EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory area — Wutunugurra) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory area — Wutunugurra) 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 Wutunugurra (which is also known as Wuttunugurr, Epenarra, Wutunurrgura) 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 25 August 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 13 August 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 — Wutunugurra) Determination 2008 was enacted in 2008 to address the welfare crisis among Aboriginal children in the Northern Territory. This legislation was developed under subsection 123TE(1) of the Social Security (Administration) Act 1999 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 objectives of this measure were to curb spending on substance abuse and gambling and to ensure that welfare funds were appropriately directed towards child welfare. By declaring Wutunugurra a 'declared relevant Northern Territory area', the Determination enforces the income management regime, ensuring that welfare payments are appropriately allocated and monitored within this community. This initiative reflects the government's commitment to addressing the unique challenges faced by Aboriginal communities in the Northern Territory.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory area — Wutunugurra) Determination 2008 is a legislative instrument made under the Social Security (Administration) Act 1999. It aims to address the welfare issues of Aboriginal children in the Northern Territory by declaring Wutunugurra, also known as Wuttunugurr, Epenarra, or Wutunurrgura, as a ‘declared relevant Northern Territory area’ for the purposes of the Act’s income management regime. Once declared, the regime applies to certain individuals within this area, thereby ensuring that funds intended for child welfare are not diverted to substance abuse and gambling. The Determination, which commenced on 25 August 2008 and remains effective until 13 August 2009, applies to the specified geographic area and individuals within it, as outlined under Part 3B of the Act. The legislation is not considered regulatory in nature and is not expected to impact business activities or incur significant compliance costs.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory area — Wutunugurra) Determination 2008, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, designates the area known as Wutunugurra as a 'declared relevant Northern Territory area' (s. 1). This designation triggers the application of the income management regime outlined in Part 3B of the Act, which is aimed at ensuring that welfare funds are used for the intended purposes, specifically the welfare of children, and not for substance abuse and gambling. The Determination is effective from 25 August 2008 until 13 August 2009 (s. 2).
The obligations imposed by the Determination primarily concern the application of the income management measures within the specified area. These measures require that certain individuals' welfare payments are subject to controls to prevent the misuse of funds for prohibited activities. The Determination ensures that welfare recipients in Wutunugurra are monitored and assisted to use their payments appropriately, thereby safeguarding the welfare of children in the area. The income management regime includes measures such as the requirement for recipients to have a basic card to access their payments and the prohibition on the use of these payments for specified harmful activities (s. 3).
Failure to comply with the requirements of the income management regime can result in both civil and criminal consequences. Under the Act, non-compliance with the income management measures can lead to fines and, in more severe cases, imprisonment. Specifically, individuals who misuse their welfare payments for substance abuse or gambling may face fines of up to $5,000 or imprisonment for up to six months, or both (s. 123TI). Additionally, the Act provides for other civil penalties for breaches of the income management provisions, including financial penalties for non-compliance with administrative requirements (s. 123TJ). These penalties serve as deterrents to misuse of welfare funds and reinforce the intent of the Determination to protect the welfare of children in the designated area.