EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 24) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 24)) 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 7 July 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 30 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. 24) Determination 2008 was enacted to address the welfare crisis among Aboriginal children in the Northern Territory, announced by the Australian Government on 21 June 2007. This legislative measure was introduced to stem the misuse of welfare funds on substances and gambling while ensuring that welfare funds are correctly allocated for the welfare of children. It is made under subsection 123TE (1) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Ministers for Education and 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," thereby applying the income management regime outlined in Part 3B of the Act to certain individuals within those areas. The Determination came into effect on 7 July 2008 and remains in force until its expiry on 30 June 2009.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 24)) Determination 2008 applies to specific areas within the Northern Territory as declared in the Schedule, impacting individuals residing in these zones. The primary objective of this Determination is to implement the income management regime, as outlined in Part 3B of the Social Security (Administration) Act 1999, for particular individuals in these declared areas. This regime is intended to curb the misuse of welfare funds on substances and gambling, and to ensure that welfare funds are used for the intended purpose of child welfare. The Determination is applicable to these areas from 7 July 2008 until its expiry on 30 June 2009. It does not require a Regulatory Impact Statement or entail significant compliance costs or competition impacts, and it is not anticipated to affect business activities.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 24) Determination 2008 (the Determination) involve the specification of certain areas within the Northern Territory as "declared relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999 (the Act) (section 1). These areas are listed in the Schedule to the Determination. Once an area is declared, it triggers the application of the income management regime to certain individuals in that area (section 3). This regime is designed to control the spending of welfare payments to prevent them from being used for substances or gambling, and to ensure that funds are directed towards the welfare of children. The Determination came into effect on 7 July 2008 and is set to expire on 30 June 2009, although it will still have effect on that date (section 4).
The obligations and requirements imposed by the Determination on the parties or entities it governs are primarily focused on the specified Northern Territory areas and the individuals residing within them. The income management regime requires that certain welfare payments made to individuals in these areas are subject to specific controls. This means that a portion of these payments must be placed into a Commonwealth Health Account, from which only approved expenses can be paid (section 5). Approved expenses typically include those related to the welfare and maintenance of children, such as food, clothing, and basic household items. The scheme is intended to ensure that welfare funds are used for the intended purpose of supporting children’s welfare rather than being diverted to substances or gambling.
There are also specific offences, penalties, or civil/criminal consequences for breach under the Determination. Individuals who fail to comply with the requirements of the income management regime may face penalties. For example, wilfully using welfare payments for prohibited purposes could result in a fine of up to $1,100 or imprisonment for up to six months, or both (section 7). Additionally, if an individual does not comply with the requirements to have a portion of their welfare payments placed into a Commonwealth Health Account, they may be subject to a civil penalty of up to $1,100 (section 8). These penalties are intended to enforce compliance with the regime and to ensure that welfare funds are used appropriately to support the welfare of children in the declared areas.