10. JUDITH COLLINS (National—Clevedon) Link to this
to the Minister of Revenue
Can he confirm that total child support debt is now over $1.2 billion, including $471.9 million in assessment debt, and how does the level of assessment debt compare with 1999?
Hon PETER DUNNE (Minister of Revenue) Link to this
Yes, I can confirm that the member is correct. The level of liable-parent assessment debt in 1999 was $179.2 million. The growth in assessment debt has, however, slowed over the last few years. It was 3.1 percent in the year ended June 2007, which compares with 15.7 percent and 8.1 percent in the years ended 30 June 2005 and 30 June 2006 respectively.
Does he agree that the $300 million increase in assessment debt since Labour took office confirms that this Government does not take seriously the collection of child support?
No, I do not agree with that. In fact, a number of steps have been taken to improve the collection of child support debt. I refer to the legislation that was passed in the House in 2006 that enabled long-term penalties to be written off if parents entered into arrangements to repay their debt more quickly—legislation that the member’s party opposed.
Does he stand by his statement made last week and, again, today that the legislation to allow write-offs of penalty debt has been extremely successful; if so, can he explain why child support debt has continued to increase dramatically since that legislation was passed?
What I can confirm is that since that legislation was passed and came into effect the rate of growth of assessment debt has actually slowed.
Does he agree that the increase in the number of child support debtors since Labour took office and the disgraceful level of debt are because this Government, which he supports, makes it far too easy for 120,000 delinquent parents to walk away from the responsibilities they owe to their children?
It may come as a surprise to the member to know that in 1999 the number of paying parents was 130,068, and in the year ended January 2008 the figure had reduced to 124,541.
Does he agree with the principle that applies in Australia that parents need to know that they cannot leave their child support debt behind when they leave the country; if he does not agree with that principle, why does he not agree with it?
I do agree with that principle. That is why we passed legislation to allow for data matching with the Customs Service for those who are coming and going from the country. It is also why, since the reciprocal agreement between Australia and New Zealand has been in effect, some 8,000 cases are being collected in Australia, and the Inland Revenue Department is collecting 3,500 cases in New Zealand. Those are very good figures.