Chris Hayes (Fowler, Australian Labor Party) Share this | Hansard source

I also express my support for the Child Support (Registration and Collection) Amendment Bill 2011. This legislation effectively makes two necessary changes to the child support system. It is odd that I get to speak in support of a bill like this having only yesterday celebrated my 35th wedding anniversary and all the joys that go with that—and it is all joy. But, unfortunately, one in three marriages in this country end up in divorce. Apply that to the current generation—I have three children, and we have been through the very objective that this legislation provides for with my youngest son, Jonathan. I know a broken relationship becomes a very emotional time for everybody, with the hurt and the feeling that money is being given to an ex-partner, but as grandparents of young Kiarni we have to get my son to understand we are providing for his daughter, and the biological mother is the person who is fundamentally looking after the child. The child is still entitled to all the love and care that she would have had if they were still in a relationship, and the child is entitled to participate in all the good fortune that he has in his subsequent endeavours, whether it be business or other things.

It was an interesting experience for me as a parent to go through that with a son who obviously was quite upset and emotional at the time. One thing I can stand back and look at is what is good for my granddaughter. Fortunately, that is all past and the emotions and everything else have been equalised, and there is a good working relationship between the former partners. Both sides are cooperating with, as I say, the best interests of my granddaughter in mind. So it is with mixed feelings that I make this presentation tonight.

The Child Support (Registration and Collection) Act was passed over two decades ago, and since then we have seen a steady growth in child support obligations. This amendment bill is just another example of our addressing the need to reform. It is well documented that children from broken homes already face huge upheaval, and some of this stuff must be considered in the context of the child and the way the child thinks of it in any event. But what we have attempted to do through this amendment bill is to ensure that our responsibility is very clearly fixed on addressing the monetary issues in these situations by ensuring that the most efficient and compliant child support system is available. That is exactly what it is supposed to do—to look after the child.

Under the proposed changes the government aims to improve the consistency of the service by granting the registrar the authority to delegate certain powers to individuals outside the Department of Human Services. This is new and it is substantial. The role of the external agency will be to become, effectively, the agency for debt collection. It will deal with the parents in ensuring that payments are made for child support. The focus of the Commonwealth and the focus of the parliament in this respect, then, will be clearly on the needs of the child. By allocating the role of debt collection agency to a third party, there is a greater opportunity to increase the identification and collection of outstanding child support debt. By conducting collection in this manner, we hope that we can benefit from external expertise and also see a significant reduction in the operation and costs in that regard. This will free up the existing Child Support Program staff to do what they are there to do—to focus on the child, to give better services to the customer and, in the main, to ensure that the child is being looked after appropriately under the system.

The structure of the system is based on the model that is currently being used by the department in Centrelink. For some time now they have outsourced their collection of outstanding liabilities. It could be seen, to some extent, as one step closer to integrating and streamlining government department agencies that have a community based support. Now, particularly where there is financial debt that one way or another has accumulated, that debt will be recovered externally and returned so it is not the child in this instance that is missing out.

The security of the parties involved will certainly not be compromised. The staff of external agencies, in terms of debt collection and what have you, will undergo the same security clearances as current employees of the Child Support Program and that, again, will also be subject to the current monitoring processes.

In addition to the external participation in the child support system, this amendment bill also addresses some criminal provisions in the process of an employer withholding payments, which currently is a little ambiguous, as I understand it. Not being a lawyer, I have not been able to appreciate the subtle differences that the Commonwealth Director of Public Prosecutions has made, but I accept the advice that he has given—that is, 'employer withholdings' refer to the act by which an employer withholds specific amounts from a parent's wage or salary equal to the amount required by the Commonwealth support program. Under current legislation, according to the DPP, it appears that the employer can potentially be penalised for complying with the legislation. The uncertainty associated with the current wording outlined in the physical elements to the offence has now resulted in the Office of the Commonwealth Director of Public Prosecutions being reluctant to initiate prosecution proceedings in respect of an employer who fails to withhold such payments. The proposed changes will make it abundantly clear that an employer has a legal duty to deduct or remit child support payments and to send them to the Child Support Agency. It is made clear that an offence is committed when an employer fails to take these actions and that subsequent penalties will apply when these obligations are not met. Improving the efficiency and compliance within the child support system will ensure greater welfare for children of broken homes. I acknowledge that most parents pay child support in full and that they do it on time. As at 31 December 2010 over 77 per cent of all children in domestic activity cases received their full support payments. The government is proud of this record; the figure has steadily increased since 2007. In the last financial year $1.19 billion was collected. It is, however, our duty to ensure that the children who are subject to default payments are not left behind and are not neglected.

Regrettably, a large number of families and children in my electorate of Fowler are affected by any change that we enact to legislation in this area. As a parliament we need to ensure that these changes improve the system and make it easier for all stakeholders: the agencies involved, the parents, and most importantly the children who are affected. I have spent time with an organisation called Dads in Distress. I understand that many men are still grieving from broken relationships. When I met with them last month, I indicated that the position of government must always be with the child. We must ensure that the young person in the relationship—who had nothing to do with the break-up, who did not pick sides—is not left behind, that their financial wellbeing is looked after and that they are given the opportunity for inclusion in our modern society.

I commend this amendment bill. I strongly support the work done by Tanya Plibersek, the Minister for Human Services. She is a person who is very strongly focused in this area and she does know the value of looking after children.

See this speech in context