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Family and Community Services and Veterans' Affairs Legislation Amendment (Debt Recovery) Bill 2001

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1998-1999-2000

 

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

THE SENATE

 

 

Family and Community Services and Veterans’ Affairs

Legislation Amendment (Debt Recovery) Bill 2000

 

 

Schedule of the amendments made by the Senate

 

 

 

 

 

(1)     Govt (1) [Sheet EB240]

          Clause 2, page 2 (line 2), omit “8”, substitute “8A”.

(2)     Govt (1) [Sheet EU252]

          Clause 2, page 2 (line 3), omit “1 January 2001”, substitute “1 April 2001”.

(3)     Opp (1) [Sheet 2016]

          Schedule 1, item 12, page 9 (lines 2 to 24), omit subsections (1) to (3), substitute:

             (1)  If a debt by a person to the Commonwealth under the social security law has not been wholly paid, the Secretary must give the person a notice specifying:

                     (a)  the date on which it was issued (the date of the notice ); and

                     (b)  the reason the debt was incurred, including a brief explanation of the circumstances that led to the debt being incurred; and

                     (c)  the period to which the debt relates; and

                     (d)  the outstanding amount of the debt at the date of the notice; and

                     (e)  the day on which the outstanding amount is due and payable; and

                      (f)  that a range of options is available for repayment of the debt; and

                     (g)  the contact details for inquiries concerning the debt.

             (2)  The outstanding amount of the debt is due and payable on the 28th day after the date of the notice.

             (3)  If the debt has not been wholly paid and:

                     (a)  the person has failed to enter into an arrangement under section 1234 to pay the outstanding amount of the debt; or

                     (b)  the person has entered into an arrangement under that section but has failed to make a payment in accordance with the arrangement or, if the arrangement has been amended, in accordance with the arrangement as amended;

the Secretary may give to the person a further notice specifying:

                     (c)  the date on which it was issued (the date of the further notice ); and

                     (d)  the matters mentioned in paragraphs (1)(b) to (g); and

                     (e)  the effect of sections 1229A and 1229AB; and

                      (f)  how the interest under section 1229A is to be calculated.

(4)     Opp (2) [Sheet 2016]

          Schedule 1, item 12, page 10 (after line 10), after subsection (2), insert:

          (2A)  Under this section, a person is not liable to pay interest on a debt, or the proportion of a debt, that was incurred because of an administrative error made by the Commonwealth or an agent of the Commonwealth.

(5)     Opp (3) [Sheet 2016]

          Schedule 1, item 12, page 10 (line 29), omit “later”, substitute “latest”.

(6)     Opp (4) [Sheet 2016]

          Schedule 1, item 12, page 10 (line 32), omit “21st”, substitute “28th”.

(7)     Opp (5) [Sheet 2016]

          Schedule 1, item 12, page 10 (line 33), at the end of subsection (4), add:

                   ; (c)  where a request for review (the initial request ) has been made within 3 months after the receipt of a notice issued under subsection 1229(1)—3 months after the day on which an authorised review officer makes a decision in respect of the initial request.

(8)     Opp (6) [Sheet 2016]

          Schedule 1, item 12, page 11 (after line 20), after subsection (1), insert:

          (1A)  The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for:

                     (a)  failing to enter into an arrangement under section 1234 to pay the outstanding amount of the debt; or

                     (b)  having entered an arrangement, failing to make a payment in accordance with that arrangement.

(9)     Opp (7) [Sheet 2016]

          Schedule 1, item 12, page 12 (line 1), at the end of paragraph (b), add “without reasonable excuse”.

(10)   Opp (8) [Sheet 2016]

          Schedule 1, item 12, page 12 (line 10), omit “$100”, substitute “$50”.

(11)   Govt (2) [Sheet EU252]

          Schedule 1, item 14, page 12 (line 23), omit “1 January 2001”, substitute “1 April 2001”.

(12)   Opp (9) [Sheet 2016]

          Schedule 1, item 16, page 13 (line 4), omit “A debt”, substitute “Subject to subsection (2), a debt”.

