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:

 Start formula open bracket 1.019 close bracket superscript n end formula

 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.