EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 1)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 1) (the Determination) is made under subsections 123TE (1) and (10) of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Housing, Community Services and Indigenous Affairs, as well as making the Determination in her own capacity, is also making it 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.
The income management measure has two primary aims:
a) to stem the flow of cash that is expended on substance abuse and gambling; and
b) to ensure that funds that are provided for the welfare of children are actually expended in this way.
Purpose
The purpose of the Determination is to revoke the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 3)) Determination 2008 (the earlier Determination), made under subsection 123TE (1) of the Act and, in addition, to specify that each area listed in the Schedule to the Determination (Schedule 1) is a ‘declared relevant Northern Territory area’ for the purposes of Part 3B of the Act. The areas that are listed in Schedule 1 are a more refined list of the areas (including their aliases) that were covered by the earlier Determination (which will be revoked by this Determination).
The effect of the Determination is that, once an 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 15 February 2009. The Determination will still have operative effect on the day on which it is expressed to expire (ie 8 February 2010). Subsection 123TE (2) of the Act provides that a determination made under subsection 123TE (1) of the Act must specify an expiry date for the Determination, in accordance with subsection 123TE (3). Subsection 123TE (8) provides that, unless it is revoked sooner, a determination made under subsection 123TE (1) will cease to be in force on the expiry date of the determination.
The Determination is a legislative instrument. However, section 42 of the Legislative Instruments Act 2003 (disallowance of legislative instruments) does not apply to the Determination (subsections 123TE (13) and (14) of the Act).
In deciding whether to make the Determination, the Minister has had regard to the matters specified in subsection 123TE (5) of the Act.
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 that Department has responsibility, which may become subject to the income management regime.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement 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 the 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 — Various) Determination 2009 (No. 1) was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. This legislation was made under the Social Security (Administration) Act 1999 by the Parliament of Australia, with the Minister for Families, Housing, Community Services and Indigenous Affairs acting on behalf of other Ministers. The primary objective of this Determination is to revoke the previous Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 3)) Determination 2008, while also specifying certain areas within the Northern Territory as ‘declared relevant Northern Territory areas’ for the purposes of the Act's Part 3B. This effectively means that the income management regime, designed to prevent the misuse of welfare funds on substances and gambling and to ensure funds are used for the welfare of children, will apply to certain individuals within these areas. The Determination commenced on 15 February 2009 and was set to expire on 8 February 2010, unless revoked sooner.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 1) applies to specified individuals within certain areas in the Northern Territory, as outlined in Schedule 1 of the Determination. This legislative instrument, made under subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999, specifies these areas as 'declared relevant Northern Territory areas', thereby subjecting them to the income management regime established in Part 3B of the Act. The income management measure aims to prevent the misuse of welfare funds on substances and gambling while ensuring that funds designated for the welfare of children are used accordingly. The Determination revokes the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 3)) Determination 2008, refining the list of areas covered. It commences on 15 February 2009 and remains in effect until 8 February 2010, unless revoked earlier. Although a legislative instrument, it is exempt from the disallowance provisions under the Legislative Instruments Act 2003. The making of the Determination considered the specified matters under subsection 123TE(5) of the Act, and consultation was conducted with relevant departments to align welfare payment strategies with the income management regime.
Key Provisions
The main sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 1) (the Determination) focus on specifying certain areas in the Northern Territory as 'declared relevant Northern Territory areas' under the Social Security (Administration) Act 1999 (the Act) (sections 1 and 2). This is achieved by revoking the earlier Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 3)) Determination 2008 and replacing it with the current Determination. The Schedule to the Determination (Schedule 1) lists the areas that will be subject to the income management regime as set out in Part 3B of the Act.
The Determination imposes obligations on the parties it governs by applying the income management regime to certain individuals within the declared relevant Northern Territory areas. This regime aims to stem the flow of cash that is expended on substance abuse and gambling and to ensure that funds provided for the welfare of children are actually expended in this way (section 2). The obligations include the management of social security payments to ensure that they are used for the intended purposes, particularly for the welfare of children.
The Determination outlines specific consequences for breaches of the income management regime. While the Act itself does not specify particular offences or penalties within the Determination, the regime under Part 3B of the Act may include measures such as the withholding of certain payments or the imposition of restrictions on the use of funds. These measures are designed to enforce compliance with the objectives of the income management regime and ensure that welfare funds are used appropriately.
It is important to note that the Determination is a legislative instrument and does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not regulatory in nature and is not expected to impact on business activity or incur compliance costs (subsections 123TE(13) and (14) of the Act). The Determination is also exempt from the disallowance provisions of the Legislative Instruments Act 2003 (subsection 123TE(13) of the Act).