(13)   Opp (10) [Sheet 2016]

          Schedule 1, item 16, page 13 (after line 16), at the end of section 1230C, add:

             (2)  Subject to subsection (3), a debt due to the Commonwealth under this Act is recoverable by means of a method mentioned in paragraph (1)(d) or (e) only if the Commonwealth:

                     (a)  has first sought to recover the debt by means of a method mentioned in paragraph (1)(a), (b) or (c); and

                     (b)  can establish that the person who owes the debt has failed to enter into a reasonable arrangement to repay the debt.

             (3)  If the Secretary determines that recovery of the debt by means of a method mentioned in paragraph (1)(a), (b) or (c) is not appropriate, having regard to the circumstances of the case, paragraph (2)(a) does not apply.

(14)   Govt (2) [Sheet EB240]

          Schedule 1, item 20, page 14 (lines 15 to 18), omit the item, substitute:

20  Subsections 1231(2A) and (2B)

Repeal the subsections, substitute:

          (2A)  Subject to subsections (2C), (2D) and (2E), action under this section for the recovery of a debt or overpayment is not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

20A  Paragraphs 1231(2C)(a), (2D)(a) and (2E)(a)

Omit “or (2B)”.

(15)   Govt (3) [Sheet EB240]

          Schedule 1, item 21, page 14 (lines 19 to 22), omit the item, substitute:

21  Subsections 1232(2) and (3)

Repeal the subsections, substitute:

             (2)  Subject to subsections (4), (5) and(6), legal proceedings for the recovery of the debt are not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

21A  Paragraphs 1232(4)(a), (5)(a) and (6)(a)

Omit “or (3)”.

(16)   Govt (4) [Sheet EB240]

          Schedule 1, item 22, page 14 (lines 23 to 26), omit the item, substitute:

22  Subsections 1233(7A) and (7B)

Repeal the subsections, substitute:

          (7A)  Subject to subsections (7C), (7D) and (7E), action under this section for the recovery of a debt is not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

22A  Paragraphs 1233(7C)(a), (7D)(a) and (7E)(a)

Omit “or (7B)”.

(17)   Opp (11) [Sheet 2016]

          Schedule 1, item 23, page 15 (lines 9 and 10), omit subsection (4), substitute:

             (4)  The Secretary may terminate or alter an arrangement entered into under subsection (1):

                     (a)  at the debtor’s request; or

                     (b)  after giving 28 days’ notice to the debtor of the proposed termination or alteration; or

                     (c)  without notice, if the Secretary is satisfied that the person has failed to disclose material information about his or her true capacity to repay the debt.

(18)   Opp (12) [Sheet 2016]

          Schedule 1, item 24, page 16 (after line 19), after subsection (2), insert:

          (2A)  As soon as possible after issuing a notice under subsection (2), the Secretary must inform the deceased estate in writing of:

                     (a)  the amount sought to be recovered from the deceased person’s account; and

                     (b)  the reasons for the recovery action.

(19)   Opp (13) [Sheet 2016]

          Schedule 1, page 17 (after line 26), after item 30, insert:

30A  Subsection 1237A(1)

Repeal the subsection (including the note), substitute:

             (1)  Subject to subsection (1A), the Secretary must waive the right to recover the proportion of a debt that is attributable to an administrative error made by the Commonwealth if the debtor received in good faith the payment or payments that gave rise to that proportion of the debt.

(20)   Dem (14) [Sheet 2014]

          Schedule 1, item 31, page 17 (line 27) to page 18 (line 2), omit the item.

(21)   Govt (3) [Sheet EU252]

          Schedule 1, item 34, page 18 (line 16), omit “1 January 2001”, substitute “1 April 2001”.

(22)   Govt (4) [Sheet EU252]

          Schedule 1, item 34, page 18 (line 18), omit “1 January 2001”, substitute “1 April 2001”.

(23)   Govt (5) [Sheet EU252]

          Schedule 1, item 34, page 18 (line 22), omit “1 January 2001”, substitute “1 April 2001”.

(24)   Govt (6) [Sheet EU252]

          Schedule 1, item 34, page 18 (line 25), omit “1 January 2001”, substitute “1 April 2001”.

