Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

I rise to speak on the Child Support (Registration and Collection) Amendment Bill 2011. This bill makes minor amend­ments to the Child Support (Registration and Collection) Act 1988 to allow the Child Support Registrar to delegate powers that would permit the outsourcing of particular services, such as debt collection. It also amends a number of criminal penalty provisions to help ensure successful prosecution where wrongdoing is found and to underpin the integrity of the Child Support Scheme.

The Child Support Agency is required to collect outstanding child support debts; that is part of their core business. At present there are a range of ways that the CSA can recoup outstanding debts from parents who refuse to pay child support. This bill will expand the avenues that the Child Support Registrar can pursue for debt collection. In particular, it will allow the registrar to outsource debt collection activities to specialised debt collection services. Centrelink already has an existing capacity to outsource to specialist debt collector services, but this bill will give the Child Support Registrar similar powers. This measure is designed to increase the successful collection of child support liabilities owed by parents who have refused to pay.

Item 5 of the bill is intended to make clear that an employer who fails to deduct child support from an employee's pay when required to do so has committed an offence. The government has said that this measure is designed to correct an ambiguity in the legislation which did not make it clear that an employer could commit an offence by failing to withhold pay when required to do so. The government has indicated that a literal interpretation of the provision suggests that an employer could be penalised for complying with the section as it is currently drafted. This makes prosecution difficult. The bill clarifies that an employer is strictly liable for failing to act appropriately when required to do so. This should enhance the prospect for success of prosecution when there is wrongdoing.

Importantly, the government has indicated that the Commonwealth Director of Public Prosecutions has been consulted in the drafting of the proposed amendments and, given that the bill makes a number of technical amendments which appear to enhance the operation of the Child Support Agency and registrar, the coalition will not be opposing the bill.

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

As Senator Fifield pointed out, the Child Support (Registration and Collection) Amendment Bill 2011 amends section 15 of the Child Support (Registration and Collection) Act, allowing, amongst other things, the registrar to delegate his or her powers to persons engaged by the Commonwealth. There were some concerns expressed to me about this particular bill because it permits the outsourcing of child support payment debt collection, which is normally carried out by the Child Support Agency.

Debt collection work that is done by the CSA is very complex. They are dealing with quite complex family matters, and CSA workers provide advice about tax obligations and Centrelink entitlements, which assist parents in ensuring that their children are adequately provided for. CSA employees also have access to complex and confidential information, including court orders, which may contain activation clauses for the repayment of debt and they also mitigate debt repayments and negotiate alternatives if one parent finds themselves without an income. In other words: they play a very sensitive role. It is a highly skilled role, dealing with parents and negotiating and facilitating between parents in some cases. It is sort of like that.

There has been some concern expressed to me that private providers would not have the knowledge of Human Services and the depth of training that I know CSA provides to be able to provide this level of advice, and we believe they should not have access to sensitive information. We raised these concerns with the minister, Minister Plibersek, and I wrote her outlining some concerns. I am very pleased to say that Minister Plibersek responded; we have met with officers and got a briefing on this legislation. I put on the record that I very much appreciate that. I also acknowledge that the agency has been doing a lot of work in developing its processes, particularly around debt collection, and I understand there has been a significant improvement in the debt that has been recouped.

I would like to acknowledge the fact that the minister has written back addressing the issues I raised with her office; I thank her for that. She has indicated in the letter that outsourced providers will provide staff with limited specialised skills to be used in particular circumstances. As I said, they will be used only in very particular circum­stances. I understand why, in particular circumstances, it may be advantageous to outsource that process.

The minister also outlined that outsourced debt collection will complement the Child Support Agency's existing compliance tools and will only be used when CSA staff have exhausted all avenues for collection. Importantly, she also committed to consult with staff and the CPSU on plans for implementation of the legislation, including the nature and scope of any proposed outsourced work as specified in a delegation instrument. As I said, I appreciate that very much. That reply deals adequately with the concerns we raised. I understand that the minister will be confirming these responses on record in here. I thank the government for their response. I do understand this is a sensitive issue. I think they have handled our concerns sensitively and because of that we will now be supporting this legislation.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

I will confine my remarks to an amendment that I will be moving; I think it is important to refer to it in the second reading stage. My primary concern about this bill relates to any potential to offshore the information that will be obtained by virtue of these changes. I acknowledge and support the government's intentions in this bill and I agree that granting the registrar the power—for example, to utilise a debt collector to retrieve unpaid amounts—will help to streamline operations. However, we need to make sure that the third parties who act under the registrar's delegated powers treat any information they receive appropriately.

