The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

8.1.2 Scheme administration component

What is a participating institution's administration funding component?

The Scheme administration component is the amount equal to the participating institution or funder of last resort's share of the administration of the Scheme for a quarter. The Scheme must calculate the participating institution's share using the method prescribed in section 67 of the NRS Rules.

The Scheme administration component is calculated by adding together 2 amounts:

  • The first amount is a percentage of 7.5% of the institution's gross liability amount for each redress payment they are liable for during the quarter. If more than one redress payment was made during the quarter, work out the percentage for each payment and add them together.
  • The second amount is the institution's share of a $1,000 contribution, as a proportion of their gross liability amount against the total of gross liability amounts of all liable participating institutions for a redress payment. If more than one redress payment was made during the quarter, work out the proportion for each payment and add them together.
  • Finally, add the first and second amount to find the institution's share of the Scheme administrative component for a redress payment.

An institution’s gross liability is calculated in step 3 or step 8 of the method statement (5.1.1).

Act reference: NRSAct section 152 Scheme administration element

NRS Rules section 67 Institution's contribution to costs of administration of scheme for quarter

Policy reference: Redress Guide 5.1.1 Redress payment - method statement

Last reviewed: