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

Holzberger read a statement from a constituent detailing nearly two decades of financial abuse due to the system's inability to enforce payments or protect privacy. Holzberger argued the current scheme enabled non-paying parents to hide income and assets, causing significant emotional and financial trauma. Holzberger commended the bill as a necessary step to address these systemic failures and protect vulnerable families.

McCormack acknowledged the harrowing stories of financial abuse and supported the bill's intent to improve safety and collection. McCormack agreed with the opposition amendment that the bill did not sufficiently address the $2 billion debt or the underuse of enforcement tools like departure prohibition orders. McCormack urged the government to support the amendment to strengthen the legislation and ensure better outcomes for children.

Roberts explained that the bill addressed three key areas: misuse of administrative processes, interaction between private child support and family tax benefits, and international claims. Roberts detailed how Schedule 1 would allow Services Australia to refuse vexatious applications and redact sensitive information to protect safety. Roberts noted Schedule 2 would pause debt recovery for private collectors to allow time to pursue owed support, and Schedule 3 would facilitate direct applications from overseas jurisdictions.

Witty emphasised that the reforms aimed to ensure children received entitled support while protecting parents from harassment and safety risks. Witty highlighted that over 100,000 parents in the system had experienced or were at risk of family and domestic violence. Witty supported the new powers for Services Australia to dismiss baseless objections and restrict information sharing that could expose victims to harm.