EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 4)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas —Various (No. 4)) 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 25 March 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e.18 March 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. 4)) Determination 2008 was enacted to address the urgent welfare issues facing Aboriginal children in the Northern Territory, particularly in relation to the misuse of welfare funds for substances and gambling. 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, as well as on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The primary objectives of this legislation are to redirect welfare funds towards the welfare of children and to mitigate the expenditure on harmful activities. By specifying certain Northern Territory areas as "declared relevant Northern Territory areas," the Determination ensures that the income management regime, as outlined in Part 3B of the Act, applies to individuals within these areas, thereby enforcing the intended use of welfare funds.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 4)) Determination 2008, made under the authority of the Social Security (Administration) Act 1999, aims to address the welfare crisis among Aboriginal children in the Northern Territory by ensuring that welfare payments are not misused for substances or gambling. This Determination identifies specific areas within the Northern Territory as "declared relevant Northern Territory areas," thereby subjecting certain individuals within these areas to the income management regime outlined in Part 3B of the Act. The regime is designed to stem the misuse of welfare funds, ensuring they are directed towards the intended beneficiaries, namely children in need. The Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Minister for Education and the Minister for Employment and Workplace Relations, initiated this measure as part of a broader response to the national emergency declared on 21 June 2007. The Determination commenced on 25 March 2008 and remained in effect until 18 March 2009. Notably, this instrument does not impose any regulatory burdens or compliance costs on businesses and was developed in consultation with the relevant departments to ensure a coordinated approach to welfare management.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 4)) Determination 2008, made under subsection 123TE(1) of the Social Security (Administration) Act 1999 (the Act), aims to address the welfare of Aboriginal children in the Northern Territory by specifically identifying certain areas as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act (section 2). This means that these areas will be subject to the income management regime outlined in the Act, which controls how certain welfare payments are spent by eligible individuals (section 2). The Determination came into effect on 25 March 2008 and will remain in force until 18 March 2009, unless otherwise terminated (section 3).
The primary obligations imposed by the Determination are to ensure that individuals residing in the declared areas comply with the income management regime, which includes restrictions on the use of welfare payments for alcohol, tobacco products, and gambling services (section 4). The Act requires these individuals to use a basic Commonwealth-issued payment card, known as the Basic Payment Card, for accessing their welfare payments (section 4). The card restricts the amount that can be withdrawn from certain retailers and limits the total amount that can be spent on restricted items within a specified period (section 4).
Breaching the requirements of the income management regime, such as spending welfare payments on restricted items, can result in civil and criminal penalties (section 5). Under the Social Security Act, individuals found guilty of breaches may face fines up to $2,200 or imprisonment for up to six months, or both (section 5). Additionally, ongoing non-compliance may lead to the suspension or termination of welfare payments (section 5). The Act also provides for the recovery of overpayments made due to non-compliance (section 5).