8.1 Participating institutions funding contribution to the Commonwealth
Participating institutions funding contribution
Participating institutions are liable to cover the costs of providing redress to a person under the Scheme where the Scheme determined them responsible for the abuse a person experienced. To facilitate timely provision of payment and services the Commonwealth will bear the initial costs of paying redress payments and the counselling and psychological component of the Scheme, as well as the costs associated with administering the Scheme. Participating institutions will pay a funding contribution to reimburse the Commonwealth for their share of these costs.
In instances where a participating government institution is a funder of last resort for a defunct institution, the participating government institution will be liable to pay the defunct institution's share of the costs of providing redress to a person.
Funding contributions are payable quarterly by a participating institution to the Commonwealth and are calculated quarterly on 1 July, 1 October, 1 January and 1 April. For any given quarter, the total funding contribution a participating institution will be required to pay the Scheme is comprised of 2 components:
- the redress component for the participating institution for the quarter
- the Scheme administration component for the institution for the quarter.
Unless the NRS Rules prescribe otherwise, determining the liability to pay funding contributions does not apply if the participating institution is a Commonwealth institution.
Funding liability of corporate State & Territory institutions
Special conditions apply in determining whether a corporate State or Territory institution has liability to pay funding contributions to the Scheme. Section 158 of the NRSAct is applied to the state or territory, instead of the corporate State or Territory institution, if the following conditions apply:
- the State or Territory institution in question is a body corporate
- the institution is a participating institution and declared as such by the Minister
- if the institution were to have liability to pay funding contributions to the Operator, either of the following outcomes would result
- the liability would inappropriately act as a form of taxation on that institution
- the liability would result in the acquisition of property from the institution through any means other than just terms.
Act reference: NRSAct section 149 Liability for funding contribution, section 150 Funding contribution, section 158 Liability of corporate State or Territory institutions for funding contribution