Jenny Macklin (Jagajaga, Australian Labor Party, Shadow Minister for Disability and Carers (House)) Share this | Hansard source

Just to briefly conclude my speech from before the Prime Minister's statement, I want to turn to schedule 1, part 3. Since 1 July 2008, parents entering into a binding child support agreement have been required to receive legal advice. Since that time, a court may only set aside a binding child support agreement where there are exceptional circumstances, and a failure to change the agreement will result in financial hardship. Parents who entered into binding child support agreements before 1 July 2008 did not have to have received legal advice but must now meet this requirement before the court can consider varying their child support agreement. This part makes it easier for agreements entered into before 1 July 2008 to be set aside or varied by courts. In addition, this part also allows for child support agreements to be terminated or suspended if the payee ceases to be an eligible carer. Currently, the payer is required to apply to the court for a termination or suspension of the agreement in this circumstance.

Turning to schedule 1 part 4, collection of overpayments, currently an overpayment of child support can only be recovered if the person who received the overpayment agrees to return the sum or if a court makes an order that the money should be repaid. The Child Support Agency cannot collect an overpayment from a recipient without a court order. This part alters the legislation so the Child Support Agency can collect overpayments on behalf of payers in the same way that it can collect arrears on behalf of payees. According to data provided at Senate estimates, approximately 86 per cent of child support recipients are female and 56 per cent of child support recipients also receive an income support payment from either Centrelink or the Department of Veterans' Affairs. Data provided at Senate estimates also shows the child support recipients have very low median incomes, ranging from around $22,195 in Tasmania to $42,225 in the ACT. Therefore, it's likely that those who are negatively affected by the collection of overpayments will be women who are already economically vulnerable. In contrast, almost one quarter—24 per cent—of active child support cases have arrears owing. The average amount of arrears is $5,800. These figures do not take into account any cases where the child is now over 18 but the paying parent still has arrears owing or any private collect arrangements where parents organise payment of child support between themselves. The implementation of this measure will need to be monitored to make sure that it does not further exacerbate inequities between payers and payees in the child support system. The changes to this bill only apply to overpayments which arise after the commencement of the act.

In summary, Labor strongly support the No Jab, No Pay policy. We do support changes to improve immunisation rates in the community, and that's why we support the amendments to No Jab, No Pay, as set out in this bill. However, we do have some concerns about the changes relating to amended tax assessments. We're concerned that child support recipients who have received child support payments in good faith will unfairly owe debts. That's why I've made representations to both the former minister and the new minister about this issue. We remain hopeful that in the Senate a compromise on the contentious amendment can be reached. I commend the bill to the House.

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