EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 29)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 29)) Determination 2008 (the Determination) is made under subsections 123TE (1) and (10) 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 revoke four former Determinations, made under subsection 123TE(1) of the Act, and 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 areas that are listed in the Schedule are a more refined list of the aliases and outstations that were covered in the four revoked Determinations.
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 the day after it is registered. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 31 August 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. 29)) Determination 2008 was enacted to address the welfare crisis among Aboriginal children in the Northern Territory. The legislation was introduced to stem the flow of cash used for substance abuse and gambling, and to ensure that funds intended for the welfare of children are actually used for that purpose. The Determination was made under subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The purpose of this Determination is to revoke previous Determinations and specify new areas in the Northern Territory that are subject to the income management regime under Part 3B of the Act, thus ensuring that welfare funds are used appropriately for the benefit of children in those areas.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 29)) Determination 2008 applies to specified areas within the Northern Territory, which are identified in the Schedule to the Determination. This instrument is made under the authority of the Social Security (Administration) Act 1999 and is intended to ensure that the income management regime outlined in Part 3B of the Act applies to certain individuals within the declared relevant Northern Territory areas. These areas are intended to be a more refined list of the aliases and outstations that were previously covered under revoked Determinations. By declaring these areas, the Determination aims to stem the flow of funds that are used for substance abuse and gambling, and to ensure that welfare funds intended for children's welfare are actually used for that purpose. The scope of the Determination is limited to the Northern Territory, and it is applicable to those who reside in or visit these declared areas. The Determination does not specify any exclusions, exemptions, or thresholds within its text, and any further refinement of its application would likely be governed by subordinate instruments or regulations.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 29)) Determination 2008 (the Determination) include the revocation of four previous Determinations (section 2) and the declaration of specified areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999 (the Act) (section 3). These areas are detailed in the Schedule to the Determination, which refines the list of aliases and outstations previously covered in the revoked Determinations. The Determination stipulates that once an area is declared a "declared relevant Northern Territory area", the income management regime outlined in Part 3B of the Act will apply to certain individuals within that area (section 4).
The Determination imposes specific obligations and requirements on the parties and entities it governs. It mandates that welfare payments made in declared relevant Northern Territory areas must comply with the income management regime set out in Part 3B of the Act. This regime aims to direct welfare funds towards essential goods and services rather than on substances such as alcohol and gambling, thereby promoting the welfare of Aboriginal children. The Determination also requires the relevant Ministers to ensure that welfare payments in these areas are managed in accordance with the provisions of the Act, which includes the application of the income management measures.
Breach of the provisions of the Determination can lead to various consequences, including both civil and criminal penalties. Under the Act, non-compliance with the income management measures can result in the withholding of welfare payments. Furthermore, individuals found to be in breach of the specified requirements may face penalties as stipulated in the Social Security Act, which can include fines and, in severe cases, imprisonment. The exact penalties depend on the nature and severity of the breach, but the Act provides a framework within which these penalties can be applied.
The Determination, as it is not regulatory in nature, does not impose significant compliance costs on businesses. However, it is important for businesses and entities involved in the provision of welfare services in the specified areas to be aware of and comply with the income management regime. Failure to do so can result in both financial penalties and reputational damage. The Determination is designed to support the broader policy objectives of the Australian Government in ensuring that welfare funds are used for the intended purposes, thereby addressing the welfare needs of Aboriginal children in the Northern Territory.