The Government says it can’t do much to reduce collections, even if it were to reduce their scale.
The Government’s debt collection plans are “not going to change”, says the Treasury’s Debt Reduction and Collection Strategy.
The strategy aims to reduce collection by at least 50 per cent in line with the Government’s targets.
In response, a number of advocacy groups have raised concerns about the government’s plans.
The government says it has made significant improvements to the way it collects and manages its debts, but those improvements have not been matched by reductions in debt collection.
In its 2017-2018 budget, the Government announced it was “reallocating” more than $30 billion in debt collections to the private sector, to help meet its target of reducing debt collection by 75 per cent.
But while the government says this will help to reduce its collection costs, it also says the Government is “not looking to scale back” collection efforts.
“Collecting debt from individuals and small businesses is not a viable long-term solution to reducing debt,” the Government said in a statement.
“If the Government wants to reduce debt, it must act now, not wait for the next election.”
The Government has not provided a detailed plan to address the problem of debt collection, nor has it released a plan to tackle the problem.
The Treasury’s plan says debt collection should “be focused on the smallest, most targeted and least costly debt collection measures that are reasonably likely to be successful”.
The plan also says “the collection of debts is not sufficient for the Government to meet its debt reduction targets”.
But critics say that while the Government has made improvements, its collection plans do not make much sense, given the scale of the problem they are designed to solve.
The Debt Reduction strategy says that the Government will “take a variety of actions, including direct action, to reduce total collection in line to the Government targets”.
In a briefing to the House of Representatives, the Treasury said the government was “reviewing the impact of its plan”.
But the Treasury did not provide a specific reason for this review.
The debt reduction strategy says the debt reduction target will be met “if the Government demonstrates that collection activities are being carried out effectively and on the appropriate targets”.
While the government has made considerable improvements in its collection, the debt relief plan still does not make any meaningful contribution to reducing collection.
“In particular, it is likely to fail to meet the Government debt reduction objectives in the short-term,” the plan says.
The plan states that the government “is not seeking to increase collection costs by a large amount to meet short- and medium-term debt reduction goals”.
And it also notes that “the Government does not believe that the long-run debt reduction objective is attainable”.
Critics have also raised concerns that the plan is “at best, a non-binding mandate to collect debt”, because the Government “may not have the resources to complete any of its collection targets”.
The government’s debt relief strategy, the report notes, is based on a “loophole” in the Australian Consumer Law (ACL), which allows the government to charge debts up to a certain amount.
The ACL is designed to help individuals and businesses deal with debt.
The report also says that there are “significant limitations to the extent that collection targets can be met through debt relief”, such as a “significant proportion of debt cannot be discharged as debt”.
The Government also says its collection strategy will be implemented “in a manner that maximises compliance with debt reduction obligations”.
But it has not explained how this will happen.
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