(25)   Govt (7) [Sheet EU252]

          Schedule 1, item 34, page 19 (line 2), omit “1 January 2001”, substitute “1 April 2001”.

(26)   Govt (8) [Sheet EU252]

          Schedule 1, item 34, page 19 (line 11), omit “1 January 2001”, substitute “1 April 2001”.

(27)   Govt (9) [Sheet EU252]

          Schedule 1, item 34, page 19 (line 13), omit “1 January 2001”, substitute “1 April 2001”.

(28)   Opp (14) [Sheet 2016]

          Schedule 3, item 3, page 21 (line 17) to page 22 (line 7), omit subsections (1) to (3), substitute:

             (1)  If a debt by a person to the Commonwealth under a provision of this Part has not been wholly paid, the Secretary must give the person a notice specifying:

                     (a)  the date on which it was issued (the date of the notice ); and

                     (b)  the reason the debt was incurred, including a brief explanation of the circumstances that led to the debt being incurred; and

                     (c)  the period to which the debt relates; and

                     (d)  the outstanding amount of the debt at the date of the notice; and

                     (e)  the day on which the outstanding amount is due and payable; and

                      (f)  that a range of options is available for repayment of the debt; and

                     (g)  the contact details for inquiries concerning the debt.

             (2)  The outstanding amount of the debt is due and payable on the 28th day after the date of the notice.

             (3)  If the debt has not been wholly paid and:

                     (a)  the person has failed to enter into an arrangement under section 91 to pay the outstanding amount of the debt; or

                     (b)  the person has entered into an arrangement under that section but has failed to make a payment in accordance with the arrangement or, if the arrangement has been amended, in accordance with the arrangement as amended;

the Secretary may give to the person a further notice specifying:

                     (c)  the date on which it was issued (the date of the further notice ); and

                     (d)  the matters mentioned in paragraphs (1)(b) to (g); and

                     (e)  the effect of sections 78 and 78B; and

                      (f)  how the interest under section 78 is to be calculated.

(29)   Opp (15) [Sheet 2016]

          Schedule 3, item 3, page 22 (after line 25), after subsection (2), insert:

          (2A)  Under this section, a person is not liable to pay interest on a debt, or the proportion of a debt, that was incurred because of an administrative error made by the Commonwealth or an agent of the Commonwealth.

(30)   Opp (16) [Sheet 2016]

          Schedule 3, item 3, page 23 (line 11), omit “later”, substitute “latest”.

(31)   Opp (17) [Sheet 2016]

          Schedule 3, item 3, page 23 (line 14), omit “21st”, substitute “28th”.

(32)   Opp (18) [Sheet 2016]

          Schedule 3, item 3, page 23 (line 15), at the end of subsection (4), add:

                           ; (c)  where a request for review (the initial request ) has been made within 3 months after the receipt of a notice issued under subsection 77(1)—3 months after the day on which an authorised review officer makes a decision in respect of the initial request.



(33)   Opp (19) [Sheet 2016]

          Schedule 3, item 3, page 24 (after line 4), after subsection 78A(1), insert:

          (1A)  The Secretary may make a determination under this section in circumstances that include (but are not limited to) the Secretary being satisfied that the person has a reasonable excuse for:

                     (a)  failing to enter into an arrangement under section 91 to pay the outstanding amount of the debt; or

                     (b)  having entered an arrangement, failing to make a payment in accordance with that arrangement.

(34)   Opp (20) [Sheet 2016]

          Schedule 3, item 3, page 24 (line 18), at the end of paragraph (b), add “without reasonable excuse”.

(35)   Opp (21) [Sheet 2016]

          Schedule 3, item 3, page 24 (line 27), omit “$100”, substitute “$50”.

(36)   Govt (10) [Sheet EU252]

          Schedule 3, item 5, page 25 (line 8), omit “1 January 2001”, substitute “1 April 2001”.

