EXPLANATORY STATEMENT
COMMONWEALTH SERVICES DELIVERY AGENCY DIRECTIONS 2001
The Commonwealth Services Delivery Agency Act 1997 (the Act) provides for the establishment of Centrelink.
Section 8 of the Act, specifies the functions of Centrelink, namely, the provision of Commonwealth services in accordance with service arrangements (paragraph 8(1)(a) of the Act), any functions conferred on Centrelink under any other Act (paragraph 8(1)(b) of the Act), any functions that the Minister, by written notice given to the Chairman, directs Centrelink to perform (paragraph 8(1)(c) of the Act) and doing anything incidental, conducive or related to the performance of any of its other functions (paragraph 8(1)(d) of the Act).
This Direction is made by the Minister under paragraph 8(1)(c) of the Act and is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 as specified under subsection 8(2) of the Act.
Notice to Chairman of Directions
Subsection 10(1) of the Act provides that the Minister must, before giving a direction under paragraph 8(1)(c) of the Act, by written notice given to the Chairman of the Board of Centrelink, ask the Board for its written advice or comments on the impact of the proposed direction on Centrelink’s operations. The Minister gave this written notice to the Chairman on 5 October 2001.
The Boards advice or comments to the Minister about the Directions
In accordance with subsection 10(1) of the Act, the Board of Centrelink, through its Chairman (Mr John Pascoe, AM) advised the Minister on 22 October 2001 that the Board agreed that it had no objections to receiving the Direction.
The Directions
The Minister’s Directions arise from a request, made to Centrelink, by the New Zealand Ministry of Social Development to make arrangements for the payment of income support payments and other functions on behalf of the New Zealand Ministry of Social Development. The income support payments being made are to New Zealand citizens who are victims of domestic violence and also to New Zealand citizens who are subject to the New Zealand Police’s Witness Protection Program where those people are relocated to Australia for safety. New social security arrangements between Australia and New Zealand, some of which came into force in May 2001 and others which are due to come into effect from July 2002, will mean that the above categories of relocated people who previously had access to Centrelink administered programs when relocated to Australia, will no longer have that entitlement.
The functions to be performed by Centrelink are:
- providing a payment to each person every fortnight;
- conducting compliance reviews by telephone;
- conducting field reviews when requested by the New Zealand Ministry of Social Development; and
- providing summary reports to the New Zealand Ministry of Social Development.
The Directions commence on 1 January 2002. Prior to commencement, Centrelink and the New Zealand Ministry of Social Development will enter into a Memorandum of Understanding that provides for provision of these functions as well as financial recompense to Centrelink. The Memorandum of Understanding is expected to be signed by 31 December 2001.
Overview
The Commonwealth Services Delivery Agency Act 1997 established Centrelink, aiming to streamline the provision of Commonwealth services. This legislation was enacted by the Australian Parliament and seeks to centralise the delivery of various services, including social security payments, to improve efficiency and effectiveness. The Act provides the Minister with the authority to direct Centrelink to perform specific functions, as outlined in section 8, and this power is exercised through the issuance of directions, such as the Commonwealth Services Delivery Agency Directions 2001. These directions are issued to facilitate the performance of additional functions, as requested by other government agencies, and in this case, they address the need to provide social security payments to New Zealand citizens relocated to Australia under specific circumstances, such as being victims of domestic violence or participants in the New Zealand Police’s Witness Protection Program. The directions were made in response to new social security arrangements between Australia and New Zealand that altered the eligibility of these individuals for Centrelink-administered programs.
Scope and Application
The Commonwealth Services Delivery Agency Directions 2001 applies to Centrelink, a statutory body established under the Commonwealth Services Delivery Agency Act 1997. Centrelink is directed by the Minister to perform specific functions as outlined in the Directions, which include making income support payments to New Zealand citizens who are victims of domestic violence and those involved in New Zealand's Witness Protection Program, relocated to Australia for safety. These Directions were issued under section 8(1)(c) of the Act, which allows the Minister to direct Centrelink to perform any functions. The geographic reach of these Directions is national, as Centrelink operates across Australia. The Directions do not specify any exclusions or exemptions but are subject to a Memorandum of Understanding between Centrelink and the New Zealand Ministry of Social Development, which outlines the provision of these functions and financial arrangements. The Directions commence on 1 January 2002, following the Minister's consultation with the Board of Centrelink, who expressed no objections to the proposed functions.
Key Provisions
The main operative sections of the Commonwealth Services Delivery Agency Directions 2001 (the Directions) are contained in subsection 10(1) of the Commonwealth Services Delivery Agency Act 1997 (the Act). Section 10(1) requires the Minister to seek advice from the Chairman of the Board of Centrelink before issuing any directions to Centrelink. Additionally, the Directions specify the functions Centrelink must perform under the request of the New Zealand Ministry of Social Development, which include making fortnightly payments to certain New Zealand citizens, conducting compliance and field reviews, and providing summary reports (subsection 10(1)(c) of the Act). These Directions are in response to the new social security arrangements between Australia and New Zealand, which alter the entitlements of relocated New Zealand citizens.
The Directions impose specific obligations on Centrelink to perform the outlined functions in accordance with the new social security arrangements. Centrelink must provide fortnightly payments to eligible New Zealand citizens who are victims of domestic violence or under the New Zealand Police’s Witness Protection Program and are relocated to Australia. It must also conduct compliance reviews by telephone and field reviews when requested, and submit summary reports to the New Zealand Ministry of Social Development. These obligations necessitate that Centrelink enters into a Memorandum of Understanding with the New Zealand Ministry of Social Development, detailing the scope of these functions and financial arrangements. This Memorandum of Understanding must be signed by 31 December 2001, prior to the commencement of the Directions on 1 January 2002.
Failure to comply with the Directions could potentially result in legal consequences. While the explanatory statement does not explicitly detail offences or penalties for non-compliance, it is implied that any breach of the Directions could lead to civil or administrative actions under the Act or other relevant legislation. Given the nature of the Directions, non-compliance could also have diplomatic implications between Australia and New Zealand, potentially affecting bilateral agreements and relations. The precise penalties for such breaches would depend on the specific provisions of the Act and any applicable administrative or judicial processes.