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.
Overview
The Social Security (Administration) (Declared income management areas) Determination 2010, enacted under the Social Security (Administration) Act 1999, was introduced to address the socio-economic disadvantage in Australia, particularly in the Northern Territory, by implementing new income management measures for welfare recipients. This initiative was aimed at providing support to disengaged and vulnerable welfare recipients, including disengaged youth, long-term welfare payment recipients, and those assessed as vulnerable to financial crisis or economic abuse. The Determination was made by the Minister for Families, Housing, Community Services and Indigenous Affairs, on behalf of herself and the Ministers for Education and Employment and Workplace Relations. The policy objective is to progressively extend these measures across the Northern Territory, which has the highest proportion of severely disadvantaged communities, to ultimately benefit individuals and families in other disadvantaged regions across Australia.
The Determination designates areas in the Northern Territory as 'declared income management areas' for the new income management schemes, with a staged roll-out as outlined in the Schedules to the Determination. Consultation with the Department of Education, Employment and Workplace Relations and Centrelink ensured a coordinated approach to the welfare payments affected by the income management regime. The Determination, which does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, is not regulatory in nature and is not expected to have any significant compliance costs or competition impact.
Scope and Application
The Social Security (Administration) (Declared income management areas) Determination 2010 applies to specified areas within the Northern Territory of Australia, which are designated as 'declared income management areas' for the purpose of implementing new income management measures. These measures target disengaged youth, long-term welfare payment recipients, and vulnerable welfare payment recipients, contingent upon their usual place of residence being within these areas. The Determination is made under section 123TFA of the Social Security (Administration) Act 1999 and is intended to support disengaged and vulnerable welfare recipients in disadvantaged locations. The measures are designed to be progressively extended across all urban, regional, and remote areas in the Northern Territory, reflecting the region's high proportion of severely disadvantaged communities. The application of these measures is contingent on the person also meeting specific conditions related to their welfare payment history and vulnerability assessments. The Determination allows for a staged roll-out, with various local government areas and the remainder of the Northern Territory listed in the Schedules. Once all Schedules have commenced, every area in the Northern Territory will be considered a 'declared income management area' for the purposes of the new income management measures. The scope of the Determination is limited to the Northern Territory, with future national rollout informed by evaluations of the measures' operation in the Territory and other ongoing trials in Western Australia and Queensland.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared income management areas) Determination 2010 (sections 3 and 4) designate specific areas in the Northern Territory as "declared income management areas" for the purposes of the new income management measures. These areas are detailed in Schedules 1 to 4 of the Determination. The Determination allows for a staged implementation of these measures, starting with the areas listed in Schedules 1 to 3, followed by the remaining areas of the Northern Territory covered in Schedule 4. Once all schedules have commenced, the entire Northern Territory will be covered by the new income management measures. Section 2 of the Determination outlines the commencement dates for each schedule, ensuring a phased introduction of these measures.
The Determination imposes specific obligations and requirements on parties and entities it governs. Firstly, it requires the Minister for Families, Housing, Community Services and Indigenous Affairs to make the Determination, both in her own capacity and on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The designated areas in the Northern Territory must be recognised as "declared income management areas" for the application of the new income management measures. Welfare recipients residing in these areas may have their payments subject to income management if they meet the criteria specified in the Act. The Minister is also tasked with ensuring that the measures are implemented in a manner that aligns with the objectives of the Social Security and Other Legislation Amendment (Welfare Reform and Reinstatement of Racial Discrimination Act) Act 2010. Additionally, the Determination mandates coordination with relevant departments such as the Department of Education, Employment and Workplace Relations and Centrelink to ensure a cohesive approach to welfare payments that may be subject to income management.
Under the Social Security (Administration) Act 1999, breaches of the requirements set forth in the Determination may lead to various consequences. Although the Determination itself does not explicitly state penalties or offences, the broader legislative framework under which it operates may impose sanctions for non-compliance. For example, individuals who fail to comply with income management measures could face penalties under the Social Security Act, which might include financial penalties or other administrative actions. Additionally, entities such as Centrelink may enforce compliance through measures such as the withholding of welfare payments or other administrative actions. The precise nature and extent of penalties would be governed by the Social Security Act and associated regulations, rather than the Determination itself.
In summary, the Social Security (Administration) (Declared income management areas) Determination 2010 provides the legal basis for designating specific areas in the Northern Territory as "declared income management areas" and outlines the staged implementation of new income management measures. It imposes obligations on the Minister to ensure these measures are recognised and implemented correctly and mandates coordination with other relevant departments. While the Determination does not specify penalties for non-compliance, such actions could result in consequences under the broader Social Security Act framework.