EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 34)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 34)) 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 Determinations, made under subsection 123TE(1) of the Act and, in addition, to specify that each area listed in the Schedule to the Determination (Schedule 1) is a “declared relevant Northern Territory area” for the purposes of Part 3B of the Act. The areas that are listed in Schedule 1 are a more refined list of the areas (including their aliases) that were covered by 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. 4 November 2009). Subsection 123TE(2) of the Act provides that a determination made under subsection 123TE(1) of the Act must specify an expiry date for the determination, and subsection 123TE(8) of the Act provides that, unless it is revoked sooner, a determination made under subsection 123TE(1) will cease to be in force on the expiry date of the determination.
The Determination is a legislative instrument. However, section 42 of the Legislative Instruments Act 2003 (disallowance of legislative instruments) does not apply to the Determination (subsections 123TE(13) and 123TE(14) of the Act).
In deciding whether to make this Determination, the Minister has had regard to the matters specified in subsection 123TE(5) of the Act.
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. 34)) Determination 2008 was enacted to address a national emergency concerning the welfare of Aboriginal children in the Northern Territory. This legislation was introduced under subsections 123TE (1) and (10) of the Social Security (Administration) Act 1999 by the Minister for Families, Housing, Community Services and Indigenous Affairs, in collaboration with the Minister for Education and the Minister for Employment and Workplace Relations. The primary objectives of this Determination are to prevent the misuse of welfare funds on substances and gambling and to ensure that welfare funds are appropriately used for the welfare of children. The Determination revokes four previous Determinations and re-specifies certain areas in the Northern Territory as "declared relevant Northern Territory areas" to which the income management regime applies. This legislative instrument is not subject to disallowance under section 42 of the Legislative Instruments Act 2003. The Determination was made after considering the specified matters under subsection 123TE(5) of the Act and underwent consultation with the Department of Education, Employment and Workplace Relations.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 34)) Determination 2008, made under the Social Security (Administration) Act 1999, aims to address the welfare of Aboriginal children in the Northern Territory by implementing an income management regime. This regime is intended to stem the flow of cash for substance abuse and gambling and to ensure funds are used for the welfare of children. The Determination revokes four previous Determinations and specifies that certain areas in the Northern Territory are now "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act. Consequently, the income management regime will apply to certain individuals within these areas. The Determination applies to these specified areas and the individuals residing within them, and it commences on the day after its registration and remains in effect until its expiry date of 4 November 2009. The legislation excludes itself from the disallowance provisions under the Legislative Instruments Act 2003. The instrument is not regulatory in nature and does not require a Regulatory Impact Statement, as it is not expected to have any significant compliance costs or competition impact.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 34)) Determination 2008 (sections 1 and 2) revokes four previous determinations and specifies new areas as “declared relevant Northern Territory areas” under section 123TE of the Social Security (Administration) Act 1999. These areas are listed in Schedule 1 of the Determination, which are designed to more accurately target welfare areas for the application of the income management regime. The Determination came into effect on the day after it was registered and will remain in force until 4 November 2009 unless revoked earlier. The Determination is a legislative instrument but is exempt from the disallowance provisions of the Legislative Instruments Act 2003.
Under the Act, the Determination requires that the income management regime be applied to certain individuals in the declared areas, ensuring that welfare funds are used for the intended purpose of supporting children’s welfare rather than being diverted to substance abuse or gambling. The obligations on parties governed by the Act include compliance with the income management measures, which may involve restrictions on the use of welfare payments and monitoring by Centrelink or other relevant authorities. These measures are aimed at preventing the misuse of welfare funds in the specified areas.
Failure to comply with the provisions of the Determination could result in various consequences, including civil and criminal penalties. While the Determination itself does not explicitly state penalties, the underlying Social Security (Administration) Act 1999 does provide for penalties for breaches. These can include fines and, in more serious cases, imprisonment. The exact penalties would be determined according to the specific nature and severity of the breach. The Determination thus imposes a strict requirement for compliance to ensure the welfare funds are used appropriately and effectively.