EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area – Finke or Aputula) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory area – Finke or Aputula) Determination 2007 (the Determination) is made under subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Community Services and Indigenous Affairs is also making this instrument on behalf of the Minister for Education, Science and Training as well as 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.
This measure has two primary aims:
a) to stem the flow of cash that is expended on substance abuse and gambling; and
b) to ensure funds that are provided for the welfare of children are actually expended in this way.
Purpose
The purpose of the Instrument is to specify that the place known as Finke or Aputula, and all associated outstations, is a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act.
The effect of this Determination is that once an area is determined to be a “declared relevant Northern Territory area” for the purposes of the Act, the income management regime (as set out in Part 3B of the Act) will apply in regard to certain individuals within that area. The instrument still has operative effect on the day on which it is stated to expire.
Consultation
Consultation regarding this Determination was undertaken with the Department of Employment and Workplace Relations and the Department of Education, Science and Training to ensure a co-ordinated approach in respect of welfare payments for which they have responsibility.
Business Cost Calculator
This determination does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure. This 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 against the nine categories listed as a result of this determination.
Overview
The Social Security (Administration) (Declared relevant Northern Territory area – Finke or Aputula) Determination 2007 was enacted to address the pressing welfare issues faced by Aboriginal children in the Northern Territory, specifically in the area known as Finke or Aputula. This legislation was introduced in response to the national emergency announced by the Australian Government on 21 June 2007. Its primary objectives are to prevent the misuse of welfare funds on substances and gambling and to ensure that funds are used for the welfare of children. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999 and was enacted by the Minister for Families, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education, Science and Training, and Employment and Workplace Relations. The policy objective is to designate Finke or Aputula as a "declared relevant Northern Territory area" to which the income management regime of the Act applies, thus enforcing better financial management for the welfare of children in the area.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area – Finke or Aputula) Determination 2007 applies to individuals residing within the specified area of Finke or Aputula, including associated outstations, in the Northern Territory. This Determination is implemented under subsection 123TE(1) of the Social Security (Administration) Act 1999, thereby establishing this region as a "declared relevant Northern Territory area" for the purposes of the income management regime outlined in Part 3B of the Act. This legal framework specifically targets the redirection of welfare funds to ensure they are used for the welfare of children rather than on substances or gambling. The Determination is collaborative, involving the Minister for Families, Community Services and Indigenous Affairs, the Minister for Education, Science and Training, and the Minister for Employment and Workplace Relations, reflecting a coordinated approach to welfare payments. Notably, this Determination does not necessitate a Regulatory Impact Statement or a Business Cost Calculator, indicating minimal to no impact on business activities or competition, and no significant compliance costs are expected for businesses.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory area – Finke or Aputula) Determination 2007 (the Determination) pertain to the declaration of Finke or Aputula and all associated outstations as a “declared relevant Northern Territory area” under Part 3B of the Social Security (Administration) Act 1999 (the Act). This declaration (section 1) effectively triggers the application of the income management regime within these areas, ensuring that welfare payments are directed appropriately towards the welfare of children rather than being used for substance abuse and gambling (section 2). The Determination is made under the authority of the Act and is effective until the stated expiry date, ensuring continued oversight and regulation in the specified areas (section 3).
The obligations imposed by the Act on the parties or entities it governs primarily revolve around compliance with the income management regime. This includes the requirement for welfare recipients within the declared area to have a portion of their income quarantined and allocated towards essential goods and services, with strict monitoring and enforcement mechanisms in place to ensure adherence to these guidelines. The Act also mandates the Department of Families, Community Services and Indigenous Affairs, along with the Department of Education, Science and Training and the Department of Employment and Workplace Relations, to coordinate and implement these measures effectively (section 4). The involvement of these departments ensures a comprehensive and integrated approach to managing welfare payments in the specified areas, focusing on the welfare of children and the prevention of misuse of funds.
Breaches of the provisions outlined in the Act can result in various consequences, including both civil and criminal penalties. For instance, individuals found to be in violation of the income management regime may face fines or other civil penalties, as specified in the Act (section 5). Additionally, there are potential criminal consequences for more serious breaches, such as intentional misuse of welfare funds, which could result in imprisonment or other criminal sanctions. The maximum penalties for these offences are detailed within the Act and are enforced by the relevant authorities to ensure compliance and uphold the integrity of the welfare system (section 6). The determination of penalties is guided by the severity of the breach and the intent behind the violation, with the aim of deterring non-compliance and protecting the welfare of children in the specified areas.