EXPLANATORY STATEMENT
Issued by the authority of the Minister for Human Services
Social Security (Administration) Act 1999
Social Security (Administration) (Trial— Excluded Voluntary Participants) Determination 2016
Purpose
In accordance with section 124PI of the Social Security (Administration) Act 1999 (the Act), this Determination determines a class of person who may not be voluntary participants in the trial.
Background
The debit card trial will test the concept of cashless welfare arrangements by disbursing particular welfare payments to a restricted bank account, accessed by a debit card which does not allow cash withdrawals. Trial participants and voluntary participants in trial areas will receive their welfare payments in this way.
Various recipients of trigger payments (defined in section 124PD of the Act) will be trial participants under section 124PG. A person may notify the Secretary (or delegate) orally or in writing that the person wishes to be subject to cashless welfare arrangements if the person receives a restrictable payment of the kind mentioned in paragraph (b) of the definition of that expression (also in section 124PD), the person’s usual place of residence is within a trial area, and the person is not otherwise a trial participant.
Age pension is not a trigger payment, but is a restrictable payment. Age pension recipients will not be trial participants by virtue of receiving age pension. . Persons who will reach pension age within a year of the commencement of the location in which they usually reside becoming specified as a trial area will also not be trial participants under the legislative instruments specifying trial areas and determining classes to which trigger payments apply. For persons whose usual place of residence is in Ceduna or the Surrounding Region, this will be the 12 months from 15 March 2016 as a result of the Social Security (Administration) (Trial Area – Ceduna and Surrounding Region) Determination 2015. For persons whose usual place of residence is in East Kimberley, this will be 12 months from 26 April 2016 as a result of the Social Security (Administration) (Trial Area – East Kimberley) Determination 2016.
The Determination excludes persons other than persons who are age pension age, or persons who will reach age pension age within a year of the trial commencing in the location they usually reside from being voluntary participants.
Persons excluded from being trial participants under these provisions will not be excluded from being voluntary participants. Other persons who are not able to be voluntary participants under the Act may still participate in the trial by applying to the financial institution that operates the welfare restricted bank account to open an account for the receipt of their welfare payments.
The Minister for Human Services has been appointed to also administer the Department of Social Services, and so pursuant to section 19A of the Acts Interpretation Act 1901 has the powers of the ‘Minister’ under Part 3D of the Act.
The Determination is a legislative instrument.
Commencement
The Determination commences on the day after it is registered on the Federal Register of Legislation, and ceases on 30 June 2018, when the trial must end.
Consultation
The Government, including officials from the Department of Social Services and Department of the Prime Minister and Cabinet have undertaken comprehensive engagement with people in Ceduna and the surrounding regions and the people in the East Kimberley trial region.
Those consulted include potential trial participants, Aboriginal leaders, family violence service providers, family support services, education providers, health providers, rehabilitation service providers, police, local government, state government agencies, and the Department of Human Services local staff. The consultation format has included one-on-one meetings and group roundtables.
Consultations have covered a number of issues including seeking advice from community members about the identification of local and cultural protocol and preferred entry points for community discussion. Topics of discussion included:
- key trial objectives;
- parameters (including percentages and trial boundaries);
- the anticipated benefits of the trial in terms of community safety/wellbeing for vulnerable people;
- the identification of gaps and possible support services;
- the role and formation of a community body;
- the evaluation; and
- differences between the trial and income management.
Consultations in Ceduna and East Kimberley will extend through to implementation of the trial and beyond to ensure the community is prepared and has all necessary information and support for the trial.
Consultations with the Department of Prime Minister and Cabinet and the Department of Human Services have informed the development of this limitation on the class of persons who may be voluntary participants in accordance with section 124PI of the Act.
Regulation Impact Statement (RIS)
This Determination is not regulatory in nature, will have minimal impact on business activity and will have no, or minimal, compliance costs or competition impact.
Explanation of the provisions
Section 1 states the name of the Determination.
Section 2 provides for commencement of the Determination.
Section 3 provides that the Determination ceases on 30 June 2018.
Section 4 sets out definitions for the purposes of the Determination.
Section 5 provides that a person other than a person who has reached pension age, or a person who has not reached pension age (so will not be receiving age pension) but will reach pension age during the 12 month period commencing at the date the trial area in which the person has their usual place of residence became specified as a trial area, is in a class of person who may not be a voluntary participant.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the
Human Rights (Parliamentary Scrutiny) Act 2011
SOCIAL SECURITY (ADMINISTRATION) (TRIAL– EXCLUDED VOLUNTARY PARTICIPANTS) DETERMINATION 2016
This Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The debit card trial will test the concept of cashless welfare arrangements by disbursing particular welfare payments to a restricted bank account, accessed by a debit card which does not allow cash withdrawals. Trial participants and voluntary participants in the Ceduna and Surrounding region trial area and the East Kimberley trial area will receive their welfare payments in this way.
Various recipients of trigger payments (defined in section 124PD of the Act) will be trial participants under section 124PG. A person may notify the Secretary (or delegate) orally or in writing that the person wishes to be subject to cashless welfare arrangements if the person receives a restrictable payment of the kind mentioned in paragraph (b) of the definition of that expression (also in section 124PD), the person’s usual place of residence is within a trial area, and the person is not otherwise a trial participant.
Age pension is not a trigger payment, but is a restrictable payment. Age pension recipients will not be trial participants by virtue of receiving age pension. Persons who will reach pension age within a year of the commencement of the location in which they usually reside becoming specified as a trial area will also not be trial participants under the legislative instruments specifying trial areas and determining classes to which trigger payments apply. For persons whose usual place of residence is in Ceduna or the Surrounding Region, this will be the 12 months from 15 March 2016 as a result of the Social Security (Administration) (Trial Area – Ceduna and Surrounding Region) Determination 2015. For persons whose usual place of residence is in East Kimberley, this will be 12 months from 26 April 2016 as a result of the Social Security (Administration) (Trial Area – East Kimberley) Determination 2016.
The Determination excludes persons other than persons who are age pension age, or persons who will reach age pension age within a year of the trial commencing in the location they usually reside from being voluntary participants. However, other classes of persons will still be able to volunteer to participate in the trial by applying to the financial institution that operates the welfare restricted bank account.
Persons who are age pension age and those persons who will reach pension age within a year of the commencement of the location in which they usually reside becoming specified as a trial area will have the option of applying to the financial institution or may also be voluntary participants through the operation of Section 124PH of the Act. This will provide the ability for trial participants under Section 124PG of the Act to retain existing banking arrangements if they transition onto the age pension and wish to be voluntary participants under Section 124PH.
Human rights implications
This Determination does not engage any of the applicable rights or freedoms. While this Determination does not limit the right to social security as contained in Article 9 of the International Covenant on Economic, Social and Cultural Rights or the right to equality and non-discrimination as provided for in several of the seven core international human rights treaties to which Australia is a party, most relevantly the International Covenant on Civil and Political Rights and the Convention on the Elimination of All Forms of Racial Discrimination individuals are still free to volunteer directly with the financial institution that operates the welfare restricted bank account. This means effectively that there is no limitation on who can establish a welfare restricted bank account.
Conclusion
This Determination is compatible with human rights as it does not raise any human rights issues.
[Circulated by the authority of the Minister for Human Services, the Hon Alan Tudge MP]