EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas –Beswick)) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory areas – Beswick) Determination 2007 (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 Instrument is to specify that each place listed in the Schedule to the Instrument 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. 19 December 2008).
Consultation
Consultation regarding this 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
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 areas – Beswick) Determination 2007 was enacted in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced on 21 June 2007. This determination, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, was enacted by the Australian Government through the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Minister for Education and the Minister for Employment and Workplace Relations. The primary objective of this legislation is to address the misuse of welfare funds, specifically by reducing spending on substances and gambling, and ensuring that welfare funds are used for the intended purpose of child welfare. By declaring certain areas as "declared relevant Northern Territory areas," the Act aims to enforce the income management regime outlined in Part 3B of the Act, thereby regulating how certain individuals in these areas manage their welfare payments.
This determination has been designed to minimise regulatory impact, with no expectation of significant compliance costs or competition impact for businesses. Consultation with relevant departments ensured a coordinated approach to welfare payments that may be subject to the income management regime. The determination remains in effect until 19 December 2008.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas – Beswick) Determination 2007 applies to certain areas in the Northern Territory, which are listed in the Schedule to the Determination, to ensure these areas are designated as "declared relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999. This designation subjects the income management regime, which regulates how welfare payments are handled to prevent misuse, to individuals residing in these specified areas. The determination was made in response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory and aims to redirect welfare funds towards children’s welfare by curbing substance abuse and gambling. The application of this Determination extends to individuals within the declared areas and is overseen by the Minister for Families, Housing, Community Services and Indigenous Affairs, with collaboration from the Minister for Education and the Minister for Employment and Workplace Relations. The instrument remains effective until 19 December 2008 and is not expected to impose any significant compliance costs or competition impacts on businesses.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas – Beswick) Determination 2007 (sections 1-6) sets out the specific areas within the Northern Territory that are subject to the income management regime under the Social Security (Administration) Act 1999 (section 123TE(1)). These areas are referred to as "declared relevant Northern Territory areas" (section 2). The primary objectives of this Determination are to curb the expenditure of welfare funds on substance abuse and gambling, and to ensure that these funds are used for the welfare of children (section 3). The determination is effective until 19 December 2008, unless otherwise stated (section 5).
The Determination imposes obligations on the individuals residing in the specified areas, ensuring that the income management regime applies to them (section 4). This means that certain welfare payments are subject to conditions to prevent misuse for gambling or alcohol and other drugs. The Determination also ensures that welfare payments are directed towards the welfare of children. Consultation with the Department of Education, Employment and Workplace Relations was undertaken to ensure alignment with their responsibilities over welfare payments (section 6).
The Determination does not create any specific offences or penalties within its text. However, any breaches of the income management regime, which is governed by the Social Security (Administration) Act 1999, may result in civil or criminal consequences. Under the Act, failure to comply with the income management measures can lead to financial penalties and, in some cases, criminal charges. The maximum penalties for breaches of the Act can include fines and imprisonment, as outlined in the respective sections of the Act.