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Australian Senate Standing Committee for the Scrutiny of Bills - Scrutiny Digests |
2.1 This chapter considers the responses of ministers to matters previously raised by the committee.
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Purpose
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This bill seeks to authorise the Department of Veterans’ Affairs to
deduct an overpayment of a service pension, income support
supplement or social
security pension from a specified payment paid to the surviving partner, where
the partner had the benefit of
that overpayment and the overpayment was due to
the death of the deceased
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Portfolio
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Veterans' Affairs
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Introduced
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House of Representatives on 22 August 2018
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2.2 In Scrutiny Digest 10 of 2018[2] the committee requested the minister's advice as to why it is necessary to retrospectively apply proposed section 53NAA from 1 January 1996 and whether this will adversely affect any persons.
Minister's response[3]
2.3 The minister advised:
I am pleased to provide my advice in relation to why it is necessary to retrospectively apply proposed section 53NAA from 1 January 1996 and whether this will adversely affect any persons. While the Bill passed the Senate on 13 September 2018, it is proposed that an Addendum to the Explanatory Memorandum including the requested information from the Committee will be tabled in the Senate on 17 September 2018. A copy of the Addendum to be tabled is enclosed.
2.4 The addendum to the explanatory memorandum relevantly provides:
This measure does not adversely affect a person. It allows for the streamlining of two separate processes, the recovery of an overpayment arising from the death of the pensioner and the payment of bereavement payment to the surviving partner.
This is a compassionate, sympathetic and unobtrusive response which avoids disturbing the family with additional interactions with the Department of Veterans' Affairs (DVA) while they are grieving.
This approach is also consistent with the method that the Department of Social Services adopts for its clients.
If retrospectivity were not applied, the DVA would have to examine the debt recovery of pension monies from the deceased pensioner and take action to recover or waive recovery of the debt depending on its age.
In addition, DVA would be required to repay surviving partners (or their estates where the partners are now deceased) the amount of bereavement payment that was reduced because of overpayment resulting from the death of their partner dating back to 1996.
Not only would this be difficult given the passage of time but the contact from the DVA is likely to adversely affect the surviving partner and their family
Committee comment
2.5 The committee thanks the minister for this response. The committee notes that an addendum to the explanatory memorandum was tabled in the Senate on 17 September 2018, in accordance with the minister's advice.[4] The committee notes that the addendum explains that the retrospective application of proposed section 53NAA is necessary as the Department of Veterans' Affairs (DVA) would otherwise be required to examine the debt recovery of pension monies from deceased pensioners and take action to recover or waive recovery of the debt depending on its age. In addition, the DVA would be required to repay surviving partners the amount of bereavement payment that was reduced because of overpayment resulting from the death of their partner dating back to 1996. The committee also notes that the addendum states that the retrospective application of proposed section 53NAA will not adversely affect any persons.
2.6 In light of the information provided in the addendum to the explanatory memorandum, and the fact that this bill has already passed both Houses of Parliament, the committee makes no further comment on this matter.
[1] Schedule 1, item 5. The committee draws senators’ attention to this provision pursuant to Senate Standing Order 24(1)(a)(i).
[2] Senate Scrutiny of Bills Committee, Scrutiny Digest 10 of 2018, at pp. 8-9.
[3] The minister responded to the committee's comments in a letter dated 17 September 2018. A copy of the letter is available on the committee's website: see correspondence relating to Scrutiny Digest 11 of 2018 available at: www.aph.gov.au/senate_scrutiny_digest
[4] Journals of the Senate, No. 118, 17 September 2018, p. 3770.
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URL: http://www.austlii.edu.au/au/other/AUSStaCSBSD/2018/221.html