EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area — Mapurru) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory area — Mapurru) 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 Mapurru (also known as Maparu, Mapura, Mapuru, Marparu) 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 31 March 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 24 March 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 — Mapurru) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. The primary objectives of this Determination are to reduce the expenditure of welfare funds on substances and gambling and to ensure that welfare funds are used for the intended purpose of supporting child welfare. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999, and was brought into effect by the Minister for Families, Housing, Community Services and Indigenous Affairs, along with the Ministers for Education and Employment and Workplace Relations. The Determination specifies that the area known as Mapurru is a "declared relevant Northern Territory area" for the purposes of Part 3B of the Act, which results in the application of the income management regime to certain individuals within that area. The Determination began on 31 March 2008, and remained in effect until 24 March 2009.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area — Mapurru) Determination 2008 applies to the area known as Mapurru, which is designated as a "declared relevant Northern Territory area" for the purposes of Part 3B of the Social Security (Administration) Act 1999. This means that the income management regime, which is part of the Act, will apply to certain individuals residing in this area. The primary objective of this Determination is to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory by stemming the flow of funds towards substance abuse and gambling, and ensuring that welfare funds are used for the intended purpose of child welfare. This legislation is in effect from 31 March 2008 until 24 March 2009 and applies to the Northern Territory. The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not regulatory in nature and is not expected to impact business activity, compliance costs, or competition. The Act applies to individuals within the specified area and does not extend to other areas or jurisdictions.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory area — Mapurru) Determination 2008, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, declares the area known as Mapurru as a "declared relevant Northern Territory area" for the purposes of Part 3B of the Act. This determination was made in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, announced by the Australian Government on 21 June 2007. The primary aims of this measure are to prevent the misuse of welfare funds intended for the welfare of children by curbing spending on substances and gambling, and to ensure that these funds are actually used for the intended purpose. The income management regime, which is outlined in Part 3B of the Act, will apply to certain individuals within the designated area once it is declared relevant.
The Determination imposes specific obligations on the relevant individuals within the Mapurru area. It mandates that these individuals must comply with the income management regime, which includes conditions on the use of their welfare payments. The regime requires that a portion of these payments be deposited into a special account, known as a "basics card," from which only certain authorised payments can be made. This includes payments for essential goods and services such as food, clothing, and utilities. The regime is designed to ensure that welfare funds are used for the welfare of children and not diverted to other purposes. The Determination also requires that individuals comply with any additional conditions set by the income management scheme, which may include requirements to participate in welfare-to-work programs or other support services.
Failure to comply with the requirements of the income management regime can result in civil and criminal penalties. Under the Social Security Act, non-compliance with the income management scheme can lead to the imposition of a financial penalty, which is a deduction from the individual's future payments. Additionally, serious or repeated breaches of the income management conditions can result in criminal charges. If found guilty of an offence related to the misuse of welfare payments, an individual can face a fine of up to $5,000 or imprisonment for up to six months, or both. These penalties are intended to enforce compliance with the income management regime and to protect the welfare of children in the designated area.