@anewme I'm so sorry you and your daughter are experiencing this.
It's so ridiculously and unnecessarily complicated.
Can the mental health service she's linked with advocate on her behalf? Or recommend an advocate who can?
I agree with others about contacting your local member, making a formal written complaint to Centrelink, as well as relevant state and federal MPs. I know it seems like overkill and all of you must be exhausted, but it may yield a decent response or outcome.
It's unacceptable that in this country, receiving assistance is so hard.