Social Security (Administration) Amendment (Income Management Reform) Bill 2023 [2023] AUSStaCSBSD 53 (22 March 2023)

• Social Security (Administration) Amendment (Income Management Reform) Bill 2023
• Significant matters in delegated legislation47

---

Social Security (Administration) Amendment (Income Management Reform) Bill 2023

Purpose	This bill seeks to amend the Social Security (Administration) Act 1999 to reform the Income Management scheme. This builds on amendments already introduced under the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022.
Portfolio	Social Services
Introduced	House of Representatives on 9 March 2023

Significant matters in delegated legislation^[47]

1.68 This bill is intended to introduce changes in relation to the Income Management regime (IM regime). Specifically, the bill aims to transition participants within this scheme to a new 'Enhanced Income Management regime' (Enhanced IM regime). This builds on changes already introduced by the Social Security (Administration) Amendment (Repeal of Cashless Debit Card and Other Measures) Act 2022. Changes introduced by that Act included transitioning participants in the Northern Territory and Cape York regions to the Enhanced IM regime. Among other things, the Enhanced IM regime will offer participants a ‘SmartCard’ instead of a ‘BasicsCard’. The SmartCard is intended to provide a greater choice of functions, including tap to pay, online shopping, and BPAY bill payments. The new card also includes a PIN number.

1.69 Criteria for participants of the IM regime are set out in Part 3B of the Social Security (Administration) Act 1999 (Social Security Act). Participants include:

• persons who are identified in a child protection notice;^[48]

• persons defined as 'vulnerable welfare payment recipients',^[49] disengaged youth,^[50] or 'long term welfare payment recipients';^[51]

• persons who have an eligible care child who is required to be, but is not, enrolled at a primary or secondary school;^[52]

• persons who meet the school attendance criteria;^[53] and

• persons who are the subject of a State or Territory referral notice.^[54]

1.70 Many participants within the IM regime are compulsorily subject to the scheme.

1.71 The approach taken within the bill largely mirrors the approach taken within Part 3B of the Social Security Act. That is, the Enhanced IM regime will set out the same criteria for scheme participants as exists under the IM regime. The explanatory memorandum states that all new entrants to income management will be directed to the new Enhanced IM regime.^[55]

1.72 Much of the detail of the framework established by the bill is left to delegated legislation, or to non-legislative determinations. This is consistent with the approach taken within Part 3B of the Social Security Act. However, certain provisions within the bill introduce what appear to be new delegated legislation making powers.

1.73 For example, proposed section 123SDA of the bill specifies when persons residing in areas other than the Northern Territory are subject to the enhanced income management regime. Proposed subsection 123SDA(1) provides criteria which would apply to disengaged youth, while proposed subsection 123SDA(5) sets out a list of criteria in relation to long-term welfare payment recipients. Proposed paragraphs 123SDA(1)(a) and 123SDA(5)(a) provide that, among other things, one of the criteria for eligibility is that the person's usual place of residence is within a state or territory, or a particular area within a state or territory, that is specified within a legislative instrument. Proposed subsections 123SDA(2) and 123SDA(6) provide the Minister with the power to determine an area for the purposes of paragraphs 123SDA(1)(a) and 123SDA(5)(a).

1.74 The explanatory memorandum for the bill does not justify allowing these matters to be set out within delegated legislation, nor explain why additional criteria is necessary.^[56] The committee is concerned about this lack of justification, given the significant impact that becoming a participant within the Enhanced IM regime may have on a person. It is also unclear to the committee whether these powers introduce new criteria for scheme participants when compared to the existing IM regime and, if so, why this approach is necessary. The committee is also concerned about the lack of limits or guidance on the exercise of the power on the face of the bill.

1.75 In light of the above the committee requests the minister's detailed advice in relation to:

• whether the criteria for the entry of participants to the Enhanced Income Management Regime set out at proposed section 123SDA is new compared to the criteria set out for the Income Management Regime; and

• if this is the case, why additional criteria are necessary; and

• why it is necessary and appropriate to provide delegated legislation making powers at proposed subsections 123SDA(2) and 123SDA(6).

---

[47] Schedule 1, item 32, proposed subsections 123SDA(2) and (6). The committee draws senators’ attention to this provision pursuant to Senate standing order 24(1)(a)(iv).

[48] Social Security (Administration) Act 1999, section 123UC.

[49] Social Security (Administration) Act 1999, section 123UCA.

[50] Social Security (Administration) Act 1999, section 123UCB.

[51] Social Security (Administration) Act 1999, section 123UCC.

[52] Social Security (Administration) Act 1999, section 123UD.

[53] Social Security (Administration) Act 1999, section 123UE.

[54] Social Security (Administration) Act 1999, section 123UF and section 123UFA.

[55] Explanatory memorandum, p. 2; statement of compatibility, p. 64.

[56] Explanatory memorandum, pp. 28–32.