Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

by leave—I move government amendments (1) to (10) on sheet MM100 together:

(1) Schedule 2, item 6, page 26 (line 8), before "The Secretary", insert "(1)".

(2) Schedule 2, item 6, page 26 (after line 17), at the end of section 99, add:

(2) Subsection (1) does not apply if the debt could be recovered by setting off under section 87A against a payment referred to in paragraph 82(1)(c) (child care service payments).

(3) Schedule 2, page 27 (after line 15), after item 10, insert:

10A At the end of Part 5.2

Add:

1230D Non-recovery of certain amounts

If a record of an amount less than the amount referred to in section 1237AAA is entered into the records of the Human Services Department, the Secretary must waive the Commonwealth's right to raise a debt in respect of the whole or a part of the amount if, were the Commonwealth to exercise that right, the resulting debt would be a debt within the meaning of Part 5.4.

Note 1: The amount referred to in section 1237AAA is indexed on each 1 July (see sections 1191 to 1194). Immediately before 1 July 2026, the amount was $250.

Note 2: See also section 1237AAA (waiver of small debt).

Note 3: A waiver under this section of the Commonwealth's right to raise a debt in respect of an amount does not prevent the Secretary from considering whether any person may have engaged in fraud or serious non-compliance in relation to the amount and taking further appropriate action.

(4) Schedule 2, item 11, page 28 (after line 11), at the end of section 1237AAA, add:

Note 4: See also section 1230D (non-recovery of certain amounts).

(5) Schedule 2, item 12, page 28 (after line 25), at the end of section 43D, add:

Note 3: See also section 44 (non-recovery of certain amounts).

(6) Schedule 2, page 28 (after line 25), after item 12, insert:

12A At the end of Part 6

Add:

Division 5 — Other matters

44 Non-recovery of certain amounts

If a record of an amount less than the amount referred to in section 1237AAA of the Social Security Act 1991 is entered into the records of the Human Services Department, the Secretary must waive the Commonwealth's right to raise a debt in respect of the whole or a part of the amount if, were the Commonwealth to exercise that right, the resulting debt would be a debt to which this Part applies.

Note 1: The amount referred to in section 1237AAA of the Social Security Act 1991 is indexed on each 1 July (see sections 1191 to 1194 of that Act). Immediately before 1 July 2026, the amount was $250.

Note 2: See also section 43D (waiver of small debt).

Note 3: A waiver under this section of the Commonwealth's right to raise a debt in respect of an amount does not prevent the Secretary from considering whether any person may have engaged in fraud or serious non-compliance in relation to the amount and taking further appropriate action.

44A Secretary may arrange for use of computer programs to make decisions

(1) The Secretary may arrange for the use, under the Secretary's control, of computer programs for any purposes for which an officer may make a decision that is the doing of a thing under section 43D (waiver of small debt) or section 44 (non-recovery of certain amounts).

(2) A decision made by the operation of a computer program under an arrangement made under subsection (1) is taken to be a decision made by the Secretary.

(7) Schedule 2, item 13, page 28 (before line 28), insert:

Debts

(8) Schedule 2, item 13, page 28 (after line 32), at the end of the item, add:

Non-recovery of certain amounts

(3) The amendments made by this Part apply in relation to a record that is entered into the records of the Human Services Department after the commencement of this item.

(9) Schedule 2, item 14, page 29 (line 3), after "amount", insert "(other than an amount of child care subsidy or additional child care subsidy)".

(10) Schedule 2, item 14, page 29 (after line 23), at the end of the item, add:

(5) In this item:

additional child care subsidy has the same meaning as in the A New Tax System (Family Assistance) Act 1999.

child care subsidy has the same meaning as in the A New Tax System (Family Assistance) Act 1999.

These amendments give full effect to our policy intent by providing for the automatic waiving of future small debts below the new threshold of $250 before those amounts are required to be formally raised as debts by Services Australia. They ensure the small debt waiver regime provides for these waivers consistently under the Social Security Act 1991 and the Student Assistance Act 1973. Specifically, the amendments insert a new section 44A into the Student Assistance Act to ensure a computer program may be used for the purposes of administering the small debt waiver and small undetermined debt waiver provisions in the Student Assistance Act. This ensures the waivers can be administered in the same way as equivalent waivers under social security law.

The amendments also ensure that childcare provider debts can continue to be recovered by setting off against a childcare service payment. This is due to the different debt processes involved with those payments, where debts are not usually raised until the annual reconciliation process has taken place. The amendments I just talked about are covered in the supplementary explanatory memorandum. I table that, along with the letter from the Minister for Social Services to the Ombudsman that I referred to earlier.

Question agreed to.