Ash Ambihaipahar (Barton, Australian Labor Party) Share this | Hansard source

I want to speak about this piece of legislation, the Social Security and Other Legislation Amendment (Technical Changes No. 2) Bill 2025, that cuts to the very heart of fairness in our social security system. For way too long, the rules that govern how debts are raised and managed have been outdated, inefficient and, at times, downright unfair. This bill before the House finally begins to put that right.

I come to this debate not only as a member for Barton but as someone who spent more than a decade in the law, advocating for people who were often up against systems that were stacked against them. For many people that find themselves relying on social security payments, the system can either be a bridge to a new life and a bright future or a bureaucratic barrier that keeps them trapped. I can tell you, when a person feels like they're being buried in red tape, when they've been hit with a debt they don't understand, when they are made to feel like a criminal for a simple mistake, that is not just a policy failure; that is a failure of justice.

This bill delivers a long-overdue reform. It brings compassion, common sense and accountability back to the way we treat people who rely on our social security system. We want the system to be a bridge, not a barrier. That's why we've introduced this bill into the House. Firstly, this bill amends the small debt waiver threshold. The small debt waiver is a legal mechanism under the Social Security Act that allows the government to forgive certain low-value debts owed by welfare recipients where it's not cost-effective for the Commonwealth to take action to recover them.

For 30 years, the so-called small debt waiver has been frozen. It's current range is $50 to $200—$50, unchanged since the 1990s, when the average cost of rent or a grocery bill looked nothing like it does today. In 2025, a small debt of $50 is insulting. It doesn't reflect the real world. This so-called small debt is no longer a reflection of what 'small debt' means to people today. To put it in plain language: this threshold was set when petrol was under 70c a litre, the median rent in Sydney was around $170 per week, and power prices were half of what they are now. Times have changed. Our welfare system must keep up with them. The administrative costs of chasing a $150 debt often exceeds the debt itself, which means taxpayers lose too. This reform is not about leniency. It's about efficiency, compassion and common sense. This bill increases the waiver threshold to $250. That means approximately 1.2 million debts, many of which would be impossible to recover without spending more taxpayer money in administration than the debts themselves. It will simply not be raised. This is the right outcome.

Economic Justice Australia, the peak advocacy organisation for community legal centres that assists people with Services Australia, calls this reform 'a game changer that removes a lot of unnecessary stress from people's lives'. Indeed, these are people that are already vulnerable and experiencing hardship. People on income support are more likely to live under or near the poverty line. These same people have often accrued debt because of systemic overpayment or miscalculation issues—that is, through no fault of their own. We're talking about young people from rough families, single parents or Australians who have a disability. These are the people most likely to be receiving these payments and thus receiving debts in the first place.

For many of these people, the myGov email landing in their inbox isn't just a notification; it's sometimes a heavy pit in their stomach. That notification of a debt means a complete recalculation of their budget, where their next meal is going to come from or how the already-overdue bill is going to be paid. We also know that Services Australia can be very difficult to navigate for people without in-depth experience of government and its procedures. I'm not saying these procedures are out of place; we should be strict on the paperwork required to receive payments from Services Australia and the checks and balances that come along with it. But, for someone already experiencing disadvantage, with low computer literacy skills, escaping violence without all their relevant documentation or with little time on their hands because they're looking after kids or relatives, it can be really easy to make a mistake when applying for payments. In circumstances like this, we should be giving people a helping hand rather than punishing them for their small mistakes.

Where debts appear to stem from fraud, Services Australia has the power to investigate them more closely. But the majority of those Australians holding these debts have received them through no fault of their own. This impactful reform means Services Australia can focus more on what it should be doing—that is, supporting people who need help, not wasting energy hustling for small debts. It also says to the taxpayer, 'We are spending your money wisely, focusing on serious misconduct and fraud rather than chasing loose change from those doing it tough.'

