EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 6)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 6) (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. 6), 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 11 June 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. 6) was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, particularly focusing on managing income to prevent substance abuse and gambling and ensuring funds are used for children’s welfare. This Determination was made under the Social Security (Administration) Act 1999 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 aim of this Determination is to refine the list of declared relevant Northern Territory areas, thereby specifying areas where the income management regime will apply to certain individuals. The Determination revokes the previous 2009 Determination and specifies a more precise list of areas in its Schedule, ensuring a targeted approach to the income management policy.
The Determination, which took effect on 11 June 2010, expires 364 days after its signing, in accordance with the Act’s requirements. It does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered to have significant regulatory, business, compliance, or competition impacts. The Minister made this Determination with consideration of specified matters outlined in the Act and in consultation with the Department of Education, Employment and Workplace Relations to ensure alignment in welfare payment management.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 6) applies to specified areas within the Northern Territory, which are listed in Schedule 1 of the Determination. These areas are designated as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Social Security (Administration) Act 1999. This Act concerns the administration of social security benefits and services, with a particular focus on income management measures targeting substance abuse and ensuring child welfare funds are used appropriately. The Determination revokes a previous determination and specifies a more refined list of areas, thereby extending the geographic scope of the income management regime within the Northern Territory. This regime mandates that certain individuals in these designated areas are subject to additional requirements for the administration of their social security benefits. The Determination, which came into effect on 11 June 2010, expires 364 days after the date of signing, and its application is restricted to the Northern Territory, reflecting its specific focus on addressing regional welfare issues.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 6) outlines specific areas in the Northern Territory that are designated as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Social Security (Administration) Act 1999 (sections 123TE(1) and (10)). This Determination is designed to revoke the previous Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2009 (No. 6) and refine the list of areas to which the income management regime applies. The list of these areas is detailed in Schedule 1 of the Determination.
This Determination imposes a specific regime on certain individuals within the designated areas to manage their income effectively. The primary objectives of this regime are to curb spending on substances and gambling and to ensure that funds designated for the welfare of children are used appropriately (section 123TE(1)). The Determination requires that the income management regime applies to individuals in the areas specified in Schedule 1, which will involve the management of their welfare payments to ensure they are used for the intended purposes.
Entities and individuals governed by this Determination have specific obligations. They must comply with the income management regime, which includes the controlled use of welfare payments. This involves ensuring that funds are not used for prohibited activities such as gambling or purchasing alcohol and other substances. These entities and individuals are required to follow the guidelines set out in Part 3B of the Social Security (Administration) Act 1999, which includes reporting and monitoring mechanisms to verify compliance.
Failure to comply with the requirements set out in this Determination may result in legal consequences. The Act does not explicitly state the penalties for non-compliance; however, breaches of similar provisions in other sections of the Act may result in fines or other penalties as prescribed by law. The exact penalties would depend on the specific nature of the breach and would be determined in accordance with the relevant provisions of the Social Security (Administration) Act 1999.