EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 35)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 35)) 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 three 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 three revoked Determinations. The Schedule is divided into two parts, reflecting the geographical grouping of the areas listed in the Schedule.
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 20 November 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 15 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, in accordance with subsection 123TE (3), 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 the 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 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. 35)) Determination 2008 was enacted to address critical welfare issues among Aboriginal children in the Northern Territory by implementing stringent income management measures. This instrument, formulated under the Social Security (Administration) Act 1999, was issued by the Minister for Families, Housing, Community Services and Indigenous Affairs, alongside the Ministers for Education and Employment and Workplace Relations, with the aim of redirecting welfare funds away from substance abuse and gambling towards the actual welfare of children. The policy objective behind the Determination is to ensure that financial support provided through social security is used appropriately and effectively for the intended beneficiaries, thereby mitigating the misuse of welfare funds. The Determination revokes previous instruments and refines the list of areas subject to the income management regime, which enforces the designated use of welfare funds within specified Northern Territory regions.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 35)) Determination 2008 applies to individuals residing within specific areas of the Northern Territory that have been declared as relevant for the purposes of Part 3B of the Social Security (Administration) Act 1999. This instrument revokes previous determinations and specifies new areas where the income management regime will be enforced to curb expenditure on substances and gambling and ensure welfare funds are used for children's welfare. The Act applies to these designated areas, which are listed in the Schedule to the Determination, and the effect is that the income management regime will apply to certain individuals within these areas. The Determination is in effect from 20 November 2008 and will remain in force until 15 November 2009 unless revoked sooner. This legislative instrument is not subject to disallowance under the Legislative Instruments Act 2003, and no regulatory impact analysis was required as it is not expected to incur significant compliance costs or competition impact.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 35)) Determination 2008 (the Determination) operates under sections 123TE(1) and 123TE(10) of the Social Security (Administration) Act 1999 (the Act). This instrument, made by the Minister for Families, Housing, Community Services and Indigenous Affairs, and on behalf of the Ministers for Education and Employment and Workplace Relations, aims to address the welfare of Aboriginal children in the Northern Territory. The primary purpose of the Determination is to revoke three previous Determinations and to specify certain areas in the Northern Territory as "declared relevant Northern Territory areas" under Part 3B of the Act (section 123TE(1)). These areas are detailed in Schedule 1 of the Determination and include aliases of previously covered areas. The Determination identifies specific geographic groupings, with the effect that the income management regime outlined in Part 3B of the Act will apply to certain individuals within these designated areas.
The Determination imposes obligations on individuals residing in the declared relevant Northern Territory areas, requiring compliance with the income management regime. This regime aims to ensure that welfare payments are directed towards the welfare of children and not diverted for substance abuse or gambling. The specified areas are subject to stringent controls to monitor and manage the expenditure of welfare funds. The Determination's provisions compel individuals to adhere to certain conditions set by the Act to qualify for welfare payments, ensuring that funds are used for the intended purposes. These obligations are enforced through the application of Part 3B of the Act, which includes measures such as the withholding of certain payments until compliance is achieved.
Breaches of the requirements set out in the Determination can result in both civil and criminal consequences. Under the Act, individuals who fail to comply with the income management regime may face penalties. The maximum penalties for non-compliance can include fines and, in severe cases, imprisonment. Additionally, failure to adhere to the conditions set forth in the Determination can result in the suspension or termination of welfare payments, thereby impacting the individual's access to financial support. These penalties are intended to enforce compliance and uphold the welfare objectives of the Determination.