4.1.1 Redress payment  method statement
Methodology
This topic outlines the methodology to calculate the redress payment amount for a person, and each responsible institution's liability for a redress payment, when the Operator has approved an application for redress.
The method is as follows:
Step  Action  Act reference 

1  Assessed maximum amount Apply the assessment framework to work out the maximum amount of the redress payment that could be payable to a person. The amount cannot be more than $150,000. 
NRSAct section 30 NRS Rules section 23 
2 
Group into sets of abuse where there is more than 1 set of abuse Group the abuse experienced by the survivor into 'sets' of abuse. A set of abuse is all abuse for which the same combination of institutions are responsible, regardless of whether they are participating in the Scheme. If the person is a child migrant refer to 4.1.3 to work out the institutions' share of the maximum amount. 
NRS Rules section 22 
3  One set of abuse  gross liability If there is only 1 set of abuse, work out the institution's share of the maximum amount:

NRSAct section 30 step 2 of the method statement NRS Rules section 23 
Apply steps 4 to 8 where there is more than 1 set of abuse as worked out in step 2.  
4  Notional amount for each set For each set of abuse work out how much the maximum amount would be according to the assessment framework, as if it was the only set (this will be used to 'weight' the sets of abuse against each other in step 6). 
NRS Rules section 24 
5  If applicable, deduct any nonparticipating institutions' share from set If a set of abuse contains a nonparticipating institution/s that is equally responsible with a participating institution/s, adjust the weighting to be a fairer split for institutions. To do this, apply the following formula:

NRS Rules section 25 
6  Share of the maximum amount for each set of abuse Work out each institution's share of the maximum amount. To do this, apply the following formula for each set:

NRS Rules section 25 
7  Share of the maximum amount for each institution Work out each institution's share by applying the following formula for each institution:

NRS Rules section 25 
8 
Calculate institution's gross liability Work out each institution's gross liability amount by adding up the institution's liability across all sets of abuse. 
NRS Rules section 25(5) 
9  Identify any relevant prior payments, adjust for inflation (this is the 'reduction amount') Identify any past payments (or portions) made by responsible institutions (or their associated institutions) paid in recognition of harm caused by abuse in scope of the Scheme, or in recognition of abuse. Where a prior payment was made on behalf of more than 1 institution, equally split the prior payments across the relevant institutions. Adjust for inflation:

NRSAct section 30(2) step 3 and 4 of the method statement 
10  Final liability: deduct reduction amount from institution's share Calculate each institution's total liability by deducting adjusted relevant prior payments from the gross liability amount. Apply the following formula: Institution's final liability = Institution's gross liability calculated in step 8 or step 3 − Amount determined in step 9 
NRSAct section 30(2) step 5 of the method statement 
11  Find redress payment by adding institutions' liabilities Add together all participating institutions' liability worked out in step 10. This total amount should be paid to the survivor. 
NRSAct section 30(2) step 6 of the method statement) 
12  Calculate perquarter administrative charge To work out the administrative charge for each institution, apply the following formula to redress payments made in that quarter:

NRS Rules section 67(2)(a) 
13  Calculate institution's share of $1,000perclaim legal contribution To work out the institution's share of the $1,000 per claim 'legal contribution', apply the following formula to redress payments made in that quarter:
Note: If the institution is the only liable participating institution for a redress payment, they will pay $1,000. 
NRS Rules section 67(2)(b) 
If the Operator applies the method statement to calculate the share of costs for a liable institution, and that institution is a participating defunct institution, special requirements under section 165 of the NRSAct may apply where a government institution is a funder of last resort.