DCA 9 - ACT OF GRACE PAYMENTS

DEFENCE COMPENSATION ADVICE - NO 9

Commonwealth Employees Rehabilitation And Compensation Act 1988

ACT OF GRACE PAYMENTS

1.  It has come to my attention that Compensation officers have been encouraging claims for Act of Grace payments. These payments are defined as those that are not payable in pursuance of law or under legal liability, but may be paid by reason of moral, equitable or special circumstances of the individual case.

2.  An Act of Grace payment cannot be used to circumvent the provisions of existing laws, regulations, directions or instructions. Before a claim for such payment can be considered, it must be established that the circumstances of the case were not contemplated in the provisions of those laws, regulations, directions or instructions. The application of this principle means it must be possible for the delegate approving the payment to decide that Parliament could not have intended existing legislation to embrace the special circumstances of the case under consideration.

3.  Whilst approval for an Act of Grace payment was granted by the Prime Minister in the "Dax" case, subsequent cases have been rejected. It is, therefore, recommended that Compensation officers should not encourage claimants to submit such request.

4.  In addition, please ensure that when files are referred to this office for consideration, they are forwarded in accordance with Defence Compensation Advice No 3.

D.J. WHITEHEAD

DOHC