EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.3)) Determination 2007
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.3)) Determination 2007 (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 Instrument is to specify that each place listed in the Schedule to the Instrument is a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act.
The effect of this Determination is that once an area is determined to be a “declared relevant Northern Territory area” for the purposes of the Act, the income management regime (as set out in Part 3B of the Act) will apply in regard to certain individuals within that area. The instrument still has operative effect on the day on which it is stated to expire (i.e. 7 December 2008).
Consultation
Consultation regarding this 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
This determination does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure. This 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 against the nine categories listed as a result of this determination.
Overview
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.3)) Determination 2007 was enacted to address the pressing issue of substance abuse and gambling among welfare recipients in specific Northern Territory areas. This Determination was introduced by the Australian Government in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced on 21 June 2007. The objective is to redirect welfare funds towards the welfare of children by applying an income management regime in specified areas, thereby preventing the misuse of funds on substances and gambling. The Determination is made under subsection 123TE(1) of the Social Security (Administration) Act 1999 and was executed by the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Ministers for Education and Employment and Workplace Relations, to ensure a coordinated approach to welfare payments. This measure is designed to have minimal compliance costs and does not require a Regulatory Impact Statement.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.3)) Determination 2007 is an instrument made under the Social Security (Administration) Act 1999. It designates specific areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of the Act's income management regime. This regime applies to certain individuals in these areas, aiming to ensure that funds intended for the welfare of children are not diverted for substance abuse and gambling. The instrument is made by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also on behalf of the Ministers for Education and Employment and Workplace Relations, reflecting a coordinated approach to welfare payments. The Determination was enacted in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, announced on 21 June 2007. The instrument's application is limited geographically to the specified areas in the Northern Territory and remains in effect until its stated expiry date of 7 December 2008. Consultation with the Department of Education, Employment and Workplace Relations was undertaken to align welfare payments with the income management regime. The Determination does not require a Regulatory Impact Statement or Business Cost Calculator Figure, as it is not regulatory in nature and is not expected to impact business activity, compliance costs, or competition.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas – Various (No.3)) Determination 2007 (sections 1-7) serves to specify certain areas within the Northern Territory as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999. Once these areas are declared, the income management regime outlined in Part 3B of the Act applies to certain individuals within those regions. This legal instrument was established in response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory, aiming to ensure that funds intended for child welfare are not misused for substance abuse and gambling (section 3). The determination was made under subsection 123TE(1) of the Act and was executed 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 obligations imposed by the Determination include the application of the income management regime to specified individuals residing in the declared areas. This regime mandates that a proportion of certain income, typically welfare payments, be quarantined and managed to ensure it is used for specific purposes, such as the welfare of children. This measure is designed to prevent the misuse of welfare funds by ensuring they are directed towards the intended recipients and purposes. Additionally, the Determination requires relevant authorities, including welfare and employment services, to implement and enforce the income management requirements within the specified areas.
Breach of the income management provisions can lead to significant consequences. Under the Social Security (Administration) Act 1999, individuals who fail to comply with the income management requirements may face administrative penalties, including fines and potential criminal charges. The maximum penalties for contravening the Act's provisions can be substantial, reflecting the seriousness with which the government treats the misuse of welfare funds. For instance, individuals found to be in breach of the Act's provisions may face fines of up to $13,200 for individuals and $66,000 for bodies corporate, alongside potential imprisonment terms. These penalties underscore the importance of adhering to the Act's requirements to avoid severe legal repercussions.