EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 9)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 9) (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 area — Ukaka) Determination 2008;
- Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 30)) 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 September 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.
Overview
The Social Security (Administration) (Declared relevant Northern Territory areas – Various) Determination 2009 (No. 9) was enacted in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced by the Australian Government on 21 June 2007. The primary aim of this legislation is to implement an income management measure that curbs the misuse of welfare funds on substances and gambling, while ensuring that funds are used for the intended welfare of children. This Determination, made under the Social Security (Administration) Act 1999, revokes previous determinations and more precisely identifies areas where the income management regime will be enforced. The policy objective is to effectively manage welfare payments to protect and support vulnerable children in the Northern Territory. The Determination, which commenced on 11 September 2009, is set to expire 364 days after its signing date.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 9) is a legislative instrument made under the Social Security (Administration) Act 1999. It is designed to address the welfare of Aboriginal children in the Northern Territory by implementing an income management regime. This regime aims to prevent the misuse of welfare funds by redirecting them towards essential needs, particularly the welfare of children. The Determination revokes previous determinations and specifies new areas where the income management provisions will apply, thus affecting individuals residing in these designated regions. The application of this Determination is confined to the Northern Territory and will impact those individuals specifically covered under the income management provisions of the Act, thereby ensuring that welfare funds are used appropriately for the benefit of children in these areas. The Determination will remain in effect until it expires 364 days after its creation, as mandated by the Act.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 9) (the Determination) is made under the authority of the Social Security (Administration) Act 1999 (the Act). The primary purpose of this Determination is to revoke the earlier determinations, namely the Social Security (Administration) (Declared relevant Northern Territory area — Ukaka) Determination 2008, and the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 30)) Determination 2008 (subsection 123TE (1) of the Act). The Determination identifies a more refined list of areas in Schedule 1, which are designated as 'declared relevant Northern Territory areas' under Part 3B of the Act. These areas will be subject to the income management regime, which is intended to curb substance abuse and gambling and ensure that welfare funds are used for the benefit of children. The Determination commenced on 11 September 2009 and will remain in effect for 364 days from the date it was signed.
Under the Determination, the listed areas in Schedule 1 will be subject to the income management regime as outlined in Part 3B of the Act. This means that certain individuals residing in these areas will have their welfare payments subject to specific income management measures. The Act requires these measures to be implemented to achieve the two primary aims of the income management regime: to prevent the misuse of welfare funds for substances and gambling, and to ensure that welfare funds are used for the welfare of children. The Determination provides a more specific list of areas that will be subject to these measures, replacing the broader areas previously covered by the revoked determinations.
The Determination imposes obligations on certain individuals residing in the declared relevant Northern Territory areas. These individuals must comply with the income management measures set out in the Act. This includes adhering to the rules and conditions regarding the use of their welfare payments to prevent them from being spent on substances and gambling. The Act also requires that welfare funds are used for the benefit of children in these areas. Compliance with these obligations is necessary to ensure the effectiveness of the income management regime and the proper use of welfare funds.
The Act outlines specific offences and penalties for breaches of the income management measures. Any individual who fails to comply with the requirements of the income management regime may be subject to civil or criminal penalties. The maximum penalties for breaches are stipulated in the Act and may include fines and imprisonment. These penalties serve as a deterrent to non-compliance and ensure that the income management measures are enforced effectively. The determination ensures that welfare funds are used for their intended purposes and that individuals residing in the declared relevant Northern Territory areas are held accountable for their compliance with the income management regime.