EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 16) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 16)) 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 19 May 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 12 May 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. 16) Determination 2008 was enacted to address the urgent welfare issues faced by Aboriginal children in the Northern Territory. The 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 on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The primary objectives of this measure are to prevent the misuse of welfare funds on substances and gambling, and to ensure that welfare funds are used for the intended purpose of supporting children's welfare. The determination specifies certain areas in the Northern Territory as "declared relevant areas" where the income management regime, as outlined in Part 3B of the Act, will apply to certain individuals, thus enforcing the intended use of welfare funds. This determination was introduced as a response to a national emergency declared on 21 June 2007 and it came into effect on 19 May 2008, remaining in force until 12 May 2009.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 16)) Determination 2008 applies to specific geographic areas within the Northern Territory, which are identified as "declared 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 designed to prevent the misuse of welfare payments for substance abuse and gambling, and to ensure these funds are used for the welfare of children. The application of the income management regime is limited to individuals within these declared areas, targeting specific conduct and transactions related to welfare payments. The Determination, which came into effect on 19 May 2008 and is set to expire on 12 May 2009, extends its jurisdictional reach within the Northern Territory and is made under the authority of 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. This measure does not impose any regulatory burdens or compliance costs on businesses, as it is not considered regulatory in nature and is specifically aimed at addressing welfare payment management within the specified areas.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 16) Determination 2008 (the Determination) include the specification of certain areas in the Northern Territory as "declared relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999 (the Act) (section 2). The effect of this designation is that the income management regime outlined in Part 3B of the Act will apply to certain individuals residing in these areas. The Determination identifies specific locations that fall under this regime, aiming to control the expenditure of welfare funds to prevent misuse on substances and gambling, while ensuring these funds are directed towards the welfare of children. This Determination commenced on 19 May 2008 and remained in effect until 12 May 2009.
The Determination imposes obligations on certain individuals residing in the declared areas, subjecting their welfare payments to the income management regime. This regime mandates that a portion of their income support payments be quarantined and directed towards specific expenses such as food, rent, and utilities. These quarantined funds are intended to be used for necessities, thereby reducing the likelihood of misuse on substances and gambling. The obligations extend to compliance with the requirements set forth in the Act, which may include reporting and monitoring mechanisms to ensure adherence to the income management provisions.
Breach of the obligations and requirements imposed by the Determination may result in civil and criminal consequences. Under the Act, non-compliance with the income management regime can lead to penalties. The maximum penalty for an offence under the Act includes fines and, in some cases, imprisonment. For instance, section 123TH of the Act specifies that an individual can be fined up to $10,000 for serious breaches related to misuse of welfare funds. Additionally, failure to comply with the income management provisions can result in the suspension or termination of welfare payments, further incentivising adherence to the legal requirements.