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Part 3-1—Liability for funding

Part 3-1 Liability for funding

Division 1 Simplified outline of this Part

53   Simplified outline of this Part

The Commonwealth is liable to bear the initial costs of paying redress payments and providing counselling and psychological services under the scheme, as well as the administration costs of the scheme. However, participating institutions are liable to pay funding contribution to reimburse the Commonwealth for their share of those costs.

Funding contribution is worked out on a quarterly basis and consists of 2 components:

       (a)     the redress component (which covers the total amount of the institution’s share of the cost of providing redress payments and counselling and psychological services in the quarter); and

      (b)     the scheme administration component (which covers the total amount of the institution’s share of the cost of the administration of the scheme in the quarter).

The Operator determines the amount of funding contribution that a participating institution is required to pay for the quarter, and notifies the institution of the amount and the due date for payment.

The Commonwealth or a self-governing Territory may be the funder of last resort for a participating institution. In that case, the Commonwealth or Territory will instead be liable to pay funding contribution for the participating institution. (For funders of last resort, see Part 3-2.)

Division 2 Appropriation

54   Appropriation

                   The Consolidated Revenue Fund is appropriated to the extent necessary for the purposes of the payment or discharge of the costs incurred by the Commonwealth in providing the following elements of redress under the scheme:

                     (a)  redress payments;

                     (b)  counselling and psychological services.

Division 3 Funding contributions by participating institutions

55   Liability for funding contribution

             (1)  An institution that is a participating institution at any time during a quarter is liable to pay funding contribution for that quarter.

             (2)  However, if:

                     (a)  the participating institution is a non-government institution of a Territory; and

                     (b)  the Commonwealth or a self-governing Territory is the funder of last resort for the institution;

then the body that is the funder of last resort (and not the institution) is liable to pay funding contribution for that quarter.

             (3)  A quarter is a period of 3 months beginning on 1 July, 1 October, 1 January or 1 April.

56   Funding contribution

                   Funding contribution for a participating institution for a quarter consists of:

                     (a)  the redress component for the institution for the quarter; and

                     (b)  the scheme administration component for the institution for the quarter.

57   Redress component

                   The redress component of funding contribution for a participating institution for a quarter is the amount equal to the sum of the following amounts:

                     (a)  the amount of the institution’s share of the cost of a redress payment that is payable to a person in the quarter;

                     (b)  the amount that represents the proportion of the institution’s share of the cost of providing access to counselling and psychological services to a person in the quarter.

Note:          The Operator determines the amount of an institution’s share of the cost of a redress payment under paragraph 32(2)(c) and the proportion of an institution’s share of the cost of the person accessing counselling and psychological services under paragraph 32(2)(d).

58   Scheme administration component

             (1)  The scheme administration component of funding contribution for a participating institution for a quarter is the amount equal to the institution’s share of the administration costs of the scheme for the quarter.

             (2)  For the purposes of subsection (1), the Operator must, in accordance with any requirements prescribed by the rules, determine the institution’s share of the administration costs of the scheme for the quarter.

59   When funding contribution is due for payment

                   Funding contribution that is payable by a participating institution is due and payable on a business day that is:

                     (a)  specified in a notice that the Operator gives to the participating institution; and

                     (b)  not earlier than 30 days after the date of the notice.

60   Late payment penalty

             (1)  If any funding contribution payable by a participating institution remains unpaid at the start of a calendar month after the funding contribution became due for payment, the institution is liable to pay the Commonwealth, for that calendar month, a penalty worked out using the following formula:

             (2)  Late payment penalty for a calendar month is due and payable at the end of the calendar month.

             (3)  However, the Operator may, by written notice given to the participating institution before, on or after the day on which late payment penalty would be due and payable apart from this subsection, specify a later day as the day on which the late payment penalty is due and payable. The notice has effect, and is taken always to have had effect, according to its terms.

61   Payment of funding contribution and late payment penalty

                   Each of the following are payable to the Operator on behalf of the Commonwealth:

                     (a)  funding contribution;

                     (b)  late payment penalty.

62   Waiver of funding contribution and late payment penalty

             (1)  The Operator may, on behalf of the Commonwealth, waive the payment of the whole or a part of funding contribution or late payment penalty payable by a participating institution, if the Operator is satisfied that there are exceptional circumstances justifying the waiver.

             (2)  The Operator may do so on his or her own initiative or on written application by a person.

             (3)  Applications must be in the form approved by the Operator.

63   Recovery of funding contribution and late payment penalty

                   The following amounts may be recovered by the Commonwealth from a participating institution as debts due to the Commonwealth:

                     (a)  funding contribution that is due and payable by the institution;

                     (b)  late payment penalty that is due and payable by the institution.

64   Internal review of certain decisions

             (1)  A participating institution that is affected by a decision of the Operator under section 62 may, if dissatisfied with the decision, request the Operator to reconsider the decision.

             (2)  The request must:

                     (a)  be made by notice given to the Operator in the form approved by the Operator within:

                              (i)  the period of 21 days after the day on which the participating institution first receives notice of the decision; or

                             (ii)  any further period that the Operator allows; and

                     (b)  set out the reasons for making the request.

             (3)  After receiving the request, the Operator must review the decision or cause the decision to be reviewed by a person:

                     (a)  to whom the Operator’s power under this section is delegated; and

                     (b)  who was not involved in the making of the decision.

             (4)  Within 30 business days after receiving the request or such longer period as the Operator determines in writing (the review period ), the person reviewing the decision must:

                     (a)  reconsider the decision; and

                     (b)  confirm, revoke or vary the decision, as the person thinks fit.

             (5)  If the person reviewing the decision does not confirm, revoke or vary the decision within the review period, he or she is taken to have confirmed the decision under subsection (4) immediately after the end of that period.

             (6)  The person reviewing the decision must give a notice in writing to the participating institution that made the request that sets out the result of the reconsideration of the decision and gives the reasons for his or her decision.