EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 37)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 37)) 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 the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 1)) Determination 2008 (the earlier Determination), 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 earlier Determination that will be revoked by this Determination.
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 12 December 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 30 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) of the Act. Subsection 123TE (8) 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. 37)) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. This determination, made under the Social Security (Administration) Act 1999, aims to curb the misuse of welfare funds by restricting their use for substances and gambling while ensuring they are directed towards the welfare of children. The measure was introduced by the Australian Government on 21 June 2007, with the Minister for Families, Housing, Community Services and Indigenous Affairs, along with the Ministers for Education and Employment and Workplace Relations, all contributing to its enactment. The policy objective is to refine the list of areas covered by the earlier determination, ensuring that the income management regime applies to specific individuals within the designated areas.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 37)) Determination 2008 applies to certain individuals within specified areas of the Northern Territory, aiming to control the use of welfare funds to prevent them from being spent on substances like alcohol and gambling. This measure is made under the Social Security (Administration) Act 1999 and is effective in areas listed in the Schedule to the Determination, which replaces an earlier Determination. The application of the income management regime under Part 3B of the Act is triggered once an area is declared as a relevant Northern Territory area. The Determination is applicable to the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Minister for Education and the Minister for Employment and Workplace Relations. The instrument is not subject to disallowance under the Legislative Instruments Act 2003, and it does not require a Regulatory Impact Statement or a Business Cost Calculator Figure due to its minimal impact on business activity and compliance costs.
Key Provisions
The key sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 37)) Determination 2008 (Determination) are found under subsections 123TE(1) and (10) of the Social Security (Administration) Act 1999 (Act). This Determination revokes the previous Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 1)) Determination 2008 and specifies new areas as "declared relevant Northern Territory areas" (section 1). The areas listed in Schedule 1 of the Determination are subject to the income management regime, which is outlined in Part 3B of the Act. This regime aims to control the spending of certain social security payments on alcohol, tobacco, and gambling, ensuring that these funds are used for the welfare of children (section 2). The Determination takes effect from 12 December 2008 and will expire on 30 November 2009 unless revoked earlier (section 3).
The Determination imposes specific obligations on the parties it governs, primarily those within the declared relevant Northern Territory areas. These obligations include adhering to the income management regime, which restricts the use of certain payments for alcohol, tobacco, and gambling (Part 3B of the Act). Individuals subject to this regime must comply with the requirements set out in the Act, which include having a designated bank account into which payments are made, and subjecting a portion of their payments to a "Family Account" where they can only be used for essential goods and services. This ensures that welfare funds are directed towards the welfare of children and not towards substance abuse and gambling (section 4).
The Determination includes provisions for offences and penalties for non-compliance with the income management regime. Under the Act, those who breach the requirements of the income management regime can be subject to criminal penalties, including fines and imprisonment. The maximum penalties for offences under Part 3B of the Act can vary, but they typically include fines up to $10,000 and imprisonment for up to two years. Additionally, civil consequences may include the suspension or termination of social security payments (subsection 123TE(8) of the Act).
In conclusion, the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 37)) Determination 2008 provides a framework for controlling the use of certain social security payments in specified Northern Territory areas to ensure these funds are used for the welfare of children. It imposes specific obligations on individuals within these areas to comply with the income management regime, including restrictions on the use of payments for alcohol, tobacco, and gambling. Failure to comply with these requirements can result in criminal penalties and civil consequences, including fines and imprisonment, as well as the suspension or termination of social security payments.