EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 7)
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 7) (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. 7), 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 21 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. 7) was enacted to address the welfare crisis of Aboriginal children in the Northern Territory, a national emergency identified in 2007. This Determination, made under the Social Security (Administration) Act 1999, was issued by the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Ministers for Education and Employment and Workplace Relations. Its primary objectives are to prevent the misuse of welfare funds for substance abuse and gambling, and to ensure that funds intended for the welfare of children are used appropriately. The Determination revokes its predecessor from 2009 and updates the list of areas subject to the income management regime, which applies to certain individuals within these declared areas. It commences on 21 June 2010 and expires 364 days after its creation, aligning with the legislative framework that mandates the specification of an expiry date for such determinations.
The making of this Determination involved consultation with the Department of Education, Employment and Workplace Relations to harmonise welfare payment policies under the income management regime. The Determination does not necessitate a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not deemed to be regulatory in nature and is expected to have minimal compliance costs or competition impacts. The Minister considered the specified matters under subsection 123TE(5) of the Act when deciding to enact this Determination.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 7) applies to specified areas within the Northern Territory and is made under the Social Security (Administration) Act 1999. This legislation is designed to address the welfare needs of Aboriginal children by implementing an income management regime in certain regions. The determination specifies these regions as 'declared relevant Northern Territory areas' for the purposes of Part 3B of the Act, which focuses on income management. These areas are subject to stricter controls on the expenditure of welfare payments to ensure funds are used for the welfare of children rather than for substance abuse or gambling. The application of this Act is limited to the Northern Territory and is not applicable elsewhere in Australia. The Determination revokes the earlier 2009 version and refines the list of areas covered. It commences on 21 June 2010 and is set to expire 364 days after the date it was signed by the Minister. The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, indicating it is not intended to impose significant regulatory, business, or competition impacts.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various) Determination 2010 (No. 7) (sections 1-3) revokes the previous 2009 determination and specifies that each area listed in Schedule 1 is a 'declared relevant Northern Territory area' for the purposes of Part 3B of the Social Security (Administration) Act 1999. The Determination ensures that the income management regime will apply to certain individuals in these areas. It commences on 21 June 2010 and expires 364 days after it was signed. The Determination is not subject to disallowance under the Legislative Instruments Act 2003.
Under the Determination, the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Minister for Education and the Minister for Employment and Workplace Relations, must ensure that the income management regime applies to specified individuals in the declared relevant Northern Territory areas. This involves making sure that funds provided for the welfare of children are not expended on substance abuse and gambling, and that they are actually used for the welfare of children. The relevant parties must comply with the requirements of Part 3B of the Act, which outlines the income management regime.
The Determination imposes specific obligations on the relevant parties, including ensuring that the income management regime is applied correctly in the declared relevant Northern Territory areas. This involves the implementation of measures to prevent the misuse of welfare funds for substance abuse and gambling, and the enforcement of compliance with the Act. The relevant parties must also ensure that funds provided for the welfare of children are used as intended.
There are potential civil and criminal consequences for breaches of the Act. Section 123TE of the Act provides that a person who contravenes an order made under section 123TE is liable to a penalty of up to 50 penalty units (currently $5,300). For a body corporate, the maximum penalty is up to 250 penalty units (currently $26,500). The Determination also provides for the imposition of fines and imprisonment for serious breaches of the Act. The exact penalties depend on the specific breach and the circumstances of the case.