A Senate inquiry was launched earlier in August to determine the effects of robo-debt on people as well as issues around the numerous reports of misallocation of debt.

NMHC chief executive Christine Morgan said while the mechanism of government is outside her remit, it was important to take people's mental health into account when discussing any mental health issues around social determinants such as financial instability.

"We need to ensure that we're alert to people's stress, feeling as though they need some support, feeling as though they can hope and ensuring we can intervene at that point to help them," she said.

Mental Health Council of Tasmania chief executive Connie Digolis said the council would like to see people in the robo-debt process better supported in order to ensure they do not become unwell or more unwell whilst trying to navigate a very difficult process.

"We [the council] understand, at least anecdotally, that robo-debt has had a significant effect on the mental health of people who have been impacted," she said.

"We know that any increased level of stress around finances or other contributing issues can increase the likelihood that a person's mental health will suffer as a result."