EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 4)
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 4) (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. 3).
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 7 December 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. 4) was enacted to address the growing calls for the expansion of the voluntary income management initiative, following the implementation of income management under the Northern Territory Emergency Response. This determination was made under the authority of paragraph 123TGA(c) of the Social Security (Administration) Act 1999 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. The primary objective of this legislation is to revoke the previous determination and expand the geographical areas in Western Australia that are subject to voluntary income management. By declaring certain postcode areas as 'declared voluntary income management areas', individuals residing in these areas can enter into agreements with the Secretary, thereby voluntarily subjecting themselves to the income management regime under Part 3B of the Act. The determination came into effect on 7 December 2009 and involved consultations with relevant departments to ensure a coordinated approach to welfare payments. Importantly, this determination does not require a Regulatory Impact Statement or a Business Cost Calculator, as it is not considered to have significant regulatory, business, or competition impacts.
Scope and Application
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 4) applies to individuals who reside within specified areas in Western Australia, as designated by the Determination, where they can voluntarily enter into an agreement with the Secretary to be subject to the income management regime established under Part 3B of the Social Security (Administration) Act 1999. This regime involves the Secretary deducting certain amounts from the individual’s welfare payments and crediting them to an income management account, which can then be used to meet the priority needs of the individual or their dependants. The Determination is made under the authority of the Act and involves multiple Ministers, including the Minister for Families, Housing, Community Services and Indigenous Affairs, who act in their own capacity as well as on behalf of the Minister for Education and the Minister for Employment and Workplace Relations. The Determination revokes its predecessor, the Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 3), and specifies new areas in Western Australia that are subject to the voluntary income management initiative, thereby expanding the geographical scope of areas where such agreements can be made. The instrument is not regulatory in nature and does not require a Regulatory Impact Statement or Business Cost Calculator Figure, as it is not anticipated to impact on business activity or have significant compliance costs.
Key Provisions
The Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 4) (the Determination), made under section 123TGA(c) of the Social Security (Administration) Act 1999 (the Act), designates certain areas in Western Australia as 'declared voluntary income management areas' (section 123TGA). This means that these areas are eligible for the voluntary income management regime established under Part 3B of the Act. The areas specified are defined by postcodes allocated by Australia Post (Schedule 1). The Determination revokes the previous determination, Social Security (Administration) (Declared voluntary income management areas – Western Australia) Determination 2009 (No. 3), and comes into effect on 7 December 2009.
The key provisions of the Determination revolve around the designation of specific areas in Western Australia as eligible for the voluntary income management regime. According to section 123UM of the Act, the Secretary can enter into a voluntary income management agreement with a person if the person’s usual place of residence is within a declared area. This agreement allows the person to voluntarily agree to be subject to the income management regime, under which certain welfare payments are directed to meet the priority needs of the person or their dependants (section 123UFA). The income management regime involves deductions from welfare payments being credited to an income management account, from which amounts can be debited for priority needs (section 123UFA).
The Determination imposes specific obligations on parties involved in the income management regime. The Secretary must ensure that the designated areas are appropriately managed under the regime, and individuals residing within these areas may voluntarily enter into income management agreements (section 123UM). The obligations extend to the requirement that any income management agreements comply with the provisions of Part 3B of the Act. This includes the need for agreements to be in writing and to clearly outline the terms and conditions under which the income management regime will apply.
Breaches of the obligations or requirements imposed by the Determination can result in civil or criminal consequences. While the Determination itself does not specify penalties, breaches of the underlying Act can lead to significant penalties. For example, under section 277 of the Act, a person who contravenes a provision of the Act can be subject to a penalty of up to 50 penalty units for an individual or 250 penalty units for a body corporate, depending on the nature and severity of the breach. Additionally, ongoing or repeated breaches may escalate the penalties further. The Act also provides for both civil and criminal enforcement mechanisms, which can include fines, imprisonment, or both, depending on the specific breach and jurisdiction.