Family Assistance (Waiver of Debts - Victorian Bushfires) (DEEWR) Specification 2009

Administered by Department of Social Services

Legislation au F2009L01794 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Family Assistance (Waiver of Debts – Victorian Bushfires) (DEEWR) Specification 2009

 

Made under section 102 of the A New Tax System (Family Assistance) (Administration) Act 1999

 

 

Background

 

Section 102 of the A New Tax System (Family Assistance) (Administration) Act 1999 (the Act) provides that the Secretary may decide to waive the Commonwealth’s right to recover debts, or parts of debts,  arising under this Act that are included in a class of debts specified by the Minister by legislative instrument. Such instrument may specify conditions to be met before the Secretary exercises the power to waive debts in the specified class.

 

The purpose of this instrument is to specify a class of debts that may be waived. This would enable the Secretary to waive the Commonwealth’s right to recover debts arising under the Act, incurred by persons who were adversely affected by the 2009 Victorian bushfires. A mirror instrument under the social security law has also been made to enable the waiver of debts arising from similar circumstances under the social security law.

 

The 2009 Victorian bushfires have impacted physically and emotionally on bushfire victims and their families. The reason for the making of this instrument is to ease the physical and emotional impact on any victim of the Victorian bushfires, who is unintentionally receiving an incorrect family assistance payment.

 

 

Explanation of this instrument

 

Section 1 sets out the name of the instrument, being the Family Assistance (Waiver of Debts – Victorian Bushfires) (DEEWR) Specification 2009.

 

Section 2 provides that the instrument commences on the day after the end of the period for disallowing it, as set out in with section 42 of the Legislative Instruments Act 2003.

 

Section 3 contains definitions relevant to the Specification.

 

Section 4 specifies the class of debt that may be waived. Subsection 4(1) provides that a debt is in a specified class if:

  • the debt was for a period that occurred either wholly or partly during the bushfire period (the period beginning on the commencement of 29 January 2009 and ending at the end of 29 April 2009); and
  • the debt was incurred by a person, and the person was adversely affected by the bushfires in Victoria during the bushfire period.

 

Subsection 4(2) provides that if a debt relates to a period that only partly occurs in the bushfire period, the Secretary may only waive under this instrument the part of the debt that is attributable to days occurring in the bushfire period.

 

Section 5 provides for when a person is considered ‘adversely affected’ by the bushfires in Victoria. A person is adversely affected if, as a direct result of the bushfires in Victoria:

  • the person was seriously injured; or
  • an affected family member of the person was killed; or
  • the person’s principal place of residence was destroyed; or
  • the person’s principal place of residence sustained major damage; or
  • the person was unable to return to his or her principal place of residence for at least 24 hours; or
  • a utility failure occurred in the person’s principal place of residence; or
  • the person experienced psychological trauma.

It is intended that a causal relationship must exist between the bushfires and any of the circumstances listed above. For example, the utility failure must be caused by the bushfires in Victoria.

 

The term ‘seriously injured’ is defined in section 3. A person is seriously injured if they sustained injury and was admitted to hospital. It also includes the circumstance where a person would require admittance to hospital for their injury under normal circumstances, but due to the bushfire conditions, this was not possible.

 

The term ‘affected family member’ and ‘destroyed’ is also defined in section 3.

 

Subsections 5(2) to 5(6) provide further definitions relevant to determining when a person is adversely affected.

 

A person is taken to have experienced ‘psychological trauma’ (as defined in subsection 5(6)) if they were in the immediate area of the bushfire and one of the circumstances under paragraph 5(6)(b) was met. It is not necessary to prove that a person has actually experienced psychological trauma.

 

Section 6 provides for an exception to the class of debts specified in section 4. That is, section 4 does not apply to a debt that is incurred by a person if the person knowingly made a false or misleading statement, or knowingly provided false information, to the Commonwealth in relation to that debt.

 

Consultation

 

Public consultation has not been undertaken as this instrument is of a purely beneficial character. Consultation was undertaken with Centrelink and the Department of Families, Housing, Community Services and Indigenous Affairs in relation to this instrument. A mirror instrument has also been made by the Minister for Families, Housing, Community Services and Indigenous Affairs to allow the waiver of debts for which the Minister for Families, Housing, Community Services and Indigenous Affairs has responsibility.

 

Regulatory Impact Statement

 

A Regulatory Impact Statement and a Business Costs Calculator are not required as the waiver of the Commonwealth’s right to recovery social security debts will have no regulatory or competition impacts, and will not impose compliance costs on businesses.

