EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 26) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 26)) 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 14 July 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 7 July 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. 26) Determination 2008 was enacted in response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory, which was declared on 21 June 2007. This Determination was made under the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Ministers for Education and Employment and Workplace Relations. The primary objective of this instrument is to address the misuse of welfare funds by ensuring that they are directed towards the welfare of children rather than being expended on substances and gambling. By declaring certain areas as "declared relevant Northern Territory areas," the Determination enforces the income management regime within these regions, thereby achieving the policy goal of protecting and promoting the welfare of Aboriginal children.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 26) Determination 2008 is a legislative instrument under subsection 123TE (1) of the Social Security (Administration) Act 1999, aimed at addressing the welfare crisis among Aboriginal children in the Northern Territory. This Determination, made by the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Ministers for Education and Employment and Workplace Relations, seeks to redirect welfare funds away from substance abuse and gambling, and towards the welfare of children. It achieves this by specifying certain Northern Territory areas as "declared relevant Northern Territory areas" for the purposes of the income management regime outlined in Part 3B of the Act, thereby applying specific income management measures to certain individuals within these areas. The Determination, which commenced on 14 July 2008 and is set to expire on 7 July 2009, does not impose significant compliance costs or competition impacts, and consultation with relevant departments ensured a coordinated approach regarding welfare payments that may be subject to these measures.
Key Provisions
The key provisions of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 26) Determination 2008 (the Determination) include the specification of areas within the Northern Territory that are to be considered "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999 (the Act) (Section 1). The effect of this Determination is to bring certain individuals within these areas under the income management regime, which is detailed in Part 3B of the Act. This regime is intended to control the spending of welfare funds to prevent them from being used on substances such as alcohol and gambling, and to ensure that these funds are used for the welfare of children (Section 2). The Determination took effect on 14 July 2008 and remained in force until 7 July 2009 (Section 3).
The Determination imposes obligations on the parties it governs by ensuring that certain welfare payments made in the declared areas are subject to the income management regime. This means that individuals in these areas must comply with certain conditions to access their welfare payments, such as setting aside a portion of their payments for specific expenditures like food and rent (Section 4). The Act requires that welfare recipients in these areas be provided with clear information about the income management requirements and the implications of failing to comply with these conditions (Section 5).
Breaches of the obligations imposed by the Determination can lead to various consequences. Under the Act, individuals who do not comply with the income management regime may face the withholding of their welfare payments. In more serious cases, the Department of Families, Housing, Community Services and Indigenous Affairs may take further action, including legal proceedings. The maximum penalties for non-compliance with the income management regime can include fines and, in some cases, imprisonment, depending on the severity of the breach (Section 6). These penalties are intended to enforce compliance with the regime and ensure that welfare funds are used as intended.