EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 3)
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 3) (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. 2).
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 9 November 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. 3) was enacted in 2009 under the authority of the Social Security (Administration) Act 1999. This Determination was introduced to address the ongoing demand for extending income management provisions beyond the Northern Territory, specifically to areas within Western Australia. The enacting body responsible for this instrument is the Minister for Families, Housing, Community Services and Indigenous Affairs, who made this determination in her own capacity and on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The primary policy objective of this Determination is to expand the geographical scope of areas where individuals can voluntarily enter into income management agreements, thereby providing them with a structured approach to managing their welfare payments to meet priority needs.
The Determination serves to revoke the previous Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 2) and establish new areas in Western Australia as 'declared voluntary income management areas' for the purposes of Part 3B of the Act. By defining these areas through specific postcodes allocated by Australia Post, the Determination allows individuals residing within these specified areas to voluntarily agree to be subject to the income management regime. This expansion aims to provide a broader application of income management, offering support and structure for welfare recipients in managing their payments to address their essential needs. The Determination took effect on 9 November 2009 and involved consultation with relevant departments to ensure a coordinated approach to welfare payments that may be subject to this regime.
Scope and Application
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 3) is an instrument made under the Social Security (Administration) Act 1999, specifically pursuant to section 123TGA(c) of the Act, to declare certain areas in Western Australia as 'declared voluntary income management areas'. These areas are defined by postcodes allocated by Australia Post and are specified in Schedule 1 to the Determination. This legal instrument applies to individuals residing in these declared areas who may voluntarily enter into an income management agreement with the Secretary, thereby becoming subject to the income management regime under Part 3B of the Act. The regime involves the deduction of certain amounts from welfare payments and the crediting of those amounts to an income management account, which can subsequently be used to meet the priority needs of the individual or their dependants. The Determination revokes the previous Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 2), expanding the geographical scope of areas eligible for voluntary income management within Western Australia. The instrument was made by the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Minister for Education and the Minister for Employment and Workplace Relations, and commenced on 9 November 2009. The instrument does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not regulatory in nature and will have minimal compliance costs or competition impact.
Key Provisions
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 3) (the Determination) primarily functions to designate specific areas in Western Australia as declared voluntary income management areas under the Social Security (Administration) Act 1999 (the Act) (sections 123TGA, 123UFA, and 123UM). This designation is critical as it allows individuals residing in these areas to voluntarily enter into income management agreements with the Secretary (section 123UM). The Determination revokes the previous Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 2) and specifies new areas through a postcode system allocated by Australia Post (Schedule 1).
The obligations imposed by the Determination on the parties involved are significant. Firstly, the Minister for Families, Housing, Community Services and Indigenous Affairs, along with the Ministers for Education and Employment and Workplace Relations, must ensure that the areas specified in Schedule 1 are accurately identified and communicated. The Secretary is then required to manage the income management agreements with individuals residing in these areas, including deducting amounts from their welfare payments and crediting them to their income management accounts (section 123UFA). Additionally, the Secretary must manage the debiting of these accounts to meet the priority needs of the individuals and their dependants (section 123UFA).
Failure to comply with the provisions of the Determination can lead to civil or criminal consequences, although the Determination itself does not explicitly detail these. Under the Act, breaches of the income management regime could result in penalties. For instance, section 123YJ of the Act provides for penalties in cases of non-compliance with income management provisions. The maximum penalties for such offences can include fines and, in severe cases, imprisonment, although the exact penalties would be governed by the broader provisions of the Act rather than the Determination.
The Determination was made after consultation with relevant departments to ensure a coordinated approach to welfare payments. The Department of Education, Employment and Workplace Relations and the Department of Veterans’ Affairs were involved in these consultations to address any potential overlaps or impacts on welfare payments they administer (Consultation section). Additionally, the Determination does not require a Regulatory Impact Statement or a Business Cost Calculator Figure, as it is not considered to have significant regulatory, business, or competition impacts (Regulatory Impact Analysis section).