This chapter outlines the policy information and general features of payment for loss or detriment.
This chapter contains the following sections:
Payment for Loss or Detriment
Chapter 3.1 Service Pension Eligibility [2]
Payment for loss or detriment is made to a person for a loss suffered due to:
Compensation is considered where a person has suffered detriment or is prevented from avoiding detriment because of an administrative error.
More ? [6]
Act of Grace payment may be made where a person has suffered a loss and the Commonwealth bears some responsibility for the loss. Claims that do not meet the 'compensation for detriment caused by administrative error' criteria will be treated as normal Act of Grace claims.
More ? [7]
Compensation for detriment caused by administrative error
Section 3.9.2 Compensation for Detriment Caused by Administrative Error [8]
The purpose of the scheme is to permit a compensatory payment to be made to a claimant for the effects of administrative error. Payment to a claimant may be approved if the relevant authorised person forms an opinion that the claimant has suffered a 'detriment' as the result of the action of an employee of the Department.
More ? [13]
Detriment can include financial and non-financial loss. The approved definitions, criteria and limitations for the scheme are set out in Attachment A of the Chief Executive Instruction 5.19. The reasons for considering a claim for compensation are described briefly below:
Request for 'defective administration compensation' can arise from almost any aspect of Australian Government administration. The scheme is only available to provide compensation in respect of administration by the Australian Government. Under this scheme, the Minister, or any official authorised by the Minister for the purpose, will have the administrative discretion to determine whether a compensatory payment should be made to a claimant for the effects of administrative error.
More ? [15]
Any claim that is determined under the provisions for compensation for detriment due to administrative error cannot be reconsidered under Act of Grace. The Act of Grace facility is not to be construed as an alternative remedy.
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The following are two examples of where compensation for detriment caused by administrative error would apply.
Under the scheme, the Minister, or any official authorised by the Minister for the purpose, will have the administrative discretion to determine whether a compensatory payment should be made. The responsibility for the approval of claims depending on the amount is delegated to the:
Payment of compensation due to administrative error is made in accordance with section 52 of the Financial Management and Accountability Act 1997 and Financial Management and Accountability Regulations 6.The authority for payment is defined in Chief Executive Instruction No.5.19.
More ? [18]
Chief Executive Instruction No.5.19
http://sharepoint/money/Documents/0681931E_CEI_5_19.tr5 [19]
Chief Executive Instruction No.5.19 – Attachment A
http://sharepoint/money/Documents/0681931E_CEI_5_19.tr5 [19]
Chief Executive Instruction No.5.19
http://sharepoint/money/Documents/0681931E_CEI_5_19.tr5 [19]
Chief Executive Instruction No.5.19
http://sharepoint/money/Documents/0681931E_CEI_5_19.tr5 [19]
Chief Executive Instruction No.5.19
http://sharepoint/money/Documents/0681931E_CEI_5_19.tr5 [19]
An Act of Grace payment may be made where a person has suffered a loss. Although there is no legal liability on the Commonwealth to meet the loss, it is considered that the Commonwealth bears some responsibility for the loss. In certain special circumstances a person that may not have met the eligibility criteria for service pension [27] or income support supplement [27] may be considered under the 'act of grace' provisions. An act of grace payment is not a service pension or income support supplement.
More ? [28]
Eligibility for an Act of Grace payment depends on the claimant's circumstances and a wide range of matters may be taken into account to determine eligibility Although there is no set eligibility criteria for an Act of Grace payment, claims may be considered where:
Requests for 'Act of Grace payments' can arise from almost any aspect of Australian Government administration and include payments normally paid under Part III (service pension) or Part IIIA (income support supplement) of the VEA [27].
More ? [30]
A claim for an Act of Grace payment should first be considered under the criteria for 'compensation for detriment caused by administrative error'. If a claim satisfies that criteria it will be determined under the compensation for detriment provisions. Claims that do not satisfy the compensation criteria may be determined under the Act of Grace provisions.
More ? [31]
The income and assets test exemptions provided for in the Aged Care Amendment Bill 1998 were intended to apply to residents from 6 November 1997. The exemptions were provided in the form of 'Act of Grace' payments until Royal Assent was obtained.
Act of Grace payments may be made only with the approval, under section 33(1) of the Financial Management and Accountability Act 1997, of the Minister for Finance or their appointee. This legislation places the responsibility for assessing whether satisfactory grounds for such payment exist on the Minister of Finance alone. However, for those cases recommended by the Ombudsman for compensation each chief executive is appointed by the Minister for Finance, as an 'authorised person', with the express intention that they confine the exercise of the Act of Grace power.
More ? [32]
Chief Executive Instruction No.5.18
http://sharepoint/money/Documents/0681932E_CEI_5_18.tr5 [33]
Chief Executive Instruction No.5.18
http://sharepoint/money/Documents/0681932E_CEI_5_18.tr5 [33]
Chief Executive Instruction No.5.19
http://sharepoint/money/Documents/0681931E_CEI_5_19.tr5 [19]
Compensation for detriment caused by defective administration
Section 3.9.2 Compensation for Detriment Caused by Administrative Error [8]
Chief Executive Instruction No.5.18
http://sharepoint/money/Documents/0681932E_CEI_5_18.tr5 [33]
A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.
ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.
Veterans' Entitlements Act 1986.
Links
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[2] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/31-service-pension-eligibility
[3] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/32-income-support-supplement-iss-eligibility
[4] https://clik.dva.gov.au/compensation-and-support-policy-library/part-12-compliance-and-obligations/125-reviews-and-appeals
[5] https://clik.dva.gov.au/user/login?destination=node/16883%23comment-form
[6] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn261
[7] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn262
[8] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/39-payment-loss-or-detriment/392-compensation-detriment-caused-administrative-error
[9] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn261
[10] https://clik.dva.gov.au/compensation-and-support-policy-library/part-3-income-support-eligibility/39-payment-loss-or-detriment/393-act-grace-payments
[11] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn262
[12] https://clik.dva.gov.au/user/login?destination=node/16894%23comment-form
[13] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn263
[14] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn264
[15] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn265
[16] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn266
[17] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn267
[18] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn268
[19] http://sharepoint/money/Documents/0681931E_CEI_5_19.tr5
[20] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn263
[21] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn264
[22] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn265
[23] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn266
[24] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn267
[25] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn268
[26] https://clik.dva.gov.au/user/login?destination=node/16853%23comment-form
[27] https://clik.dva.gov.au/%23
[28] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn269
[29] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn270
[30] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn271
[31] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn272
[32] https://clik.dva.gov.au/book/export/html/16849#tgt-cspol_part3_ftn273
[33] http://sharepoint/money/Documents/0681932E_CEI_5_18.tr5
[34] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn269
[35] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn270
[36] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn271
[37] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn272
[38] https://clik.dva.gov.au/book/export/html/16849#ref-cspol_part3_ftn273