EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area — Ukaka) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory area — Ukaka) 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 Ukaka (which is also known as Tempe Downs) 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 — Ukaka) Determination 2008 was enacted in response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory, specifically addressing the issues of substance abuse and gambling among recipients of welfare payments. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999 and was authorised by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education and Employment and Workplace Relations. The primary policy objective of this measure is to ensure that welfare funds are appropriately directed towards the welfare of children by applying the income management regime to certain individuals in the specified area of Ukaka. The Determination commenced on 27 October 2008 and was set to expire on 17 October 2009, ensuring that the area remains subject to the specified income management controls during this period.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area — Ukaka) Determination 2008 applies to the area known as Ukaka, which is also referred to as Tempe Downs, within the Northern Territory of Australia. This Determination is made under the Social Security (Administration) Act 1999 and specifies that Ukaka is a 'declared relevant Northern Territory area' for the purposes of Part 3B of the Act, thereby subjecting it to the income management regime. The Determination was made in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, aiming to curb the misuse of welfare funds on substances and gambling, while ensuring that funds are directed towards the welfare of children. The application of the income management regime to individuals within Ukaka is intended to achieve these objectives. The Determination is effective from 27 October 2008 and will remain in force until 17 October 2009. The instrument does not impose any significant compliance costs or regulatory impact, as it is not considered regulatory in nature and does not affect business activity.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory area — Ukaka) Determination 2008 (sections 1-3) designates the area known as Ukaka, also referred to as Tempe Downs, as a 'declared relevant Northern Territory area' under Part 3B of the Social Security (Administration) Act 1999. This determination is a response to the national emergency regarding the welfare of Aboriginal children in the Northern Territory, aiming to redirect funds from substance abuse and gambling towards the welfare of children. Once the area is declared, the income management regime specified in Part 3B of the Act will apply to certain individuals within that area. This Determination commenced on 27 October 2008 and will remain in effect until 17 October 2009.
The obligations imposed by this Determination include ensuring that welfare payments to individuals in the Ukaka area are managed in accordance with the income management regime. This means that a portion of these individuals' payments will be quarantined and can only be used for specific purposes such as food, rent, and other essential items, thereby preventing their misuse on substances and gambling. The Determination requires these individuals to comply with the conditions set out in the income management regime to ensure that welfare funds are used for the intended purposes.
Breaching the conditions set out by the income management regime under this Determination can result in civil or criminal consequences. While the Determination itself does not explicitly state the penalties for non-compliance, breaches of the income management provisions under Part 3B of the Social Security (Administration) Act 1999 can lead to fines and, in some cases, imprisonment. The specific penalties depend on the nature and severity of the breach but can include fines of up to $22,200 and imprisonment for up to five years for serious offences. These penalties underscore the importance of adhering to the income management regime to ensure that welfare funds are used appropriately.