Senate debates

Monday, 2 December 2019

Bills

Public Governance, Performance and Accountability Amendment (Waiver of Debt and Act of Grace Payments) Bill 2019; Second Reading

10:35 am

Photo of Katy GallagherKaty Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to table an explanatory memorandum relating to the bill.

Leave granted.

I table an explanatory memorandum and seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

PUBLIC GOVERNANCE, PERFORMANCE AND ACCOUNTABILITY AMENDMENT (WAIVER OF DEBT AND ACT OF GRACE PAYMENTS) BILL 2019

This bill amends the Public Governance, Performance and Accountability Act 2013 to require the Department of Finance to publish details relating to waivers of debt and act of grace payments in its annual report.

The Public Governance, Performance and Accountability Act 2013 provides the Minister for Finance with the power to waive debts owed to non-corporate Commonwealth entities, such as the Australian Tax office and Centrelink (Services Australia). This means that these debts are no longer owing to the Commonwealth and cannot be recovered.

Waivers of debt for amounts up to $100,000 have been delegated to officials in the Department of Finance, with amounts of $100,000 and above requiring Ministerial approval.

These waivers of debt are not publicly reported, and there is no requirement for there to be any publication of details such as how many debt waivers have been made, and the amount of debt that has been waived.

The Public Governance, Performance and Accountability Act 2013 also provides the Minister for Finance the power to make payments to a person if they consider it appropriate to do so because of special circumstances.

While 'special circumstances' are not strictly defined, these can include situations where a non-corporate Commonwealth entity has taken action, or failed to take action, and this has caused an unintended and inequitable result for someone.

Like waivers of debt, these act of grace payments are not publicly reported, and there is no requirement for there to be any publication of details such as how many act of grace payments have been made, and the amount provided through these payments.

In the interests of government accountability and transparency, rectifying this lack of publication is a small, but important step.

This bill will require the Department of Finance to provide information in its annual report on the number of debt waivers granted in the financial year that the annual report covers, as well as the total amount of the debt waived.

It will also require the Department of Finance to provide information in its annual report on the number of act of grace payments made in the financial year that the annual report covers, as well as the total amount provided through these payments.

It does not, and will not, require the publication of any personal or sensitive information about any individual or organisation who received a debt waiver or act of grace payment.

This bill strikes a good balance between transparency of government operations and protecting the privacy of individuals and organisations.

It is an important step in ensuring that governments remain open and accountable to the Parliament, and to the Australian public.

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