EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) 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 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. 9 January 2009).
Consultation
Consultation regarding this 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
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 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. This instrument was made under the authority of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, in collaboration with the Minister for Education and the Minister for Employment and Workplace Relations. The primary objective of this Determination is to ensure that welfare funds intended for the benefit of children are not diverted to substance abuse and gambling. By declaring specific areas as "declared relevant Northern Territory areas," the Determination activates the income management regime outlined in Part 3B of the Act, thereby regulating the expenditure of certain individuals within these zones. The instrument remains in effect until its stated expiration date of 9 January 2009.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2008 applies to specified areas within the Northern Territory and designates them as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999. This instrument is made under subsection 123TE(1) of the Act and is authored by 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. The primary objective of this determination is to control the expenditure of social security payments in certain Northern Territory regions, particularly to prevent the misuse of funds intended for the welfare of children on substances and gambling. Once an area is declared, the income management regime outlined in Part 3B of the Act will be enforced for certain individuals within that area, ensuring that welfare funds are utilised appropriately. The instrument remains in effect until its stated expiration date of 9 January 2009.
Key Provisions
The key provisions of the Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.2)) Determination 2008 (F2008L00096) primarily focus on designating specific areas in the Northern Territory as “declared relevant Northern Territory areas” under section 123TE(1) of the Social Security (Administration) Act 1999. This determination, made under the authority of the Minister for Families, Housing, Community Services and Indigenous Affairs, and in consultation with the Department of Education, Employment and Workplace Relations, identifies particular regions where the income management regime will apply. This regime, detailed in Part 3B of the Act, is intended to ensure that welfare funds are not misallocated towards substances and gambling, but are instead used for the welfare of children.
Entities and individuals within these declared areas are subject to the obligations and requirements set out in the income management regime. This means that welfare recipients in these areas must comply with specific rules regarding the use of their payments, to ensure they are directed towards essential goods and services rather than substance abuse or gambling. The Determination specifies these obligations, which include requirements for monitoring and reporting on the use of welfare funds to prevent misuse.
Failure to comply with the requirements of the income management regime can lead to civil and criminal consequences. The Act does not specify particular offences or penalties within the Determination itself, but the overarching framework under which this Determination operates includes provisions for penalties. For example, non-compliance with the income management provisions could result in civil penalties, fines, or even criminal charges in severe cases, although the specific penalties would be dictated by the broader provisions of the Social Security (Administration) Act 1999. The Determination aims to safeguard welfare funds by ensuring they are used appropriately for the welfare of children, thereby addressing the national emergency concerning the welfare of Aboriginal children in the Northern Territory.