Janet Rice (Victoria, Australian Greens) Share this | Hansard source

I move amendment (1) on sheet 2028:

(1) Page 33 (after line 26), at the end of the Bill, add:

Schedule 4 — Reinstatement of 6-year limit on debt recovery for social security debts

A New Tax System (Family Assistance) (Administration) Act 1999

1 After paragraph 84(1)(b)

Insert:

Note: Section 85 specifies a time limit on recovery action for debts due to the Commonwealth under the Social Security Act 1991.

2 After subparagraph 84A(1)(b)(ii)

Insert:

Note: Section 85 specifies a time limit on recovery action for debts due to the Commonwealth under the Social Security Act 1991.

3 After section 84A

Insert:

85 Time limits on recovery action under sections 84 and 84A for debts due to the Commonwealth under the Social Security Act 1991

(1) This section applies to action under section 84 or 84A for the recovery of a debt if the debt is a debt due by a person to the Commonwealth under the Social Security Act 1991.

(2) Subject to subsections (3), (4) and (5), action under section 84 or 84A for the recovery of a debt is not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

(3) If:

(a) subsection (2) applies so that action under section 84 or 84A for the recovery of a debt must be commenced within a particular period; and

(b) within that period part of the amount owing is paid;

action under that section for the recovery of the balance of the debt may be commenced within the period of 6 years starting on the day of payment.

(4) If:

(a) subsection (2) applies so that action under section 84 or 84A for the recovery of a debt must be commenced within a particular period; and

(b) within that period, the person who owes the amount acknowledges that he or she owes it;

action under that section for the recovery of the debt may be commenced within the period of 6 years starting on the day of acknowledgment.

4 Section 93B

Before "For", insert "(1)".

5 At the end of section 93B

Add:

(2) Subsection (1) does not apply to action taken under section 84 or 84A for the recovery of a debt if the debt is a debt due by a person to the Commonwealth under the Social Security Act 1991.

Note: Section 85 specifies a time limit on recovery action for debts due to the Commonwealth under the Social Security Act 1991.

6 Before paragraph 95(3)(b)

Insert:

(a) the debt cannot be recovered by means of:

(i) deductions under section 84; or

(ii) deductions under section 1231 of the Social Security Act 1991; or

(iii) setting off under section 84A family assistance; or

because the relevant time limit for recovery action under that section has elapsed; or

Social Security Act 1991

7 Subsection 1231(2)

Omit "The", substitute "Subject to subsections (4) to (6), the".

8 At the end of section 1231

Add:

(3) Subject to subsections (4), (5) and (6), action under this section for the recovery of a debt or overpayment is not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

(4) If:

(a) subsection (3) applies so that action under this section for the recovery of a debt or overpayment must be commenced within a particular period; and

(b) within that period part of the amount owing is paid;

action under this section for the recovery of the balance of the debt or overpayment may be commenced within the period of 6 years starting on the day of payment.

(5) If:

(a) subsection (3) applies so that action under this section for the recovery of a debt or overpayment must be commenced within a particular period; and

(b) within that period, the person who owes the amount acknowledges that he or she owes it;

action under this section for the recovery of the debt or overpayment may be commenced within the period of 6 years starting on the day of acknowledgment.

(6) If:

(a) subsection (3) applies so that action under this section for the recovery of a debt or overpayment must be commenced within a particular period; and

(b) within that period:

(i) action is taken under this section or section 1232 (legal proceedings) or 1233 (garnishee notice) for the recovery of the debt or overpayment; or

(ii) a review of a file relating to action for the recovery of the debt or overpayment occurs; or

(iii) other internal Departmental activity relating to action for the recovery of the debt or overpayment occurs;

action under this section for the recovery of the debt or overpayment may be commenced within the period of 6 years after the end of the activity or action referred to in paragraph (b).

9 Section 1232

Before "If", insert "(1)".

10 At the end of section 1232

Add:

(2) Subject to subsections (3), (4) and(5), legal proceedings for the recovery of the debt are not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

(3) If:

(a) subsection (2) applies so that legal proceedings for the recovery of a debt must be commenced within a particular period; and

(b) within that period part of the amount owing is paid;

legal proceedings for the recovery of the balance of the debt may be commenced within the period of 6 years starting on the day of payment.

(4) If:

(a) subsection (2) applies so that legal proceedings for the recovery of a debt must be commenced within a particular period; and

(b) within that period, the person who owes the amount acknowledges that he or she owes it;

legal proceedings for the recovery of the debt may be commenced within the period of 6 years starting on the day of acknowledgment.

(5) If:

(a) subsection (2) applies so that action under this section for the recovery of a debt must be commenced within a particular period; and

(b) within that period:

(i) action is taken under this section or section 1231 (deductions) or 1233 (garnishee notice) for the recovery of the debt; or

(ii) a review of a file relating to action for the recovery of the debt occurs; or

(iii) other internal Departmental activity relating to action for the recovery of the debt occurs;

action under this section for the recovery of the debt may be commenced within the period of 6 years after the end of the activity or action referred to in paragraph (b).

