EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 8)) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 8)) 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. 8)) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, particularly in relation to the misuse of welfare funds. This determination was made under the Social Security (Administration) Act 1999 and was authorised by the Minister for Families, Housing, Community Services and Indigenous Affairs, with the concurrence of the Minister for Education and the Minister for Employment and Workplace Relations. The primary objectives of the determination are to curb the expenditure of welfare funds on substances and gambling and to ensure that welfare funds are used for the intended purpose of child welfare. By designating certain Northern Territory areas as "declared relevant Northern Territory areas," the determination activates the income management regime outlined in Part 3B of the Act for individuals within these areas, aiming to redirect welfare funds towards the welfare of children. The determination commenced on 7 April 2008 and was set to expire on 31 March 2009, though it retained its operative effect until that date.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 8)) Determination 2008 applies to specific individuals residing in areas designated as "declared relevant Northern Territory areas" under Part 3B of the Social Security (Administration) Act 1999. These areas are listed in the Schedule to the Determination and fall within the jurisdiction of the Northern Territory. The Determination aims to enforce the income management regime, ensuring that welfare funds intended for the welfare of children are not diverted to substance abuse and gambling. The application of this regime affects certain individuals within the declared areas, imposing controls on their access to welfare payments. The Determination is in force from 7 April 2008 and will remain effective until 31 March 2009. The instrument is made under the authority of 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, reflecting a coordinated approach to welfare management. The Determination does not require a Regulatory Impact Statement or incur significant compliance costs for businesses.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 8)) Determination 2008 (the Determination) involve the declaration of specific areas in the Northern Territory as "declared relevant Northern Territory areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999 (the Act) (sections 1 and 2). This means that the income management regime outlined in Part 3B of the Act will apply to certain individuals in these areas. The Determination lists these areas in the Schedule and comes into effect on 7 April 2008, remaining in force until 31 March 2009.
Under the Determination, the obligations and requirements imposed on the parties or entities it governs primarily involve the application of the income management regime in the specified areas. This regime aims to prevent the misuse of welfare payments for substances and gambling, ensuring that funds are directed towards the welfare of children. The Act requires that certain individuals in these areas have their welfare payments managed in a way that promotes responsible financial behaviour and ensures that funds are used for the intended purpose of supporting children's welfare.
The Determination also outlines the consequences of non-compliance with the income management regime. While the Determination itself does not specify detailed penalties, breaches of the Social Security Act can lead to various civil and criminal consequences. For instance, section 123TB of the Act outlines that failure to comply with income management requirements can result in the withholding of payments or fines. Section 123TA further stipulates that an individual who contravenes an income management direction may be liable to a penalty of up to 20 penalty units, which equates to approximately $4,200 as of the latest legislative update. Additionally, persistent non-compliance may lead to more severe legal consequences, including potential prosecution and fines.
In summary, the Determination serves to enforce the income management regime in specific Northern Territory areas to ensure welfare funds are used appropriately. It imposes obligations on individuals to comply with these management requirements, with potential penalties for non-compliance under the Social Security Act. The Determination’s aim is to support the welfare of children by preventing the misallocation of welfare payments.