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

Administered by Department of Social Services

Legislation au F2007L03694 Not in force Legislative Instrument

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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.

Overview

The Social Security (FaCSIA) (Exempt Northern Territory Persons) Determination 2007 was introduced as a measure to address the welfare crisis among Aboriginal children in the Northern Territory. This Determination was enacted under subsection 123UG(4) of the Social Security (Administration) Act 1999 by the Australian Government, specifically on behalf of the Minister for Families, Community Services and Indigenous Affairs, the Minister for Education, Science and Training, and the Minister for Employment and Workplace Relations. The primary policy objectives of this legislation were to curb the expenditure on substance abuse and gambling and to ensure that welfare funds were being used for the intended purpose of supporting children’s welfare. The Determination specifies exemptions from the income management regime for certain individuals who are connected to declared relevant Northern Territory areas, including those involved in delivering services in response to the emergency, students with particular circumstances, and those who have temporarily relocated for education purposes.

Scope and Application

The Social Security (FaCSIA) (Exempt Northern Territory Persons) Determination 2007 applies to individuals who would otherwise be subject to the income management regime due to their connection with a 'declared relevant Northern Territory area'. This exemption specifically targets those who would be impacted by section 123UB of the Social Security (Administration) Act 1999, but it does not exempt individuals from other provisions of the Act. The classes of people exempt include those in a relevant Northern Territory area or a declared relevant Northern Territory area providing services as part of the Government’s response to the Northern Territory national emergency, students with a home address in these areas whose payments are made to a third party, students receiving the ABSTUDY Residential Costs option, and students attending educational institutions outside these areas who receive student income support payments at the 'away from home' rate. This Determination does not extend to impact business activity or incur compliance costs, as it is not regulatory in nature.

Key Provisions

The main operative sections of the Social Security (FaCSIA) (Exempt Northern Territory Persons) Determination 2007 (the Determination) are sections 1, 2, 3 and 4. Section 1 names the Determination and section 2 states that it commences on the day after its registration on the Federal Register of Legislative Instruments. Section 3 provides definitions of key terms used in the Determination, such as 'declared relevant Northern Territory area' and'relevant Northern Territory area'. Section 4 specifies the classes of people who will be exempt from the income management regime when they would otherwise be subject to the regime due to their connection with a 'declared relevant Northern Territory area'. This includes persons involved in delivering services in response to the Northern Territory national emergency, certain students, and students receiving the ABSTUDY Residential Costs option. The Determination imposes specific obligations and requirements on the parties or entities it governs. Firstly, it requires the exemption of certain classes of people from the income management regime, as outlined in section 4. This means that these individuals will not be subject to the income management measures that would otherwise apply to them due to their connection with a 'declared relevant Northern Territory area'. The Determination also places an obligation on the relevant authorities to ensure that the specified classes of exempt persons are correctly identified and that their income management status is accurately recorded and managed. Any breaches of the Determination may lead to offences, penalties, or civil/criminal consequences. However, the Determination itself does not specify any offences, penalties, or consequences for breach. It is important to note that while the Determination exempts certain classes of people from the income management regime, it does not prevent them from being subject to the regime under another provision of the Social Security (Administration) Act 1999. Therefore, any breaches of the Act or other relevant legislation may still result in civil or criminal penalties, as determined by the applicable laws. In summary, the Social Security (FaCSIA) (Exempt Northern Territory Persons) Determination 2007 sets out the classes of people who will be exempt from the income management regime when they would otherwise be subject to the regime due to their connection with a 'declared relevant Northern Territory area'. It imposes obligations on relevant authorities to correctly identify and manage the income management status of these exempt persons. While the Determination itself does not specify any offences, penalties, or consequences for breach, any breaches of the Social Security (Administration) Act 1999 or other relevant legislation may still result in civil or criminal penalties.

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Regulation
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Exemptions & Exclusions
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.