EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area — Iwupataka) Determination 2009
The Social Security (Administration) (Declared relevant Northern Territory area — Iwupataka) Determination 2009 (the Determination) is made under subsections 123TE (1) and (10) 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 that, once Iwupataka (also known as Jay Creek) 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 11 September 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 (subsections 123TE (13) and (14) 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 — Iwupataka) Determination 2009 was enacted to address the pressing welfare issues faced by Aboriginal children in the Northern Territory, particularly those in the Iwupataka (Jay Creek) area. This Determination was introduced under the authority of subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, and in her capacity as representative for the Minister for Education and the Minister for Employment and Workplace Relations. The primary objectives of this legislation are to curtail the expenditure on substance abuse and gambling and to ensure that welfare funds for children are used for their intended purposes. Once Iwupataka is declared a relevant area under Part 3B of the Act, the income management regime will apply to specific individuals in that area, thereby implementing these policy goals.
The Determination commenced on 11 September 2009 and will remain in effect until it expires 364 days after the date it was signed. Notably, this instrument is not subject to the disallowance provisions of the Legislative Instruments Act 2003. In making this Determination, the Minister considered the matters specified in subsection 123TE(5) of the Act and ensured coordinated consultation with the Department of Education, Employment and Workplace Relations to align welfare payment practices with the income management regime.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area — Iwupataka) Determination 2009 is made under the Social Security (Administration) Act 1999, with the primary objective of applying the income management regime to certain individuals within the declared relevant Northern Territory area of Iwupataka. This Determination is applicable to those individuals residing in Iwupataka, aiming to curb the misuse of cash on substances and gambling while ensuring funds intended for children's welfare are appropriately utilised. The scope of this legislation extends to the geographic area of Iwupataka, which is a declared relevant Northern Territory area for the purposes of Part 3B of the Act. It is important to note that the Determination is made on behalf of several ministers and is effective from 11 September 2009, expiring 364 days after the date it was signed. The Determination is not subject to disallowance under section 42 of the Legislative Instruments Act 2003, and it does not require a Regulatory Impact Statement or a Business Cost Calculator Figure as it is not considered regulatory in nature. The Determination aims to coordinate with the Department of Education, Employment and Workplace Relations to ensure that welfare payments are managed effectively within the income management regime.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory area — Iwupataka) Determination 2009 (subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999) establish Iwupataka (also known as Jay Creek) as a 'declared relevant Northern Territory area', thereby applying the income management regime to certain individuals within that area. This regime, as outlined in Part 3B of the Act, is designed to ensure that welfare funds are used for the benefit of children rather than being spent on substance abuse and gambling. The Determination commences on 11 September 2009 and will expire 364 days after its enactment, as stipulated in subsection 123TE(2) of the Act.
The obligations imposed by the Determination on the relevant parties include the requirement that welfare payments made to individuals in Iwupataka are subject to income management measures. This involves the withholding of a portion of these payments to be held in a Basic Payment Account, which can only be used for specific purposes such as food, rent, clothing, and other essential goods and services. This is intended to prevent the misuse of funds and ensure that they are directed towards the welfare of children. Additionally, the Minister for Families, Housing, Community Services and Indigenous Affairs, along with the Minister for Education and the Minister for Employment and Workplace Relations, are mandated to oversee the implementation of these measures to ensure compliance with the Determination.
In terms of consequences for breach, the Determination itself does not explicitly outline specific offences or penalties for non-compliance. However, non-compliance with the income management regime under Part 3B of the Social Security (Administration) Act 1999 could potentially result in civil or criminal penalties as prescribed by that Act. For instance, misuse of welfare funds could lead to prosecution under relevant state or territory laws, with penalties that may include fines and imprisonment. Additionally, individuals who fail to comply with the conditions of their Basic Payment Account may face further administrative actions, including the withholding of benefits or other enforcement measures as permitted under the Act.