EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 19) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 19)) 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 2 June 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 26 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. 19) Determination 2008 is a legislative instrument enacted to address the welfare crisis of Aboriginal children in the Northern Territory by implementing a targeted income management regime. This measure was introduced by the Australian Government in response to a national emergency and was made under the authority of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Ministers for Education and Employment and Workplace Relations. The primary objectives of the Determination are to prevent the misuse of welfare funds on substances and gambling, and to ensure that funds intended for the welfare of children are actually used for this purpose. By declaring specific areas as "declared relevant Northern Territory areas," the Determination activates the income management provisions of the Act, which will apply to certain individuals within these regions. The Determination was designed with input from relevant departments to ensure coordination in the management of welfare payments. It is noteworthy that the instrument does not impose any significant compliance costs on businesses, as it is not considered regulatory in nature.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 19) Determination 2008 applies to specific individuals within designated areas in the Northern Territory. These areas are identified in the Schedule to the Determination and are classified as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999. The Determination is designed to ensure that welfare funds provided for the welfare of children are not diverted for substance abuse or gambling. The application of the income management regime under Part 3B of the Act will affect the management of welfare payments for certain individuals in these areas. The Determination was made by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also represents the Ministers for Education and Employment and Workplace Relations, reflecting a coordinated approach across different government sectors. The Determination came into effect on 2 June 2008 and remained in force until 26 May 2009, unless otherwise specified.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 19) Determination 2008 (the Determination) are sections 3 and 4, which list the areas declared as "declared relevant Northern Territory areas" and the effective date of the Determination (s. 4). These sections specify the areas where the income management regime will apply under Part 3B of the Social Security (Administration) Act 1999 (the Act). The listed areas in the Schedule are subject to the income management measures aimed at ensuring that welfare funds are used for the welfare of children and not on substances or gambling. The Determination came into effect on 2 June 2008 and will remain in force until 26 May 2009.
The Act imposes specific obligations and requirements on the parties or entities it governs. Primarily, the Act mandates that individuals residing in the declared relevant Northern Territory areas must comply with the income management regime. This includes adhering to the restrictions on the use of their welfare payments, where a portion of these payments is quarantined and can only be spent on essential goods and services. This measure is intended to ensure that funds are used for the welfare of children rather than on substances or gambling. The Act also requires relevant authorities to enforce these measures and monitor compliance within the specified areas.
There are potential consequences for non-compliance with the requirements set out in the Act. Under Part 3B of the Act, individuals who fail to comply with the income management regime may face civil and criminal penalties. Specifically, the Act provides for the imposition of fines and, in more serious cases, criminal prosecution. The maximum penalties for breaches of the income management provisions are not explicitly stated in the Determination but would be defined in the Social Security (Administration) Act 1999. These penalties serve as a deterrent against misuse of welfare funds and ensure the objectives of the legislation are met.
In summary, the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 19) Determination 2008 aims to ensure that welfare funds in specific Northern Territory areas are used for the intended purpose of child welfare. By declaring certain areas as "declared relevant Northern Territory areas," the Determination triggers the application of the income management regime, which restricts the use of welfare payments to prevent them from being spent on substances or gambling. The Act imposes clear obligations on residents in these areas to comply with the income management measures, with potential civil and criminal penalties for non-compliance, ensuring the welfare of children is prioritised.