Second Reading Speech
Senator Patterson (Parliamentary Secretary to the Minister for Immigration and Multicultural Affairs and Parliamentary Secretary to the Minister for Foreign Affairs)I table a revised explanatory memorandum relating to the Family Law Amendment Bill 2000 and move:
That this bill be now read a second time.
I seek leave to have the second reading speech incorporated in Hansard.
Leave granted.
The speech reads as follows-
This Bill gives effect to one of the measures announced in the Government's 1999-2000 Budget. The changes made by the Bill will clarify, simplify and strengthen the debt recovery processes of the Department of Family and Community Services as well as those of the Department of Veterans' Affairs.
Under the current provisions of the Social Security Act 1991 and the Veterans' Entitlements Act 1986, the Commonwealth's right to recover excess payments is unclear in some circumstances. This uncertainty means fewer debts are recovered than would be the case if the provisions were more transparent in their operation. The changes in-tro-duced by this Bill will ensure that, when a per-son receives a social security payment, a family assistance payment or a Veterans' Affairs pay-ment that exceeds the amount that should have been paid, the excess amount is a debt and is recoverable.
At present, an interest scheme exists under which a debtor may incur an interest charge because the debtor is making no attempt to repay the debt. A loophole exists in that scheme which effectively allows some debtors to avoid the liability to pay interest even though they are not making payments in respect of the debt. The changes made by this Bill close that loophole.
The Bill also provides for an administrative charge to be payable where a person becomes liable to pay interest. The administrative charge can be incurred only once in respect of a debt. Like the interest scheme, that charge is intended to encourage debtors to enter arrangements for repayment. The charge also recognises the cost incurred by the Commonwealth in recovering debts in those circumstances where people fail to voluntarily enter arrangements to repay.
The Bill also provides for the recovery of payments directly from financial institutions where payments have been made incorrectly. This is the most efficient and cost effective method of recovery for incorrect payments of this nature.
Debate (on motion by Senator Denman) adjourned.
Ordered that the bills be listed on the Notice Paper as separate orders of the day.