EXPLANATORY STATEMENT

Social Security (FaCSIA) (Exempt Northern Territory Persons) Determination 2007

Summary

The Social Security (FaCSIA) (Exempt Northern Territory Persons) Determination 2007 (the Determination) is made under subsection 123UG(4) of the Social Security (Administration) Act 1999 (the Act).

This Determination is to specify those persons who will be exempt from the income management regime when they would have otherwise been subject to the regime due to their connection with a ‘declared relevant Northern Territory area’.  This exemption will only be relevant where a person would otherwise be subject to the income management regime as a result of the application of section 123UB of the Act.  The exemption does not prevent a person being subject to the income management regime under another provision of the Act.  The Minister for Families, Community Services and Indigenous Affairs is also making this instrument on behalf of the Minister for Education, Science and Training as well as the Minister for Employment and Workplace Relations.

Background

On 21 June 2007, the Australian Government announced a number of measures in response to the national emergency confronting the welfare of Aboriginal children in the Northern Territory. 

This measure has two primary aims:

a)      to stem the flow of cash that is expended on substance abuse and gambling; and

b)     to ensure funds that are provided for the welfare of children are actually expended in this way.

Explanation of the Provisions

Section 1 of the Determination states the name of the Determination and section 2 sets out that the Determination commences on the day after its registration on the Federal Register of Legislative Instruments.

Section 3 provides definitions of terms used in the Determination.

Section 4 specifies the classes of people who, in effect, will be exempted from the operation of the income management regime, when they would have otherwise been subject to the regime due to their connection with a ‘declared relevant Northern Territory area’.  The effect of this section is that, the following classes of people will be exempt from the income management regime:

• A person who is in a relevant Northern Territory area or a declared relevant Northern Territory area to help with the delivery of services as part of the Government’s response to the Northern Territory national emergency.  This may be a person providing services related to any of the measures being introduced as part of the Government’s Northern Territory Emergency legislation package, or in relation to non-legislated elements of the emergency package, such as child health checks;

• Students who have a home address in a relevant Northern Territory area or a declared relevant Northern Territory area but for whom a student income support payment is normally paid directly to a third party (such as an educational institution or a transport or accommodation provider); 

• Students who have a home address in a relevant Northern Territory area or a declared relevant Northern Territory area and are in receipt of the ABSTUDY Residential Costs option;

• Students who have a home address in a relevant Northern Territory area or a declared relevant Northern Territory area and:

• are enrolled in an educational institution outside a relevant Northern Territory area or a declared Northern Territory area; and
• receive a student income support payment at the ‘away from home’ rate to attend an educational institution outside a relevant Northern Territory area or a declared Northern Territory area.

It is intended that income management be applied to students in the Northern Territory when:

• their payments are no longer paid directly to a third party; or
• they are no longer receiving ABSTUDY Residential Costs Option; or
• they return home to their community for the holidays at the end of the academic year. They are to remain exempt during the shorter mid-term breaks.

Consultation

Consultation regarding this Determination was undertaken with the Department of Employment and Workplace Relations and the Department of Education, Science and Training to ensure a co-ordinated approach in respect of welfare payments for which they have responsibility.

Business Cost Calculator

This determination does not require a Regulatory Impact Statement (RIS) and/or a Business Cost Calculator Figure.  This 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 against the nine categories listed as a result of this determination.