House of Reps proceedings 17 February 1988 Part 3

House of Reps proceedings 17 February 1988 Part 3

Title: CHILD SUPPORT BILL 1987: Second Reading
Date: 17 February 1988
Speaker: Fitzgibbon Mr E.J. (HUNTER, ALP, Government)
Source: House

Mr FITZGIBBON (Hunter)(10.47) --I am pleased to have the opportunity to speak in support of the Child Support Bill 1987. This is a very important Bill and it deserves the bipartisan support of this Parliament and the community at large. It is an integral part of the Government's strategy to eliminate child poverty in Australia by 1990. The Bill represents a major step towards social justice for children who, through no fault of their own, find themselves without the benefit of both parents to support them. The majority of supporting parents rely on the social security system as their sole income support. While this Government has done much to improve the system, children without adequate support from both parents have been condemned to a life of poverty simply because non-custodial parents have been able to walk away from their responsibility for their children. Statistics reveal that only 30 per cent of non-custodial parents actually contribute to the welfare of their children, while 70 per cent do not.

Today approximately 250,000 sole parent families with 450,000 children rely on government support for their income. In most cases, non-custodial parents are in the work force and are able to contribute towards the financial support of their children. Why should such parents have the right to turn their back on their children and expect the Commonwealth to pick up the responsibility and support their children? It is the responsibility of both parents to support their children. Children have the right to financial as well as other support from both their natural parents and, following separation of parents, they have the right, so far as it is possible, to have their previous standard of living maintained.

The failure of the maintenance system has been a contributing factor to the increase in poverty among women and children. In the past, successive governments have tried to grapple with the problem of child maintenance but it has proved extremely difficult to enforce and collect. Under the Family Court of Australia, child maintenance payments often have been inadequate and set at low levels, with little regard to the capacity to pay. The difficulties associated with collecting maintenance were often considered too great for the meagre reward and the system has proved costly, drawn-out and cumbersome. There was widespread agreement that the current system of child maintenance was in need of reform.

In 1980 the parliamentary Joint Select Committee on the Family Law Act recommended that an agency to collect and enforce maintenance be set up along the lines of agencies already operating in South Australia and Western Australia. That recommendation was endorsed by a report of the Attorney-General's Department in 1984. The report also provided much evidence concerning the inadequacies of the existing system. The South Australian system, while it was very effective in obtaining and collecting maintenance, assisted less than 30 per cent of the South Australian sole parent population, which was not much more than other States without similar agencies.

This Government, determined to resolve this issue, set up a ministerial committee at the end of 1985 to examine various options and, in 1986, released the excellent discussion paper Child Support which canvassed the issues which needed to be resolved. Widespread community consultation was undertaken and submissions were received from groups active in the maintenance area.

The legislation before us is the centrepiece of the Government's child support scheme, and sets in train the first stage of the scheme. As the Minister for Social Security (Mr Howe) stated, when fully developed it will be one of the most effective systems of child support in the world using administrative assessments, judicial discretion in disputed cases and automatic income withholding to benefit children who are not cared for by both parents. It is interesting to note that countries such as the United States of America, Sweden and New Zealand, have implemented various systems of collection of child maintenance but have continued to have problems. Now those countries are piloting the approach we are about to implement in Australia. The only way to ensure children receive the support to which they are entitled is by a collection system that does not depend on voluntary payment. No longer will non-custodial parents be able to shirk their responsibility. They will have to face up to the obligation to provide adequate financial support for their children.

This Bill will establish the child support agency within the Australian Taxation Office and the Child Support Registrar, who is to be the Australian Commissioner of Taxation. Each Deputy Commissioner of Taxation will be a Deputy Child Support Registrar. The child support agency will collect child maintenance and, in some cases, spouse maintenance, from non-custodial parents, through automatic deductions from wages and salaries and, in the case of self-employed persons and others, by compulsory monthly payments. A Child Support Register will be established which will record details of maintenance liabilities that will be enforceable under the Bill. The Child Support Registrar will be responsible for the administration of the Bill and the keeping of the Child Support Register.

As stated in the Minister's second reading speech, the Bill is drafted in such a way that all child maintenance liabilities that are payable on a periodic basis under a court order or a registered maintenance agreement are registrable on the Child Support Register. In all cases where a person receiving maintenance is in receipt of an income-tested social security benefit or pension, the child support agency will collect the maintenance.

Once this Bill is enacted, sole parents applying for social security benefits will be required, within three months of their application, to lodge with the courts a maintenance order, which will be enforced. In the past, many sole parents have been discouraged from seeking child maintenance, for a variety or reasons, including harassment, violence, and other reasons, simply because it meant that they had to maintain contact with their ex-partners. But collection of child maintenance through the child support agency will mean that these sole parents do not have to maintain that contact with their ex-partners.

The child support agency will take over the functions of State collection agencies. Upon receipt of advice from the child support agency, employers will be legally bound to deduct such amounts as determined in the same way as normal tax deductions are made.

Secrecy provisions are incorporated in the legislation, making it an offence for any employer to divulge information about employees for whom they deduct maintenance payments. Secrecy provisions also pertain to Commonwealth officers involved with administration of the scheme. Anti-discrimination laws will apply to employers with regard to future employees registered on the child maintenance register. Self-employed persons and other non-wage and salary earners will be required to make regular monthly payments to the child maintenance collection agency, and the legislation imposes penalties for late payment, either by an employer or by self-employed persons.

The child support agency will set up a child support trust account to which will be paid amounts received from employers and from payers of enforceable maintenance liabilities. Under this legislation it is intended that the Department of Social Security will make payments to payees on or before the first Wednesday following the end of the previous month of collection. The payments will coincide with the payment of child allowance. The Registrar, upon registration of a maintenance liability, is required to notify in writing particulars entered in the Register to the payer and payee. Provisions are incorporated in the legislation to enable persons to lodge objections against decisions through recourse to the courts.

Significant changes have been made to the Family Law Act relating to access and custody, guardianship and maintenance of children. Further legislative changes will be necessary to the Social Security Act when stage two of the child support scheme is finalised. The problem of collection of child maintenance is a delicate and sensitive issue and I am proud of the way this Government has handled the situation. For far too long the burden of support of sole parent families has rested upon the Australian taxpayer. This legislation places the onus of responsibility on non-custodial parents to provide adequate financial support for their children until they reach the age of 18.

Of course, the ideal situation would be for marriages to remain intact, but the sad reality is that an increasing number of families do break down, and for most children this represents a dramatic change in their circumstances and expectations. The child support scheme will give back to these children the right to expect adequate financial support.

Every member in this House would have been approached on numerous occasions by sole parents seeking advice on how they are to enforce maintenance orders. Under the Child Support Bill occurrences of this nature will not develop. Once parents lodge a maintenance order with the courts, that maintenance order will be enforced. This Bill will do much to alleviate the poverty among children and improve their living standards. I congratulate the Minister for Social Security on this significant Child Support Bill. I am proud to support the Bill and commend the Bill to the House.

Debate continued.......part 4