EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 4)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 4) (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. 16)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 17)) Determination 2008
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 18)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 19)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 21)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Lingara and Yarralin) 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 11 May 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. 4) was enacted to address the urgent welfare concerns of Aboriginal children in the Northern Territory, particularly focusing on the misuse of social security payments. This legislation was made under the authority of subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education and Employment and Workplace Relations. The primary objective of this Determination is to revoke previous declarations and establish a more precise list of areas in the Northern Territory where the income management regime will apply, aiming to curb substance abuse and gambling while ensuring funds are used for the welfare of children. This measure is part of the broader response to the national emergency announced by the Australian Government on 21 June 2007.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 4) applies to individuals residing in specified areas within the Northern Territory, aiming to enforce the income management regime under Part 3B of the Social Security (Administration) Act 1999. This regime is designed to ensure that social security payments are used for the welfare of children and not diverted to substance abuse or gambling. The areas designated as 'declared relevant Northern Territory areas' are outlined in Schedule 1 of the Determination, which replaces and refines those covered by previous determinations. The application of this Determination triggers the income management measures for certain individuals within these areas, thereby extending the scope of the Act's provisions to these individuals. The Determination is effective from 11 May 2009 and will expire 364 days after its creation, in line with the requirements of the Act. It is a legislative instrument exempt from the disallowance provisions of the Legislative Instruments Act 2003. The Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education and Employment and Workplace Relations, made the Determination in accordance with the Act and has considered the specified matters in subsection 123TE(5).
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 4) (the Determination) outlines which areas in the Northern Territory are subject to the income management regime under the Social Security (Administration) Act 1999 (the Act). This Determination revokes previous declarations and specifies new areas to which the income management regime applies (sections 123TE(1) and (10)). The schedule to the Determination lists specific Northern Territory areas as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Act (section 123TE(1)). These areas will have the income management regime applied to certain individuals within them. The Determination was made in response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory, aiming to ensure funds are used for children's welfare and not on substances or gambling (section 123TE(10)).
The Determination imposes obligations on the parties it governs by specifying which areas are subject to the income management regime and the conditions under which it applies. These obligations include ensuring that individuals within the declared areas comply with the income management rules. The Act requires these individuals to use a significant portion of their Centrelink payments for essential goods and services, with the remainder deposited into a Basic Card, which restricts spending on prohibited items (section 123TE(1)). The Minister for Families, Housing, Community Services and Indigenous Affairs, along with other ministers, has the authority to make this Determination to address welfare issues in the Northern Territory (section 123TE(1)).
Breaches of the income management regime can lead to various civil and criminal consequences. While the Determination itself does not specify maximum penalties, breaches of the income management rules can result in fines and, in severe cases, imprisonment. The Act allows for fines of up to $2,200 for individuals and $11,000 for bodies corporate for non-compliance with the income management provisions (section 123TE(1)). Additionally, the court can impose imprisonment for up to six months for offences related to the misuse of funds intended for welfare purposes. These penalties are intended to enforce compliance with the income management regime and protect the welfare of children in the Northern Territory.