EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 3)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 3) (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. 12)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 13)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 14)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 15)) 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 13 April 2009. The Determination will still have operative effect on the day on which it is expressed to expire. 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).
This Determination expires 364 days after the date the Minister made the Determination; that is, the date it was signed.
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. 3) was made under the authority of the Social Security (Administration) Act 1999, with the aim of addressing the welfare crisis among Aboriginal children in the Northern Territory. Enacted by the Parliament of Australia, this legislation seeks to refine and replace previous determinations made in 2008 by specifying certain Northern Territory areas as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act. The primary objectives of this measure are to curb expenditure on substance abuse and gambling, and to ensure that funds intended for child welfare are used appropriately. This Determination, which came into effect on 13 April 2009, will remain in force until 12 April 2010, and it is not subject to disallowance under the Legislative Instruments Act 2003. The Minister for Families, Housing, Community Services and Indigenous Affairs, alongside other ministers, made this determination with due consideration of the specified matters in the Act.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 3) is made under the Social Security (Administration) Act 1999 and applies to specified areas within the Northern Territory, thereby extending the application of the income management regime under Part 3B of the Act to certain individuals in those areas. This Determination serves to revoke previous determinations and refines the list of areas subject to the income management measures. It is applicable to individuals who reside in the areas listed in Schedule 1, which are designated as 'declared relevant Northern Territory areas'. The Determination is effective from 13 April 2009 and remains in force until it expires 364 days after the date of its signing. Although it is a legislative instrument, it is exempt from the disallowance provisions of the Legislative Instruments Act 2003. The Minister made this Determination after considering the relevant factors specified in the Act, and consultation was conducted with the Department of Education, Employment and Workplace Relations to ensure alignment in the administration of welfare payments.
Key Provisions
The key provisions of the Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 3) (sections 1 to 4) include the revocation of previous determinations and the specification of certain areas within the Northern Territory as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Social Security (Administration) Act 1999. These areas are listed in Schedule 1 of the Determination. The primary objective of this Determination is to apply the income management regime to certain individuals within these specified areas, with the aim of addressing issues related to substance abuse and gambling and ensuring that welfare funds are used for the intended purposes, specifically for the welfare of children.
The obligations and requirements imposed by this Determination include the application of the income management regime to individuals residing in the specified areas. This regime includes measures to control the expenditure of certain welfare payments to prevent them from being used for harmful activities such as substance abuse and gambling. The Determination also mandates that these welfare payments be directed towards the welfare of children, ensuring that the funds are used in a manner that supports their well-being. The Determination specifies that these obligations apply within the timeframe set out, commencing on 13 April 2009 and expiring 364 days after the date the Minister signed the Determination.
Breach of the provisions outlined in the Determination can result in various civil and criminal consequences. Although specific offences and penalties are not detailed within the Determination, the application of the income management regime generally involves strict monitoring and potential sanctions for non-compliance. Under the Social Security (Administration) Act 1999, breaches of the income management provisions can lead to civil penalties, including fines and the withholding of payments. Additionally, there may be criminal consequences for wilful non-compliance, which could include imprisonment and further fines. The exact penalties would be determined under the relevant sections of the Act, but they are intended to enforce adherence to the income management measures and ensure the proper use of welfare funds.