EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 5)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 5) (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. 5), 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 10 May 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. 5) was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, specifically targeting issues of substance abuse and gambling through the income management regime. This Determination was made under the authority of the Social Security (Administration) Act 1999 and is a legislative instrument issued by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education and Employment and Workplace Relations. The primary purpose of the Determination is to replace the 2009 version by specifying a refined list of areas in the Northern Territory that are subject to the income management provisions aimed at ensuring welfare funds are used for the benefit of children. This Determination operates by classifying certain areas as 'declared relevant Northern Territory areas', thereby triggering the application of the income management regime to individuals within these areas. It is designed to ensure that welfare payments are not misused for substances and gambling, and instead are directed towards the welfare of children. The Determination came into effect on 10 May 2010 and is set to expire 364 days after its creation.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 5) is a legislative instrument made under the Social Security (Administration) Act 1999. It aims to specify certain areas in the Northern Territory as 'declared relevant Northern Territory areas' for the application of the income management regime outlined in Part 3B of the Act. This regime is intended to control the expenditure of welfare payments by certain individuals in these areas, particularly to prevent the misuse of funds on substances and gambling, and to ensure that welfare payments are used for the intended purpose of child welfare. The Determination revokes a previous determination made in 2009 and refines the list of areas covered. It applies to individuals residing in the specified areas and is in effect for one year from its commencement on 10 May 2010. The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered to have a significant impact on business activity or competition, and 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. 5) (the Determination) are found in subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999 (the Act). The Determination revokes the previous Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 5) and specifies new areas that are considered 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Act. This means that these areas will be subject to the income management regime outlined in Part 3B of the Act, which aims to curb substance abuse and gambling, and ensure funds are used for the welfare of children. The Determination specifies a list of areas in Schedule 1 that are more refined than those covered in previous Determinations.
The Determination imposes several obligations on the parties it governs. Firstly, it specifies the areas that are subject to the income management regime, thereby requiring compliance with the rules outlined in Part 3B of the Act for individuals residing in these areas. These rules may include measures such as the allocation of welfare payments and the monitoring of expenditure to ensure funds are used appropriately. Additionally, the Determination places a responsibility on the relevant ministers to ensure that welfare payments are managed in a way that aligns with the stated aims of the income management measure.
Breach of the obligations outlined in the Determination can result in various penalties and consequences. Under the Social Security (Administration) Act 1999, individuals who fail to comply with the income management regime may face financial penalties or the withholding of welfare payments. These measures are intended to enforce adherence to the income management rules and ensure that funds are used for the welfare of children. While the Determination itself does not specify detailed penalties, the broader framework of the Act provides for these consequences. It is important to note that the Determination is not subject to disallowance under section 42 of the Legislative Instruments Act 2003, as specified in subsections 123TE(13) and (14) of the Act.
The Determination is effective from 10 May 2010 and will remain in force until it expires 364 days after the date it was signed by the Minister. This timeframe ensures that the Determination has a defined period of operation, during which the specified areas are subject to the income management regime. The Minister has considered the matters outlined in subsection 123TE(5) of the Act when making the Determination, ensuring a comprehensive approach to addressing the welfare needs of Aboriginal children in the Northern Territory. Consultation with the Department of Education, Employment and Workplace Relations was undertaken to ensure a coordinated approach to welfare payments, which may be subject to the income management regime.