EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 6)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 6) (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 four determinations, made under subsection 123TE (1) of the Act:
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 23)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 24)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 25)) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 26)) 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 22 June 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. 6) was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, specifically targeting issues related to substance abuse and gambling by redirecting funds intended for child welfare. This determination was made under the authority of the Social Security (Administration) Act 1999 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. The primary objectives are to mitigate the expenditure on harmful activities and to ensure that welfare funds are used for the benefit of children. The determination revokes earlier determinations and specifies a refined list of areas in the Northern Territory that fall under the income management regime, ensuring targeted application of welfare policies. It commenced on 22 June 2009 and is set to expire 364 days after the date of its signing, adhering to the legislative requirements outlined in the Social Security (Administration) Act 1999.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 6) applies to individuals residing in specified areas within the Northern Territory, effectively designating these regions as 'declared relevant Northern Territory areas' under the Social Security (Administration) Act 1999. These areas are subject to the income management regime, which is designed to prevent the misuse of welfare funds on substances such as alcohol and gambling, and to ensure that funds allocated for children's welfare are used appropriately. The Determination revokes previous determinations and refines the list of areas covered, ensuring that the application of the income management regime is targeted more accurately. The Determination is made 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, and it comes into effect on 22 June 2009, expiring one year after its creation. While the Determination itself is not subject to disallowance under the Legislative Instruments Act 2003, it is intended to have minimal compliance costs and no significant impact on business activities or competition.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 6) (sections 1-3) revokes four previous determinations made under the Social Security (Administration) Act 1999 and specifies that certain areas in the Northern Territory are now 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Act. This means that the income management regime, which aims to control the use of welfare payments, applies to certain individuals in these areas. The Determination came into effect on 22 June 2009 and is set to expire 364 days after the date it was signed by the Minister.
The obligations imposed by the Determination (sections 4-6) on the parties or entities it governs are primarily concerned with ensuring that welfare payments are used appropriately, particularly to prevent the misuse of funds on substances such as alcohol and gambling. By declaring specific areas as 'declared relevant Northern Territory areas', the Determination mandates that individuals within these areas must comply with the income management regime, which includes having a portion of their welfare payments placed on a basic payment card, from which certain expenditures are restricted.
Breaches of the income management regime can lead to both civil and criminal consequences (sections 7-10). While the Determination itself does not detail specific offences or penalties, the Social Security (Administration) Act 1999 (section 123TE) outlines the legal framework within which these penalties are applied. Civil penalties can include fines and other financial penalties, while criminal penalties may include imprisonment. The exact penalties depend on the nature and severity of the breach, and are administered according to the broader provisions of the Act. The Determination ensures that those who fail to comply with the income management requirements face the appropriate consequences, reinforcing the aim of the regime to protect welfare funds for the intended purposes.