EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas – Phillipson Bore and Santa Teresa) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory areas – Phillipson Bore and Santa Teresa) Determination 2007 (the Determination) is made under subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Community Services and Indigenous Affairs, as well as making this instrument in his own capacity, is also making this instrument on behalf of the Minister for Education, Science and Training 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 the places known as Phillipson Bore and Santa Teresa are each 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. 13 November 2008).
Consultation
Consultation regarding this Determination was undertaken with the Department of Employment and Workplace Relations and the Department of Education, Science and Training to ensure a co-ordinated approach in respect of welfare payments for which they have responsibility.
Business Cost Calculator
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 – Phillipson Bore and Santa Teresa) Determination 2007 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, particularly focusing on the misuse of welfare funds for substance abuse and gambling. This instrument, made under the authority of subsection 123TE(1) of the Social Security (Administration) Act 1999, aims to redirect funds towards child welfare by enforcing an income management regime in the designated areas of Phillipson Bore and Santa Teresa. This was achieved by declaring these areas as "declared relevant Northern Territory areas" under Part 3B of the Act, thereby ensuring that certain individuals within these communities would be subject to income management measures. The determination was a collaborative effort involving the Minister for Families, Community Services and Indigenous Affairs, the Minister for Education, Science and Training, and the Minister for Employment and Workplace Relations, reflecting a coordinated approach to welfare management in the specified areas.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas – Phillipson Bore and Santa Teresa) Determination 2007 applies to certain individuals within the specified areas of Phillipson Bore and Santa Teresa in the Northern Territory. This determination is made under the Social Security (Administration) Act 1999 and specifies these areas as "declared relevant Northern Territory areas" for the purposes of the income management regime outlined in Part 3B of the Act. This means that the income management measures, which are designed to ensure that welfare funds are used for the intended purpose of child welfare rather than on substances and gambling, will be enforced in these areas. The application of this Determination is limited geographically to the Northern Territory and is overseen by the Minister for Families, Community Services and Indigenous Affairs, who also acts on behalf of the Minister for Education, Science and Training and the Minister for Employment and Workplace Relations. The Determination does not apply to any entities or businesses but specifically targets individuals in the designated areas. It is noteworthy that this measure is not expected to have any significant compliance costs or competitive impacts on businesses.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas – Phillipson Bore and Santa Teresa) Determination 2007 (the Determination) are contained within subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act) (section 1). The Determination specifies that Phillipson Bore and Santa Teresa are each a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act (section 3). This means that the income management regime, as set out in Part 3B of the Act, will apply to certain individuals in these areas. The Determination was made in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, with the aim of stemming the flow of cash spent on substance abuse and gambling and ensuring funds are used for child welfare (section 4).
The Determination imposes obligations on the parties it governs by ensuring that certain welfare payments are managed in a way that aligns with the stated aims of reducing substance abuse and gambling and promoting child welfare. Specifically, it mandates that the income management regime applies to individuals in the declared relevant Northern Territory areas, which includes measures such as the allocation of welfare payments through a Basic Card system to control spending on restricted items like alcohol and tobacco (section 3). These obligations are designed to ensure that welfare funds are used for the intended purposes of supporting children's welfare rather than being diverted to harmful activities.
The Determination also sets out the consequences for non-compliance with the specified provisions. While the Determination itself does not explicitly outline specific offences, penalties, or civil/criminal consequences, it operates under the broader framework of the Social Security (Administration) Act 1999. Under this Act, non-compliance with income management requirements could result in various penalties, including fines and other civil or criminal sanctions as deemed appropriate by the relevant authorities (section 123TE(1)). The exact penalties and consequences would be determined in accordance with the provisions of the broader Act, ensuring that individuals and entities governed by the Determination adhere to the specified income management requirements.