EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 3)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (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 Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 3), 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 22 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. 3) was enacted in 2010 in response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory. This legislation was made under the authority of the Social Security (Administration) Act 1999 and was created by the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Minister for Education and the Minister for Employment and Workplace Relations. Its primary objective is to address the misuse of welfare funds by targeting areas where such issues are prevalent, specifically aiming to prevent the expenditure of welfare funds on substance abuse and gambling while ensuring that funds are used for the welfare of children.
The Determination revokes a previous version from 2009 and identifies specific areas in the Northern Territory as 'declared relevant Northern Territory areas'. This classification triggers the application of the income management regime to certain individuals within these areas, thereby enforcing stricter controls over welfare payments. The Determination is not considered regulatory, has no impact on business activity, and is designed to incur minimal compliance costs or competition impacts.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 3) is a legislative instrument made under the authority of the Social Security (Administration) Act 1999. It is aimed at addressing welfare issues, particularly those affecting Aboriginal children in the Northern Territory, by specifying certain areas where the income management regime will apply. This Determination revokes the previous 2009 version and lists specific areas in the Northern Territory that are subject to the income management provisions. These areas, once declared, fall under the income management regime, which is intended to prevent the misuse of welfare funds on substances and gambling and to ensure funds are used for the welfare of children. The Determination applies to individuals within the specified areas and is in effect for 364 days from its signing date, 22 March 2010. It is noteworthy that this instrument is not subject to disallowance under the Legislative Instruments Act 2003, and the making of this Determination was informed by consultation with relevant departments to ensure a coordinated approach to welfare payments.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 3) (the Determination) include the revocation of the previous Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 3) (subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act)) and the specification of new areas that are to be considered ‘declared relevant Northern Territory areas’ (subsection 123TE(10) of the Act). This means that once an area is listed in the Schedule to the Determination, the income management regime under Part 3B of the Act will apply to certain individuals within that area. The Determination specifies these areas in Schedule 1. The Determination came into effect on 22 March 2010 and will expire 364 days after the date the Minister signed it, as required by subsection 123TE(2) of the Act.
The Determination imposes specific obligations on the parties it governs, primarily ensuring that the income management regime is applied in the specified areas. This regime aims to stem the flow of cash that might be spent on substance abuse and gambling, and to ensure that welfare funds are used for the intended purpose of child welfare. The obligation falls upon the Department of Families, Housing, Community Services and Indigenous Affairs, as well as the Ministers for Education, Employment, and Workplace Relations, to ensure that these measures are implemented correctly and effectively within the declared areas.
Breach of the requirements set forth in the Determination can lead to various consequences. While the Determination does not detail specific offences, the underlying Act, the Social Security (Administration) Act 1999, includes provisions for both civil and criminal penalties. Civil penalties could include fines, while criminal penalties might include imprisonment, depending on the nature and severity of the breach. The maximum penalties for these offences are determined by the relevant sections of the Social Security (Administration) Act 1999, and they could vary based on the specific circumstances of the breach. The Determination does not outline specific penalties but refers to the overarching legislation for enforcement details.