EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 20) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 20)) 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 10 June 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 3 June 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. 20) Determination 2008 was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, as highlighted by the Australian Government's national emergency measures announced on 21 June 2007. The primary objective of this Determination is to ensure that funds allocated for child welfare are effectively used for their intended purpose, while also curbing the misuse of these funds on substances and gambling. This measure was introduced under subsection 123TE (1) of the Social Security (Administration) Act 1999, and it was made 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 Determination came into effect on 10 June 2008, with an expiry date of 3 June 2009, and it is designed 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. This approach aims to target welfare payments more effectively and ensure they benefit the intended recipients, particularly children in need.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 20)) Determination 2008 is a legislative instrument that applies to certain areas within the Northern Territory as specified in the Schedule to the Determination. It is made under subsection 123TE (1) of the Social Security (Administration) Act 1999 and specifies that each listed place is a "declared relevant Northern Territory area" for the purposes of Part 3B of the Act. Once an area is declared, the income management regime set out in Part 3B of the Act applies to certain individuals within that area, aiming to ensure welfare funds are used appropriately and not on substances or gambling. The Determination commenced on 10 June 2008 and will remain effective until 3 June 2009, unless otherwise specified. The instrument was developed in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory and is not expected to incur significant compliance costs for businesses.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 20)) Determination 2008 (the Determination) outlines specific areas in the Northern Territory where the income management regime will apply to certain individuals. Under section 123TE(1) of the Social Security (Administration) Act 1999, this Determination specifies which locations are considered "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act. The main goal of the Determination is to ensure that welfare funds are used for the benefit of children by limiting expenditure on substances and gambling. The Determination came into effect on 10 June 2008 and will remain in force until it expires on 3 June 2009.
The Determination imposes specific obligations on the individuals residing in the declared areas. For these individuals, certain welfare payments will be subject to an income management regime. This regime aims to ensure that a portion of these payments is allocated towards necessities, such as food and rent, rather than being spent on substances or gambling. The Act requires that these individuals comply with the income management measures, which include the use of a Basic Card for welfare payments and the possibility of having a portion of their payments quarantined.
Breaching the obligations set out in the Determination can lead to various consequences. Although specific offences are not detailed in the provided text, non-compliance with the income management regime could result in administrative actions, including the possibility of reduced or withheld welfare payments. The Determination itself does not specify maximum penalties for breaches, but the underlying Social Security Act may include provisions for penalties and enforcement measures. It is important to refer to the relevant sections of the Social Security (Administration) Act 1999 for detailed information on potential penalties and consequences for non-compliance.