Bills Digest No. 159 1986
Australia Card Bill 1986
WARNING:
This Digest is prepared for debate. It reflects the legislation as introduced
and does not canvass subsequent amendments.
CONTENTS
Date introduced: 22 October 1986
House: House of Representatives
Presented by: Hon. Neal Blewett, M.P., Minister for Health
To introduce an identity card for use in certain transactions.
The Government’s proposal to introduce a national identity card
was released at the ‘Taxation Summit’ held in July 1985. In
the booklet issued at that time the major benefits to be gained from the
proposal were given as the reduction of tax and social security fraud
and the detection of illegal immigrants. The card was estimated to result
in an additional $800 million in tax revenue per year once established
as well as savings in the social security area.
On 13 November 1985, the House of Representatives resolved to establish
a Joint Select Committee with the Senate to report on the proposal. The
Senate concurred on 29 November 1985. The Committee comprised three Senators
and five members of the House of whom four were members of the A.L.P.,
two Liberals, and one member each from the National Party and the Democrats.
Their report was delivered in May 1986 and contains a number of estimates
of the costs and benefits of the proposal based on various assumptions.
For example, in the Government submission to the Committee, it was estimated
that the card would raise an additional $750 million in tax revenue annually.
However, in evidence before the Committee, a representative of the Australian
Taxation Office estimated that if the assumed level of avoidance were
reviewed to more realistic levels, the amount of additional revenue that
could be raised may be twice the submitted level[1].
Similarly, the Department of Social Security found great difficulty in
estimating the effect of the card and was unable to put a value on the
possible savings[2].
While agreeing that there is a need to prevent tax avoidance and social
security fraud, the Committee differed on how this could best be achieved.
The majority (comprised of all opposition members and one A.L.P. member)
rejected the need for a card and recommended that a system based on existing
tax file numbers be introduced[3]. A minority report
was presented which criticised the tax file proposal and supported the
card.
The Government proceeded with its proposal and this legislation was presented.
The Bill was defeated in the Senate on 10 December 1986.
Also refer to the Digest of the Privacy Bill 1986 (no. 86/162).
Outline
The Bill comprises 189 clauses divided into nine Parts. Part II deals
with the issue of the card and its duration; the Australia Card Register
will be created by Part III; Part IV contains provisions relating to the
production of the card and certificates of identity; access to information
is dealt with in Part V; Part VI will create a national register of births,
deaths and marriages while Part VII will create the Data Protection Agency
and the Data Protection Advisory Committee. Part VIII contains a number
of offences.
Main Provisions
Clause 3 contains the objects of the Bill, which include to facilitate
the administration and enforcement of laws relating to taxation, social
security, hospital and medical benefits and immigration and to prevent
the obtaining of benefits that are excessive or not due.
The Health Insurance Commission will administer the Bill and will, for
the purposes of the Bill, be known as the Authority (clause 6).
There will be no obligation to carry the card at all times (clause 8).
Australian citizens and certain people granted entry under the Migration
Act 1958 and the Immigration Act 1980 of Norfolk Island will be eligible
to be issued with the card (clause 10).
A card is not to be issued to a minor under 16 unless that person is
living independently or is eligible to a social security pension or benefit.
A representative may apply for a card for such a person if that person
agrees, the applicant has a power of attorney or is in a class declared
to be able to make applications. In addition, representative applications
may be made on behalf of people who lack the necessary mental or physical
capacity, by a trustee or guardian (clause 11).
Clause 12 will require a person to provide a sample signature unless
the issuing authority is satisfied that the person is suffering from a
disability or illness that would make it unreasonable to require the specimen;
and to comply with reasonable requirements to enable an issuing agency
to take a photograph, though the photograph may be dispensed with if the
making of the photograph may reasonably be expected to cause an unreasonable
amount of stress to the person or a member of their family.
The Authority will be given power to obtain information to enable it
to decide whether to issue a card or for any other function it is to perform
under the Bill, from the Commissioner of Taxation, the Health Insurance
Commission or Departments that deal with defence or administer the Social
Security Act 1947, the Veterans’ Entitlement Act 1986, the Student
Assistance Act 1973, the Australian Citizenship Act 1948 or the Migration
Act 1958 to the extent that the information was acquired to administer
that Act (clause 14).
