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The Guardian - AU
The Guardian - AU
National
Shalailah Medhora

Senate strikes down Coalition's 'divorce tax' for second time in two months

Senator George Brandis has defended the change in regulations that would raise the cost of divorce applications by 40%.
Senator George Brandis has defended the change in regulations that would raise the cost of divorce applications by 40%. Photograph: Lukas Coch/AAP

The Senate has shot down regulation intended to drive up the cost of court services like divorce applications for a second time in two months after the government brought in regulations during parliament’s winter recess.

On 13 July the attorney general, George Brandis, introduced an increase to court fees, effective the next day.

The cost of divorce applications rose by more than 40%, from $845 to $1,200, leading opponents to brand it the “divorce tax”. The cost of issuing a subpoena more than doubled, from $55 to $125, and amending an application, which was previously free, now costs $125.

Similar regulation to change the fee structure of the family and federal courts had been disallowed by the Senate less than a month earlier.

On Tuesday, Labor, the Greens and independent senator Glenn Lazarus joined forces to pass a disallowance motion in the Senate that would reverse the fee hike by 39-29 votes.

Labor’s family law spokesman, Graham Perrett, said he was “glad that the Senate banded together” to overturn attorney general George Brandis’ divorce tax.

“Only an idiot would attempt to thumb their nose at the Senate,” Perrett told Guardian Australia, adding that he was “very concerned” that Brandis had “ignored the will of the Parliament” by trying to reintroduce the price rise.

“The government must now respect the Senate’s decision and drop this unjustified and unfair tax on court users,” Greens senator Penny Wright said. “It is completely inappropriate for the government to target family breakdown as a cash cow for their flawed revenue measures. Especially when only a minor proportion of the money raised will go back to the court systems.”

“These family court fee hikes have made it harder for victims of domestic violence to seek a divorce, so I am exceptionally pleased to have been able to secure this victory for them and others who have struggled to find the extra fees,” Wright said.

“Cost is already the most common barrier to people seeking legal help, so it is appropriate that the Senate has again rejected the government’s cruel attack on the most vulnerable.”

Labor has taken the government to federal court over the fee hike, which is expected to add more than $87m more to the budget bottom line over four years.

Legislation states that once regulation is disallowed by the Senate, similar regulation cannot lawfully be made again within six months.

The government says the new price hike – which adds $5 to the first iteration of the fee increase – is substantially different to its first legislation.

The disallowance motion will not affect a legal case brought by Labor, which aims in part to refund applicants who paid more for their court services over the last four weeks.

The federal court is expected to hand down its decision on the legality of the regulation on Thursday morning.

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