EXPLANATORY STATEMENT
Social Security (Administration) (Declared voluntary income management areas – Western Australia (No. 1)) Determination 2008
The Social Security (Administration) (Declared voluntary income management areas – Western Australia (No. 1)) Determination 2008 (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 instrument is to determine that each place specified in Schedule 1 to the instrument is a ‘declared voluntary income management area’ for the purposes of Part 3B of the Act. Each area specified corresponds with a postcode that has been allocated by Australia Post in respect of Western Australia.
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. It is not expected that any compliance costs will be incurred by business, as a result of this Determination, against the nine categories listed in the Business Compliance Cost Checklist contained in the Best Practice Regulation Handbook prepared by the Office of Best Practice Regulation.
Overview
The Social Security (Administration) (Declared voluntary income management areas – Western Australia (No. 1)) Determination 2008 was enacted to address the need for a more widespread implementation of the Voluntary Income Management initiative as established under the Social Security (Administration) Act 1999. This Determination was made under the authority of the Act by the Minister for Families, Housing, Community Services and Indigenous Affairs, in conjunction with the Minister for Education and the Minister for Employment and Workplace Relations. The primary objective of this instrument is to designate specific areas in Western Australia as 'declared voluntary income management areas' for the purposes of Part 3B of the Act. By making this declaration, the Determination allows individuals residing in these specified areas to enter into voluntary income management agreements with the Secretary, thereby subjecting themselves to the income management regime. The Determination ensures that welfare payments for which the Department of Education, Employment and Workplace Relations and the Department of Veterans’ Affairs have responsibility are aligned with this regime, promoting a coordinated approach in the management of welfare payments.
Scope and Application
The Social Security (Administration) (Declared voluntary income management areas – Western Australia (No. 1)) Determination 2008 applies to individuals who reside within specified postcodes in Western Australia, making these areas eligible for the voluntary income management regime established under Part 3B of the Social Security (Administration) Act 1999. This regime allows individuals to enter into voluntary income management agreements with the Secretary, subjecting them to the income management process aimed at meeting their priority needs or those of their dependants. The Determination is made under the authority conferred by the Act and involves the Minister for Families, Housing, Community Services and Indigenous Affairs, as well as the Ministers for Education and Employment and Workplace Relations. It is limited to the Commonwealth jurisdiction and does not extend to state or territory legislation. The Determination does not impose any exclusions, exemptions, or specific thresholds but relies on the broader criteria set out in the Act for determining eligibility and operation of the income management agreements.
Key Provisions
The main operative sections of the Social Security (Administration) (Declared voluntary income management areas – Western Australia (No. 1)) Determination 2008 (the Determination) establish specific areas in Western Australia as declared voluntary income management areas under the Social Security (Administration) Act 1999 (the Act). Section 3 of the Determination specifies these areas by their respective postcodes, aligning them with the areas allocated by Australia Post. This means that individuals residing in these postcodes are eligible to enter into a voluntary income management agreement with the Secretary, thereby subjecting themselves to the income management regime under Part 3B of the Act.
The Determination imposes obligations on both the Secretary and the individuals residing in the declared areas. For the Secretary, it mandates the management and monitoring of welfare payments according to the terms set out in any voluntary income management agreements entered into with residents of the specified areas. For the individuals, the obligation is to adhere to the terms of any such agreements, which includes allowing the deduction of amounts from their welfare payments and the crediting of those amounts to an income management account. The Secretary may then debit amounts from this account to meet the priority needs of the individual or their dependants.
The Determination itself does not create new offences or penalties; however, breaches of the terms of a voluntary income management agreement could lead to consequences under the Act. These may include administrative actions such as the suspension or termination of the agreement, which could affect the individual's access to welfare payments. While the Determination does not specify financial penalties, any associated breaches of the income management regime under Part 3B of the Act may result in civil or criminal consequences depending on the nature and severity of the breach, with penalties outlined in other sections of the Act. The specific penalties for breaches would be determined in accordance with the relevant provisions of the Social Security (Administration) Act 1999.