EXPLANATORY STATEMENT
Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 9) Determination 2008
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 9)) 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 14 April 2008. The Determination will still have operative effect on the day on which it is expressed to expire (i.e. 7 April 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. 9) Determination 2008 was enacted to address the national emergency concerning the welfare of Aboriginal children in the Northern Territory, specifically aiming to curb the misuse of welfare funds on substances and gambling while ensuring that funds are used for the welfare of children. The legislation was introduced by the Minister for Families, Housing, Community Services and Indigenous Affairs, along with the Minister for Education and the Minister for Employment and Workplace Relations, under the authority of the Social Security (Administration) Act 1999. The primary purpose of this Determination is to designate certain areas within the Northern Territory as "declared relevant Northern Territory areas," thereby enforcing the income management regime outlined in Part 3B of the Act for specified individuals in these areas. The Determination came into effect on 14 April 2008 and was set to expire on 7 April 2009, although it retained its operative effect until the expiration date. The measure was developed in consultation with the Department of Education, Employment and Workplace Relations to ensure a cohesive approach towards welfare payments subject to the income management regime.
Scope and Application
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 9) Determination 2008 applies to certain individuals within specific areas in the Northern Territory, 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 the application of the income management regime to these areas is intended to stem the flow of funds that might otherwise be expended on substances and gambling, and to ensure that welfare payments are used for the intended purpose of child welfare. The application of the income management regime in these areas affects the financial transactions and conduct of eligible individuals who reside in these declared areas. The Determination operates within the jurisdictional scope of the Northern Territory and is effective from 14 April 2008 until 7 April 2009, ensuring that the declared areas continue to be subject to the regime during this period. 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 between various government departments.
Key Provisions
The Social Security (Administration) (Declared relevant Northern Territory areas — Various (No. 9) Determination 2008, made under section 123TE(1) of the Social Security (Administration) Act 1999, sets out specific areas in the Northern Territory that are designated as "declared relevant Northern Territory areas" for the purposes of the income management regime. This regime, outlined in Part 3B of the Act, applies to certain individuals within these areas. This Determination aims to redirect funds away from substance abuse and gambling, ensuring they are instead used for the welfare of children. The areas listed in the Schedule to the Determination are subject to this regime from the commencement date of 14 April 2008, and the Determination will remain in effect until 7 April 2009.
The Determination imposes obligations on individuals residing in the declared areas, requiring them to comply with the income management regime. This includes the requirement that a portion of their Centrelink payments be held in a Commonwealth Community Account, which can only be used for approved purposes such as rent, utilities, and other essential goods. This mechanism is designed to prevent the misuse of funds for substances and gambling, ensuring that welfare payments are used to support the wellbeing of children and families.
Failure to comply with the requirements of the income management regime can result in penalties. Under the Social Security (Administration) Act 1999, non-compliance can lead to the withholding of benefits, and in severe cases, criminal charges can be brought against individuals who misuse their payments. The exact nature of the penalties can vary, but they may include fines or imprisonment, depending on the severity and frequency of the breach. The Determination itself does not specify penalties but refers to the broader legislative framework within which these penalties are applied.
In summary, the Determination is a specific application of the Social Security (Administration) Act 1999, designating certain Northern Territory areas where the income management regime is enforced. This regime mandates that a portion of welfare payments be managed through a dedicated account to prevent misuse for non-essential purposes. While the Determination does not impose additional regulatory burdens or compliance costs, it does enforce strict requirements on individuals in the specified areas, with potential penalties for non-compliance outlined in the broader legislative framework.