Services Australia has been operating in violation of child support laws for six years, according to a report by the Commonwealth Ombudsman. The agency knew its internal policies conflicted with legislation but took no action to rectify the issue.
Immediate Action & Core Facts
The ombudsman’s report reveals that Services Australia intentionally did not apply a 2008 law requiring child support payments for parents with less than 35% care of a child. The agency cited a “longstanding principle” that such parents should not receive support, despite the law stating otherwise. At least 16,600 parents may have been affected, with some owed up to $10,000.
The Department of Social Services was informed of the issue in 2020, but no legislative fix has been introduced. The government has promised to address the problem when parliament resumes in February 2024.
Deeper Dive & Context
Legal Conflict and Unintended Consequences
The 2008 law was amended in 2018, inadvertently creating a scenario where parents with minimal care could receive payments. Services Australia argued this could lead to payments for parents with “little or no care,” which it deemed unfair. The ombudsman, Iain Anderson, criticized the agency for selectively applying the law, calling it “not acceptable.”
Government Response and Delays
The Department of Social Services acknowledged the issue in November 2023, pledging to prioritize legislation. A government spokesperson confirmed the bill is in its final drafting stages. However, the ombudsman found that previous attempts to amend the law had stalled.
Impact on Affected Parents
Parents who were denied support were not informed of the legal discrepancy. The ombudsman noted that while the law may have unintended consequences, the agency’s inaction for six years was unacceptable. The report did not specify how many parents were affected beyond the 16,600 identified.
Ongoing Concerns
The ombudsman’s findings raise broader questions about government agencies’ adherence to legislation. The report suggests a systemic issue where agencies may avoid implementing laws they deem impractical, potentially setting a precedent for future disputes.