Child Support and Family Assistance Legislation Amendment (Ending Financial Abuse in the Child Support Scheme No. 1) Bill 2026; Second Reading

Opened the debate

Plibersek argued that the government is committed to supporting families by closing loopholes that enable financial abuse in Commonwealth systems. Plibersek stated that the current system allows some parents to harass former partners, obtain personal information, or evade payment obligations, contributing to a backlog of over $2 billion in unpaid child support. The bill introduces three schedules to improve safety, accuracy, and compliance within the child support framework. Plibersek emphasized that these reforms were developed by listening to constituents and advocates, including the CEO of Single Mother Families Australia. Plibersek commended the bill to the House as the first tranche of broader child support reforms.

Government response

Plibersek outlined that Schedule 1 grants Services Australia discretionary powers to refuse applications or dismiss objections that pose safety risks or have no merit, thereby reducing harmful interactions. Plibersek explained that the bill removes mandatory document exchange requirements, replacing them with a safer model that redacts sensitive information to protect parents from harassment. Schedule 2 addresses issues for parents in private arrangements by pausing Family Tax Benefit debt collection and allowing them to move to agency collect without penalty, ensuring debts are extinguished if arrears are recovered. Plibersek noted that Schedule 3 enables direct applications from parents in certain overseas jurisdictions, ensuring Australian parents cannot avoid their responsibilities. Plibersek highlighted that these changes are part of a wider package including employer withholding and travel bans for non-payers.