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.
Overview
The Social Security (Administration) (Declared child protection State or Territory — Western Australia) Determination 2008 was enacted to address the issue of child neglect in Western Australian communities by allowing child protection officers to implement income management as a safeguard for children's welfare. This determination was made under section 123TF of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also on behalf of the Ministers for Education and Employment and Workplace Relations. The primary policy objective of this instrument is to declare Western Australia as a 'declared child protection State or Territory', enabling child protection officers to issue notices to the Secretary to subject certain welfare recipients to an income management regime. This regime ensures that a portion of the recipients' welfare payments is directed towards meeting the priority needs of the person and their dependants, such as food, clothing, and shelter. The determination aims to support parents in managing their finances better and ultimately protect children from neglect.
Scope and Application
The Social Security (Administration) (Declared Child Protection State or Territory — Western Australia) Determination 2008 applies to persons who are subject to the income management regime under Part 3B of the Social Security (Administration) Act 1999, specifically within the context of Western Australia being declared as a child protection State or Territory. This determination is applicable to individuals who receive certain welfare payments and are identified by a child protection officer of Western Australia as needing to have their payments managed to prioritise the needs of children at risk of neglect or already being neglected. This includes any person who, or whose partner, is an eligible recipient of relevant welfare payments, as stipulated under the Act. The jurisdictional reach of this Determination is confined to the Commonwealth level, as it is made under the authority of the Social Security (Administration) Act 1999. The Determination does not extend to other states or territories unless similarly declared under the Act. There are no specified exclusions or exemptions within the text of the Determination itself, though the applicability of the income management regime is contingent on meeting the criteria outlined in section 123UC of the Act. The application of this Determination may be further detailed or restricted through subordinate instruments, although such instruments are not explicitly mentioned in the provided text.
Key Provisions
The Social Security (Administration) (Declared child protection State or Territory — Western Australia) Determination 2008 (sections 1 to 4) is made under section 123TF of the Social Security (Administration) Act 1999 (the Act). This Determination specifies that Western Australia is a declared child protection State or Territory for the purposes of Part 3B of the Act. This means that a child protection officer in Western Australia can request the Secretary to subject a person to the income management regime if certain criteria are met (section 123UC). 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 can notify the Secretary of the requirement for a person to be subject to the income management regime (section 123UC). If the criteria in section 123UC are satisfied, a portion of the person’s welfare payments will be redirected to the priority needs of the person and his or her dependants (section 123UC).
The Act imposes several obligations on the parties involved. The Secretary must comply with a written notice from a child protection officer in a declared child protection State or Territory, such as Western Australia, to subject a person to the income management regime (section 123UC). The Secretary is also responsible for deducting amounts from the person’s welfare payments and crediting those amounts to the person’s income management account (section 123UA). The Secretary may then debit amounts from the income management account for the purpose of meeting the priority needs of the person or their dependants (Part 3B). The child protection officer must ensure that the criteria in section 123UC are met before providing a written notice to the Secretary. The person subject to the income management regime must comply with the requirements set out in Part 3B of the Act.
There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination for breach of its provisions. However, any breaches of the Act’s income management regime, such as failing to comply with the Secretary’s directions, may result in administrative or legal consequences. For example, under section 133 of the Act, the Secretary may impose administrative penalties for non-compliance with the income management regime. The maximum penalty for an individual is generally $2,100, and for a body corporate, the penalty is up to $105,000 (section 133). Additionally, any failure to comply with the income management regime may lead to the suspension or termination of welfare payments, which can have significant financial and social consequences for the affected individual and their dependants.