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Huge debt - I must prove I do NOT owe

Debt amount: 
Date debt issued: 
Thursday, 1 March 2018
Period debt occurred: 
February 2012 to February 2019
Has your case been referred to a collection agency?: 
Payment Type: 
Disability Support Pension
Appealing Debt?: 
Yes but I lost
Tell us about your debt and how has this affected you? e.g. anxiety levels, financial and accommodation stress: 

An ARO waited 7 months for me to send them documents to prove I do NOT owe this debt.
They then re-established the debt and started taking $128 out of my pension.

I have Chronic PTSD and having this hanging over my head has been a relentless nightmare.

I am about to start a medication which is not on the PBS and will require approximately $300 per month.
This reduction in funds may exclude me from this medication.

How do you feel about the way the Government has handled this process?: 

The Law of the Land has always been that the claimant must prove a debt.
This LNP government has denied us this right and simply takes what they want.

I believe this misunderstanding is due to my being paid out for Total and Permanent Disability (which Centrelink has no right to assess as income).

I asked for proof and was told I must prove my innocence because the ATO records reflect monies that Centrelink is not able to discern is an insurance payout.