EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 2)
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 2) (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) Determination 2009 (No. 1).
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 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.
This instrument expands the areas that are declared to be subject to voluntary income management in Western Australia.
The Determination commences on 19 October 2009.
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 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. 2) was enacted in 2009 under the authority of the Social Security (Administration) Act 1999. This instrument was created to address the demand for the expansion of income management provisions to additional areas in Western Australia. The determination was issued by the Minister for Families, Housing, Community Services and Indigenous Affairs, with co-signing by the Minister for Education and the Minister for Employment and Workplace Relations. Its purpose was to revoke the earlier 2009 Determination (No. 1) and to specify new areas in Western Australia where individuals could enter into voluntary income management agreements, thereby becoming subject to the income management regime outlined in Part 3B of the Act. The objective was to offer a coordinated approach in administering welfare payments in these newly designated areas.
Scope and Application
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 2) applies to individuals who are recipients of certain welfare payments and who reside in areas declared as voluntary income management zones within Western Australia. The determination is made under the Social Security (Administration) Act 1999, specifically under paragraph 123TGA(c) of the Act, which empowers the Minister to designate areas as declared voluntary income management zones. The Secretary can enter into voluntary income management agreements with individuals residing in these areas, under which the individuals agree to be subject to the income management regime. This regime allows for the deduction of certain amounts from welfare payments and the crediting of those amounts to an income management account, with subsequent debits made to meet priority needs of the person or their dependants. The Determination revokes the earlier 2009 version and expands the declared areas in Western Australia, taking effect from 19 October 2009. Notably, the instrument does not introduce new regulatory requirements, compliance costs, or competition impacts, nor does it require a Regulatory Impact Statement or Business Cost Calculator.
Key Provisions
The main sections of the Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 2) (the Determination) are those which declare specific areas in Western Australia as "declared voluntary income management areas" for the purposes of Part 3B of the Social Security (Administration) Act 1999 (the Act). Schedule 1 to the Determination lists these areas, each defined by a postcode allocated by Australia Post (section 1). Once an area is declared as such, a person whose usual place of residence is within one of these areas can voluntarily enter into an agreement with the Secretary to be subject to the income management regime under Part 3B of the Act during the period when the agreement is in force (section 123UM, 123UFA).
The Determination imposes specific obligations and requirements on the parties involved. The Secretary, as the administering authority, is required to manage the income management agreements in accordance with the provisions of Part 3B of the Act. This includes deducting amounts from the person's welfare payments and crediting them to an income management account, as well as debiting amounts from this account to meet the priority needs of the person or their dependants (Part 3B). The person entering into the voluntary income management agreement must agree to have their welfare payments managed in this way. Additionally, the Secretary must ensure that any actions taken under the agreement comply with the requirements of the Act.
Breaching the provisions of the Determination or the Act can lead to various consequences. While the Determination itself does not specify particular offences or penalties, the Act outlines the legal framework under which breaches can be addressed. For example, if a person fails to comply with the terms of a voluntary income management agreement, the Secretary may take action to enforce the agreement, which could include deductions from welfare payments or other measures as permitted by the Act. Failure to comply with the Act’s requirements can also lead to administrative penalties, which may include fines, depending on the specific nature and severity of the breach. Furthermore, serious breaches of the Act that involve criminal conduct could lead to criminal charges, with penalties determined by the relevant courts.
The Determination, by expanding the declared voluntary income management areas, facilitates a broader application of the income management regime in Western Australia. This aims to ensure that more individuals can voluntarily participate in the regime, thereby potentially improving the management of their welfare payments to meet their priority needs. The commencement of the Determination on 19 October 2009 marked the effective date from which these new areas became subject to the voluntary income management provisions, providing clarity and enabling the Secretary to administer the agreements as per the Act.