EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area – Imanpa) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory area – Imanpa) 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 Imanpa, 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 – Imanpa) Determination 2007 was enacted in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory. This measure, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, aims to address two main issues: stemming the flow of funds into substance abuse and gambling, and ensuring that welfare funds are used for the intended purpose of child welfare. The purpose of the Determination is to designate Imanpa, along with its associated outstations, as a "declared relevant Northern Territory area" under Part 3B of the Act. Once an area is declared, the income management regime specified in the Act applies to certain individuals within that area. This initiative was developed in consultation with relevant departments to ensure a coordinated approach to welfare payments. The Determination does not require a Regulatory Impact Statement and is not expected to have any significant compliance costs or business impacts.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area – Imanpa) Determination 2007 applies to the area known as Imanpa and all associated outstations in the Northern Territory. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999, and it designates Imanpa as a "declared relevant Northern Territory area" for the purposes of Part 3B of the Act, which deals with the income management regime. The instrument is intended to ensure that welfare payments are used for the welfare of children rather than being misallocated towards substance abuse and gambling. The income management regime will apply to certain individuals in this designated area, providing oversight and control over the allocation of welfare funds. The Determination is a legislative measure taken by the Australian Government in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, and it operates under the authority of multiple Ministers, including those for Families, Community Services and Indigenous Affairs, Education, Science and Training, and Employment and Workplace Relations.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory area – Imanpa) Determination 2007 are found in section 3, which specifies that Imanpa, along with all associated outstations, is a “declared relevant Northern Territory area” under Part 3B of the Social Security (Administration) Act 1999. This means that the income management regime, as outlined in Part 3B, will apply to certain individuals residing in this area. The Determination is designed to address the urgent welfare issues facing Aboriginal children in the Northern Territory, particularly by preventing the misuse of welfare funds on substances and gambling and ensuring these funds are used for the intended purpose of child welfare. The determination remains in effect until it is explicitly stated to expire.
The Act imposes specific obligations and requirements on the individuals and entities it governs within the declared area. For individuals, this means that their Centrelink payments may be subject to stricter controls to ensure the money is spent on necessities for the welfare of children. This includes the possibility of having a portion of their payments quarantined and managed by Centrelink to prevent it from being used on prohibited items such as alcohol, tobacco, and gambling paraphernalia. For entities such as Centrelink, the obligation is to enforce these controls effectively and ensure compliance with the income management regime.
The Determination also outlines the consequences for breaches of the income management provisions. While the specific offences and penalties are detailed in the Social Security (Administration) Act 1999, the Determination itself emphasises the importance of compliance. Non-compliance can lead to civil or criminal penalties, which can include fines and imprisonment. The exact penalties are defined in the main Act, but they are intended to be stringent enough to deter misuse of welfare funds. It is essential for individuals and entities governed by this Determination to adhere strictly to the requirements to avoid facing these potential consequences.