Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Hansard source

I thank Senator Wong for her question. In the interests of being absolutely clear, and I accept the direct quote that Senator Wong has just read into the Hansard, what I said on Monday was that income averaging was deemed to not be a valid method by which to determine a debt. So we just need to be very clear that it was not what Senator Gallagher alleged that I had said, and that was that the income compliance program was not valid—just to be absolutely clear.

Senator Wong, as is always the case in this place, we do not—and it has been the practice of everybody, whether it be the Labor government or successive Liberal governments—provide details in relation to specific legal advice. However, I do stand by my statement that, as soon as we were made aware, we acted with great speed to make sure that we did not continue to use income averaging as the sole method by which we would determine debts. In fact, we made it very clear that we would make sure that we had further proof points, if a debt was raised, to ensure that the income compliance program was determining debts by a valid means.

As I subsequently went on to say during the week, we have now, this year, proceeded to repay the debts that were generated through income averaging as the sole means for collecting those debts. We have now gone through the process of repaying the majority of the debts that were determined by that means.