EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 21) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 21)) 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. 21) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, which was announced on 21 June 2007. This Determination, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, was introduced by the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Ministers for Education and Employment and Workplace Relations. Its primary aims are to curb the expenditure of welfare funds on substance abuse and gambling, and to ensure that these funds are instead used for the welfare of children. The policy objective is to specify certain areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act, thereby enforcing the income management regime on certain individuals within these areas to achieve the stated aims.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 21) Determination 2008 is a legislative instrument made under the Social Security (Administration) Act 1999, with the purpose of specifying certain areas in the Northern Territory as "declared relevant Northern Territory areas." These areas are subject to the income management regime outlined in Part 3B of the Act, which applies to certain individuals within those areas. This measure was introduced as part of the Australian Government's response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory. By declaring these areas, the government aims to redirect funds intended for child welfare away from substance abuse and gambling, thereby promoting the welfare of children in these regions. The Determination was made in consultation with relevant departments, including the Department of Education, Employment and Workplace Relations, to ensure a coordinated approach to welfare payments that may be subject to the income management regime. This legislative instrument does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered to be regulatory in nature and is not expected to impact business activity or incur significant compliance costs.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 21) Determination 2008) pertain to the declaration of specific areas in the Northern Territory as "declared relevant Northern Territory areas" under the Social Security (Administration) Act 1999 (the Act). These areas, listed in the Schedule to the Determination, fall under the purview of Part 3B of the Act, which governs the income management regime (section 123TE). This regime is designed to ensure that welfare payments are used for the intended purposes, particularly in areas where there is a significant issue of substance abuse and gambling. The Determination, made under subsection 123TE(1) of the Act, specifies these areas and the application of the income management provisions to individuals within them (section 3).
The Act imposes specific obligations and requirements on the individuals residing in the declared relevant Northern Territory areas. These individuals are subject to the income management regime, which mandates that a portion of their welfare payments be directed towards essential goods and services, rather than being used for substances or gambling. The Act requires compliance with these conditions to ensure that funds are used appropriately for the welfare of children and other vulnerable individuals (section 123TE). The obligations include adherence to the income management measures and participation in any related programs or initiatives established to support compliance and better outcomes for affected individuals.
Failure to comply with the requirements of the income management regime can result in various offences and penalties as outlined in the Act. While specific penalties are not detailed in the Determination, the Act generally provides for both civil and criminal penalties for non-compliance. These may include fines, imprisonment, or other sanctions as deemed appropriate by the courts. The maximum penalties for breaches of the income management provisions are detailed in the Act, and may vary depending on the nature and severity of the breach (section 123TF). It is essential for individuals and relevant authorities to understand these provisions to ensure proper enforcement and adherence to the legislation.