EXPLANATORY STATEMENT

Social Security (Administration) (Declared voluntary income management areas – Western Australia) Amendment Determination 2012

The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Amendment Determination 2012 (the Amendment Determination) is made under paragraph 123TGA(c) of the Social Security (Administration) Act 1999 (the Act).  The Minister for Families, Community Services and Indigenous Affairs is making this instrument on her own behalf and on behalf of the Minister for Employment and Workplace Relations and the Minister for Tertiary Education, Skills, Science and Research.

Background

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 Social Security (Administration) (Declared voluntary income management areas — Western Australia) Determination 2011 (the 2011 Determination’) was made under this section, specifying, by postcode, various areas of Western Australia as declared voluntary income management areas. The Western Australian government modified the postcodes in the Peel region of Western Australia prior to the creation of the 2011 Determination. These areas were referred to by their previous postcodes in the 2011 Determination. For the instrument to operate in line with the policy intent, it is necessary to amend the 2011 Determination with the updated postcodes.   

Purpose

The purpose of the Amendment Determination is to amend the 2011 Determination to insert references to the updated postcodes for the Peel region of Western Australia.

The effect of the Amendment Determination is to increase the declared voluntary income management area in Western Australia to ensure this area reflects the original policy intent.

The Determination commences on the day after it is registered.

Explanation of the Provisions

Section 1 states the name of the Determination.

Section 2 provides that the Determination commences on the day after it is registered.

Section 3 provides that Schedule 1 amends the Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2011.

Schedule 1 repeals Part 10 of Schedule 1 to the Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2011 regarding Peel and surrounding areas, and substitutes it with a new Part 10.

Consultation

Consultation on the Amendment Determination was undertaken with the Department of Employment and Workplace Relations, the Department of Industry, Innovation, Science, Research and Tertiary Education, and the Department of Veterans’ Affairs to ensure a co-ordinated approach in respect of welfare payments for which those departments have responsibility.

Regulatory Impact Analysis

The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact.

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights

(Parliamentary Scrutiny) Act 2011

Social Security (Administration) (Declared voluntary income management areas – Western Australia) Amendment Determination 2012

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Overview of the Legislative Instrument

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 Social Security (Administration) (Declared voluntary income management areas — Western Australia) Determination 2011 (the 2011 Determination) was made under this section, specifying, by postcode, various areas of Western Australia as declared voluntary income management areas. 

The postcode designation for four of the declared areas had changed prior to the creation of the instrument. Four areas that were designated by postcode 6210 are now designated by four postcodes; 6209, 6211, 6181 and 6180.  Consequently, the Social Security (Administration) (Declared voluntary income management areas – Western Australia) Amendment Determination 2012 (the amending instrument) inserts these postcodes into the 2011 Determination. This will result in an increase in the declared voluntary income management area in Western Australia, to bring the declared area in line with the original policy intent.

Human rights implications

The amending instrument ensures the operation of voluntary income management is in line with the original policy intent. Any increase in the declared voluntary income management area is compatible with human rights.

Voluntary income management is an optional program available to income support recipients in the designated areas. It limits a person’s rights with their consent, and only limits a person’s human rights to the extent that it supports the enjoyment of these rights, particularly:

• the right to social security under article 9 of the International Covenant on Economic Social and Cultural Rights (ICESCR). Voluntary income management ensures a person spends 50% of their social security benefit to meet their priority needs, which allows them to enjoy “essential health care, basic shelter and housing, water sanitation, foodstuffs and the most basic forms of education” as provided under article 9.

• the right to an adequate standard of living under Article 11.1 ICESCR. Voluntary income management assists a person in allocating funds towards life’s essentials, such as food, rent and medical necessities which are essential to an adequate standard of living.

• the right to freely determine their economic development under article 1 of the ICESCR. In assisting people to meet their priority needs, voluntary income management provides people with more financial stability, so they can better pursue their economic, social and cultural development.

The Hon Jenny Macklin MP, Minister for Families, Community Services and Indigenous Affairs and Minister for Disability Reform