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Part 6-1—Liability for funding

Part 6-1 Liability for funding

Division 1 Simplified outline of this Part

148   Simplified outline of this Part

The Commonwealth is liable to bear the initial costs of paying redress payments and the counselling and psychological component of redress under the scheme, as well as the administration 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 elements:

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

      (b)     the scheme administration element (which covers the total amount of the institution’s contribution to the costs 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 is liable to pay counselling and psychological services contribution to a participating jurisdiction that is a declared provider of counselling and psychological services under the scheme. The Commonwealth must pay the contribution to the jurisdiction for a quarter if the jurisdiction became liable in that quarter to provide for the delivery of counselling and psychological services to a person.

A participating government institution may be the funder of last resort for a defunct institution. In that case, the government institution will be liable to pay the defunct institution’s (hypothetical) share of the costs of providing redress to the person, which will increase the amount of funding contribution the government institution will be liable to pay. (For funders of last resort, see Part 6-2.)

Division 2 Liability of participating institutions for funding contribution

149   Liability for funding contribution

             (1)  If, in a quarter, a person becomes entitled to redress for abuse of the person, then each participating institution that is determined by the Operator under paragraph 29(2)(b) to be responsible for the abuse is liable to pay funding contribution for that quarter.

Note 1:       If the responsible institution is a defunct institution, its representative will be liable to pay the funding contribution (see section 123).

Note 2:       If the responsible institution is an unincorporated lone institution, its representative will be jointly and severally liable with the institution to pay the funding contribution (see section 131).

Note 3:       If the responsible institution is a member of a participating group, the representative for the group will be jointly and severally liable with the institution to pay the funding contribution (see section 141).

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

             (3)  Subsection (1) does not apply to a Commonwealth institution.

             (4)  The rules may provide for the application of this Part to a Commonwealth institution.

150   Funding contribution

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

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

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

Note:          If the Operator determines under paragraph 29(2)(i) that a participating government institution is the funder of last resort for a defunct institution in relation to abuse of a person, the government institution will be liable for the defunct institution’s (hypothetical) share of the costs of providing redress to the person (see section 165).

151   Redress element

                   The redress element of funding contribution for a participating institution for a quarter is the amount equal to the sum of the following amounts for each person who is entitled to redress:

                     (a)  the amount of the institution’s share of the costs of the redress payment to the person in the quarter;

                     (b)  the amount of the institution’s share of the costs of the counselling and psychological component of redress for the person in the quarter.

Note:          The Operator determines the amount of an institution’s share of the costs of the redress payment under paragraph 29(2)(c) and the amount of an institution’s share of the costs of the counselling and psychological component of redress for the person under paragraph 29(2)(d).

152   Scheme administration element

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

153   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.

154   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, 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.

155   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.

156   Waiver of funding contribution and late payment penalty

             (1)  The Operator may, on behalf of the Commonwealth, waive the payment of all or 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 the Operator’s own initiative or on written application by a person in the approved form.

157   Review of decision about waiving funding contribution or penalty

             (1)  A participating institution that is affected by a decision of the Operator under section 156 about waiving the payment of all or part of funding contribution or late payment penalty 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 approved form within:

                              (i)  the period of 21 days after the day of the 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 that result.

158   Liability of corporate State or Territory institutions for funding contribution

                   If:

                     (a)  a State institution or a Territory institution is a body corporate; and

                     (b)  the institution is taken to have agreed to participate in the scheme (see subsection 115(5)); and

                     (c)  the imposition of a liability on the institution to pay funding contribution under section 149 would impermissibly:

                              (i)  impose taxation on the institution; or

                             (ii)  acquire property of the institution otherwise than on just terms;

then section 149 is taken to impose the liability on the relevant State or Territory instead.

Division 3 Liability of the Commonwealth for counselling and psychological services contribution

159   Liability for counselling and psychological services contribution

                   The Commonwealth is liable to pay counselling and psychological services contribution to a participating jurisdiction for a quarter if:

                     (a)  the jurisdiction is a declared provider of counselling and psychological services under the scheme; and

                     (b)  in that quarter the jurisdiction becomes required under paragraph 51(2)(b) to provide for the delivery of those services to a person.

160   Counselling and psychological services contribution

                   Counselling and psychological services contribution for a participating jurisdiction for a quarter is the amount equal to the sum of the amounts of the counselling and psychological component of redress for each person in relation to whom the jurisdiction becomes required under paragraph 51(2)(b) in the quarter to provide for the delivery of counselling and psychological services.

Division 4 Appropriation

161   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 making the following payments:

                     (a)  redress payments;

                     (b)  counselling and psychological services payments;

                     (c)  counselling and psychological services contribution.