Overview

The Family Assistance (Waiver of Debts – Victorian Bushfires) (DEEWR) Specification 2009 was enacted to address the financial burdens faced by individuals adversely impacted by the 2009 Victorian bushfires. This legislative instrument, made under section 102 of the A New Tax System (Family Assistance) (Administration) Act 1999, allows the Secretary to waive debts arising from family assistance payments made during the bushfire period. The primary objective of this legislation is to alleviate the physical and emotional strain on bushfire victims by ensuring that those unintentionally receiving incorrect family assistance payments do not face the additional stress of debt recovery. The enacting body was the Parliament of Australia, with the aim of providing relief to those affected by the bushfires. This specification outlines the criteria for waiving debts, including the period of the bushfires, the definition of being adversely affected, and the circumstances under which debts can be waived. The legislation also includes definitions and exceptions, such as the requirement for a causal relationship between the bushfires and the adverse effects on individuals. Public consultation was not deemed necessary due to the purely beneficial nature of the instrument, though consultation was undertaken with relevant departments. This measure complements a similar instrument made under social security law to ensure a consistent approach to debt relief for affected individuals.

Scope and Application

The Family Assistance (Waiver of Debts – Victorian Bushfires) (DEEWR) Specification 2009 applies to individuals who incurred debts under the A New Tax System (Family Assistance) (Administration) Act 1999 during the period of the 2009 Victorian bushfires and were adversely affected by the fires. The instrument allows the Secretary to waive the Commonwealth's right to recover these specific debts, aiming to alleviate the financial burden on those who were directly impacted by the disaster. The geographic reach of this legislation is limited to the Commonwealth level, and it applies to debts incurred by persons affected by the bushfires in Victoria during the period from 29 January 2009 to 29 April 2009. The instrument does not apply to debts incurred by individuals who knowingly provided false or misleading information to the Commonwealth regarding their family assistance payments. The Specification clarifies the conditions under which a person is considered adversely affected, including serious injury, loss of life in the family, destruction or major damage to the principal place of residence, inability to return home for at least 24 hours, utility failures, and psychological trauma. This instrument, made under section 102 of the aforementioned Act, provides the necessary conditions and definitions for the waiver of debts in the specified class, facilitating relief for those most affected by the bushfires.

Key Provisions

The Family Assistance (Waiver of Debts – Victorian Bushfires) (DEEWR) Specification 2009, under section 102 of the A New Tax System (Family Assistance) (Administration) Act 1999, specifies a class of debts that may be waived by the Secretary, allowing for the waiver of debts incurred by individuals adversely affected by the 2009 Victorian bushfires. This legislation aims to alleviate the financial burden on those affected by these natural disasters, particularly those unintentionally receiving incorrect family assistance payments. Section 4(1) defines the class of debt that may be waived, including debts incurred wholly or partly during the bushfire period, which is defined as the period from 29 January 2009 to 29 April 2009. It specifies that debts can be waived for individuals who were adversely affected by the bushfires during this period. Section 4(2) further clarifies that if a debt pertains to a period that only partially falls within the bushfire period, only the portion of the debt attributable to days within this period can be waived. The obligations and requirements imposed by the Act on the parties it governs include the necessity for the Secretary to determine whether an individual qualifies as ‘adversely affected’ as per section 5. To be considered adversely affected, an individual must have experienced certain direct consequences of the bushfires, such as serious injury, the death of an affected family member, the destruction or major damage to their principal place of residence, the inability to return to their principal place of residence for at least 24 hours, a utility failure in their residence, or psychological trauma. The term ‘seriously injured’ is defined to include those who were admitted to hospital or would have required hospital admission under normal circumstances but could not due to bushfire conditions. The definition also includes specific criteria for terms such as ‘affected family member’ and ‘destroyed’. It is important to note that while psychological trauma is a factor, it is not necessary to prove that an individual actually experienced it; rather, the individual must have been in the immediate area of the bushfire and met one of the specified circumstances. The legislation also imposes certain exceptions to the class of debts that may be waived. For instance, section 6 excludes debts incurred by individuals who knowingly made false or misleading statements or provided false information to the Commonwealth regarding the debt. This ensures that the waiver is not extended to those who deliberately provided incorrect information, thereby maintaining the integrity of the family assistance system. The act does not require public consultation as it is deemed to be of a purely beneficial nature. Instead, consultation has been undertaken with relevant departments, such as Centrelink and the Department of Families, Housing, Community Services and Indigenous Affairs. Additionally, a mirror instrument has been created to allow the waiver of debts under the social security law, ensuring consistency in the approach to debt relief for bushfire victims. The consequences for breaching the provisions of this legislation are not explicitly detailed in the explanatory statement, but the nature of the act suggests that penalties would be aligned with those applicable under the A New Tax System (Family Assistance) (Administration) Act 1999. Generally, this would include both civil and criminal penalties for knowingly providing false information or making misleading statements, which could result in fines or other legal repercussions. The precise penalties would be determined based on the severity and intent behind the breach, with the aim of deterring non-compliance and ensuring that the waiver of debts is only applied in genuine cases of hardship due to the bushfires.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.