EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 13) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 13)) 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. 13) Determination 2008, made under the Social Security (Administration) Act 1999, was introduced to address the national emergency confronting the welfare of Aboriginal children in the Northern Territory. Enacted by the Parliament of Australia, this Determination was created in response to concerns about the misallocation of welfare funds, particularly in relation to substance abuse and gambling, rather than their intended use for child welfare. The primary policy objective of this measure is to redirect these funds towards their intended purpose by applying the income management regime to certain individuals in specified areas within the Northern Territory. The Determination came into effect on 28 April 2008 and remained operative until 21 April 2009. The enacting body, the Minister for Families, Housing, Community Services and Indigenous Affairs, collaborated with the Department of Education, Employment and Workplace Relations to ensure a coordinated approach to welfare payments in areas potentially subject to the income management regime.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 13) Determination 2008 applies to specific individuals within areas declared as "relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999. These areas are listed in the Schedule to the Determination and are subject to the income management regime as specified in the Act. The primary aim of the Determination is to control the expenditure of welfare funds on substances such as alcohol, tobacco, and gambling, and to ensure that such funds are used for the welfare of children. The Determination commenced on 28 April 2008 and will remain in effect until 21 April 2009, unless otherwise altered. The legislation applies to those individuals residing within the specified areas, and the income management measures outlined in the Act will be enforced accordingly. The jurisdictional reach of the Determination is confined to the Northern Territory, and it is implemented under the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Ministers for Education and Employment and Workplace Relations.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 13) Determination 2008, or the Determination, is a regulatory measure made under the Social Security (Administration) Act 1999 (the Act). The Determination, made on 28 April 2008 and effective until 21 April 2009, aims to address the welfare of Aboriginal children in the Northern Territory by applying specific income management provisions in certain areas. Section 4 of the Determination specifies the areas that are declared as relevant Northern Territory areas, thereby triggering the application of the income management regime under Part 3B of the Act to certain individuals within these areas.
Under the Determination, the primary obligation imposed on the parties it governs is the application of the income management regime to individuals in the specified areas. This regime is designed to control the use of certain welfare payments, ensuring that they are spent on necessities rather than on substances like alcohol and tobacco, or on gambling. This is to stem the flow of cash into substance abuse and gambling, and to ensure that welfare funds are used for the benefit of children and families. The Act requires that certain individuals, such as those who hold or are entitled to certain Centrelink payments, must comply with the income management measures when residing in the declared areas.
Failure to comply with the income management provisions as outlined in the Determination can result in serious consequences. While the Determination itself does not explicitly list offences or penalties, the underlying Act, the Social Security (Administration) Act 1999, provides for various penalties for non-compliance with the income management regime. Under Section 183 of the Act, an individual who fails to comply with an income management direction can face penalties, including fines of up to $2,220 for individuals and up to $11,100 for bodies corporate. In addition to financial penalties, ongoing non-compliance can lead to further administrative actions and the potential suspension of welfare payments, which can severely impact the livelihood of individuals and families.