Centrelink system is working: Tudge

The federal government is standing by its controversial Centrelink debt recovery system despite widespread criticism.

Human Services Minister Alan Tudge insists the automated process is not flawed, saying more than $300 million worth of overpayments has been recouped.

"The system is working and we will continue with that system," he told ABC radio on Wednesday.

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Mr Tudge reiterated that if someone has deliberately defrauded the welfare system, they would be tracked down and could face jail time.

Opposition human services spokeswoman Linda Burney said the minister's response was "abysmal".

"He has simply continued to deny there is any issue at all.

"Clearly the minister is completely out of touch."