Rachel Siewert (WA, Australian Greens) Share this | Hansard source

Yes. I move this amendment to the second reading motion:

At the end of the motion, add:

  ", but the Senate calls on the government to:

  (a) take action to address the chronic non-lodgement of tax returns to ensure the integrity of the Child Support Program; and

  (b) amend the legislation to protect Private Collect payees who receive a Family Tax Benefit A debt as a consequence of the payer's child support reassessment."

In its response to the inquiry into child support, the government has failed to address the key recommendation regarding parents who fail to lodge tax returns in order to avoid paying child support. Recommendation 7 reads:

The Committee recommends the Australian Government amend current policy to ensure that the penalties applicable to the non-lodgement or late-lodgement of tax returns are enforced for all clients of the Child Support Program.

Nonlodgement of tax returns allows parents to hide or minimise incomes and results in the CSA working from an estimated income. The nonlodgement of tax returns corrodes the overall effectiveness of the Child Support Scheme and must be addressed by this parliament. We think it is now just as urgent, if not more so, as addressing the issues around recovering debts from carers. We need to ensure that people have enough money to live on by addressing the integrity of the child support system. These practices are obviously corroding the effectiveness of the child support system but also landing principal carers in debt when recalculations occur and Centrelink takes them instantly into account. We believe it's important that these issues are addressed. My second reading amendment calls on the government to compel the lodgement of tax returns or to require this issue is addressed to ensure the integrity of the child support program.

Another way to ensure the integrity of child support is through a child support guarantee system, which was also discussed in the House of Representatives committee report. The committee recommended this be considered and modelling be conducted. A number of countries have a child support system in which the government agrees to make up some of the shortfall or the entire shortfall if the paying parent does not meet the child support requirements. In other words, children do not miss out because parents aren't doing the right thing. This removes the financial impact of spasmodic payments and nonpayments and is particularly important for low-income families living from week to week. It would also sever the use of child support as an avenue to practise abuse and controlling behaviour—which does occur. We believe there are important changes that need to be made to the child support program and we urge the government to get on and deal with the other committee recommendations, which would significantly improve the system.