Another part of this bill I want to highlight is the protection it gives to victims-survivors of family and domestic violence. As many in this chamber will know, financial abuse is one of the most insidious forms of coercive control. It is a way for perpetrators to trap partners and children to keep them dependent and to punish them long after they have escaped. According to the Australian Institute of Health and Welfare, one in four women and one in 14 men have experienced violence from an intimate partner since the age of 15. As a community, we now understand what has long been true—that violence extends beyond the physical and appears as emotional and financial coercion too. For many that find themselves in this situation, that looks like credit cards being taken out in their name, the emptying of joint bank accounts and the diversion of welfare moneys to another account. From my time working at the St Vincent de Paul Society in New South Wales, looking after a rather large team covering from Wyong to Helensburgh out to the Blue Mountains, including my own electorate of Barton, the Vinnies team and I saw the terrible impacts of coercive control and financial abuse on the lives of many people, mainly women, escaping domestic violence.

Under our current laws, if a person accrued a debt because they were coerced into signing forms or providing false information they could still be held liable. This debt is yet another burden that hangs over the victim at one of the most difficult times in their life. Think about that for a moment: the victim is punished for their abuser's actions. That is not only cruel; it undermines our commitment to end violence against women and children. This bill changes that. It gives Services Australia the discretion to waive debts in cases where coercion or financial abuse was a factor. It builds on the work of the 2024 joint parliamentary inquiry into financial abuse and reflects our commitment to entrench protection into every arm of the Commonwealth.

As someone who's worked with vulnerable clients, I cannot overstate the importance of this change. It tells victims-survivors: 'We see you, we believe you and we will not allow the system to be weaponised against you. When you come forward, you do not have to do so with fear of debt or of unjust consequences. Services Australia is here to help you rebuild and move forward, rather than binding you to the violence of your past, because we understand that financial security is a core part of ending domestic violence and that safety is not just physical; it's economic.'

I know that this part of the bill may sound a bit technical, but for thousands of Australians it matters deeply. From 1991 to 2020 a method known as income apportionment was used to calculate debts. The practice was inconsistent with the law at the time. It was unfair. And while it has not been used under this Albanese Labor government, we cannot simply reopen decades worth of historical cases—some of them already repaid, many involving people who've since passed away—without causing fresh uncertainty and distress.

So this bill draws a line in the sand. It clarifies the law to close off the uncertainty. More importantly, it establishes the Income Apportionment Resolution Scheme. That means that people who have potentially affected debts between 1 September 2003 and 6 December 2020 can apply for a resolution payment of up to $600. It's not perfect justice. Nothing can fully undo the harm caused. But it is recognition. It is a step towards closure. It is an acknowledgement that the system got it wrong. And, at its core, this bill is about respect—respect for the people who use the social security system, most of whom are engaging in good faith, trying to do the right thing, and juggling low incomes, insecure work and the rising cost of living. It's also about making sure people can trust the social security system after the trauma of the robodebt scheme. Australians deserve to know that we have learned from those mistakes and that our systems are transparent, lawful and humane.

When I doorknock in Rockdale, Kingsgrove, Hurstville and across my electorate of Barton I hear the same thing again and again: people just want systems that treat them fairly, clearly and with dignity. They don't want bureaucracy that punishes them for being poor, sick or in a crisis. Moreover, we want to make sure these people can access help to navigate the new resolution scheme. We're equipping Economic Justice Australia and the Australian Council of Social Service with $400,000 each. We want to make sure they have the resources available for those impacted by the scheme.

I know, too, that my team will be ready to help anyone in my electorate of Barton who finds themselves in this situation, who can simply attend my electorate office at Level 2, 24 Montgomery Street, Kogarah or send me an email at ash.ambihaipahar@aph.gov.au. We have a dedicated space for quiet conversations and staff on hand to help you navigate that system. The empathetic and efficient team at Services Australia Rockdale will also be on deck, as they are always there to help a lot of our electorate members.

This bill begins to change the culture of our welfare system. It says: no more chasing debts that cost more to collect than what they're worth; no more punishing women who've already endured abuse; and no more letting historic injustices fester.

We in this chamber have a responsibility to make systems work for people, not against them. We have a duty of service for these people to recognise their hardship, to help lift them up into better lives. We cannot bring fairness to every corner of the social security system overnight, but with this bill we are taking important practical steps in the right direction. As the member for Barton, I welcome these changes. As a lawyer, I know how overdue they are. And as someone who believes in the dignity of every person, I will always stand up for a social security system that reflects compassion, fairness and justice.

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