EXPLANATORY STATEMENT
Human Services (Centrelink) (Designated Program Act) Specification 2011 (No. 2)
Background
The Human Services Legislation Amendment Act 2011 (the Amendment Act) integrated Medicare Australia and Centrelink into the Department of Human Services (the Department) from 1 July 2011. The Amendment Act amended the Medicare Australia Act 1973 and the Commonwealth Services Delivery Agency Act 1997 (Centrelink Act), and renamed the Acts as the Human Services (Medicare) Act 1973 and the Human Services (Centrelink) Act 1997 respectively.
The Amendment Act inserted a new section 40A (the “multiple secrecy provisions”) into the Centrelink Act, with effect from 1 July 2011. Section 40A sets out how secrecy laws apply in a situation where the Department holds particular customer information in circumstances where, on their face, two or more different secrecy regimes apply to the use or disclose of that information by the Department. Section 40A applies equally to information collected by the Department prior to 1 July 2011 and to information collected on or after 1 July 2011.
The effect of the multiple secrecy provisions is that where the Department of Human Services holds the same piece of information about a particular person under more than one program (such as family assistance and medicare) that have secrecy regimes, the Department is able to use and disclose that information if it complies with one of the secrecy regimes.
Further information on the operation of new section 40A can be found at pages 68-70 of the Revised Explanatory Memorandum to the Human Services Legislation Amendment Bill 2011.
Section 40A applies to secrecy regimes in “designated program Acts”. A list of designated program Acts is set out in subsection 40A(3). In addition, an Act may be a designated program Act if it is specified in a legislative instrument made by the Minister for Human Services for the purposes of paragraph 40A(3)(o).
The Human Services (Centrelink) (Designated Program Act) Specification 2011
(No. 2) (the Specification) specifies the Taxation Administration Act 1953 (TAA) as a designated program Act for the purposes of paragraph 40A(3)(o).
The Australian Taxation Office (ATO) regularly discloses taxation information to the Secretary of the Department of Human Services for the purpose of administering programs under the social security law and to the Chief Executive Centrelink for the purpose of administering programs under the Paid Parental Leave Act 2010. Some of this taxation information is protected by on-disclosure restrictions in Division 355 of Schedule 1 of the TAA. This customer information held by the Department of Human Services is protected by the secrecy provisions in the Social Security (Administration) Act 1999 or the Paid Parental Leave Act 2010. The specification of the TAA as a designated program Act for the purposes of paragraph 40A(3)(o) ensures that the Chief Executive Centrelink and the Department are able to handle all customer information held for the purpose of social security programs or the paid parental leave program in accordance with the secrecy regime in the Social Security (Administration) Act 1999 or the Paid Parental Leave Act 2010 respectively, including information disclosed by the ATO.
Consultation
No public consultation was undertaken in relation to the Specification as no consultation was considered necessary. The Specification makes a technical, machinery amendment to the law to provide certainty for the Chief Executive Centrelink and employees of the Department in relation to the requirements for the handling of customer information. The Specification only affects the obligations of the Secretary of the Department, the Chief Executive Centrelink and employees of the Department, not other parts of government or the community more generally.
The Specification commences on the day it is registered on the Federal Register of Legislative Instruments.
No statutory preconditions needed to be satisfied prior to the making of the Specification.
Overview
The Human Services (Centrelink) (Designated Program Act) Specification 2011 (No. 2) was introduced to address the complexities arising from the integration of Medicare Australia and Centrelink into the Department of Human Services on 1 July 2011. This legislation, enacted by the Parliament of Australia, specifies the Taxation Administration Act 1953 as a designated program Act for the purposes of section 40A of the Human Services (Centrelink) Act 1997, thereby clarifying the application of secrecy provisions when the Department handles customer information under multiple secrecy regimes. The objective of this specification is to ensure that the Chief Executive Centrelink and the Department can appropriately manage customer information disclosed by the Australian Taxation Office, in compliance with the secrecy provisions under the Social Security (Administration) Act 1999 or the Paid Parental Leave Act 2010. The Specification aims to provide legal certainty to the Department’s officers in handling such sensitive information.
Scope and Application
The Human Services (Centrelink) (Designated Program Act) Specification 2011 (No. 2) applies to the Department of Human Services, its Secretary, and Chief Executive Centrelink, ensuring compliance with multiple secrecy regimes when handling customer information. Specifically, this specification addresses situations where the Department holds information protected under different secrecy regimes, such as those found in the Social Security (Administration) Act 1999 and the Paid Parental Leave Act 2010, as well as information protected by the Taxation Administration Act 1953. By specifying the TAA as a designated program Act, the Specification facilitates the lawful use and disclosure of such information by the Department, provided it adheres to the secrecy regime applicable to the information. This ensures that the Department can effectively manage and administer programs without breaching confidentiality obligations, thereby enhancing operational efficiency while safeguarding sensitive customer data. The Specification operates within the Commonwealth jurisdiction and applies nationwide, affecting only the Department’s obligations and not extending to the broader community or other government entities.
Key Provisions
The key provision of the Human Services (Centrelink) (Designated Program Act) Specification 2011 (No. 2) is section 40A(3)(o), which specifies the Taxation Administration Act 1953 (TAA) as a designated program Act for the purposes of the multiple secrecy provisions in the Centrelink Act (section 40A). This means that the Department of Human Services can handle customer information that falls under more than one secrecy regime, such as the TAA and the Social Security (Administration) Act 1999, in accordance with one of the secrecy regimes.
The obligations imposed by the Act on the Department of Human Services and Centrelink include ensuring that any information collected or held by the Department that is subject to more than one secrecy regime can be used or disclosed in compliance with one of the applicable secrecy regimes. Specifically, Centrelink and the Department must comply with the secrecy provisions in either the TAA or the Social Security (Administration) Act 1999 when handling customer information that is subject to both regimes.
There are no direct offences or penalties specified in the Specification for breaches of the secrecy provisions. However, the TAA and the Social Security (Administration) Act 1999 include provisions for offences and penalties for unauthorised use or disclosure of information. For example, under section 355A of the TAA, a person who contravenes certain on-disclosure provisions commits an offence and may be subject to a penalty of up to 120 penalty units (approximately AUD 14,000) for an individual and up to 600 penalty units (approximately AUD 70,000) for a body corporate. Similar penalties apply under the Social Security (Administration) Act 1999.
The Specification provides certainty for the Chief Executive Centrelink and employees of the Department in relation to the handling of customer information subject to multiple secrecy regimes. The Specification only affects the obligations of the Secretary of the Department, the Chief Executive Centrelink and employees of the Department, and does not impose any additional obligations on other parts of government or the community more generally. The Specification commences on the day it is registered on the Federal Register of Legislative Instruments, and no statutory preconditions needed to be satisfied prior to the making of the Specification.