Key Takeaways:
- A government agency deliberately broke the law for six years due to legislative bungles that are still unresolved.
- The issue affects child support laws, where parents with 35% or less custody of a child are not entitled to child support, but the laws passed in 2008 and 2018 inadvertently made some parents in that category eligible for payments.
- The government has been aware of the issue since 2019, but legislation to rectify the problem is yet to be introduced to parliament.
- The Commonwealth Ombudsman has found that both the Department of Social Services and Services Australia failed to take reasonable steps to rectify the issue earlier.
- The ombudsman has issued six recommendations to the department and Services Australia, all of which have been accepted.
Introduction to the Issue
The Commonwealth Ombudsman has released a scathing report that reveals a government agency deliberately broke the law for six years. The issue began with legislative bungles that were sparked by laws passed in 2008 and 2018, which inadvertently made some parents eligible for child support payments despite having 35% or less custody of their child. The government has a longstanding policy that parents in this category should not be entitled to child support. However, despite being aware of the problematic implications of the new laws, legislation to rectify the issue is yet to be introduced to parliament.
The Government’s Awareness of the Issue
Services Australia became aware of the issue in 2019 and notified the Department of Social Services the following year. However, it was not until July of last year that Services Australia notified the ombudsman’s office of the issue, and Government Services Minister Katy Gallagher and Social Services Minister Tanya Plibersek only received detailed briefings late last year. The ombudsman found that this was a failure of the duty for agencies to inform the relevant ministers "as soon as practicable" after a significant issue is identified. The delay in notifying the ministers has raised concerns about the government’s handling of the issue and its commitment to resolving the problem.
The Ombudsman’s Findings
The ombudsman found that both the Department of Social Services and Services Australia failed to take "proportionate or reasonable" steps to rectify the issue earlier. The report states that multiple attempts to amend the legislation over the past six years "never meaningfully progressed". The ombudsman compared the child support issue to the Robodebt scandal, noting that both involved situations of "public servants deciding they don’t need to comply with the law". However, the ombudsman acknowledged that the motivations behind the child support issue were different, as the agencies were motivated by valid concerns about the unfair outcomes that would result from implementing the new laws.
The Impact of the Issue
The issue has significant implications for child support arrangements, with Services Australia identifying at least 16,600 people affected by the discrepancy between the child support laws and the policy. The debts involved could range from $60 to $10,000. The ombudsman noted that it is particularly important to correct wrong outcomes in child support cases, as they can have a significant impact on the lives of children and families. The government has a responsibility to ensure that the child support scheme operates in the best interests of children, and the delay in resolving this issue has raised concerns about the government’s commitment to this principle.
The Government’s Response
The government has pledged to introduce legislation to fix the "anomaly" with retrospective effect, to ensure that no parent is unfairly disadvantaged. A government spokesperson said that the legislation is in the "final stages of drafting" and will be introduced when parliament next sits in February. The ombudsman has issued six recommendations to the department and Services Australia, all of which have been accepted. The government has also acknowledged that the child support system has been weaponized for financial abuse, which is being "amplified" by Services Australia. The government has committed to ensuring that the child support scheme operates in the best interests of children, and it is hoped that the introduction of new legislation will help to resolve the issue and prevent similar problems from arising in the future.
Conclusion
The child support issue is a complex and sensitive problem that requires a careful and considered approach. The government’s delay in resolving the issue has raised concerns about its commitment to ensuring that the child support scheme operates in the best interests of children. The ombudsman’s report highlights the need for public service agencies to comply with the law and to take reasonable steps to rectify issues when they arise. It is hoped that the introduction of new legislation will help to resolve the issue and prevent similar problems from arising in the future. Ultimately, the government must prioritize the needs of children and families and ensure that the child support scheme operates in a fair and effective manner.
