EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 7) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 7)) 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 7 April 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 31 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. 7) Determination 2008 was enacted in response to a national emergency concerning the welfare of Aboriginal children in the Northern Territory, announced on 21 June 2007. This legislation aims to address two primary issues: stemming the flow of funds used for substance abuse and gambling, and ensuring that welfare funds are directed towards the actual welfare of children. The Determination was made under subsection 123TE(1) of the Social Security (Administration) Act 1999 and was enacted by the Minister for Families, Housing, Community Services and Indigenous Affairs, in collaboration with the Minister for Education and the Minister for Employment and Workplace Relations. The policy objective is to specify certain areas in the Northern Territory as "declared relevant Northern Territory areas" to which the income management regime will apply, thereby ensuring that welfare funds are appropriately allocated.
The Determination specifies the areas where the income management regime will be enforced, thereby targeting the misuse of welfare funds in those regions. It commenced on 7 April 2008 and remained effective until 31 March 2009. The Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not regulatory in nature and is not expected to have any significant compliance costs or competition impacts. Consultation with the Department of Education, Employment and Workplace Relations was undertaken to ensure a coordinated approach regarding welfare payments subject to the income management regime.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 7) Determination 2008) is an instrument made under the Social Security (Administration) Act 1999. It aims to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory by specifying areas within the Northern Territory where the income management regime will apply to certain individuals. This income management regime is designed to curb the expenditure of welfare funds on substances and gambling, ensuring that these funds are used for the welfare of children. The application of this regime is effective in the declared relevant areas listed in the Schedule to the Determination, which came into effect on 7 April 2008 and remained in force until 31 March 2009. The Act applies to individuals residing in these specified areas, ensuring that their welfare payments are subject to the income management measures outlined in Part 3B of the Act. The instrument does not impose regulatory burdens, compliance costs, or competition impacts, as confirmed by the absence of a Regulatory Impact Statement or Business Cost Calculator Figure.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 7) Determination 2008, as referenced in the Explanatory Statement, specify that certain areas in the Northern Territory are to be considered "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999 (subsection 123TE (1)). This determination, which came into effect on 7 April 2008, will remain in force until 31 March 2009, unless otherwise specified. The Schedule to the Determination lists the specific areas that are subject to this income management regime. The income management regime is intended to address issues such as substance abuse and gambling by ensuring that welfare funds are directed towards the welfare of children.
The obligations and requirements imposed by this Act are primarily directed at individuals residing in the specified areas. Once an area is declared under Part 3B of the Social Security (Administration) Act 1999, certain individuals in that area will be subject to income management measures. These measures aim to control and monitor the use of welfare payments, ensuring that funds are spent appropriately for the welfare of children and not on substances or gambling. The Act requires that these individuals comply with the income management regime, which may include restrictions on the use of certain welfare payments and requirements for financial reporting and monitoring.
Offences, penalties, or consequences for breach of this legislation are not explicitly detailed in the Explanatory Statement, but generally, under the Social Security (Administration) Act 1999, there are provisions for penalties for non-compliance with the income management regime. These penalties can include fines, imprisonment, or other sanctions as prescribed by the Act. The specific penalties for breach would depend on the nature and severity of the non-compliance and would be determined in accordance with the relevant sections of the Act. It is important to note that these measures are designed to protect the welfare of children and to ensure that welfare funds are used effectively and responsibly.