Abuse royal commission and compensation
THE FEDERAL CHILD ABUSE ROYAL COMMISSION AND COMPENSATION
* The commission is not yet making recommendations but has employed an actuarial firm to model costs of a scheme covering 65,000 claimants receiving average payments of $65,000, where governments pay not only for the abuse committed in their institutions but become “funders of last resort”.
This means governments pay extra to cover abuse survivors from institutions that no longer exist or are too poor to make a contribution.
In this scenario, if 65,000 abuse survivors sought redress from government and non-government institutions, an estimated 29,730 of them would make claims against states and territories and 35,270 would claim against non-government organisations.
* The total cost of the scheme would be $4.378 billion. Governments would pay $1.971 billion and non-government institutions $2.407 billion.
* The costs would cover administration, monetary payments adjusted for past payments and counselling and psychological care.
* The NSW government would pay $766 million; non-government bodies $850 million
* The Victorian government would pay $617 million; non-government bodies $707 million
* The Queensland government would pay $251 million; non-government bodies $328 million
* The WA government would pay $132 million; non-government bodies $240 million
* The SA government would pay $143 million; non-government bodies $166 million
* The Tasmania government would pay $15 million; non-government bodies $60 million
* The ACT government would pay $30 million; non-government bodies $37 million
* The NT government would pay $17 million; non-government bodies $20 million
* The costs were estimated over 10 years, with people 85-plus receiving higher payments based on a matrix of the nature, severity and effect of abuse.
* Modelling has also been done on costs if higher or fewer claims were made – the commission will make those available on its website.
(Source: Royal Commission Consultation Paper – Redress and civil litigation)