax Media on Wednesday.
"The basic methodology which underpins it is the same as has been used for many years now. It is simply because we are automating the process, we are able to do greater volumes.
"Different people will have different reasons why they are upset about receiving a letter from Centrelink but of course that is part of the situation, that a higher volume of letters has been going out."
Centrelink and other government agencies reduce contact with clients during the Christmas period, but Mr Tudge said initial letters alerting current and former welfare recipients that there could be a problem with their personal information or eligibility would soon recommence.
"They are due to resume in the middle of January. They are due to resume any day," he said.
Asked if Prime Minister Malcolm Turnbull had intervened in the controversy or sought assurances from Centrelink, Mr Tudge said only that he had constant conversations with Mr Turnbull.
"Probably like all ministers, you're always on really, even if you're on leave," he said. "I think all ministers have ongoing conversations with the Prime Minister at all times."
Mr Tudge said the government would continue to improve the system, and indicated one possible change could be to ensure welfare recipients had received the first letter requesting information.
"There is a legal obligation upon us to send it to the address which they have on their Centrelink file, but perhaps we can do that as well as take other initiatives to ensure that they receive that first letter," he said.
Independent Andrew Wilkie said he was "shocked and baffled" by Mr Tudge's claims that debt recovery systems were working fine, after the government acknowledged about 4000 incorrect debt notices were sent out each week.
He accused the government of being out of touch with the community and public interest.
Mr Tudge also rejected comments made by a Centrelink insider this week that staff had told the Department of Human Services moves to computer-based processes would lead to widespread mistakes and the agency had used poor public service to limit the amount of money paid out.
The longtime Victorian employee said Centrelink does not "care about average Australians" and alleged officials "wanted to save a shitload of money and weren't interested in hearing what [employees] thought about it".
Mr Tudge said the comments were false.
"Just like all organisations in Australia, we are encouraging more people to do things online because it is more efficient and costs less for people to be able to transact online, rather than calling a call centre or going to a face to face.
"At all times, people can still go to a Centrelink office and get assistance face to face and at all times they can call up a call centre, even if they have to wait a few minutes."
