Chapter 1 - Introduction

The inquiry and its conduct

1.1        On 10 February 2011 the Senate, on the recommendation of the Selection of Bills Committee (Report No. 1 of 2011), referred the provisions of the Human Services Legislation Amendment Bill 2010 (the Bill) to the Community Affairs Legislation Committee for inquiry and report by 22 March 2011. The Selection of Bills Committee referred the Bill for inquiry because of concerns about the privacy implications of the Bill. These concerns, among others, were also noted by the Senate Standing Committee for the Scrutiny of Bills, discussed further at paragraphs 2.2 to 2.22.

1.2        The Committee advertised the inquiry in The Australian newspaper on 16 February 2011 and 2 March 2011 and invited submissions by 1 March 2011. The Committee also wrote to a number of organisations and individuals inviting their comments on the Bill. Details of the inquiry, the Bill, and associated documents were placed on the Committee's website.

1.3        The Committee received 6 submissions relating to the Bill and these are listed at Appendix 1. The submissions can be accessed through the Committee's website at https://www.aph.gov.au/senate_ca. The Committee thanks the organisations and individuals who contributed to the inquiry. No public hearings were held for the inquiry. However, following receipt of submissions, the Committee wrote to the Department of Human Services (the Department) seeking clarification on a number of matters identified by submitters.

Purpose of the Bill

1.4        In December 2009 the Hon. Chris Bowen MP, then Minister for Human Services, announced major reforms to Australian Government service delivery. These reforms were intended to provide better access to government health, social and welfare services, as administered by the Human Services portfolio. Minister Bowen stated:

The service delivery reform agenda is about simplifying people's dealings with government by giving them more control, and better support and assistance when they need it.

It will shift the focus from bureaucratic structured service delivery, to higher quality services centred on the individual, with privacy paramount.[1]

1.5        The announcement included an implementation timetable for the reforms which foreshadowed the introduction of the Bill in the House of Representatives on 25 November 2010.[2]

1.6                  Upon introduction, the Hon. Julie Collins MP, Parliamentary Secretary for Community Services, stated that a key element of the service delivery reform agenda, and the purpose of the Bill, is the integration of the Department portfolio into a single department.[3] The portfolio currently includes the Child Support Program, Commonwealth Rehabilitation Service (CRS) Australia, Medicare Australia and Centrelink. The Bill proposes to integrate Medicare Australia and Centrelink into the Department. The Child Support Program and CRS Australia will not be affected by the Bill.

Overview of the Bill

1.7        The Bill gives effect to this reform by primarily amending and renaming the Medicare Australia Act 1973 (the MA Act) and the Commonwealth Services Agency Delivery Act 1997 (the Centrelink Act).[4]

1.8        Schedule 1 of the Bill amends the MA Act by abolishing Medicare Australia as a statutory agency and the statutory office of Chief Executive Officer of Medicare Australia. The Bill creates the statutory office of Chief Executive Medicare within the Department. The Chief Executive Medicare will maintain existing statutory powers and have broad service delivery functions.

1.9        Schedule 2 of the Bill amends the Centrelink Act by abolishing Centrelink as a statutory agency and the statutory office of Chief Executive Officer of Centrelink. The Bill creates the statutory office of Chief Executive Centrelink within the Department. As with the Chief Executive Medicare, the Chief Executive Centrelink will have broad service delivery functions and will maintain existing statutory powers.

1.10      Schedules 1 and 2 of the Bill provide for service related functions, currently delivered by Medicare Australia and Centrelink in support of their Chief Executive Officers, to be delivered in future by departmental employees (as defined in the Bill). In addition, departmental employees will deliver any new functions assumed by the Chief Executive Medicare and the Chief Executive Centrelink.

1.11      Schedules 1 and 2 of the Bill also introduce amendments to clarify the operation of program secrecy provisions after the portfolio integration and to align specific investigative search and seizure provisions in Divisions 5 and 6 of Part IID (Investigative Powers of Chief Executive Officer) of the MA Act with corresponding provisions in the Crimes Act 1914 (Crimes Act).[5] These proposed amendments are discussed in detail in Chapter 2.

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