Accident Compensation (Interest on Instalment Plans) Amendment Bill

Members, we come now to our final debate. Clause 6—this is the debate on the amendment to Schedule 1AA of the principal Act and the Schedule. The question is that clause 6 stand part.

Thank you, Mr Chair. This will actually be a short call because I can see that a number of members behind me would also like to ask the Minister a question, and it’s in relation to—[Interruption] Would you like to take a call after me? So I’ll continue—thank you for the interjection. So it’s actually in relation to the disclosure statement on page 8, and 4.3 refers to clause 3 of the new Part 5 will retrospectively allow ACC to charge debit interest on instalments. So it’s talking to the ability to look back and make sure that the interest that has been accrued on those instalments can actually apply, which is the purpose of this bill.

But the difficulty I have is that in new Part 5 inserted into Schedule 1AA, there is no clause 3; it just has the new Part 5, section 16, section 17, section 18. I’m guessing there is a minor drafting issue where it should have said clause 3, which is actually a reference to new section under Part 5 inserted in Schedule 1AA, a new section 18 subsection 3. And I think that is possibly just a drafting error, perhaps in the disclosure statement, and so there is nothing here saying that there is clause 3. Have you actually looked at the bill yourself, Minister?

I’ll read it for you again. So clause 6 Schedule 1AA amended, which is the subheading for the heading of that clause, in Schedule 1AA “(a) insert the Part set out in the Schedule of this Act as the last Part” and (b)—which is line 26 of this bill—“(b) make all necessary consequential amendments.” So, therefore, you look to the Schedule New Part 5 inserted into Schedule 1AA and then it just goes through Part 5: new section 16, new section 17, new section 18, but the disclosure statement of the bill says, “Clause 3 of the new Part 5 will retrospectively allow ACC to charge debit interest”. And I think that is right because that is the empowering provision in Part 5, new section 18, subsection 3.

So I just want to ask the Minister: I believe the disclosure statement is wrong. It should have said new section 18, subsection 3 of new inserted Part 5. So to the Minister, if he can just answer that basic question: is it the disclosure statement that is wrong or is it the bill?

Yes, I can confirm that is a drafting error in that statement. It should have been 18, but I suppose the problem we have is so many of these papers were written in a year ago.

Thank you, Mr Chair. This is an opportunity to come back to some of the questions I asked about clause 5, which, actually, are part of clause 6. [Interruption] I’m very happy to yield if someone would like to take a substantial call—we had a discussion on this the other day.

Simon Court: Point of order, Mr Chair. I’m just seeking clarification. The member quite clearly alluded to the fact that she was speaking to a previous clause. Would you be able to provide the member some direction about which clause we’re debating.

CHAIRPERSON (Greg O’Connor): Just let things settle, and I’m sure the experienced member will know to come very quickly back to clause 6.

RACHEL BOYACK: I’m coming straight back to clause 6, which inserts new Part 5 into Schedule 1AA. It relates to the questions I asked on clause 5. Funnily enough—and something Mr Court might not be aware of—clauses in legislation often interact with each other

The specific question I had was around the levies that will be set on three-month and six-month instalment periods. If you read Part 5, in the Schedule, specifically clause 17, “Rates of interest payable on levies collected by instalments:”, it specifically states, “Until regulations made under section 329(1)(hb) come into force, the following interest rates apply for the purposes of section 234(1A) (as inserted by the 2024 Act): (a) 0% on the total amount of levy collected over a 3-month instalment period: (b) 0% on the total amount of levy collected over a 6-month instalment period: (c) 2.73 percent on the total amount of levy collected over a 10-month instalment period.”

My question to the Minister before, which I didn’t receive an answer to—but I think it’s an important question because he talks about flexibility. We do have this certainty for people on those shorter payment plans that they won’t have a zero percent payment added, but what is clear here in this reading is that that’s until regulations are made, but once regulations are made, these rates could change.

So I think it’s a fair question to the Minister, and it actually looks like we may need to reconvene this committee of the whole House, and so at that point I’m quite keen to potentially look at putting some further amendments forward so that we could permanently ensure that people on a three-month instalment period could retain that zero percent interest debit charge. So that is my question to the Minister. [Interruption] Well, if others want to take a call—

Members, I will put you all out of your misery. The time has come for me to report progress.

House resumed.

Mr Speaker, the committee has considered the Accident Compensation (Interest on Instalment Plans) Amendment Bill and reports progress. I move, That the report be adopted.

Motion agreed to.

Report adopted.

This bill is set down for further committee consideration next sitting day. The House stands adjourned until Tuesday, 25 June, 2 p.m.

The House adjourned at 11.55 p.m. (Saturday)