8.2 Funders of last resort

When a participating government institution is a funder of last resort

In certain cases a participating government institution will be the funder of last resort for a defunct institution that is not participating in the National Redress Scheme. In these cases, a participating government institution will be liable to pay the defunct institution's share of the costs of providing redress to a person. This can only occur where the government institution is determined as equally responsible for the abuse a person experienced (with the defunct institution), and the defunct institution is listed for the jurisdiction to which the government institution belongs. Funder of last resort does not apply when institutions choose not to join the Scheme.

Defunct institutions

A defunct institution is listed for a participating jurisdiction where the institution is a non-government institution, is not a participating institution and the Minister for Families and Social Services has made a declaration that the defunct institution is listed for a jurisdiction. In making this declaration, the Minister for Families and Social Services must be satisfied that the jurisdiction has agreed in writing to list the defunct institution for the jurisdiction. If the jurisdiction is a State, the agreement must also be allowed under the State's referral or adoption Act. This determination may be revoked by the Minister for Families and Social Services where the jurisdiction withdraws its agreement.

Effect of a funder of last resort

For the purposes of the Scheme where a determination is made that a government institution is funder of last resort then they are responsible for what the relevant defunct institution would have paid for the:

  • Redress payment
  • Counselling and psychological care
  • Scheme administration costs.

Act reference: NRSAct section 163 Funders of last resort, section 164 Listing defunct institutions, section 165 Special rules for funder of last resort cases

Policy reference: Redress Guide 1.1.F.20 Funder of last resort

Last reviewed: 1 July 2019