EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area — Laramba) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory area — Laramba) Determination 2008 (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 this instrument in her own capacity, is also making this instrument 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.
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 Determination is to specify that the area known as Laramba (which is also known as Napperby and Naperrby) is a ‘declared relevant Northern Territory area’ for the purposes of Part 3B of the Act.
The effect of the Determination is that once the 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 27 October 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 17 October 2009).
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 they have responsibility, which may become subject to the income management regime.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement (RIS) 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. It is not expected that any compliance costs will be incurred by business, as a result of this Determination, against the nine categories listed in the Business Compliance Cost Checklist contained in the Best Practice Regulation Handbook prepared by the Office of Best Practice Regulation.
Overview
The Social Security (Administration) (Declared relevant Northern Territory area — Laramba) Determination 2008 was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, particularly in the area known as Laramba. This Determination was made under the authority of the Social Security (Administration) Act 1999 and was introduced by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education and Employment and Workplace Relations. Its primary purpose is to specify the Laramba area as a ‘declared relevant Northern Territory area’ for the application of the income management regime set out in Part 3B of the Act. By doing so, the Determination aims to redirect welfare funds away from substance abuse and gambling towards the actual welfare of children, thereby ensuring these funds are used for their intended purpose. The Determination commenced on 27 October 2008 and was set to expire on 17 October 2009, although it remained operative until its expiry date. Consultation was undertaken with relevant departments to ensure a coordinated approach in managing welfare payments that may fall under the income management regime.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area — Laramba) Determination 2008 applies to a specific geographic area within the Northern Territory, namely Laramba, also known as Napperby or Naperrby. This Determination, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, designates Laramba as a 'declared relevant Northern Territory area' for the purposes of Part 3B of the Act, thereby subjecting it to the income management regime. This regime is designed to ensure that welfare funds are used appropriately, particularly to prevent expenditure on substances and gambling, and to ensure they are directed towards the welfare of children. The Determination applies to individuals residing in the specified area and is effective from 27 October 2008, continuing until 17 October 2009. The instrument was developed in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced on 21 June 2007, and was created in collaboration with the Department of Education, Employment and Workplace Relations to ensure a coordinated approach to welfare payments.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory area — Laramba) Determination 2008 (sections 1 to 5) declare the area known as Laramba, also referred to as Napperby or Naperrby, as a 'declared relevant Northern Territory area' under Part 3B of the Social Security (Administration) Act 1999 (the Act). Once declared, this area is subject to the income management regime outlined in Part 3B of the Act, which applies to specific individuals within that area. This income management regime is intended to prevent the misuse of welfare funds, particularly to curb spending on substances and gambling, and to ensure these funds are used for the welfare of children. The Determination came into effect on 27 October 2008 and will remain in force until 17 October 2009.
The obligations and requirements imposed by this Determination on the parties it governs are primarily centred on the implementation and enforcement of the income management regime in the declared area. Relevant welfare recipients in Laramba must comply with the restrictions on how their welfare payments can be spent. This includes the redirection of a portion of their payments to a basic card, which can only be used for essential goods and services, while another portion is held in a savings account. These measures are designed to ensure that welfare funds are used for the welfare of children and not diverted to activities like substance abuse or gambling. The Act also requires the relevant authorities to monitor compliance and take action against those who breach the income management rules.
The Determination introduces specific offences, penalties, or consequences for breaches of the income management regime. Individuals who fail to comply with the income management requirements may face civil or criminal penalties. Civil penalties can include fines or other sanctions imposed by the relevant authorities. Criminal penalties may be imposed for more serious breaches, with potential maximum penalties as stipulated under the Social Security (Administration) Act 1999. The exact nature and severity of these penalties depend on the specific breach and the discretion of the courts or administrative bodies handling the case. The Determination aims to deter non-compliance by imposing these consequences, ensuring that welfare funds are used appropriately for the intended beneficiaries.