11 After subsection 1233(7)

Insert:

(7A) Subject to subsections (7B), (7C) and (7D), action under this section for the recovery of a debt is not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

(7B) If:

(a) subsection (7A) applies so that action under this section for the recovery of a debt must be commenced within a particular period; and

(b) within that period part of the amount owing is paid;

action under this section for the recovery of the balance of the debt may be commenced within the period of 6 years starting on the day of payment.

(7C) If:

(a) subsection (7A) applies so that action under this section for the recovery of a debt must be commenced within a particular period; and

(b) within that period, the person who owes the amount acknowledges that he or she owes it;

action under this section for the recovery of the debt may be commenced within the period of 6 years starting on the day of acknowledgment.

(7D) If:

(a) subsection (7A) applies so that action under this section for the recovery of a debt must be commenced within a particular period; and

(b) within that period:

(i) action is taken under this section or section 1231 (deductions) or 1232 (legal proceedings) for the recovery of the debt; or

(ii) a review of a file relating to action for the recovery of the debt occurs; or

(iii) other internal Departmental activity relating to action for the recovery of the debt occurs;

action under this section for the recovery of the debt may be commenced within the period of 6 years after the end of the activity or action referred to in paragraph (b).

12 Section 1234B

Repeal the section.

13 Before paragraph 1236(1B)(b)

Insert:

(a) the debt cannot be recovered by means of deductions, or legal proceedings, or garnishee notice, because the relevant 6 year period mentioned in section 1231, 1232 or 1233 has elapsed; or

(aa) the debt cannot be recovered by means of deductions or setting off because the relevant 6 year period mentioned in section 85 of the A New Tax System (Family Assistance) (Administration) Act 1999 has elapsed; or

14 Application of amendments

A New Tax System (Family Assistance) (Administration) Act 1999

(1) The amendments of the A New Tax System (Family Assistance) (Administration) Act 1999 made by this Schedule apply in relation to:

(a) a debt that arises on or after the commencement of this item; and

(b) a debt that arose before the commencement of this item, to the extent that the debt was outstanding immediately before that commencement.

(2) Paragraph (1)(b) applies in relation to a debt only if, immediately before the commencement of this item, action under section 84 or 84A of the A New Tax System (Family Assistance) (Administration) Act 1999 could be commenced or taken for the recovery of the debt.

Social Security Act 1991

(3) The amendments of the Social Security Act 1991 made by this Schedule apply in relation to:

(a) a debt or overpayment that arises on or after the commencement of this item; and

(b) a debt or overpayment that arose before the commencement of this item, to the extent that the debt or overpayment was outstanding immediately before that commencement.

(4) Paragraph (3)(b) applies in relation to a debt or overpayment only if, immediately before the commencement of this item, action under section 1231 or 1233, or legal proceedings under section 1232, of the Social Security Act 1991 could be commenced for the recovery of the debt or overpayment.

This amendment is about implementing one of the recommendations from the Royal Commission into the Robodebt Scheme. It was Greens senator Rachel Siewert who first established the first Senate Standing Committees on Community Affairs inquiry into the Centrelink compliance program, otherwise known as robodebt, and it was the Greens who first called for a royal commission into robodebt. People fought and campaigned for the robodebt royal commission to be established. Obviously, the royal commission had some very far-reaching and important recommendations. The royal commission can't bring restitution to everyone who lost so much in the face of the illegal debt recovery, but at least it has brought some measures of transparency and accountability after years of cover up and concealment by Liberal ministers and senior bureaucrats, laughing and lying as they inflicted untold misery on vulnerable people, illegally trying to recover debts in a search for budget savings.

We've now got recommendations from the royal commission, and we think it's really important that they get implemented as quickly as possible. Many of them are very large and very complex and are going to take a lot of time for the government to work out the best way to implement them across portfolios. We, as Greens, acknowledge the importance of taking your time with those recommendations. However, there was one recommendation which was pretty straightforward, which was recommendation 18.2. It refers to the changes made by the Turnbull government that changed the legislation's previous requirement for a six-year time frame for debts to be raised. Basically, if it was a debt that was more than six years old you couldn't raise a debt against it. The Turnbull government changed that so that debts older than six years were fair game. The robodebt royal commission made a very clear recommendation that we should change that:

The Commonwealth should repeal s 1234B of the Social Security Act and reinstate the effective limitation period of six years for the bringing of proceedings to recover debts under Part 5.2 of the Act …

There is no reason that current and former social security recipients should be on a different footing from other debtors.

We have legislation before us today to amend the Social Security Act. It is a very straightforward thing, as per my amendment, to reinstate the provisions that were there before the Abbott government's changes. This recommendation isn't complex. It's not one of the complex robodebt royal commission recommendations. I understand the arguments from the government that we need to implement those recommendations slowly and carefully. I accept that for most of them, but that's not the case for this one. In particular, I've also heard the argument: 'No, we've got to wait to do this until we've got the full picture of what we need to do.' I would have been very happy for an amendment that acknowledged that this is a stopgap provision and that, in the fullness of time, once we've got all of the changes that are required, we can change the provisions if there's a better way of doing it.

In the meantime, here is a very straightforward opportunity to provide some justice for people by putting in place the provision as it used to be—to say that debts that are more than six years old should not be pursued. We don't know when the full suite of changes, after the government's careful consideration of them, are going to come into place. It might be years off. In the meantime, at least do this. It was a very simple recommendation of the royal commission and it's something that could easily be done today.