Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

asked the Minister for Human Services, upon notice, on 13 April 2012:

With reference to the answer provided to question no. HS 7, taken on notice during the 2011-12 Additional Estimates hearing of the Community Affairs Legislation Committee, relating to the Chronic Disease Dental Scheme:

(1)   On what legislative or regulatory authority does the department claim the ability to waive the totality of a debt but not part of a debt.

(2)   Does the Minister agree that injustice may occur as a result of the above approach.

Kim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | Link to 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.