Clause 17 deals with the form of the card. The card is to contain the
card-holder’s name, date the card will expire, a distinctive number,
the number of times the card has been issued or renewed, the name of any
prescribed representative, the age of minors and, where the card-holder
is a minor who did not apply for the card themselves, their sex. The information
may be recorded by electronic means and contain security devices.
The duration of a card will be for three to seven years where the card
is issued within five years of the commencement of clause 18 or for five
to six years if issued after that time. A representative card issued on
behalf of a minor will expire when the minor reaches 18 years or a card
is issued to that person (clause 18).
The Authority will be given power to cancel a card if it was issued under
a false identity, was issued to a person who was not eligible or has since
ceased to be eligible or if the person has failed to comply with clause
12 (clause 19).
The Authority will be able to replace lost or defaced cards (clause 20)
and renew cards (clause 22).
An Australia Card Register will be established by clause 23 and will
contain the information listed in clause 25, which includes the matters
listed in Schedule 1 (e.g., name, date of birth, sex, current address,
citizenship status and each address since the first application for the
card or two years, whichever is the shorter), information relating to
the issue of the card and any dealings between the Authority and the person.
A card-holder may request that incorrect information on the register
be changed and where the information is found to be incorrect it is to
be changed within 21 days of the request (clause 26). In addition, the
Authority will be given power to correct inaccurate information (clause
28).
The Secretary of a Department that is entitled to have access to the
Register will be able to enter into an agreement with the Authority under
which the Secretary is to notify the Authority of any changes in the information
contained in Schedule 1 (clause 29).
Part IV, clauses 32 to 54, deals with the production
of the card.
Clause 36 deals with certificates of identity. Where production of the
card is required, the requirement will be taken to have been fulfilled
where a certificate signed by a prescribed person (i.e., an Australian
citizen included in a prescribed class) specifying the card-holder’s
card number and stating that the card has been produced to the prescribed
person; that they are not, to the best of the prescribed person’s
knowledge, related; that it is not, in the prescribed person’s opinion,
reasonably practicable for the card-holder to attend to produce the card;
and any other matter required by regulation.
For visitors (i.e., those who have been in Australia for less than six
weeks in the preceding 12 months) their passport will take the place of
a card (clause 37). Similarly, for non-residents, a signed notice setting
out the name and residential address of the person and stating that they
are a non-resident will replace the card. It will be an offence for the
statement to contain knowingly false information (clause 38).
Clause 40 deals with accounts with financial institutions. Prior to the
second relevant day (i.e., a day prescribed by regulation that is later
than the first relevant day and later than 30 June 1990) but after the
first relevant day (i.e., a day prescribed by regulation that is not earlier
than 1 March 1989), a financial institution is not to accept a deposit,
open an account, give effect to an assignment, withdrawal, deposit or
pay interest relating to an account opened after the first relevant day
without, at the time of the transaction or earlier, having recorded the
person’s card number. After the second relevant day, the same requirements
will apply to all transactions. Where interest is paid and the institution
is required to notify the payment to the Commissioner under a tax law,
the Commissioner is to be notified of the card number of the person receiving
the interest. A breach of these provisions may result in a $20 000 fine.
A prescribed borrower (i.e., the Commonwealth, a State, the Northern
Territory or a corporation) is not, from the first relevant day, to borrow
money from a person or to repay money or interest on funds lent to the
prescribed borrower on or after the first relevant day to a lender without
recording their card number. From the second relevant day, the prohibitions
will apply to funds lent or borrowed before the first relevant day. The
same tax notification requirements as will apply to financial institutions
will also apply to prescribed borrowers. Solicitors will also be required
to record card numbers when investing, accepting or lending money or paying
interest. A $20 000 penalty will apply for a breach of the recording provisions
(clause 41).
Similar provisions, including those relating to the first and second
relevant days, the provision of information to the Commissioner of Taxation
and penalties, will apply to income from certain trusts (clause 42).
Primary produce marketing authorities and produce agents will be required
to record the card number of people where, after the first relevant day,
payment is made on the sale of primary produce. The marketing authorities
and produce agents will also be required to comply with similar provisions
relating to reporting to the Commissioner of Taxation. In addition, real
estate agents are not, on or after the first relevant day, to make payments
representing rent to people for whom they are acting without recording
their card number. Again, similar tax reporting and penalty provisions
will apply (clause 43).
