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 National Redress 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.
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.
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.
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
The Commonwealth's counselling & psychological services contribution liability
The Commonwealth is liable to bear the initial costs of paying redress payments and the counselling and psychological care component of redress under the Scheme, as well as the administration of the Scheme.
The Commonwealth is liable to pay the 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 the quarter if the jurisdiction became liable in that quarter to provide for the delivery of counselling and psychological care services to a person.
Participating institutions are liable to pay funding contribution to reimburse the Commonwealth for their share of those costs.