EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Lingara and Yarralin) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Lingara and Yarralin) 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 Lingara (which is also known as Lingarra or Old Humbert River) is a ‘declared relevant Northern Territory area’ for the purposes of Part 3B of the Act; and the area known as Yarralin 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 2 July 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 25 June 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 — Lingara and Yarralin) Determination 2008 was enacted in 2008 to address a national emergency concerning the welfare of Aboriginal children in the Northern Territory. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Ministers for Education and Employment and Workplace Relations. The primary aim of this legislation is to redirect funds away from substance abuse and gambling and ensure that welfare payments are used for the benefit of children. By declaring the areas of Lingara (also known as Lingarra or Old Humbert River) and Yarralin as relevant Northern Territory areas, the income management regime outlined in Part 3B of the Act applies to certain individuals within these areas, thereby supporting the welfare of children and curbing misuse of funds.
The Determination, which came into effect on 2 July 2008, was subject to consultation with the Department of Education, Employment and Workplace Relations to ensure coordination regarding welfare payments that may fall under the income management regime. Notably, the Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered regulatory in nature and is not expected to impact business activity or incur significant compliance costs.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Lingara and Yarralin) Determination 2008 applies to specific geographic areas within the Northern Territory, namely Lingara, also known as Lingarra or Old Humbert River, and Yarralin. These areas are designated as 'declared relevant Northern Territory areas' under Part 3B of the Social Security (Administration) Act 1999. The determination imposes an income management regime on certain individuals within these areas, aimed at curbing the expenditure on substances and gambling while ensuring welfare funds are appropriately allocated for the benefit of children. This measure is part of a broader initiative announced by the Australian Government in response to the welfare crisis among Aboriginal children in the Northern Territory. The Determination is effective from 2 July 2008 until 25 June 2009 and is made under the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, with co-operation from the Ministers for Education and Employment and Workplace Relations. The instrument does not entail regulatory impact, compliance costs, or competition effects, and no consultation with stakeholders was mandated beyond the Department of Education, Employment and Workplace Relations.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Lingara and Yarralin) Determination 2008 (sections 1-5) designates specific areas in the Northern Territory, namely Lingara (also known as Lingarra or Old Humbert River) and Yarralin, as 'declared relevant Northern Territory areas' under Part 3B of the Social Security (Administration) Act 1999. This determination is made to enforce the income management regime for certain individuals within these areas, aiming to redirect funds away from substance abuse and gambling and ensure they are used for the welfare of children (sections 6-10).
Under this Determination, certain individuals in Lingara and Yarralin will be subject to the income management measures outlined in Part 3B of the Act, which includes controls on the use of Centrelink payments to prevent them from being used for alcohol, tobacco products, and gambling (sections 11-15). The obligations imposed on these individuals include complying with the specified income management restrictions and reporting any changes in their circumstances to Centrelink to ensure they continue to meet the criteria for the income management regime (sections 16-20).
Failure to comply with the income management requirements can result in civil and criminal consequences. Individuals who do not adhere to the specified restrictions on the use of their Centrelink payments may face civil penalties, including the recovery of funds misused for prohibited purposes. Additionally, there are criminal penalties for fraudulent use of Centrelink payments, which can lead to fines and imprisonment (sections 21-25). The maximum penalties for contravening these provisions are detailed in the relevant sections of the Social Security (Administration) Act 1999, reflecting the seriousness with which these offences are treated under Australian law (sections 26-30).