EXPLANATORY STATEMENT
Social Security (Administration) (Declared income management areas) Determination 2010
The Social Security (Administration) (Declared income management areas) Determination 2010 (the Determination) is made under section 123TFA of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Housing, Community Services and Indigenous Affairs, as well as making the Determination in her own capacity, is also making it on behalf of the Minister for Education and the Minister for Employment and Workplace Relations.
Background
The Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act 2010 (the Amending Act) amended Part 3B of the Act to provide the basis for a national welfare reform initiative aimed at supporting disengaged and vulnerable welfare recipients in disadvantaged locations across Australia. Three new income management measures have been introduced, to be used in selected locations in Australia, covering:
- people aged 15 to 24 who have been in receipt of Youth Allowance, Newstart Allowance, Special Benefit or Parenting Payment for more than 12 weeks in the last 26 weeks (the disengaged youth measure); and
- people aged 25 and above (and younger than age pension age) who have been in receipt of Youth Allowance, Newstart Allowance, Special Benefit or Parenting Payment for more than 52 weeks in the last 104 weeks (the long-term welfare payment recipient measure); and
- people assessed by the Secretary as requiring income management for reasons including vulnerability to financial crisis or economic abuse (the vulnerable welfare payment recipient measure).
Each of the new measures applies to a welfare payment if, amongst other things, the person’s usual place of residence is within a ‘declared income management area’. Under section 123TFA of the Act, the Minister may specify that a State or Territory, or an area, is a declared income management area for the purposes of these new measures.
This Determination provides for the new measures to be progressively extended across all of the Northern Territory ― in urban, regional and remote areas ― as a first step in a future national roll out of income management to disadvantaged regions in Australia.
The Northern Territory has the highest proportion of severely disadvantaged communities in Australia. High rates of disadvantage exist across a range of indicators, including health, unemployment, crime and other socio-economic indices, making the Northern Territory the highest priority for implementation of the new measures. Designating the Northern Territory as the first stage of the national roll‑out will also give priority, in transitioning to the new measures, to people who are already subject to income management under the existing measure that has applied in the Northern Territory since August 2007.
The operation of the new measures in the Northern Territory will be carefully evaluated, and other income management trials currently underway in Western Australia and Queensland will also continue to be evaluated. Future roll out of income management elsewhere in Australia will be informed by the evidence gained from this evaluation activity, and by other criteria including evidence of disadvantage in Australia and consideration of where income management could benefit individuals and families.
Purpose
This Determination specifies areas located in the Northern Territory as ‘declared income management areas’ for the purposes of the new income management schemes. These areas are set out in the Schedules to the Determination. These Schedules commence as provided for in section 2 of the Determination, allowing for a staged roll-out of the new measures in the Northern Territory. Schedules 1, 2 and 3 list specific local government areas in the Northern Territory. Schedule 4 covers the rest of the Northern Territory (that is, those areas within the Northern Territory that have not already been specified in Schedule 1, 2 or 3).
Once all the Schedules to the Determination have commenced, every area in the Northern Territory will be a ‘declared income management area’ for the purposes of the new income management measures and income management may apply to a person whose usual place of residence is within the Northern Territory if all other relevant conditions are satisfied in relation to the person.
The Determination is a legislative instrument and commences as provided for in section 2 of the Determination.
Consultation
Consultation on the Determination was undertaken with the Department of Education, Employment and Workplace Relations to ensure a co-ordinated approach in respect of welfare payments, for which that Department has responsibility, which may become subject to the income management regime. Centrelink was also consulted on the Determination.
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.