27th Feb 2020, 10:03 AM – Senate Social Services and Other Legislation Amendment (Simplifying Income Reporting and Other Measures) Bill 2020 - in Committee - Robodebt

The same number of senators voted for and against an amendment, which means it failed. The amendment was introduced by WA Senator Patrick Dodson (Labor), who explained that:

This amendment seeks to stop the unfair robodebt disaster that this government has presided over from ever happening again. Labor's amendment will prevent another robodebt by preventing social security debts being raised based solely on the income averaging of the Australian tax office data, making it clear that there is a statutory duty of care on the government to ensure debts are accurate, ensuring human oversight before debts are issued and requiring the government to use all available powers, resources and data across government to verify the accuracy of alleged debts before they are issued.

What does the bill do?

According to the bills digest, the bill was introduced in order to:

• change the way employment income is assessed for the purposes of the social security income test so that rather than assessing income ‘earned, derived or received’ during the assessment period, the income test will assess employment income that is paid during the assessment period and
• allow for data collected by the Australian Tax Office, particularly employment income reported through the Single Touch Payroll (STP) system, to be shared with Services Australia for the purposes of administering social security, family assistance and student payments.

Motion text

(1) Page 31 (after line 16), at the end of the Bill, add:

Schedule 2 — Amendments relating to debts due to the Commonwealth

A New Tax System (Family Assistance) (Administration) Act 1999

1 After subsection 77(1)

Insert:

(1A) The Secretary must not give a person a notice under subsection (1) unless the Secretary is satisfied that:

(a) employment income averaging based on data obtained from a taxation officer was not the only information relied on to determine whether the debt was due to the Commonwealth; and

(b) information gathering powers in Division 1 of Part 6 were used to verify that the debt is due to the Commonwealth; and

(c) the existence and quantum of the debt owed has been verified by an officer.

Note: The duties of officials under the Public Governance, Performance and Accountability Act 2013 include the duty of care and diligence; and the duty to act honestly, in good faith and for a proper purpose.

Social Security Act 1991

2 After subsection 1229(1)

Insert:

(1A) The Secretary must not give a person a notice under subsection (1) unless the Secretary is satisfied that:

(a) employment income averaging based on data obtained from a taxation officer was not the only information relied on to determine whether the debt was due to the Commonwealth; and

(b) information gathering powers in Division 1 of Part 5 of the Administration Act were used to verify that the debt is due to the Commonwealth; and

(c) the existence and quantum of the debt owed has been verified by an officer.

Note: The duties of officials under the Public Governance, Performance and Accountability Act 2013 include the duty of care and diligence; and the duty to act honestly, in good faith and for a proper purpose.

Student Assistance Act 1973

3 After subsection 40(1)

Insert:

(1A) The Secretary must not give a person a notice under subsection (1) unless the Secretary is satisfied that:

(a) employment income averaging based on data obtained from a taxation officer (within the meaning of Division 3 of Part 10) was not the only information relied on to determine whether the debt was due to the Commonwealth; and

(b) information gathering powers in Division 2 of Part 10 were used to verify that the debt is due to the Commonwealth; and

(c) the existence and quantum of the debt owed has been verified by an officer.

Note: The duties of officials under the Public Governance, Performance and Accountability Act 2013 include the duty of care and diligence; and the duty to act honestly, in good faith and for a proper purpose.