Overview

The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 36)) Determination 2008 was enacted to respond to the national emergency concerning the welfare of Aboriginal children in the Northern Territory, as announced by the Australian Government on 21 June 2007. This Determination, made under the Social Security (Administration) Act 1999, was formulated 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 policy objective of the Determination is to address two main issues: stemming the expenditure of welfare funds on substance abuse and gambling, and ensuring that funds are used for the intended purpose of child welfare. The Determination revokes four previous Determinations and specifies new areas that are subject to the income management regime under Part 3B of the Act. The Determination took effect on 7 December 2008 and remained in force until 30 November 2009. It is designed to categorise certain areas in the Northern Territory as "declared relevant Northern Territory areas," thereby applying the income management regime to specific individuals within these areas. This approach aims to redirect welfare funds towards the welfare of children and away from activities like substance abuse and gambling. Notably, the Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered regulatory in nature and is not expected to impose significant compliance costs or competition impacts on businesses.

Scope and Application

The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 36)) Determination 2008 applies to individuals residing in specific areas within the Northern Territory as listed in the Schedule to the Determination. These areas are designated as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999. The Determination revokes four previous Determinations and specifies the areas that fall under the income management regime, which is designed to stem the flow of cash towards substance abuse and gambling and to ensure welfare funds are used for the benefit of children. This instrument, made under subsections 123TE(1) and (10) of the Act, commenced on 7 December 2008 and will remain in effect until 30 November 2009, unless revoked sooner. The geographic scope is limited to the Northern Territory, and the Determination does not apply to areas outside this jurisdiction. The instrument does not specify any exclusions, exemptions, or thresholds, but rather relies on the overarching provisions of the Social Security (Administration) Act 1999 to define the application of the income management regime within the designated areas.

Key Provisions

The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 36)) Determination 2008 revokes four previous determinations and specifies that certain areas in the Northern Territory are now "declared relevant Northern Territory areas" for the purposes of the Social Security (Administration) Act 1999 (the Act) (s 1). These areas include various locations listed in the Schedule to the Determination (Schedule 1), which are divided into two parts reflecting their geographical grouping (s 1). The effect of this Determination is that the income management regime, as set out in Part 3B of the Act, will apply to certain individuals within these declared areas, aiming to stem the flow of cash used for substance abuse and gambling and ensure funds are spent on the welfare of children (s 1). Under this Determination, the obligations imposed on parties or entities governed by the Act include the requirement for individuals in declared areas to comply with the income management regime. This includes measures such as the allocation of welfare payments through a Basic Card, which restricts the use of these funds for specific goods and services (s 3B of the Act). The Act also mandates the Department of Families, Housing, Community Services and Indigenous Affairs to administer the income management regime and ensure that welfare payments are used appropriately (s 123TE of the Act). The Determination requires coordination with other relevant departments, such as the Department of Education, Employment and Workplace Relations, to ensure a unified approach to welfare payments that may be subject to income management (s 123TE(5) of the Act). Any breaches of the income management regime under the Act can lead to various civil and criminal consequences. Civil penalties may include fines up to a maximum of $13,200 for individuals and $66,000 for bodies corporate, as prescribed under section 123TG of the Act. Criminal offences can result in penalties of up to 2 years imprisonment for individuals and $11,000 fines for bodies corporate, as outlined in section 123TH of the Act. Additionally, the Act allows for the imposition of good behaviour bonds and other court orders to enforce compliance with the income management provisions. Failure to comply with the income management requirements can lead to the withholding of welfare payments and other sanctions as stipulated in the Act.