EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area – Titjikala) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory area – Titjikala) 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 Titjikala, 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 – Titjikala) Determination 2007 was enacted to address the urgent welfare needs of Aboriginal children in the Northern Territory, particularly in the context of substance abuse and gambling. This Determination was introduced under subsection 123TE(1) of the Social Security (Administration) Act 1999 by the Minister for Families, Community Services and Indigenous Affairs, on behalf of the Minister for Education, Science and Training and the Minister for Employment and Workplace Relations. The primary aim of the Determination is to ensure that welfare funds are effectively directed towards the welfare of children by applying the income management regime in the specified area of Titjikala, thereby controlling the expenditure on substances and gambling. The Determination was made following consultations with relevant departments to ensure a coordinated approach to welfare payments. It does not require a Regulatory Impact Statement or a Business Cost Calculator, as it is not considered to have significant regulatory, compliance, or business impact.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area – Titjikala) Determination 2007 applies to the specified location of Titjikala, including all associated outstations, and is made under the authority of the Social Security (Administration) Act 1999. This legislative instrument designates Titjikala as a "declared relevant Northern Territory area" for the purposes of Part 3B of the Act, thereby subjecting certain individuals within this area to the income management regime outlined in the Act. The primary goal of this Determination is to curtail the misuse of welfare funds on substances and gambling, while ensuring that financial assistance is directed towards the welfare of children. The scope of this legislation is specifically focused on the geographic area of Titjikala and does not extend to other regions or entities outside this declared area.
This Determination, while not requiring a Regulatory Impact Statement or a Business Cost Calculator, is a coordinated effort involving the Minister for Families, Community Services and Indigenous Affairs, as well as the Ministers for Education, Science and Training, and Employment and Workplace Relations. It is not anticipated that this instrument will impose any significant compliance costs or competition impacts on businesses, nor will it affect business activities. The Determination remains in effect until its stated expiration date.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory area – Titjikala) Determination 2007 (sections 1-3) specifies that Titjikala and its associated outstations are recognised as a "declared relevant Northern Territory area" under Part 3B of the Social Security (Administration) Act 1999. This legal instrument aims to implement the income management regime for certain individuals in the area, ensuring that welfare funds are used primarily for the benefit of children, rather than on substances or gambling. By designating this area, the Determination mandates that the stringent financial controls already in place for other declared areas apply to Titjikala, thereby facilitating the redirection of welfare funds towards the welfare of children.
The obligations imposed by the Determination on the relevant parties, particularly the Department of Employment and Workplace Relations and the Department of Education, Science and Training, include ensuring that the income management measures are correctly implemented and enforced within Titjikala. These departments must coordinate their activities to manage welfare payments effectively, ensuring that the designated funds are utilised as intended. Additionally, individuals within the declared area must comply with the income management requirements, which may include restrictions on the use of welfare payments and regular financial reporting to authorities.
Breaches of the income management regime can lead to various civil and criminal consequences. Under section 123TH of the Social Security (Administration) Act 1999, individuals who do not comply with the income management requirements can face penalties. The maximum civil penalty for non-compliance is $2,220 for individuals and $11,100 for bodies corporate, as stipulated in section 123TH(3). Furthermore, serious breaches may result in criminal charges, which could lead to fines of up to $55,500 for individuals and $277,500 for bodies corporate, as outlined in section 123TH(4). These penalties serve as deterrents to ensure adherence to the welfare measures designed to protect the interests of children in Titjikala.