House of Representatives

Revised Explanatory Memorandum

(Circulated by the authority of the Minister for Social Services, the Hon Kevin Andrews MP)

Schedule 2 - Continuing income management as part of

Cape York welfare reform

Summary

This Schedule amends the Social Security Administration Act to enable a two-year continuation of income management as part of the continuation of Cape York Welfare Reform. The continuation of income management until the end of 2015 as a key element of the reforms will continue to assist in stabilising people's circumstances and fostering behavioural change, particularly in the areas of school attendance, parental responsibility and increasing individual responsibility.

Background

Cape York welfare reform is a partnership between the communities of Aurukun, Coen, Hope Vale and Mossman Gorge, the Australian Government, the Queensland Government and the Cape York Institute for Policy and Leadership. It aims to restore local Indigenous authority, rebuild social norms, encourage positive behaviours, and improve economic and living conditions.

To date, Cape York welfare reform has made a real difference in the lives of Indigenous people in the four communities. Since it began in July 2008, the Cape York welfare reform communities have seen improved school attendance, care and protection of children and community safety.

A 2012 evaluation of Cape York welfare reform found that progress has been made at the foundational level in stabilising social circumstances and fostering behavioural change, particularly in the areas of sending children to school, caring for children and increasing individual responsibility.

The Family Responsibilities Commission, which is established under Queensland Government legislation, is a key plank of Cape York welfare reform. Local Commissioners hold conferences with community members, refer people to support services and, when necessary, arrange income management. Income management acts both as a means to ensure financial stability for families and as an incentive for the individual to engage with support services and observe behavioural obligations.

Currently, a person can be subject to income management under Cape York welfare reform only after a decision by the Family Responsibilities Commission made before 1 January 2014.

This Schedule amends the Social Security Administration Act to extend this date to 1 January 2016, enabling income management to continue in the four Cape York welfare reform communities for two further years.

Explanation of the changes

Amendments to the Social Security Administration Act

Paragraphs 123UF(1)(g) and 123UF(2)(h) of the Social Security Administration Act currently provide that a person can be subject to income management under section 123UF only after a decision by the Family Responsibilities Commission made before 1 January 2014.

Item 2 omits the references to 1 January 2014 in paragraph 123UF(1)(g) and paragraph 123UF(2)(h), and substitutes references to 1 January 2016.