(37)   Govt (5) [Sheet EB240]

          Schedule 3, page 25 (after line 21), after item 7, insert:

7A  Subsections 86(1) and (2)

Repeal the subsections, substitute:

             (1)  Subject to subsections (3), (4) and (5), action under section 84, 84A or 87A for the recovery of a debt is not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

7B  Paragraphs 86(3)(a), (4)(a) and (5)(a)

Omit “or (2)”.

7C  Subsection 87(3)

Omit “the day on which the debt arose”, substitute “the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt”.

7D  Paragraph 87(4)(b)

Omit “the day on which the debt arose”, substitute “the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt”.

7E  Subsections 88(2) and (3)

Repeal the subsections, substitute:

             (2)  Subject to subsections (4), (5) and (6), legal proceedings for the recovery of the debt are not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

7F  Paragraphs 88(4)(a), (5)(a) and (6)(a)

Omit “or (3)”.

7G  Subsections 90(1) and (2)

Repeal the subsections, substitute:

             (1)  Subject to subsections (3), (4) and (5), action under section 89 for the recovery of a debt is not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

7H  Paragraphs 90(3)(a), (4)(a) and (5)(a)

Omit “or (2)”.

(38)   Opp (22) [Sheet 2016]

          Schedule 3, item 8, page 26 (lines 9 and 10), omit subsection (4), substitute:

             (4)  The Secretary may terminate or alter an arrangement entered into under subsection (1):

                     (a)  at the debtor’s request; or

                     (b)  after giving 28 days’ notice to the debtor of the proposed termination or alteration; or

                     (c)  without notice, if the Secretary is satisfied that the person has failed to disclose material information about his or her true capacity to repay the debt.

(39)   Opp (23) [Sheet 2016]

          Schedule 3, item 9, page 27 (after line 17), after subsection (2), insert:

          (2A)  As soon as possible after issuing a notice under subsection (2), the Secretary must inform the deceased estate in writing of:

                     (a)  the amount sought to be recovered from the deceased person’s account; and

                     (b)  the reasons for the recovery action.

(40)   Dem (25) [Sheet 2014]

          Schedule 3, item 14, page 28 (lines 11 to 17), omit the item.

(41)   Govt (11) [Sheet EU252]

          Schedule 3, item 17, page 29 (line 12), omit “1 January 2001”, substitute “1 April 2001”.



(42)   Govt (12) [Sheet EU252]

          Schedule 3, item 17, page 29 (line 23), omit “1 January 2001”, substitute “1 April 2001”.

(43)   Govt (6) [Sheet EB240]

          Schedule 3, item 17, page 29 (line 28), omit “7, 8”, substitute “7 to 8”.

(44)   Govt (13) [Sheet EU252]

          Schedule 3, item 17, page 29 (line 29), omit “1 January 2001”, substitute “1 April 2001”.

(45)   Govt (14) [Sheet EU252]

          Schedule 3, item 17, page 29 (line 33), omit “1 January 2001”, substitute “1 April 2001”.

(46)   Govt (15) [Sheet EU252]

          Schedule 3, item 17, page 30 (line 2), omit “1 January 2001”, substitute “1 April 2001”.

(47)   Govt (7) [Sheet EB240]

          Schedule 4, page 31 (after line 22), after item 5, insert:

5A  Subsection 205(3)

Omit “or (3), as the case requires”.

(48)   Opp (24) [Sheet 2016]

          Schedule 4, item 7, page 32 (lines 2 to 25), omit subsections (1) to (3), substitute:

             (1)  If:

                     (a)  a recoverable amount has not been wholly paid to the Commonwealth; and

                     (b)  the right of the Commonwealth to recover the outstanding amount has not been waived under paragraph 206(1)(b);

the Commission must give the person to whom, or on whose account, the recoverable amount was paid a notice specifying:

                     (c)  the date on which it was issued (the date of the notice ); and

                     (d)  the reason the outstanding amount was incurred, including a brief explanation of the circumstances that led to the outstanding amount being incurred; and

                     (e)  the period to which the outstanding amount relates; and

                      (f)  the outstanding amount at the date of the notice; and

                     (g)  the day on which the outstanding amount is due and payable; and

                     (h)  that a range of options is available for repayment of the outstanding amount; and

                      (i)  the contact details for inquiries concerning the outstanding amount.

