EXPLANATORY STATEMENT

Social Security (Administration) (Declared child protection State or Territory — Western Australia) Determination 2008

The Social Security (Administration) (Declared child protection State or Territory — Western Australia) Determination 2008 (the Determination) is made under section 123TF of the Social Security (Administration) Act 1999 (the Act).  The Minister for Families, Housing, Community Services and Indigenous Affairs, as well as making this instrument in her own capacity, is also making this instrument on behalf of the Minister for Education and the Minister for Employment and Workplace Relations.

Background

Part 3B of the Act establishes an income management regime that applies to recipients of certain welfare payments.  If a person is subject to the income management regime under Part 3B, the Secretary will deduct amounts from the person’s relevant welfare payments and credit those amounts to the person’s income management account.  The Secretary may then debit amounts from the person’s income management account, in accordance with Part 3B, for the purpose of taking actions directed to meeting the priority needs of the person or his or her dependants.

Subdivision A of Division 2 of Part 3B sets out the various situations in which a person is subject to the income management regime.  Section 123UC, in that Subdivision, provides that a person is subject to the income management regime at a particular time (the test time) if, amongst other things: before the test time, a child protection officer of a State or Territory has given the Secretary a written notice requiring that the person be subject to the income management regime; and, at the test time, the State or Territory is a declared child protection State or Territory.  The term ‘child protection officer’ is defined in section 123TC of the Act as an officer or employee of a State or Territory who has functions, powers or duties in relation to the care, protection or welfare of children.  The term ‘declared child protection State or Territory’ has the meaning given by section 123TF of the Act.  Section 123TF provides that the Minister may, by legislative instrument, determine that a specified State or Territory is a declared child protection State or Territory for the purposes of Part 3B of the Act.

On 13 May 2008, the Australian Government announced that, working in partnership with the Western Australian Government, it would provide an $18.9 million package to implement income management and financial literacy skills training, to help protect children in selected Western Australian communities from mid-2008.

This is the first trial making income management available as a tool for state child protection authorities in circumstances where a child may be at risk of neglect or is being neglected.  The trial is a key part of the National Child Protection Framework, an election commitment of the Government.  Practical measures such as income management ensure that welfare payments are spent in the best interests of children.

Funding for this measure includes $1.5 million in 2008-09 for financial literacy and training services. These services are designed to help parents subject to income management to deal with immediate financial difficulties and build skills to better manage their finances and provide for their children in the long term.

Purpose

The purpose of this instrument is to determine that Western Australia is a ‘declared child protection State or Territory’ for the purposes of Part 3B of the Act.

The effect of the Determination is that once Western Australia is determined to be a declared child protection State or Territory, a child protection officer with the Western Australian Department for Child Protection will be able to give the Secretary a notice, as mentioned in section 123UC of the Act, requiring a person to be subject to the income management regime.  If the various criteria in section 123UC are satisfied (including that the person, or the person’s partner, is an eligible recipient of a relevant welfare payment), a portion of the person’s relevant welfare payments will be redirected to the priority needs, such as food, clothing and shelter, of the person and his or her dependants.

The Determination commences on the day after it is registered.

Consultation

Consultation on the Determination was undertaken with the Western Australian Department for Child Protection.  Consultation on the Determination was also undertaken with the Commonwealth Departments of Education, Employment and Workplace Relations, and Veterans’ Affairs, to ensure a co-ordinated approach in respect of welfare payments, for which they have responsibility, which may become subject to the income management regime.

Regulatory Impact Analysis

The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure.  The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.  It is not expected that any compliance costs will be incurred by business, as a result of this Determination, against the nine categories listed in the Business Compliance Cost Checklist contained in the Best Practice Regulation Handbook prepared by the Office of Best Practice Regulation.