Explanatory Memorandum
(Circulated by the authority of the Treasurer,the Hon. John Dawkins M.P.)CHAPTER 15
THE CHILD SUPPORT (REGISTRATION AND COLLECTION) ACT 1988
OVERPAYMENTS OF PAYEES
Changes the ownership of child support overpayments from the Secretary of the Department of Social Security to the Child Support Registrar
THE CHILD SUPPORT (REGISTRATION AND COLLECTION) ACT 1988
PAYMENTS TO PAYEES
OVERPAYMENT OF PAYEES
Summary of proposed amendments
15.1 These amendments shift the ownership of all overpayments that have occurred since the start of the child support scheme from the Secretary of the Department of Social Security to the Child Support Registrar.
15.2 The child support legislation recognises that there will be times when custodians are overpaid. This will arise where retrospective variations to court orders are made or under Stage II where income estimates have been lodged thus reducing retrospectively the annual rate payable.
15.3 The Department of Social Security has the task of making payments to custodians and it was agreed at the outset that the responsibility for recovery of overpayments should be with the paying rather than the collecting Department. As a result the Secretary of the Department of Social Security was given that responsibility at law (s79).
15.4 In practice however that Department has not recovered any amounts and an informal arrangement has existed whereby the Agency has recovered the amounts. What happens in practice is now to be recognised at law.
15.5 In future the Secretary of the Department of Social Security will only recover amounts from DSS beneficiaries who no longer have a child support entitlement being collected through the Agency. This will be achieved by the Registrar delegating the power to the Secretary under section 15.
Explanation of the proposed amendments
15.6 Section 79 is amended by replacing the word "Secretary" with "Registrar" wherever it occurs in the section [Clause 36].
15.7 Section 113 is amended to delete reference to section 79 overpayments which are now to be recoverable by the Registrar [Clause 39].
15.8 The amendment will apply to all overpayments that have arisen under the law since 1 June 1988.
15.9 The effective date of this amendment is backdated to 1 June 1988 so as to ensure the legal transfer of ownership of all existing overpayments. The retrospectivity has no impact on clients.
Clause involved in the proposed amendment
Clause 2 proposes the amendment will apply from 1 June 1988
Clause 36 proposes that it be the Registrar to whom all overpayments should be repaid.
Clause 39 consequentially amends section 113 to enable the Registrar to recover all debts under the Act.