Privacy Act 2020

Annual Report

Purpose: To identify current clients who leave for or return from overseas while receiving income support payments, and to assist MSD in the recovery of outstanding debts.

Customs disclosure to MSD: Customs provides arrival and departure information covering the week prior to the extraction date. Each travel movement record includes the traveller's full name, date of birth, gender, travel document number, country code and flight details.

Compliance: Compliant.

Technical information

Information matching provision	Customs and Excise Act 2018, s.308
Year authorised	1991
Year commenced	1992
Programme type	Confirming eligibility Locating people
Online transfers	Yes

System description
Each day, Customs creates a file of passenger arrival and departure information and places it on a website within the secure Customs network. Each travel movement record includes the traveller's full name, date of birth, gender, travel document number, Citizenship code, and flight details.

MSD uses an encrypted communication session to access the Customs website and retrieve the file. Access to the Customs website is limited to specific MSD internet addresses to prevent access by unauthorised users.

MSD compares each traveller's name, date of birth, and gender with their beneficiary and student databases. Each positive match receives a rating ranging from match level one where the surname, first name, second name, and date of birth all agree, to match level 13 where there is a less exact match.

For matched individuals, MSD checks its records to see if there has been any reason given for the overseas travel. MSD may also check the travel details by using a look-up access to the Customs system.

In March 2009, MSD began using the authority granted under section 103(1A) of the Privacy Act to immediately suspend a Sickness, Unemployment, Emergency, or Independent Youth Benefit. For all other benefit types, MSD sends a s.103 notice and waits the required five working days before suspending a benefit.

The practice of immediately suspending benefits started at the same time as a new online query system enabling authorised MSD staff to verify Customs arrival and departure information.

Daily processing commenced on 15 July 2013.

Recent activity
Table 1: Working age client absences

	2014/15	2015/16	2016/17	2017/18	2018/19
New match runs started in the reporting period
Runs	365	366	364	365	364
Records received from Customs	11,110,147	12,030,438	13,088,042	13,930,462	14,258,388
Positive matches	57,318	57,867	58,274	58,176	60,603
All match runs active in the reporting period
Legitimate records (no action needed)	1,755	2,086	2,293	2,467	2,536
Notices of adverse action	53,053	52,900	52,993	53,147	55,735
Overpayments established (number)	2,214	2,441	2,428	2,549	15
Overpayments established[1]	$135,845	$159,220	$159,939	$196,593	0
Successful challenges	8	20	3	6	0

Table 2: Non-working age client absences

	2014/15	2015/16	2016/17	2017/18	2018/19
New match runs started in the reporting period
Runs	365	365	365	365	366
Records received from Customs	11,110,147	12,003,927	13,088,042	13,838,556	14,341,724
Positive matches	17,495	17,984	18,542	20,503	46,683
All match runs active in the reporting period
Legitimate records (no action needed)	9,649	10,279	10,771	12,344	21,892
Notices of adverse action	8,401	7,996	8,310	8,417	24,735
Overpayments established (number)	5,520	5,782	6,098	5,677	15,393
Overpayments established[2]	$2,238,870	$1,947,991	$2,303,303	$2,346,817	$3,111,303
Successful challenges	48	67	28	47	99
Arrears identified					212
Arrears amount					$9,136

Table 3: Debt recovery notification results
On 30 May 2011, MSD started using information received through this programme to assist it in the recovery of outstanding debts. The notifications enable MSD to re-establish contact with former clients and to maintain accurate contact information.

	2014/15	2015/16	2016/17	2017/18	2018/19
Notifications received	1,926	3,674	2,607	4,793	4,720
Notices of adverse action	400	626	313	569	573
Successful challenges	5	0	0	4	0
Debtors under arrangement to pay	57	155	31	60	79
Balance owed under arrangement	$729,821	$3,042,349	$679,338	$673,944	$932,579
Total recovered	$96,545	$121,682	$28,627	$70,384	$64,754

[1] Overpayments are the number of cases where an individual received a payment when not entitled. The total debt established includes overpayments and any penalties assessed.
[2] Overpayments are the number of cases where an individual received a payment when not entitled. The total debt established includes overpayments and any penalties assessed.

Previously authorised by the Customs and Excise Act 1996 s 280.