Merger To Help Pay Child Support Debts

The Age

Saturday June 14, 2008

Carol Nader, Social Policy Editor

ABOUT $1 million in overdue child support payments will be recovered from more than 500 parents as a result of the merger of health fund MBF with Bupa Australia.

The Child Support Agency will intercept the money that 513 MBF members will receive from the demutualisation of MBF after it merges with Bupa, which owns several health insurance funds.

The Federal Government says it is the first time it has recovered outstanding child support debt from a demutualisation.

It is part of a package of tougher measures the Government is taking to enforce the payment of child support where parents are deliberately avoiding payment.

While the recovery will go some way to recouping debt that in some cases might be several years old, it may not cover all the money owed to children.

Under the merger, Bupa will pay $2.41 billion to MBF, whose 820,000 members are entitled to a share of the allocation. Depending on how long they have been members and what kind of policy they have, members stand to gain between $100 and about $7000.

In the case of the 513 members identified by the Child Support Agency as owing child support payments, their share from the demutualisation will be seized by the agency from next month.

About half of those affected have been notified, and the agency is in the process of notifying the others.

The Government says it is good news for children.

A spokesman for Human Services Minister Joe Ludwig said: "It shows that CSA will make use of available legal avenues to ensure separated parents meet their child support obligations and the kids get the support they need."

Cross-agency data was used to identify the MBF members who were also in the sights of the Child Support Agency.

The demutualisation provided a unique opportunity to intercept money paid to people with outstanding child support debts.

© 2008 The Age

Back to News Index | Back to Home