EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 1)
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) 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.
Following the implementation of income management under the Northern Territory Emergency Response, there have been many calls from individuals and community groups for the provision of income management to be more widely available. 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 purpose of the Determination is to revoke the Social Security (Administration) (Declared voluntary income management areas – Western Australia (No. 1)) Determination 2008 (the earlier Determination).
Each place specified in Schedule 1 to the Determination is a ‘declared voluntary income management area’ for the purposes of Part 3B of the Act. These areas are defined by way of a postcode that has been allocated by Australia Post in respect of that area. The areas that are listed in Schedule 1 expand the list of areas that were covered by the earlier Determination (which will be revoked by this Determination).
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 voluntarily subject to the income management regime throughout the period when the agreement is in force.
The Determination commences on the day after it is registered.
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 areas – Western Australia) Determination 2009 (No. 1), enacted under the Social Security (Administration) Act 1999, addresses the need for a wider availability of the Voluntary Income Management initiative, building on the implementation of income management under the Northern Territory Emergency Response. This Determination was made by the Minister for Families, Housing, Community Services and Indigenous Affairs, in her own capacity and on behalf of the Minister for Education and the Minister for Employment and Workplace Relations, to facilitate the expansion of areas eligible for voluntary income management. The objective of the Determination is to revoke the earlier 2008 Determination and expand the list of declared voluntary income management areas in Western Australia by incorporating additional postcodes. This expansion aims to provide more individuals with the opportunity to voluntarily enter into agreements to be subject to the income management regime, thereby enhancing the scope of welfare support measures under Part 3B of the Act. The Determination came into effect the day after its registration, ensuring a smooth transition and continuation of the expanded voluntary income management framework.
Scope and Application
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 1) operates within the framework of the Social Security (Administration) Act 1999. This Determination applies to individuals residing in specified areas of Western Australia, which are designated as 'declared voluntary income management areas' for the purposes of Part 3B of the Act. These areas are defined by postcodes allocated by Australia Post, as listed in Schedule 1 to the Determination. The purpose of this instrument is to expand the list of areas eligible for voluntary income management agreements, thus enabling welfare recipients in these regions to voluntarily enter into agreements with the Secretary that subject them to the income management regime. The regime involves the Secretary deducting amounts from the person’s welfare payments and crediting them to an income management account, which can then be used to meet priority needs of the person or their dependants. The Determination revokes the earlier Social Security (Administration) (Declared voluntary income management areas – Western Australia (No. 1)) Determination 2008 and is effective from the day after its registration. The Determination does not impose regulatory requirements or significant compliance costs, as it primarily serves to facilitate the voluntary nature of income management agreements in specified areas.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 1) include the determination of certain areas within Western Australia as declared voluntary income management areas under section 123TGA(c) of the Social Security (Administration) Act 1999 (the Act) (section 1). These areas are identified by postcodes allocated by Australia Post. The purpose of this determination is to expand the list of areas that were previously covered by the 2008 determination, which will be revoked by this current determination (section 2). Each place specified in Schedule 1 is now considered a declared voluntary income management area, enabling residents in these areas to enter into voluntary income management agreements with the Secretary under section 123UM of the Act (section 3).
Under the Act, entities and individuals within the declared areas are required to adhere to the provisions set forth by the Determination. This includes the establishment of voluntary income management agreements, whereby residents can voluntarily agree to be subject to the income management regime under Part 3B of the Act (section 123UFA). For an individual to be eligible for this regime, their usual place of residence must be within one of the declared areas, and they must enter into a written agreement with the Secretary (section 123UM). This agreement allows for the Secretary to manage the individual's welfare payments to meet their priority needs or those of their dependants.
The Determination outlines various obligations for the parties involved. For the Secretary, it is the duty to ensure that the income management agreements are properly managed and that payments are handled in accordance with Part 3B of the Act. For individuals entering into these agreements, the obligation is to comply with the terms of the agreement and to cooperate with the Secretary in managing their welfare payments. The Minister, on behalf of other relevant Ministers, is responsible for making this Determination under the authority granted by the Act.
There are no specific offences, penalties, or consequences for breach outlined in the Determination itself. However, any breaches of the voluntary income management agreements or the Act may result in civil or criminal consequences under other provisions of the Social Security (Administration) Act 1999. These could include fines, imprisonment, or other penalties as prescribed by the relevant sections of the Act. The maximum penalties would be determined by the specific provisions of the Act that are breached.