EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 15) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 15)) 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 6 May 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 29 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. 15) Determination 2008 was enacted to address the urgent welfare crisis among Aboriginal children in the Northern Territory, particularly in relation to the misuse of welfare funds for substances and gambling rather than child welfare. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999 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. The primary objective of this instrument is to designate specific areas in the Northern Territory as "declared relevant Northern Territory areas," thereby applying the income management regime outlined in Part 3B of the Act to certain individuals within these areas. This approach aims to redirect welfare funds towards the intended purpose of child welfare and to prevent the misuse of these funds for detrimental activities. The Determination came into effect on 6 May 2008 and remained in force until 29 April 2009.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 15) Determination 2008 applies to individuals residing in specified areas within the Northern Territory, making them subject to the income management regime outlined in Part 3B of the Social Security (Administration) Act 1999. This regime aims to control the expenditure of welfare payments by ensuring they are used for the welfare of children and not for substances or gambling. The geographic reach of this Determination is confined to the Northern Territory, specifically targeting areas listed in its Schedule. The Determination came into effect on 6 May 2008 and remained in force until 29 April 2009, providing a temporary measure to address the welfare crisis among Aboriginal children in the region. No significant exclusions, exemptions, or thresholds are specified in the Determination itself, though the application of the income management regime would depend on the conditions and requirements set out in the Act.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 15) Determination 2008) primarily serves to designate specific areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of the Social Security (Administration) Act 1999 (the Act). This designation is crucial because it triggers the application of the income management regime outlined in Part 3B of the Act to certain individuals residing in these areas. The determination was made under subsection 123TE(1) of the Act and came into effect on 6 May 2008, with its effects persisting until 29 April 2009 (Sections 1 and 2).
The primary aim of this legislation is to address the welfare of Aboriginal children in the Northern Territory by two main means. Firstly, it seeks to curb the expenditure of welfare funds on substance abuse and gambling (Section 3). Secondly, it ensures that welfare funds are used to benefit children, thereby safeguarding their welfare. To achieve these goals, the determination specifies the geographic areas subject to these income management measures. These areas are detailed in the Schedule attached to the Determination.
The obligations imposed by this Act primarily fall on the individuals residing in the declared relevant Northern Territory areas. They must comply with the income management regime, which includes restrictions on the use of their welfare payments. This regime is designed to ensure that a portion of their payments is set aside for essential goods and services, thereby preventing misuse of funds on harmful activities such as substance abuse and gambling. The Act also imposes 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 proper implementation and administration of these measures.
Breach of the income management provisions can lead to both civil and criminal consequences. Under the Act, individuals who fail to comply with the income management requirements may face penalties, including fines and potential imprisonment. The specific penalties are not detailed in the Explanatory Statement, but generally, penalties for breaches of the Social Security Act can include fines of up to $22,200 for individuals and $111,000 for bodies corporate, along with the possibility of imprisonment for serious breaches. These penalties are designed to enforce compliance and protect the welfare of children in the designated areas.