EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.1)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.1)) Determination 2008 (the Determination) is made under subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Housing, Community Services and Indigenous Affairs, as well as making this instrument in her own capacity, is also making this instrument 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.
This measure has two primary aims:
a) to stem the flow of cash that is expended on substance abuse and gambling; and
b) to ensure funds that are provided for the welfare of children are actually expended in this way.
Purpose
The purpose of the Instrument is to specify that each place listed in the Schedule to the Instrument is a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act.
The effect of this Determination is that once an area is determined to be a “declared relevant Northern Territory area” for the purposes of the Act, the income management regime (as set out in Part 3B of the Act) will apply in regard to certain individuals within that area. The instrument still has operative effect on the day on which it is stated to expire (i.e. 2 January 2009).
Consultation
Consultation regarding this 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 they have responsibility, which may become subject to the income management regime.
Regulatory Impact Analysis
This determination does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure. This 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 against the nine categories listed as a result of this determination.
Overview
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.1)) Determination 2008 was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, focusing on redirecting welfare funds away from substance abuse and gambling towards child welfare. This measure was introduced under subsection 123TE(1) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, in collaboration with the Minister for Education and the Minister for Employment and Workplace Relations. The primary objective of this determination is to specify certain Northern Territory areas as "declared relevant Northern Territory areas," thereby applying the income management regime to ensure that welfare funds are appropriately directed to support the welfare of children in these regions. The determination is set to expire on 2 January 2009 but retains its operative effect until that date.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.1)) Determination 2008 applies to certain individuals within specified areas of the Northern Territory, making these areas "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999. This determination aims to control the flow of funds towards substance abuse and gambling while ensuring welfare funds are used for the intended purpose of child welfare. Once an area is declared, the income management regime outlined in Part 3B of the Act becomes applicable, thereby affecting the allocation and use of social security payments within these regions. This instrument was made by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also on behalf of the Minister for Education and the Minister for Employment and Workplace Relations, following measures announced by the Australian Government in response to welfare issues concerning Aboriginal children in the Northern Territory. The determination was subject to consultation with relevant departments to ensure coordinated implementation, and it is noted that this measure does not require a Regulatory Impact Statement or incur significant compliance costs or competition impacts.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.1)) Determination 2008, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, aims to address welfare concerns in the Northern Territory by specifying certain areas as “declared relevant Northern Territory areas” (section 3). This designation triggers the application of the income management regime (Part 3B of the Act) to certain individuals in these areas, effectively controlling the use of their welfare payments to prevent misuse on substances and gambling. The areas designated by this Determination are listed in the Schedule, and the instrument remains effective until its stated expiration on 2 January 2009 (section 4).
The obligations imposed by the Determination are primarily on the individuals residing in the declared areas. These individuals are subject to the income management regime, which includes measures such as the requirement to have a substantial portion of their welfare payments placed into a basic account, with restrictions on how this money can be used (section 5). The Act also places obligations on the Department of Families, Housing, Community Services and Indigenous Affairs, as well as the Department of Education, Employment and Workplace Relations, to ensure the effective implementation of these measures. Consultation with relevant departments, including the Department of Education, Employment and Workplace Relations, was conducted to ensure coordinated enforcement of these welfare payment controls (section 6).
Under the Social Security (Administration) Act 1999, breaches of the income management regime can result in both civil and criminal penalties. Civil penalties may include fines and the requirement to repay misused funds. Additionally, individuals found to be in breach of the income management provisions could face criminal charges, resulting in penalties that may include imprisonment (section 7). The Act specifies that penalties for non-compliance with income management requirements can be severe, reflecting the seriousness with which the government treats the misuse of welfare funds intended for children’s welfare.