EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 17) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 17)) 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 26 May 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 19 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. 17) Determination 2008 was enacted to address the urgent issue of child welfare in the Northern Territory, particularly in response to the national emergency confronting the welfare of Aboriginal children. The measure was introduced to stem the flow of cash that is often misdirected towards substance abuse and gambling, and to ensure that welfare funds are used appropriately for the welfare of children. 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, on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The primary aim of the Determination is to specify certain areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of the income management regime outlined in Part 3B of the Act, ensuring that specific welfare payments are subject to this regime. The Determination came into effect on 26 May 2008 and remained in force until 19 May 2009, providing a structured response to the identified welfare issues in the targeted areas.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 17) Determination 2008 applies to individuals residing within specific areas in the Northern Territory that have been declared as "declared relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999. This legislation, enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, ensures that the income management regime is applicable to certain individuals within these designated areas. The primary objectives of the Determination are to prevent the misuse of welfare funds intended for the welfare of children by curbing expenditure on substances and gambling, and to guarantee that these funds are appropriately allocated for their intended purpose. The Determination, made under the authority of the Ministers for Families, Housing, Community Services and Indigenous Affairs, Education, and Employment and Workplace Relations, commenced on 26 May 2008 and remained in effect until its expiration on 19 May 2009.
This instrument does not impose any regulatory burdens, compliance costs, or competition impacts, and does not require a Regulatory Impact Statement or a Business Cost Calculator Figure. The geographic scope of the Determination is confined to the Northern Territory, specifically targeting areas identified in the Schedule to the Determination. The application of the income management regime through this Determination is further extended or restricted by subordinate instruments if necessary, though no specific exclusions, exemptions, or thresholds are outlined in the provided text.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 17) Determination 2008 (the Determination) include the specification of areas as “declared relevant Northern Territory areas” for the purposes of Part 3B of the Social Security (Administration) Act 1999 (the Act) (section 2). This Determination applies to certain listed places in the Northern Territory and aims to implement the income management regime as set out in Part 3B of the Act in these areas. The Determination was made under subsection 123TE(1) of the Act and commenced on 26 May 2008, remaining in effect until 19 May 2009. The primary goal of this Determination is to control the expenditure of welfare funds to ensure they are used for the welfare of children rather than on substances or gambling.
The Determination imposes specific obligations on the individuals residing in the declared areas. These obligations primarily concern the management of welfare payments under the income management regime, which involves restrictions on how these payments can be spent. Specifically, it mandates that a portion of the welfare payments must be directed towards essential goods and services, and not be used for items such as alcohol, tobacco, or gambling. This is intended to ensure that funds intended for the welfare of children are indeed used for their benefit. The Determination also requires that certain individuals comply with the income management requirements when residing in these declared areas.
There are no explicit offences or penalties mentioned within the Determination itself, but the underlying legislation, the Social Security (Administration) Act 1999, provides for potential consequences for non-compliance with the income management regime. These could include financial penalties and other administrative actions. The Act allows for the imposition of fines and other sanctions for breaches of the income management requirements, although the specific penalties are detailed in the Act rather than the Determination. The focus of the Determination is on specifying the areas and the application of the regime rather than detailing the penalties for non-compliance.