Iain Anderson, the Commonwealth Ombudsman, has revealed significant discrepancies in the child support processing practices of Services Australia, highlighting that the agency has improperly applied the law for six years. This failure means that numerous parents are potentially owed financial support, raising concerns about the integrity of the system designed to assist families.
Systematic Noncompliance with Legislation
A recent report from the Ombudsman indicates that Services Australia has been aware since 2019 of inconsistencies between its policies and the relevant child support legislation. The agency’s long-standing principle dictates that parents with less than 35% care of a child are ineligible for financial assistance. However, the law stipulates that such parents are entitled to receive support. This contradictory approach has left many parents, particularly those with less than 35% care, deprived of their rightful payments.
Iain Anderson has expressed grave concerns about the agency’s inaction over this prolonged period. “It was very important to fix these errors,” he stated. “But six years later, nothing’s been done. And for all that time, Services Australia has not been applying the law.” He underscored the unacceptable nature of public servants selectively enforcing legislation.
Financial Impact on Affected Parents
While the exact number of individuals impacted by this misalignment remains unclear, the Ombudsman estimates that at least 16,600 parents are owed substantial sums, with some owing as much as $10,000. Anderson pointed out that these parents are often those who are less involved in the day-to-day care of their children, further complicating the implications of the agency’s mismanagement.
“The legislation was producing unintended consequences,” Anderson noted. The prolonged failure to rectify these issues raises questions about the agency’s commitment to upholding the law and protecting the welfare of families.
Recommendations for Reform
In light of these findings, the Ombudsman has made six recommendations aimed at rectifying the situation, including a proposal for retroactive legislation that would prevent parents with less than 35% care from claiming support while also compensating those adversely affected.
Hank Jongen, a spokesperson for Services Australia, responded to the report by reaffirming the department’s commitment to prioritising the welfare of children within the child support framework. “If the legislative anomalies were applied in practice, there would be situations where parents with the majority care of children would be required to pay child support to parents with little, or even no care, of children,” he explained.
Jongen assured the public that the department is committed to implementing the Ombudsman’s recommendations by the end of January 2026, alongside necessary legislative amendments.
Ongoing Issues in the Child Support System
The Ombudsman’s report also echoes previous findings regarding Services Australia’s role in exacerbating financial abuse within the child support system. Last year, it was reported that $1.9 billion was owed in unpaid support, predominantly affecting mothers. The agency has since been urged to take comprehensive steps to address these systemic failures, including enhancing training for staff to better recognise and assist individuals experiencing financial abuse.
The need for reform in the child support system has become increasingly urgent as the implications of these issues extend beyond legal noncompliance to deeply affect families’ lives.
Why it Matters
The ongoing failures of Services Australia to align its practices with legislation not only expose serious flaws within the child support system but also place vulnerable families at risk. The potential for financial deprivation among thousands of parents calls for immediate action and accountability from the agency. As this situation unfolds, it poses critical questions about the efficacy of welfare systems in safeguarding the interests of those they are meant to serve, underscoring the necessity for urgent reform to ensure that every child receives the support they deserve.
