Discretionary Compensation Mechanisms

Overview

The Australian Government may provide discretionary assistance in some cases by act of grace payments, or by waiving debts owed to the Australian Government. In general, this assistance may be granted where it is considered that the Australian Government has a moral responsibility to provide assistance, rather than a legal responsibility.

This may be because of an action, or failure to act, by an Australian Government agency. Such an obligation may also arise because of the unforeseen and anomalous operation of a federal law or program.

However, the act of grace and waiver provisions are not intended as a means to correct anomalies in federal law or administration that should be rectified by other means. Nor are they intended as an alternative to settlement of legal claims.

In particular, the Scheme for Compensation for Detriment Caused by Defective Administration (the CDDA Scheme) is the avenue for providing assistance where a person has been adversely affected by defective actions or inaction of an Australian Government agency. Responsibility for CDDA claims rests with the Minister responsible for the relevant agency, and with officers authorised by the Minister. Such claims should not be referred to the Finance portfolio.

The statutory authority for act of grace payments and waivers is found in sections 33 and 34 of the Financial Management and Accountability Act 1997 [].

Further information on compensation schemes is given in Finance Circular 2006/05. The Circular includes detailed information on act of grace payments, waiver of debts owed to the Australian Government and ex gratia payments.

How to apply

Applications for an act of grace payment or waiver may be sent to:

The Branch Manager
Special Claims and Land Policy Branch
Department of Finance and Deregulation
John Gorton Building
King Edward Terrace
Parkes ACT 2600

There is no set form for applying for an act of grace payment or waiver. However, an application should clearly set out:

• your full name, date of birth, postal address, and telephone number
• the relevant circumstances which form the background to your request
• what assistance you are requesting, whether by an act of grace payment or waiver of a debt (include the amount of the act of grace payment, or the amount of the waiver, that you are requesting)
• if you owe a debt to the Australian Government, state the amount of the debt and explain how the debt arose. You may wish to include information about financial hardship that would be involved in paying the debt (include details about your income and expenses, and about your assets and liabilities)
• the reasons why you consider that an act of grace payment, or waiver of a debt, should be approved
• whether you have asked the relevant agency for a review (this is normally expected before consideration is given to an act of grace payment or waiver)
• has the matter been appealed to the Ombudsman, a tribunal, or a court.

It is very helpful if you include copies of relevant documents, including correspondence between yourself and the relevant Australian Government agency.

If a request is being forwarded by an Australian Government agency, please include a statement of the agency's view of the perceived merits of the case.

Further information

For more information, you can telephone the Special Financial Claims Section, Department of Finance and Deregulation on 1800 227 572.