Kim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | Hansard source

The answer to the honourable senator's question is as follows:

(1) The Health Insurance Act 1973 contains no provisions which allow for the waiver of debts owed to the Commonwealth. Where program legislation contains no provisions which authorise the waiver of debts owed to the Commonwealth, such debts can only be waived by the Finance Minister (or her delegate)—see paragraph 34(1)(a) of the Financial Management and Accountability Act 1997. The Finance Minister's power of waiver has not been not delegated to the Secretary.

Under section 47 of the Financial Management and Accountability Act 1997, the Secretary of the department is obliged to pursue the recovery of debts for which she is responsible unless:

1.   the debt has been written off as authorised by an Act;

2.   the Secretary is satisfied that the debt is not legally recoverable; or

3.   the Secretary considers that it is not economical to pursue recovery of the debt.

Consistent with the provisions of the Financial Management and Accountability Act 1997, the Secretary of the department has no legal authority to accept a lesser amount in satisfaction of a debt unless at least one of the exceptions outlined above apply.

The Secretary of the department has been delegated the power to allow a debt to be paid in instalments or to defer the time payment of a debt—see paragraphs 34(1)(c) and (d) of the Financial Management and Accountability Act 1997. This power may be used in situations of financial hardship.

(2) No.