             (2)  The outstanding amount is due and payable on the 28th day after the date of the notice.

             (3)  If the recoverable amount has not been wholly paid and:

                     (a)  the person has failed to enter into an arrangement with the Commission to pay the outstanding amount; or

                     (b)  the person has entered into such an arrangement with the Commission but has failed to make a payment in accordance with the arrangement or, if the arrangement has been amended, in accordance with the arrangement as amended;

the Commission may give to the person a further notice specifying:

                     (c)  the date on which it was issued (the date of the further notice ); and

                     (d)  the matters mentioned in paragraphs (1)(d) to (i); and

                     (e)  the effect of section 205AAB and 205AAD; and

                      (f)  how the interest under section 205AAB is to be calculated.

(49)   Opp (25) [Sheet 2016]

          Schedule 4, item 7, page 33 (after line 11), after subsection (2), insert:

          (2A)  Under this section, a person is not liable to pay interest on an outstanding amount, or the proportion of an outstanding amount, that was incurred because of an administrative error made by the Commonwealth or an agent of the Commonwealth.

(50)   Opp (27) [Sheet 2016]

          Schedule 4, item 7, page 33 (line 34), omit “21st”, substitute “28th”.

(51)   Opp (28) [Sheet 2016]

          Schedule 4, item 7, page 34 (after line 20), after subsection (1), insert:

          (1A)  The Commission may make a determination under this section in circumstances that include (but are not limited to) the Commission being satisfied that the person has a reasonable excuse for:

                     (a)  failing to enter into an arrangement to pay the outstanding amount; or

                     (b)  having entered an arrangement, failing to make a payment in accordance with that arrangement.

(52)   Opp (29) [Sheet 2016]

          Schedule 4, item 7, page 34 (line 34), at the end of paragraph 205AAC(6)(b), add “without reasonable excuse”.

(53)   Opp (30) [Sheet 2016]

          Schedule 4, item 7, page 35 (line 10), omit “$100”, substitute “$50”.



(54)   Opp (31) [Sheet 2016]

          Schedule 4, item 8, page 36 (after line 20), after subsection (2), insert:

          (2A)  As soon as possible after issuing a notice under subsection (2), the Commission must inform the deceased estate in writing of:

                     (a)  the amount sought to be recovered from the deceased person’s account; and

                     (b)  the reasons for the recovery action.

(55)   Govt (8) [Sheet EB240]

          Schedule 4, page 36 (after line 35), after item 8, insert:

8A  Subsections 206(2) and (3)

Repeal the subsections, substitute:

             (2)  Proceedings for the recovery from a person of any amount that is payable by the person to the Commonwealth under or as a result of this Act are not to be commenced after the end of the period of 6 years starting on the first day on which an officer becomes aware, or could reasonably be expected to have become aware, of the circumstances that gave rise to the debt.

(56)   Govt (16) [Sheet EU252]

          Schedule 4, item 9, page 37 (lines 3 and 4), omit “1 January 2001”, substitute “1 April 2001”.

(57)   Govt (17) [Sheet EU252]

          Schedule 4, item 9, page 37 (line 6), omit “1 January 2001”, substitute “1 April 2001”.

(58)   Govt (18) [Sheet EU252]

          Schedule 4, item 9, page 37 (line 8), omit “1 January 2001”, substitute “1 April 2001”.

(59)   Govt (19) [Sheet EU252]

          Schedule 4, item 9, page 37 (line 24), omit “1 January 2001”, substitute “1 April 2001”.

(60)   Govt (20) [Sheet EU252]

          Schedule 4, item 9, page 38 (line 19), omit “1 January 2001”, substitute “1 April 2001”.



(61)   Govt (9) [Sheet EB240]

          Schedule 4, item 9, page 39 (after line 2), at the end of the item, add:

(6)       The amendments made by items 5A and 8A apply to:

                     (a)  debts that are owed at the commencement of 1 January 2001; and

                     (b)  debts that arise after that time.

 

 

 

 

 

 

 

HARRY EVANS

Clerk of the Senate

 

 

The Senate

29 November 2000