A financial institution is not to remit money overseas after the first
relevant day unless they record the card number of the person to whom
the funds are to be sent. Similar tax notification and penalty provisions
will apply (clause 44).
A person is not, after the first relevant day, to be a party to a transfer
of an interest in land unless the person has completed a declaration stating
the person’s name, card number and any other prescribed matter and
the declaration has been delivered to the relevant Registrar of Land Titles.
The penalty for a breach of these provisions will be a $5000 fine. Where
a tax law requires a Registrar to notify the Commissioner of Taxation
of the transaction or transfer, the Registrar is also to give the person’s
card number (clause 45).
Financial institutions are not, after the first relevant day, to make
available or allow access to safety deposit boxes or similar services
without recording the card number of the person concerned. The financial
institutions will be required, within two months of the first relevant
day, to furnish particulars relating to the safety deposit boxes to the
Commissioner of Taxation (clause 46).
On or after the first relevant day a share dealer is not to buy shares
on behalf of another without recording their card number. In addition,
an instrument of transfer of registration of shares in a public company
is not to be submitted unless it contains the transferee’s card
number and the transfer is not to be registered unless the transferee’s
card is produced and its number recorded. Similar tax notification and
penalty provisions will apply (clause 47).
Similarly, a broker is not to deal in future contracts on behalf of another
after the first relevant day unless the person’s card number is
recorded. Similar tax notification and penalty provisions will apply (clause
48).
Where, on or after the first relevant day, a person commences employment
or is paid, the employer is to record the person’s card number. Similar
tax notification and penalty provisions will apply (clause 49). People
applying for Medicare benefits on or after the first relevant day will
be required to produce their card and the number is to be recorded before
payment is made. Where, before the first relevant day, a card is issued
to a person, the Health Commission may refuse to pay the claim unless
the person’s card number is contained on the claim (clause 52).
Clause 54 deals with social security benefits. They will not be payable
on or after the first relevant day unless the person produces their card
and its number is recorded. Where an application for a card is pending
and, apart from this Bill the applicant would have been eligible to receive
a benefit, the benefit shall be payable.
Part V of the Bill (clauses 55 to 68) deals with access
to information.
A card-holder will be able to request access to information in the Register
that relates to that person. The Authority will be required to give access
to the information within 21 days of a request (clause 56). Where
a card-holder has made a request to access information, the Authority
may refuse a further request made within 12 months where there has not
been notification of a change in the Register, unless the applicant pays
the prescribed fee (clause 58).
Access to the Register for officials is defined as access to the information
reasonably necessary to achieve the purpose for which access is allowed
(clause 59).
Access for the performance of their functions will be allowed to the
Commissioner of Taxation (clause 60), the Secretary of the Department
which is responsible for social security (clause 61), the General Manager
of the Health Insurance Commission (clause 62), the chief executive of
the Authority and the President of the proposed Data Protection Agency
(the Agency) (clause 64).
Clause 66 will allow ‘authorised persons’ to have access
to the Register. ‘Authorised persons’ will be those nominated
by one of the people who are allowed access. Before access will be allowed,
the instrument seeking approval will have to be forwarded to the Authority
and the Authority’s recommendation and the instrument will have
to be forwarded to the Agency. The Agency will be responsible for approving
or rejecting the instrument (clause 65).
Part VI (clauses 69 to 84) will establish a National
Births, Deaths and Marriage Register.
Clause 69 contains the objects of the Part, which include to facilitate
the execution of this Bill and certain other laws, the provision of an
updated census of the population and to enable a uniform register to be
kept.
The Authority will be given power to establish and keep the Register
(clause 71).
Clause 72 will give the Minister power to delegate the Authority’s
power to maintain the Register.
The Authority is to have access to Territory registers and the Minister
will be able to make arrangements with the States for the Authority to
have access to State registers in order to compile the National Register
(clause 73).
Access to the Register for the purposes of their duties will be allowed
to the Chief Executive of the Authority (clause 76), the Secretary of
the Department responsible for passports (clause 78), the Australian Statistician
(clause 79) and the Secretary of the Department responsible for administering
the National Health Act 1953 for the purpose of conducting epidemiological
studies (clause 80). Authorised persons may be granted access (clause
82) after requirements similar to those contained in clause 65.
