EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 22) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 22)) 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 23 June 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 16 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. 22)) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. This legislation was introduced by the Australian Government to implement measures that prevent the misuse of welfare funds for substance abuse and gambling, while ensuring that these funds are used to support child welfare. The Determination was made under subsection 123TE (1) of the Social Security (Administration) Act 1999, and was enacted by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Minister for Education and the Minister for Employment and Workplace Relations. The primary objective of this Determination is to designate specific areas in the Northern Territory as "declared relevant Northern Territory areas" under Part 3B of the Act, thereby applying the income management regime to certain individuals within these areas. The Determination commenced on 23 June 2008 and remained in effect until its expiration on 16 June 2009.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 22)) Determination 2008 is an administrative measure made under the Social Security (Administration) Act 1999, with the aim of addressing the welfare crisis among Aboriginal children in the Northern Territory. It applies specifically to certain individuals residing in areas listed in the Schedule to the Determination, which are categorised as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act. This application triggers the income management regime, ensuring that welfare funds are directed towards the welfare of children rather than being misused for substances or gambling. The Determination applies to the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Ministers for Education and Employment and Workplace Relations, and it commenced on 23 June 2008, remaining in effect until its expiration on 16 June 2009. The instrument was developed in consultation with relevant departments to align welfare payment responsibilities and ensure a cohesive approach in the specified areas.
Key Provisions
The key operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 22) Determination 2008 specify the areas in the Northern Territory that are subject to the income management regime under the Social Security (Administration) Act 1999 (subsection 123TE (1)). These areas, listed in the Schedule to the Determination, are designated as "declared relevant Northern Territory areas" (section 1). This designation triggers the application of Part 3B of the Act, which pertains to income management, for eligible individuals residing in these areas (section 2). The Determination commenced on 23 June 2008 and remains in effect until 16 June 2009 (section 3).
The Act imposes obligations on individuals who are recipients of certain social security payments in the declared areas. These individuals must comply with the income management regime, which includes measures to ensure that their payments are used for the welfare of children and not on substances or gambling (section 4). This involves the requirement for Centrelink to withhold a portion of their payments and direct it to a basic card, from which only approved expenses can be paid (section 5). The Act also requires Centrelink to monitor compliance and take action against those who fail to adhere to the regime.
Breach of the income management requirements can result in both civil and criminal consequences. Civilly, non-compliance can lead to the withholding of payments or other administrative actions taken by Centrelink (section 6). Criminally, wilful failure to comply with the income management measures can result in fines or imprisonment. The maximum penalty for each offence is set out in the Social Security Act, with the specifics depending on the nature and severity of the breach (section 7). The determination ensures that the law is enforced to protect the welfare of Aboriginal children in the Northern Territory.