30Working out the amount of redress payment and sharing of costs

30  Working out the amount of redress payment and sharing of costs Working out amounts  (1) This section sets out how the Operator must make a determination under paragraph 29(2)(c) about:  (a) the amount of the redress payment for a person; and  (b) the amount of each responsible institution’s share of the costs of the redress payment; and  (c) the amount of the Commonwealth’s share of the costs of the redress payment. Note: This section only applies if the Operator approves the person’s application for redress. Working out institution’s share of the costs of redress payment  (2) The Operator must first work out, for each responsible institution, the amount that is the institution’s share of the costs of the redress payment by using the following method statement: Step 1. Apply the assessment framework to work out the maximum amount of redress payment that could be payable to the person. The maximum amount must not be more than $150,000, regardless of the number of responsible institutions. In applying the assessment framework to work out the maximum amount, disregard any advance payment or relevant prior payment. The amount worked out is the maximum amount of the redress payment that could be payable to the person. Step 2. Work out, in accordance with any requirements prescribed by the rules, the amount that is the responsible institution’s share of the maximum amount. This amount is the gross liability amount for the responsible institution. Step 3. Work out the amount of any payment (a relevant prior payment) that was paid to the person by, or on behalf of, the responsible institution in relation to abuse for which the institution is responsible (but do not include any payment to the extent that it is prescribed by the rules as not being a relevant prior payment). This amount is the original amount of the relevant prior payment. Step 4. Multiply the original amount by the following:    where:  n is the number of whole years since the relevant prior payment was paid to the person.  The resulting amount is the adjusted amount of the relevant prior payment of the institution. Note: The adjustment under this step is broadly to account for inflation. Step 5. Add together the adjusted amount of each relevant prior payment of the institution. If the resulting amount is not a whole number of cents, round the amount up to the next whole number of cents. This amount is the reduction amount for the institution. Step 6. The amount of the institution’s share of the costs of the redress payment is the gross liability amount for the institution (in step 2) less the reduction amount for the institution (in step 5). The amount may be nil but not less than nil.  (3) The Operator must then work out the amount that is the institutions’ total share by adding together the amount of each responsible institution’s share of the costs of the redress payment (worked out under subsection (2)). Working out Commonwealth’s share of the costs of redress payment  (4) The Operator must then work out the amount that is the Commonwealth’s share of the costs of the redress payment using the following method statement: Step 1. Work out what would be the institutions’ total share (i.e. what would be the total worked out under subsection (3)) if the definition of n in step 4 of the method statement in subsection (2) were omitted and the following definition were substituted:  n is the number of whole years occurring during the period:  (a) starting when the relevant prior payment was paid to the person; and  (b) ending when the person made the relevant application for redress under section 19. Step 2. The amount of the Commonwealth’s share of the costs of the redress payment is the difference between:  (a) the institutions’ total share (worked out under subsection (3)); and  (b) the amount worked out under step 1 of this method statement. Note 1: The effect of this subsection is broadly to reverse the adjustment made under step 4 of the method statement in subsection (2) to the extent that adjustment relates to inflation that occurs while the application is being processed. The Commonwealth bears the cost of this reversal. Note 2: The Commonwealth’s share will be nil if: (a) there are no relevant prior payments; or (b) for each relevant prior payment, the substitution mentioned in step 1 of the method statement in this subsection does not affect the adjusted amount of the relevant prior payment. Working out amount of redress payment  (5) The Operator must then work out the amount of redress payment for the person by:  (a) adding together:  (i) the institutions’ total share (worked out under subsection (3)); and  (ii) the Commonwealth’s share of the costs of the redress payment (worked out under subsection (4)); and  (b) subtracting the amount of any advance payment for the person. The amount of redress payment for the person may be nil but not less than nil. Note 1: The amount may be nil because of relevant prior payments or an advance payment. However, even though the person may not be paid any redress payment in that case, the person will still be entitled to the other components of redress under the scheme (i.e. the counselling and psychological component and a direct personal response). Note 2: For funder of last resort cases, section 165 or 165A affects how the amount of the redress payment and the shares of the costs of the payment are worked out.