EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 2)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 2) (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 following earlier determinations, made under subsection 123TE (1) of the Act:
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 4)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 5)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 6)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 7)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 8)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 9)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 11)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory area — Mapurru) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory area — Pirlangimpi and Putjamirra) Determination 2008.
The Determination also specifies 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 listed in Schedule 1 are a more refined list of the areas (including their aliases) than were covered by the earlier Determinations.
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 16 March 2009. The Determination will still have operative effect on the day on which it is expressed to expire (ie 8 March 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. 2) was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, which prompted the Australian Government to implement an income management measure. This measure aims to curb the misuse of welfare funds on substances and gambling while ensuring that such funds are used for the welfare of children. Made under subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999, the Determination revokes several earlier determinations from 2008 and specifies new areas where the income management regime will apply. It was enacted 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, ensuring a coordinated approach to welfare payments. The Determination came into effect on 16 March 2009 and was set to expire on 8 March 2010, unless revoked sooner.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 2) is made under the Social Security (Administration) Act 1999 and applies to specific areas within the Northern Territory. The determination aims to address the welfare of Aboriginal children by implementing an income management regime in declared areas. The regime primarily targets the misuse of welfare funds by curbing spending on substances and gambling while ensuring that financial assistance is directed towards the welfare of children. The Act applies to individuals residing in areas specified in the Schedule of the Determination, which are designated as 'declared relevant Northern Territory areas'. This legislation is a legislative instrument made by the Minister for Families, Housing, Community Services and Indigenous Affairs, with co-operation from the Minister for Education and the Minister for Employment and Workplace Relations. The determination revokes several earlier determinations and specifies the geographical scope more precisely. The determination came into effect on 16 March 2009 and is set to expire on 8 March 2010 unless revoked earlier. Notably, the determination is not subject to disallowance under the Legislative Instruments Act 2003.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 2) (the Determination) operates under subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999 (the Act) (subsection 123TE(1)). It revokes previous determinations that identified certain areas in the Northern Territory as 'declared relevant Northern Territory areas' under Part 3B of the Act. Instead, the Determination specifies new areas that fall under this category, as detailed in Schedule 1. This change refines the list of areas affected by the income management regime, which aims to curb substance abuse and gambling and ensure that welfare funds for children are used appropriately (subsection 123TE(10)). The Determination specifies that the listed areas in Schedule 1 are now considered 'declared relevant Northern Territory areas', thereby subjecting them to the income management regime outlined in Part 3B of the Act.
The Determination imposes obligations on certain individuals residing in the specified areas. Under Part 3B of the Act, these individuals are subject to income management measures designed to ensure that welfare payments are used for the welfare of children and not for substances or gambling. This includes the requirement for Centrelink to withhold a portion of welfare payments, known as the 'basics card', to be used for essential goods and services, and a 'family card' for additional payments that can only be spent on authorised items. The Determination also requires Centrelink to manage the distribution of these funds to ensure compliance with the income management regime (subsection 123TE(1)).
The Act does not impose specific criminal or civil penalties for breaches of the Determination itself. However, breaches of the income management regime, as outlined in Part 3B of the Act, can lead to civil or criminal consequences. For instance, under section 123TQ of the Act, a person who contravenes a direction given by Centrelink under the income management regime may be liable for a civil penalty of up to 20 penalty units, currently equivalent to $4,200. Additionally, under section 123TS of the Act, knowingly making a false statement in an application for a payment or in a document required by Centrelink can result in a criminal offence, with a maximum penalty of 12 months imprisonment or a fine of up to 50 penalty units, currently equivalent to $10,500, or both. The Determination, by establishing the areas subject to the regime, indirectly sets the stage for these enforcement actions if the specified measures are not adhered to.