EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 5)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 5)) 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. 5)) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory. This legislation was made under subsection 123TE (1) of the Social Security (Administration) Act 1999 and was introduced 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 aims of this measure are to prevent the misuse of funds intended for children's welfare by curbing substance abuse and gambling, and to ensure that welfare payments are used appropriately. The Determination specifies certain Northern Territory areas as "declared relevant Northern Territory areas," subjecting certain individuals within these areas to the income management regime outlined in Part 3B of the Act. This Determination came into effect on 25 March 2008 and was set to expire on 18 March 2009, with ongoing operative effect until its expiration date.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 5)) Determination 2008 applies to certain areas within the Northern Territory of Australia, designated as "declared relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999. This instrument is made under the authority of the Act and is effective from 25 March 2008 until 18 March 2009. The primary objective of the Determination is to ensure that specific welfare payments are directed towards the welfare of children by applying an income management regime to certain individuals within these declared areas, thereby curbing expenditure on substances and gambling. The Minister for Families, Housing, Community Services and Indigenous Affairs, and other relevant ministers, have made this Determination in response to the national emergency concerning the welfare of Aboriginal children in the Northern Territory. The instrument specifies which areas are subject to this regime and facilitates a coordinated approach with other government departments, such as the Department of Education, Employment and Workplace Relations.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 5)) Determination 2008, made under subsection 123TE(1) of the Social Security (Administration) Act 1999, establishes specific areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Act (section 1(1)). This determination, which commenced on 25 March 2008 and will remain in effect until 18 March 2009, designates these areas to trigger the application of the income management regime to certain individuals residing there. This regime aims to prevent the misuse of welfare funds, particularly to curb spending on substances and gambling, and to ensure that welfare funds are directed towards the welfare of children.
The Determination imposes obligations on the parties it governs by ensuring that individuals who reside in the designated areas comply with the income management measures outlined in Part 3B of the Act (section 1(2)). These measures include the requirement for Centrelink to retain a portion of welfare payments to ensure they are spent on essential goods and services, such as food and rent, rather than on substances or gambling. Compliance with these measures is overseen by Centrelink, the agency responsible for administering social security payments in Australia.
Breaching the obligations set forth in the Determination can lead to various consequences. Under section 123TC of the Social Security (Administration) Act 1999, individuals who fail to comply with the income management measures may face civil or criminal penalties. The Act provides for the imposition of fines and, in some cases, imprisonment. The maximum penalties for breaches related to the misuse of welfare funds can include fines of up to $10,000 and imprisonment for up to two years, reflecting the seriousness with which the Australian Government views the misuse of welfare funds in these areas. These penalties serve as a deterrent to ensure that welfare funds are used for their intended purposes.