Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Special Minister of State has supplied the following answer to the honourable senator's question:

(1) The general principles under which act of grace payments are granted can broadly be characterised as where the Minister or delegate considers it appropriate, because of special circumstances, to provide redress because:

- the direct role of an agent or agency of the Australian Government has caused an unintended or inequitable result for the individual or entity concerned;

- the application of Commonwealth legislation has produced a result that is unintended, anomalous, inequitable or otherwise unacceptable in a particular case (including in cases where the agency has acted correctly in administering the legislation involved); or

- the matter is not covered by legislation or specific policy, but it is intended to introduce such legislation or policy, and it is considered desirable in a particular case to apply the benefits of the proposed provisions prospectively.

Ex gratia payments are used to deliver financial relief at short notice generally to a group of people. The mechanism is flexible with no pre-set criteria to deal with matters that are urgent or unforseen.

(2) The act of grace and ex gratia mechanisms are generally avenues of last resort and may extend to compensation for loss of life resulting from government policy only where there is no other viable avenue to provide redress. Additionally, as the mechanisms are discretionary, there is no automatic entitlement to payment.

(3) The total expenditure on act of grace payments by financial year is as follows:

Ex gratia payments are reported in an agency's financial statements.

(4) Yes.

(5) The details of individual act of grace payments are not publicly disclosed due to privacy requirements.

(6) Yes. The circumstances leading to discretionary government payments resulting from Australian military action overseas are not publicly disclosed due to privacy, and in some cases, national security, requirements.

(7) The total number of act of grace payments that the Government has made by financial year is as follows:

Ex gratia payments are reported in an agency's financial statements.