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Tuesday, 30 September 1997
Page: 7193


Senator O'CHEE —My question is addressed to the Minister for Social Security, Senator Newman, and relates to child support. All members of parliament will be aware how difficult an area child support is. My question to the minister is twofold. What is the government doing to improve the child support scheme and, secondly, what efforts will the government make to improve fairness and ensure more regular payments to ensure the financial support of children of separated parents?


Senator NEWMAN —It is a very important question, not just for this parliament but also for all those parents who have gone through the anguish of divorce and the charged emotions in those circumstances. The government has been working very hard to address the remaining recommendations which the joint select committee made prior to our coming into government. You would recognise that there is a very great concern in the community at what are perceived to be inequities both in the way the system is administered and in the formula.

The details will be announced this afternoon. The reforms underscore the principle that children are the financial responsibility of both their parents and that the government should not seek to intrude unnecessarily into people's lives, but that government involvement will provide the safety net to ensure children of separated parents are adequately supported and that the general community is not asked to carry an undue burden.

The agreed package which we are announcing today includes: changes to the calculation of child support liabilities payments, recognising that after separation some payers do not have sufficient means to support themselves and their second families; additional assistance to many thousands of children by introducing a minimum payment of child support and by including a wider range of income when assessing child support liability; parents will be able to move from the Child Support Agency collection to private collection by agreement at any time, allowing the Child Support Agency to concentrate on those people who are unable to reach a private agreement; parents will be required to move into private collection where they have a consistent payment record, but the Child Support Agency will continue to provide a safety net if the new arrangements fail; support programs, including self-help, education, mediation and help for payers, to encourage parents to make private collection arrangements; and a range of important administrative reforms which will make the scheme more responsive to people's needs by, for example, so streamlining arrangements that the payments are made up to 20 days earlier, and including the right to object to any Child Support Agency decision.

Of the 163 recommendations of the Joint Select Committee on Certain Family Law Issues, 111 have now been addressed. The remaining 52 recommendations will be addressed shortly. Eleven recommendations were addressed in the legislation that this government passed in June 1997 and 53 were addressed by the previous government's interim response. Today's reforms, which in many cases will lead to significantly simplified and more reliable payment arrangements, are a very positive step in what is a difficult and highly emotional social area, as I have said.

For the first time, where parents can make sensible arrangements for their children's support, as is the case with the majority of Child Support Agency clients, the new private payment arrangements give them a chance to get on with their lives without unnecessary bureaucratic intervention. Many senators would realise that that has been a major contributor to the frustrations of parents. It may also herald a better deal for children, who deserve to have the continuing involvement of both parents in their lives. These are good, sound changes and they will be welcomed by all interested parties. The changes will provide real benefits to Child Support Agency clients by introducing much needed flexibility into the administration of the child support system and by improving its timeliness, accuracy and responsiveness.


Senator Hill —Madam President, I ask that further questions be placed on the Notice Paper .