EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management area – Cape York) Determination 2009 (No. 1)
The Social Security (Administration) (Declared voluntary income management area – Cape York) Determination 2009 (No. 1) (the Determination) is made under paragraph 123TGA(c) 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
Part 3B of the Act establishes an income management regime that applies to recipients of certain welfare payments. If a person is subject to the income management regime under Part 3B, the Secretary will deduct amounts from the person’s relevant welfare payments and credit those amounts to the person’s income management account. The Secretary may then debit amounts from the person’s income management account, in accordance with Part 3B, for the purpose of taking actions directed to meeting the priority needs of the person or his or her dependants.
Subdivision A of Division 2 of Part 3B sets out the various situations in which a person is subject to the income management regime. Section 123UFA, in that Subdivision, provides that a person is subject to the income management regime at a particular time if a voluntary income management agreement is in force in relation to the person. The term ‘voluntary income management agreement’ is defined in section 123TC of the Act as an agreement under section 123UM of the Act. Section 123UM provides that the Secretary can only enter into a voluntary income management agreement with a person if, among other things, the person’s usual place of residence is within a declared voluntary income management area. The term ‘declared voluntary income management area’ has the meaning given by section 123TGA of the Act. Section 123TGA provides that the Minister may, by legislative instrument, determine that a specified State, Territory or area is a declared voluntary income management area for the purposes of Part 3B of the Act.
The Family Responsibilities Commission and the Family Income Management Providers have received multiple requests from individuals on Age Pension and Carer Payments in Cape York who wish to be subject to income management. Under the current legislation, the recipients of these payments types in Cape York are not eligible for income management. The voluntary income management initiative provides for the Secretary and a person to enter into an agreement under which the person voluntarily agrees to be subject to the income management regime under Part 3B of the Act.
Purpose
The areas known as Aurukun, Coen, Hope Vale and Mossman Gorge in Queensland are each a ‘declared voluntary income management area’ for the purposes of Part 3B of the Act. These areas are the four Cape York Welfare Reform communities.
The effect of the Determination is that once an area is determined to be a ‘declared voluntary income management area’ for the purposes of Part 3B of the Act, a person whose usual place of residence is within a declared voluntary income management area may enter into a written agreement with the Secretary under which the person agrees to be subject to voluntary income management regime throughout the period when the agreement is in force.
Currently, recipients of Age Pension and Carer Payments in Cape York cannot be subject to income management. This instrument allows voluntary income management to be implemented for all category H payment types, which includes Age Pension and Carer Payments.
The Determination commences on the day after it is registered and ceases to have effect after 30 June 2010.
Consultation
Consultation on the Determination was undertaken with the Department of Education, Employment and Workplace Relations and the Department of Veterans’ Affairs 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.
Consultations have also been held with Centrelink, the Family Responsibilities Commission, the Cape York Institute, the QLD Government Departments of Premier and Cabinet and Communities have indicated strong support for implementing the VIM model.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement 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.