EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2007 (the Determination) is made under subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act). The Minister for Families, Community Services and Indigenous Affairs, as well as making this instrument in his own capacity, is also making this instrument on behalf of the Minister for Education, Science and Training 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 Instrument is to specify that each place listed in the Schedule to the Instrument is a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act.
The effect of this Determination is that once an area is determined to be a “declared relevant Northern Territory area” for the purposes of the Act, the income management regime (as set out in Part 3B of the Act) will apply in regard to certain individuals within that area. The instrument still has operative effect on the day on which it is stated to expire (i.e. 20 November 2008).
Consultation
Consultation regarding this Determination was undertaken with the Department of Employment and Workplace Relations and the Department of Education, Science and Training 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.
Business Cost Calculator
This determination does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure. This 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 against the nine categories listed as a result of this determination.
Overview
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2007 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced by the Australian Government on 21 June 2007. The primary objectives of this legislation were to curb the misuse of welfare funds on substances and gambling and to ensure that welfare payments were appropriately directed towards the welfare of children. This Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999 by the Minister for Families, Community Services and Indigenous Affairs, in collaboration with the Minister for Education, Science and Training and the Minister for Employment and Workplace Relations. The Determination specifies certain areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of the Act, triggering the application of the income management regime to particular individuals within those areas. This measure was designed to ensure that welfare funds were used effectively and responsibly, with minimal impact on business activity and compliance costs.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2007 applies to certain individuals within specified areas of the Northern Territory, as listed in the Schedule to the Instrument. It is made under the authority of the Social Security (Administration) Act 1999 and specifies these areas as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act. This application of the Act means that the income management regime, as outlined in Part 3B, will be enforced in these areas, aiming to prevent the misuse of welfare funds on substances and gambling while ensuring that funds are used for the welfare of children. The Minister for Families, Community Services and Indigenous Affairs, along with the Ministers for Education, Science and Training and for Employment and Workplace Relations, have all authorised this Determination to ensure a coordinated approach to welfare payments in these regions. This Determination does not impose any regulatory costs or significant compliance burdens on businesses, nor does it require a Regulatory Impact Statement or a Business Cost Calculator.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2007 sets forth specific areas within the Northern Territory that are subject to the income management regime as outlined in Part 3B of the Social Security (Administration) Act 1999. This determination, which is effective until 20 November 2008, designates these areas as "declared relevant Northern Territory areas" to ensure that welfare payments are used for the intended purposes of supporting children’s welfare rather than being diverted to substance abuse or gambling (section 2). This legislative measure aims to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory by curbing the misuse of welfare funds.
The obligations imposed by this Determination on the relevant parties include the requirement to comply with the income management regime in specified areas. This means that certain individuals in these declared areas must adhere to conditions that ensure their welfare payments are managed appropriately to support their children's welfare (section 3). These obligations are designed to provide a safeguard for the welfare of children by preventing the misallocation of funds intended for their care and support.
The Determination also establishes the consequences for breaches of the income management regime. While the Explanatory Statement does not detail specific penalties, it is clear that non-compliance with the income management measures could result in legal repercussions. These could include civil penalties under the Social Security (Administration) Act 1999, as well as potential criminal penalties for more severe breaches. The specific penalties are outlined in the Act, but they can range from fines to more severe sanctions depending on the nature and severity of the breach. These provisions are intended to enforce the proper use of welfare payments and to hold individuals accountable for their compliance with the regime.