EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 11) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 11)) 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 Determination is to specify that each place listed in the Schedule to the Determination is a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act.
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 April 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 14 April 2009).
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 they have responsibility, which may become subject to the income management regime.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement (RIS) 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 this 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 (No. 11) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. The determination was made under the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The main aim of this measure is to prevent the misuse of welfare funds intended for the welfare of children by applying the income management regime in specified areas. Once an area is declared as a "relevant Northern Territory area," the income management regime will apply to certain individuals within that area, ensuring that funds are used appropriately for the welfare of children rather than on substances or gambling. The determination commenced on 21 April 2008 and was set to expire on 14 April 2009, unless otherwise altered. The measure was not considered to have significant regulatory, compliance, or business impacts.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 11) Determination 2008 is a legislative instrument made under the Social Security (Administration) Act 1999 and applies specifically to certain individuals within declared relevant Northern Territory areas. This Determination aims to address the welfare of Aboriginal children in the Northern Territory by implementing an income management regime. The regime ensures that welfare funds are used for the intended purpose of supporting children's welfare rather than being diverted to substance abuse and gambling. The scope of the Act extends to individuals residing in areas designated as "declared relevant Northern Territory areas" as listed in the Schedule to the Determination, and these areas are subject to the income management provisions outlined in Part 3B of the Act. The Determination commenced on 21 April 2008 and is set to expire on 14 April 2009 unless otherwise extended. The application of this Act is specifically targeted at curbing the misuse of welfare funds and ensuring that they are used for the welfare of children, thereby addressing a national emergency in the Northern Territory.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 11) Determination 2008 (F2008L01129) are those that specify the areas within the Northern Territory that are considered "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999 (the Act) (Schedule). This determination effectively designates these areas where the income management regime, as outlined in Part 3B of the Act, will be applicable to certain individuals. These sections require that areas listed in the Schedule be recognised as "declared relevant Northern Territory areas" and thus subject to the income management regime.
The obligations imposed by the Determination on the parties it governs include ensuring that individuals within the specified areas comply with the income management provisions of the Act. This includes measures designed to prevent the misuse of welfare payments for substances and gambling, and ensuring that funds are used for the welfare of children. The Determination mandates that welfare payments in these areas be subject to specific controls and monitoring to achieve these objectives.
Any breach of the income management provisions in the declared relevant Northern Territory areas can lead to civil and criminal consequences. Under the Social Security (Administration) Act 1999, individuals who fail to comply with the income management requirements can face penalties. The Act outlines potential fines, with maximum penalties specified in relevant sections. For instance, individuals found to be in breach may face fines that can reach up to a certain amount as determined by the Act, reflecting the seriousness of non-compliance with these welfare provisions. Additionally, persistent breaches can result in more severe consequences, including potential criminal charges and additional penalties.