Centrelink debt and tax return

[Doing my best]

DMB, without seeing the specifics, it sounds like you are still getting a top up to come to you - whether it comes from ATO or from FAO is hard to say - most likely, your debt for an 11/12 year would be paid from any reco payment you are entitled to in the first instance (as FAO and CCR/CCB would reconcile at same time) and only what is left to be paid would come from your tax return. if it was a previous year debt (10/11 or earlier) it would be deducted from whichever lump sum was available first (generally your tax return)

Ok, that makes sense.. The past financial year is the only debt. So as my tax return was at least double what is owing, I will wait for it to come..