I have spoken previously about my concerns with the 'big 4' banks sending personal information offshore for processing. A survey I commissioned, along with the Finance Sector Union, in 2009 shows that 91 per cent of Australians would choose a bank that did not send their personal information overseas. A further 83 per cent of people believe that banks should get written permission before sending personal information offshore. So there is a concern that when you are dealing with sensitive information it should not be sent offshore. There are concerns about the security of that information. It is much better to keep it onshore. It is good in terms of the personal and financial security of Australians and it protects Australian jobs.

I am grateful for the discussions I have had with Minister Plibersek's office in relation to this and for the government's willingness to support this amendment. I would urge all my colleagues to do so. It is a fairly straightforward amendment. I note that during Senate estimates when I asked questions of the Australian Taxation Office on their debt-collecting procedures—their outsourcing of debt collection—they said, categorically, they do not offshore that information. It is important that there are guarantees this does not occur here with this particular department.

Jan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary for Disabilities and Carers) Share this | Link to this | Hansard source

I thank senators for their contribution to the debate on the Child Support (Registration and Collection) Amendment Bill 2011. The first section of the bill will enable the Child Support Registrar to delegate powers and functions to external service providers. The bill will also allow the Child Support Program to consider the use of contracted staff to undertake specific and limited jobs. The core work of the Child Support Program requires skilled work by staff who have a wide knowledge of child support matters. The minister and I are absolutely certain that no contracted service provider would be able to provide staff with this range of skills and depth of knowledge.

The bill will not be used to outsource the core work of the Child Support Program and will not be the basis of job cuts within the program. External service providers may be able to provide staff with more limited but specialised skills that could be used in specific circumstances. For example, a forensic accountant may be used to discover hidden assets belonging to parents with a child support debt. This will allow highly skilled and valued staff to concentrate on what they do best—helping Child Support Program customers and their children. This bill will also allow the Child Support Program to use external debt collectors, in limited circumstances. This approach is currently used by Centrelink and the Australian Taxation Office.

The government wants to ensure that the Child Support Program has every tool available to collect unpaid child support debts. Debt collection activities will enhance the Child Support Program's existing com­pliance tools. In the first instance, the Child Support Program works with paying parents to encourage voluntary payments of child support. The engagement of a debt collection agency will only occur where Child Support Program staff have exhausted all avenues for collection and have been unable to identify any further opportunities. These delegation powers are already available to Centrelink. It is important that each agency in the newly-integrated Department of Human Services have the same powers. For example, if one person has both a Centrelink debt and a child support debt, it makes no sense that a debt collection agency would collect one part of the debt and not the other.

The outsourced services will be clearly specified in the delegation instrument, issued by the registrar as well as in guidelines provided to the contract service provider when they are engaged. The Child Support Program will consult with staff and the CSU on plans for implementation, including the nature and scope of any proposed outsourced work as specified in the delegation instru­ment. I can assure the Senate that adherence to the Australian Public Service values and code of conduct by the service-provider staff would be an essential requirement and would be specified in any contractual arrangements. I can also confirm that any outsourcing will occur in line with Commonwealth procure­ment guidelines and will be subject to review, as per contractual arrangements.

The second section of the bill relates to certain obligations on an employer to deduct and remit child support payments to the Child Support Program. The current offences relating to 'employer withholding' are written in a way which is ambiguous. The proposed bill will make it clear that it is an offence when an employer fails to take a certain action. This will improve the prospect of successful prosecution of employers who fail to deduct or remit child support payments for the benefit of children. I say, for the record, that the government will support Senator Xenophon's amendment and I commend the bill to the Senate.

Question agreed to.

Bill read a second time.