EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Kybrook Farm and Pine Creek Compound Town Camp) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Kybrook Farm and Pine Creek Compound Town Camp) 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 Kybrook Farm (which is also known as Copperfield Creek) is a ‘declared relevant Northern Territory area’ for the purposes of Part 3B of the Act; and the area known as Pine Creek Compound Town Camp (also known as Stockade Camp and Kybrook Town Camp) is also a ‘declared relevant Northern Territory area’ for the purposes of Part 3B of the Act.
The effect of the Determination is that once each 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 those area.
The Determination commences on 21 July 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 14 July 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 areas — Kybrook Farm and Pine Creek Compound Town Camp) Determination 2008 was enacted in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced by the Australian Government on 21 June 2007. Made under subsection 123TE(1) of the Social Security (Administration) Act 1999, this Determination was introduced by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Minister for Education and the Minister for Employment and Workplace Relations. The primary objectives of this legislation are to curb the expenditure of welfare funds on substance abuse and gambling, and to ensure that these funds are instead used for the welfare of children.
The Determination specifies that Kybrook Farm (also known as Copperfield Creek) and Pine Creek Compound Town Camp (also known as Stockade Camp and Kybrook Town Camp) are designated as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Act, thereby triggering the application of the income management regime to certain individuals within these areas. This measure commenced on 21 July 2008 and will remain in effect until 14 July 2009. The legislation does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not expected to have any significant compliance costs, competition impact, or business activity influence.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Kybrook Farm and Pine Creek Compound Town Camp) Determination 2008 applies to the areas known as Kybrook Farm and Pine Creek Compound Town Camp in the Northern Territory. It is made under the Social Security (Administration) Act 1999, with the primary purpose of ensuring that welfare funds are directed towards the welfare of children rather than being misused for substance abuse and gambling. By declaring these areas as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Act, the income management regime is thereby applied to certain individuals within those areas. This measure commenced on 21 July 2008 and remains in effect until 14 July 2009. The application of the income management regime in these areas aims to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced by the Australian Government on 21 June 2007. The Determination does not require a Regulatory Impact Statement or incur significant compliance costs or competition impacts.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Kybrook Farm and Pine Creek Compound Town Camp) Determination 2008 (section 1) specifies the areas of Kybrook Farm and Pine Creek Compound Town Camp as 'declared relevant Northern Territory areas' under Part 3B of the Social Security (Administration) Act 1999. This declaration means that the income management regime (section 3) within the Act will apply to certain individuals residing in these areas. The primary aim of this legislation, as outlined in the explanatory statement (section 4), is twofold: to prevent the misuse of welfare funds for substance abuse and gambling (section 4a); and to ensure that funds intended for the welfare of children are actually used for this purpose (section 4b). This Determination was made in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, announced on 21 June 2007 (section 5).
Under this Determination, certain obligations are placed upon the parties and entities it governs. Specifically, the Department of Education, Employment and Workplace Relations is required to ensure a coordinated approach regarding welfare payments that may be subject to the income management regime (section 6). The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure (section 7), indicating that it is not regulatory in nature, will not impact business activity, and will have minimal, if any, compliance costs or competition impact.
The Determination imposes specific consequences for breaches of its provisions. While the explanatory statement does not detail specific offences, penalties, or civil/criminal consequences (section 8), the application of the income management regime under Part 3B of the Act generally includes measures such as the quarantining of a portion of welfare payments to ensure they are used for essential goods and services, rather than for substances or gambling. Penalties for non-compliance with the income management regime could include fines or other sanctions as prescribed under the Act (section 123TE). The Determination commenced on 21 July 2008 and will remain in effect until 14 July 2009, unless otherwise extended or repealed (section 9).