Social Security (Administration) (Declared relevant Northern Territory areas - Various) Determination 2010 (No. 4)

Administered by Department of Social Services

Legislation au F2010L00980 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 4)

The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (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 Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 4), 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 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 26 April 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.  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 2010 (No. 4) was enacted in 2010 to address the welfare crisis among Aboriginal children in the Northern Territory. This Determination was made under the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, on behalf of several ministers, aiming to provide a more refined list of areas subject to the income management regime. The primary objective of the Determination was to revoke its predecessor, the 2009 Determination, and to specify new areas as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Act. By doing so, it aimed to better ensure that welfare funds were spent on the welfare of children rather than on substance abuse and gambling. The Determination was introduced in response to the national emergency declared in June 2007, addressing two main aims: curbing the expenditure of welfare funds on harmful activities and ensuring that funds were used for the welfare of children. This Determination, which took effect on 26 April 2010, is not subject to disallowance under the Legislative Instruments Act 2003 and expires 364 days after its enactment. The Minister considered various specified matters during its formulation, and consultation with the Department of Education, Employment and Workplace Relations ensured a coordinated approach to welfare payments within the income management regime.

Scope and Application

The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 4) is a legislative instrument made under the authority of the Social Security (Administration) Act 1999. The Determination serves to specify certain areas within the Northern Territory as 'declared relevant Northern Territory areas' for the purposes of the income management regime outlined in Part 3B of the Act. This regime aims to ensure that welfare funds are used for the benefit of children by restricting the expenditure on substances and gambling. The Determination applies to individuals residing in the areas listed in Schedule 1, which are more refined than those covered by previous determinations. The geographic scope of the Act is confined to the Northern Territory, and it is in effect for 364 days from the date of its signing by the Minister. Notably, the Determination does not fall under the purview of disallowance provisions and does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, given its minimal impact on business activities and compliance costs.

Key Provisions

The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 4) include the specification of areas that are considered 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Social Security (Administration) Act 1999 (referred to as the Act). These areas are listed in Schedule 1 of the Determination (section 3). Once an area is declared relevant, the income management regime outlined in Part 3B of the Act applies to certain individuals within that area. The Determination revokes the previous Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 4) (section 2). It comes into effect on 26 April 2010 and will expire 364 days after the date the Minister signed the Determination (section 4). The Act imposes several obligations on the parties it governs, particularly those residing in the declared relevant Northern Territory areas. These obligations primarily revolve around the income management regime, which aims to ensure that welfare funds are used appropriately for the welfare of children, rather than for substance abuse or gambling. This regime likely includes requirements for beneficiaries to use specific financial instruments or follow particular spending patterns to ensure funds are directed towards intended purposes. The Act also mandates that the Minister for Families, Housing, Community Services and Indigenous Affairs, and other relevant ministers, must ensure that the Determination is made in accordance with the specified requirements of the Act (subsections 123TE(1) and (10)). Breaches of the obligations and requirements set out in the Act may result in various consequences. While the Determination itself does not specify particular offences or penalties, it operates under the broader framework of the Social Security (Administration) Act 1999. Under this Act, breaches of the income management regime could result in civil or criminal penalties. For instance, misuse of welfare funds could lead to fines or imprisonment, depending on the severity of the breach. The specific penalties would be determined according to the provisions of the Act and any relevant subsidiary legislation. The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, indicating that it is not expected to impose significant compliance costs or impact business activities. The legislative instrument nature of the Determination exempts it from the disallowance provisions of the Legislative Instruments Act 2003 (subsections 123TE(13) and (14) of the Act). This means that once the Determination is made, it cannot be annulled by disallowance, although it is subject to judicial review. The Minister, in making the Determination, must consider the matters specified in subsection 123TE(5) of the Act, which likely include the welfare needs of Aboriginal children in the Northern Territory and the broader social objectives of the income management regime. Consultation with the Department of Education, Employment and Workplace Relations ensured that the approach to welfare payments was coordinated and aligned with the objectives of the Determination.

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