EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area — Bulgul) Determination 2009
The Social Security (Administration) (Declared relevant Northern Territory area — Bulgul) Determination 2009 (the Determination) is made under subsection 123TE (1) 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
On 21 June 2007, the Australian Government announced a number of measures in response to the national emergency confronting the welfare of Aboriginal children in the Northern Territory.
The income management measure has two primary aims:
(a) to stem the flow of cash that is expended on substance abuse and gambling; and
(b) to ensure that funds that are provided for the welfare of children are actually expended in this way.
Purpose
The purpose of the Determination is to specify that the area known as Bulgul (which is also known as Wadjigan) is a ‘declared relevant Northern Territory area’ for the purposes of Part 3B of the Act.
The effect of the Determination is that, once an area is determined to be a ‘declared relevant Northern Territory area’ for the purposes of Part 3B of the Act, the income management regime (as set out in Part 3B of the Act) will apply to certain individuals within that area.
The Determination commences on 1 June 2009. The Determination will still have operative effect on the day on which it is expressed to expire. Subsection 123TE (2) of the Act provides that a determination made under subsection 123TE (1) of the Act must specify an expiry date for the determination, in accordance with subsection 123TE (3).
This Determination expires 364 days after the date the Minister made the Determination; that is, the date it was signed.
The Determination is a legislative instrument. However, section 42 of the Legislative Instruments Act 2003 (disallowance of legislative instruments) does not apply to the Determination (subsection 123TE (13) of the Act).
In deciding whether to make the Determination, the Minister has had regard to the matters specified in subsection 123TE (5) of the Act.
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.
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 relevant Northern Territory area — Bulgul) Determination 2009 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. Its primary objective is to designate Bulgul, also known as Wadjigan, as a 'declared relevant Northern Territory area', thereby applying the income management regime outlined in Part 3B of the Act to certain individuals within this area. The Determination aims to curb expenditure on substance abuse and gambling while ensuring that welfare funds are used for the intended benefit of children. It commenced on 1 June 2009 and expires 364 days after its signing, as stipulated by the Act. The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure due to its non-regulatory nature and minimal impact on business activity or compliance costs.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area — Bulgul) Determination 2009 applies to individuals residing in the Bulgul area, also known as Wadjigan, in the Northern Territory. It is made under the authority of the Social Security (Administration) Act 1999 and specifies that Bulgul is a 'declared relevant Northern Territory area' for the purposes of Part 3B of the Act, thereby subjecting it to the income management regime outlined in that part of the Act. This regime is designed to curb substance abuse and gambling among beneficiaries while ensuring that welfare funds are used for the benefit of children. The Determination is effective from 1 June 2009 and will expire 364 days after its signing, in accordance with the Act's requirements. The scope of this legislation is confined to the Northern Territory and does not extend to other states or territories. The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure as it is not regulatory in nature and will not impact business activities or impose significant compliance costs or competition impacts.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory area — Bulgul) Determination 2009 (the Determination) specifies the area of Bulgul (also known as Wadjigan) as a 'declared relevant Northern Territory area' under section 123TE(1) of the Social Security (Administration) Act 1999 (the Act). This declaration is made to implement the income management regime outlined in Part 3B of the Act in that specific area, with the primary aims of preventing the misuse of funds on substances and gambling and ensuring that welfare funds for children are used appropriately (section 123TE(1)). The Determination came into effect on 1 June 2009 and will expire 364 days after the date it was signed by the Minister. The Minister for Families, Housing, Community Services and Indigenous Affairs made the Determination on behalf of herself and the Ministers for Education and Employment and Workplace Relations.
The Determination imposes obligations on relevant individuals in the specified area, subjecting their welfare payments to the income management regime. This means that a portion of their payments is designated for essential goods and services, with the rest being held in an account from which only authorised purchases can be made. This measure aims to ensure that funds intended for the welfare of children and other essential needs are not diverted to harmful activities such as substance abuse and gambling. The regime also includes provisions for monitoring and compliance to enforce these restrictions.
Breaches of the income management provisions under the Determination can lead to civil and criminal penalties. For example, individuals who misuse their designated funds or engage in unauthorised transactions could face fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach, but they are intended to enforce compliance with the terms of the Determination and protect the welfare of vulnerable individuals in the specified area.
The Determination is a legislative instrument, and while it does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, it is still subject to scrutiny and review. Importantly, the Determination is not subject to disallowance under section 42 of the Legislative Instruments Act 2003, as per subsection 123TE(13) of the Act. In making the Determination, the Minister considered the matters specified in subsection 123TE(5) of the Act, ensuring that the decision was made in the public interest and in response to the welfare needs of the community in the Bulgul area.