EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 12) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 12)) 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 28 April 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 21 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. 12) Determination 2008 was enacted in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, announced on 21 June 2007 by the Australian Government. This determination is made under subsection 123TE (1) of the Social Security (Administration) Act 1999 and was issued by the Minister for Families, Housing, Community Services and Indigenous Affairs, along with the Ministers for Education and Employment and Workplace Relations. Its primary objectives are to prevent the misuse of welfare funds intended for child welfare by curbing expenditure on substances and gambling, and to ensure these funds are appropriately allocated to the welfare of children.
The determination identifies specific areas in the Northern Territory as "declared relevant Northern Territory areas" under Part 3B of the Act, thereby applying the income management regime to certain individuals within these areas. This measure took effect on 28 April 2008 and was set to expire on 21 April 2009. The determination involved consultation with the Department of Education, Employment and Workplace Relations to ensure a coordinated approach to welfare payments that might be subject to the income management regime. It is noted that the determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered regulatory in nature and is not expected to impact business activity or incur significant compliance costs.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 12) Determination 2008 applies to specified areas in the Northern Territory, designating them as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999. This legislation specifically targets individuals residing in these declared areas, implementing an income management regime aimed at curbing expenditure on substances and gambling while ensuring welfare funds are used for the intended purpose of child welfare. The application of this Act is limited geographically to the Northern Territory and is a response to the national emergency concerning the welfare of Aboriginal children in this region. The Determination is effective from 28 April 2008 and remains in force until 21 April 2009, providing a temporary measure to address the specified issues within the designated areas.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 12) Determination 2008 require 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 Social Security (Administration) Act 1999 (the Act). This means that once an area is determined to be a “declared relevant Northern Territory area,” the income management regime (as set out in Part 3B of the Act) will apply to certain individuals within that area. The Determination specifies which areas are subject to this regime, thereby ensuring that funds intended for the welfare of children are not misused for substance abuse and gambling.
The Act imposes obligations and requirements on individuals residing in the declared relevant Northern Territory areas. Specifically, these individuals are subject to the income management regime outlined in Part 3B of the Act. This includes conditions on how certain welfare payments are to be managed and spent, with a focus on ensuring that funds are used for the intended purposes of supporting children’s welfare rather than for harmful activities like substance abuse and gambling. The Act also mandates that the Department of Education, Employment and Workplace Relations, in coordination with other relevant departments, implement these measures effectively.
In terms of consequences for non-compliance, the Act does not explicitly state the penalties or consequences for breaches of the income management regime within the declared relevant Northern Territory areas. However, general provisions in the Act likely impose penalties for non-compliance with the income management requirements. Such penalties could include financial penalties or other legal consequences as prescribed by the Social Security Act or related legislation. The precise nature and severity of these penalties would typically be detailed in the relevant sections of the Act itself, but are not explicitly mentioned in the Determination.