EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 2)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (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 Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 2), made under subsection 123TE (1) of the Act.
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 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 5 March 2010. 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 2010 (No. 2) was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, as announced by the Australian Government on 21 June 2007. The primary purpose of this Determination is to revoke the earlier 2009 Determination and to specify certain areas within the Northern Territory as 'declared relevant Northern Territory areas' for the application of the income management regime under Part 3B of the Social Security (Administration) Act 1999. This aims to stem the flow of funds towards substance abuse and gambling, ensuring that welfare funds are used for the benefit of children. The Determination, made under the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as on behalf of the Ministers for Education and Employment and Workplace Relations, commenced on 5 March 2010 and will expire 364 days after its signing.
The Determination does not necessitate a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered regulatory and will have minimal compliance costs or competition impact. The enacting body is the Minister, who made the Determination in accordance with the provisions of the Social Security (Administration) Act 1999, specifically under subsections 123TE(1) and (10). The policy objective is to effectively manage income to protect the welfare of vulnerable children in declared areas.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 2) is a legislative instrument made under the Social Security (Administration) Act 1999. It is made by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The Determination revokes the 2009 determination of the same title and specifies that each area listed in its schedule is a 'declared relevant Northern Territory area' for the purposes of Part 3B of the Act, which governs the income management regime. The Determination is effective for certain individuals within these declared areas, aiming to control the misuse of welfare funds on substances and gambling and to ensure that funds are used for the welfare of children. The Determination is effective from 5 March 2010 and expires 364 days after the date it was signed, in accordance with the Act. The instrument is not subject to disallowance under the Legislative Instruments Act 2003.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 2) (the Determination) include the revocation of the Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 2) under subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act) and the declaration of certain areas in the Northern Territory as ‘declared relevant Northern Territory areas’ for the purposes of Part 3B of the Act. This means that the income management regime, designed to curb substance abuse and ensure welfare funds are used for children's welfare, will apply to specific individuals in these areas (subsection 123TE(10)). The Determination, which came into effect on 5 March 2010, will expire 364 days after the Minister signed it, as per subsection 123TE(2) and (3) of the Act.
The Determination imposes obligations on the individuals within the declared areas, subjecting them to the income management regime. This regime requires the redirection of a portion of their welfare payments to a Basic Card, which can only be used for approved items such as food, rent, and utilities. This is aimed at ensuring that welfare funds are not misused and are instead used for the benefit of children and other approved purposes. The Determination also mandates that the Department of Families, Housing, Community Services and Indigenous Affairs, in coordination with the Department of Education, Employment and Workplace Relations, monitor and enforce the compliance with these provisions.
Failure to comply with the requirements of the Determination may result in various consequences. The Act does not explicitly detail specific offences, penalties, or consequences within the Determination itself. However, under Part 3B of the Act, non-compliance with the income management provisions can lead to civil or criminal penalties. Civil penalties can include fines, while criminal penalties might involve imprisonment, reflecting the seriousness with which the government treats breaches of these welfare regulations. The exact penalties are determined by the relevant courts and can vary based on the nature and severity of the breach.