EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management area – Northern Territory) Determination 2010
The Social Security (Administration) (Declared voluntary income management area – Northern Territory) Determination 2010 (the Determination) is made under section 123TGA 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 Voluntary Income Management initiative provides for income management to be more widely available. It 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 purpose of the Determination is to determine that the whole of the Northern Territory is a ‘declared voluntary income management 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 voluntary income management area’ for the purposes of Part 3B of the Act, a person whose usual place of residence is within that area may enter into a written agreement with the Secretary under which the person agrees to be voluntarily subject to the income management regime throughout the period when the agreement is in force.
The Determination commences on 9 August 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.
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.
Overview
The Social Security (Administration) (Declared voluntary income management area – Northern Territory) Determination 2010 was enacted to address the need for a more accessible income management regime for welfare recipients, particularly in the Northern Territory. This Determination was made under section 123TGA of the Social Security (Administration) Act 1999 and was issued 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 policy objective is to facilitate voluntary income management agreements by declaring the whole of the Northern Territory as a "declared voluntary income management area" under Part 3B of the Act. This enables residents to voluntarily enter into agreements where their welfare payments are managed to meet priority needs, thereby enhancing the effectiveness of welfare support mechanisms in the region.
Scope and Application
The Social Security (Administration) (Declared voluntary income management area – Northern Territory) Determination 2010 is a legislative instrument made under the Social Security (Administration) Act 1999. This Determination specifies that the whole of the Northern Territory is to be considered a 'declared voluntary income management area' for the purposes of Part 3B of the Act, which pertains to the income management regime. This regime applies to certain welfare payment recipients, whereby the Secretary of the Department of Families, Housing, Community Services and Indigenous Affairs can enter into a voluntary income management agreement with these recipients to manage their payments according to their priority needs. The agreement allows for deductions from welfare payments to be credited to an income management account, from which the Secretary can subsequently debit amounts to meet the priority needs of the person or their dependants. The Determination applies to individuals residing in the Northern Territory who are recipients of specified welfare payments and wish to enter into a voluntary income management agreement. The jurisdictional scope of this Determination is limited to the Commonwealth, specifically under the authority of the Social Security (Administration) Act 1999. There are no exclusions or exemptions specified within the text of the Determination itself, although the Act may contain such provisions. The application of this Determination may be further extended or refined through subordinate instruments made under the authority of the Act.
Key Provisions
The main operative sections of the Determination (sections 3 and 4) declare the whole of the Northern Territory as a 'declared voluntary income management area' for the purposes of Part 3B of the Social Security (Administration) Act 1999. This means that any person residing in the Northern Territory can enter into a voluntary income management agreement with the Secretary, subjecting themselves to the income management regime outlined in the Act. The commencement date of the Determination is 9 August 2010, as stated in section 5.
Under the Act, the obligations imposed on the parties include the requirement for the Secretary to enter into a voluntary income management agreement with a person if certain conditions are met, such as the person's usual place of residence being within a declared voluntary income management area (section 123UM). The Secretary must then manage the person's welfare payments in accordance with the agreement, ensuring that amounts are deducted and credited to the person’s income management account as necessary (Part 3B). The person, in turn, agrees to be subject to the income management regime, allowing the Secretary to take actions to meet their priority needs or those of their dependants (section 123UFA).
The Determination does not explicitly outline offences, penalties, or specific consequences for breach. However, breaches of the conditions of a voluntary income management agreement, or failure to comply with the requirements of the Act, could potentially lead to civil or criminal consequences as prescribed by the Social Security (Administration) Act 1999. These might include fines or other penalties, depending on the nature and severity of the breach. The specific penalties would be determined according to the relevant sections of the primary Act, rather than the Determination itself.