Part VII (clauses 85 to 162) will establish the Data Protection
Agency and the Data Protection Advisory Committee.
The Data Protection Agency
(the Agency) will be established by clause 87.
The Agency’s functions are listed in clause 88 and include to review
decisions made by the Authority under this Bill; to review the actions
of the Authority to see if they unduly infringe on a person’s privacy
and, if they do, to direct the Authority how to perform those functions;
to investigate the actions of eligible bodies (Departments, the Commission,
or others entitled to require that a card be produced) to see if they
are against the Bill or any guidelines issued by the Agency; to supervise
the keeping of the National Register of Births, Deaths and Marriages and
to issue guidelines concerning the keeping of the Register and the Authority’s
actions.
Clause 89 will give the Agency power to do all things necessary for the
performance of its functions.
The Agency is to have regard to the protection of important human rights
and Australia’s international obligations (clause 90).
The Agency is to consist of a President and two Commissioners (clause
91).
The Data Protection Advisory Committee (the Committee) will be established
by clause 104 and will consist of a Convener and between six and 12 other
members.
The Committee’s functions will be to advise on certain decisions
of the Agency (though not those relating to its review of the Authority’s
or an eligible body’s functions), to recommend material for inclusion in
the Agency’s guidelines and to promote community education on the
protection of individual privacy (clause 105).
People are to be notified of certain decisions made under the Bill (clause
113) and will be able to request that the Authority reconsider the decision.
The Authority will be required to assist in the making of an application
and to reconsider its decision (clause 115).
The Agency will generally be required to investigate complaints that
the Authority has exercised its power in such a way as to unduly infringe
a person’s privacy (clause 137) or that an eligible body has breached
the Bill or the guidelines (clause 138) though the Agency may refuse to
investigate complaints made after 12 months of the complainant becoming
aware of the situation, frivolous or vexatious complaints and complaints
in which the complainant lacks a sufficient interest (clause 139). In
addition, the Agency will be able to refer appropriate complaints to the
Human Rights and Equal Opportunity Commission, the Merit Protection Agency
or the Ombudsman (clause 140).
Investigations will be in private and conducted as the Agency sees fit
(clause 144).
Clause 145 will give the Agency power to obtain information and documents
while clause 146 will give power to examine witnesses.
The Agency will be immune from action in relation to acts done in good
faith (clause 153).
It will be an offence, with maximum penalty of a $2000 fine and/or 12
months imprisonment, to refuse, without reasonable excuse, to attend before
the Agency, be sworn or affirmed, furnish information or answer a question,
produce documents, hinder the Agency in the carrying out of its functions
or to make a knowingly false or misleading statement. It will be a defence
to refuse to answer a question or furnish information on the ground that
it may be self-incriminating (clause 154).
The Attorney-General will be able to issue a certificate stating that
the production of a document or giving certain evidence will be contrary
to the national interest on the grounds of defence, prejudice to international
relations or relations between the Commonwealth and a State, that it may
disclose Cabinet deliberations or decisions, that it may prejudice an
investigation or a fair trial or that disclosure would endanger life or
safety (clause 160).
The Agency will be required to lodge an Annual Report (clause 162).
Part VIII (clauses 163 to 172) deals with offences which
include:
- intentionally defacing or altering a card (clause 163);
- possessing false cards (clause 164);
- producing a card with intent to deceive (clause 165);
- making false statements to obtain a card (clause 166);
- requiring the production of a card except as authorised by this Bill
(clause 167);
- obtaining unauthorised access to the Register (clause 168);
- a breach of secrecy by a staff member of the Authority or Agency (clause
169); and
- misuse of information (clause 170).
In addition it will be an offence to use the term Australia Card or a
prescribed symbol in trade or business or for a promotion (clause 181).
For further information, if required, contact the Law and Government
Group.
(1) Report of the Joint Select Committee on an Australia
Card, May 1986, p. 27
(2) ibid, p. 31.
(3) ibid, pp. 147–151.
Bills Digest Service
LEGISLATIVE RESEARCH SERVICE
2 February 1987
This Digest does not have any official legal status. Other sources should
be consulted to determine the subsequent official status of the Bill.
ISSN 1323-9032
© Commonwealth of Australia 1986
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Published by the Department of the Parliamentary Library, 1986.
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Last updated: 17 January 2006
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