EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area – Nganmarriyanga or Palumpa) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory area – Nganmarriyanga or Palumpa) 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, as well as making this instrument in his own capacity, is also making this instrument on behalf of the Minister for Education, Science and Training 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 Instrument is to specify that the place known as Nganmarriyanga or Palumpa 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 (i.e. 20 November 2008).
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 – Nganmarriyanga or Palumpa) Determination 2007 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, specifically in the areas of Nganmarriyanga or Palumpa. This instrument, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, was introduced to achieve two primary aims: to prevent the misuse of welfare funds on substances and gambling, and to ensure that welfare payments are used for the intended purpose of child welfare. The enactment was authorised by the Minister for Families, Community Services and Indigenous Affairs, as well as by the Ministers for Education, Science and Training, and Employment and Workplace Relations. The policy objective was to specify these areas as "declared relevant Northern Territory areas" to which the income management regime of the Act applies, thus ensuring that welfare funds are directed towards the welfare of children rather than being diverted to harmful activities.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area – Nganmarriyanga or Palumpa) Determination 2007 applies to the specific geographic area of Nganmarriyanga or Palumpa within the Northern Territory and is made under subsection 123TE(1) of the Social Security (Administration) Act 1999. This Determination designates Nganmarriyanga or Palumpa as a "declared relevant Northern Territory area," thereby extending the application of the income management regime outlined in Part 3B of the Act to certain individuals within this region. The primary intent of this Determination is to address the national emergency concerning the welfare of Aboriginal children by curbing the misuse of welfare funds on substances and gambling, ensuring that these funds are instead used for the benefit of children's welfare. This measure is applicable to individuals residing in the specified area and aims to stem the flow of cash into harmful activities while ensuring that welfare funds are appropriately allocated. The Determination operates under the authority of the Minister for Families, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education, Science and Training and Employment and Workplace Relations, reflecting a coordinated effort across various government sectors.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory area – Nganmarriyanga or Palumpa) Determination 2007 (sections 1 to 3) declares the area known as Nganmarriyanga or Palumpa as a "declared relevant Northern Territory area" under section 123TE(1) of the Social Security (Administration) Act 1999 (the Act). This means that the income management regime outlined in Part 3B of the Act will apply to certain individuals within this area. This measure was introduced in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, aiming to redirect funds from substance abuse and gambling towards child welfare (section 1).
The Act imposes several obligations on the individuals affected by this determination. These include restrictions on the use of certain social security payments for activities such as gambling or purchasing alcohol, in an effort to ensure that welfare funds are used for the benefit of children (section 2). The Act requires the application of these income management measures to individuals who reside in the declared area and who are recipients of specified social security payments. Compliance with these measures is mandatory for the affected individuals, and failure to comply could result in the withholding of payments.
Breaches of the provisions outlined in the Determination can lead to various civil and criminal consequences. Under the Act, individuals who fail to comply with the income management measures may face administrative penalties, including the withholding of social security payments (section 3). The Act also provides for the possibility of legal action against those who wilfully disregard the income management requirements, potentially leading to fines or other legal penalties. The maximum penalties for such breaches are not explicitly stated in the Determination but would be determined according to the general provisions of the Act.