EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 31)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 31)) 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 13 October 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 19 September 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. 31)) Determination 2008 was enacted to address critical welfare issues faced by Aboriginal children in the Northern Territory. This Determination was made under subsection 123TE (1) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The primary objective of this legislation is to ensure that welfare funds intended for the benefit of children are not diverted towards substance abuse and gambling. By declaring specific areas in the Northern Territory as "declared relevant Northern Territory areas," the Determination activates the income management regime outlined in Part 3B of the Act, thereby controlling the expenditure of welfare payments in these regions. The Determination came into effect on 13 October 2008 and remained in force until 19 September 2009.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 31)) Determination 2008 applies to specified areas within the Northern Territory, making them "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999. This application is aimed at ensuring that certain individuals in these areas are subject to the income management regime. This regime is designed to address the welfare of Aboriginal children by preventing the misuse of welfare funds on substances and gambling and ensuring these funds are used for the intended purpose of child welfare. The Determination is made under the authority of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, and also on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The geographic scope of this Determination is limited to the Northern Territory, and it commenced on 13 October 2008, with an expiry date of 19 September 2009. The Determination does not impose any regulatory burden, compliance costs, or competition impacts, as it is not regulatory in nature and is not expected to affect business activities.
Key Provisions
The main operative sections of this Determination (Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 31)) Determination 2008) are those that specify the declared relevant Northern Territory areas (section 3) and the commencement of the Determination (section 4). Section 3 lists the specific areas that are subject to the income management regime, while section 4 specifies that the Determination commences on 13 October 2008 and will have effect until 19 September 2009. The purpose of the Determination, as stated in the Explanatory Statement, is to ensure that the income management regime applies to certain individuals in the declared relevant Northern Territory areas, thereby stemming the flow of cash on substance abuse and gambling and ensuring funds are used for the welfare of children.
The Act imposes obligations on the Department of Families, Housing, Community Services and Indigenous Affairs, as well as the Department of Education, Employment and Workplace Relations, to ensure that the income management regime is implemented in the declared relevant Northern Territory areas. The Act also requires the relevant individuals in these areas to comply with the income management regime, which may involve the withholding of a portion of their income to ensure it is spent on necessities such as food and rent, rather than on substances or gambling. The Act further mandates that the income management regime be applied in a manner that is consistent with the principles of fairness and proportionality.
There are no explicit offences, penalties, or consequences for breach outlined in the Explanatory Statement. However, the Act may provide for offences and penalties for non-compliance with the income management regime. For example, section 356 of the Social Security (Administration) Act 1999 provides for penalties for failure to comply with an order or direction under the Act. The maximum penalties for these offences may vary depending on the nature and severity of the breach. It is important to note that the Determination itself does not create any new offences or penalties, but rather specifies the areas where the existing income management regime applies.
In summary, the Determination establishes the declared relevant Northern Territory areas for the purposes of the income management regime under the Social Security (Administration) Act 1999. The Act imposes obligations on relevant government departments and individuals to implement and comply with the income management regime, which may involve the withholding of a portion of income to prevent it being spent on substance abuse or gambling. While the Determination itself does not outline specific offences or penalties for breach, the Act may provide for such consequences, with the maximum penalties varying depending on the nature and severity of the breach.