States alarmed over $613m abuse bill for redress scheme

SYDNEY (AUSTRALIA)
The Australian

September 12, 2017

By John Ferguson

An estimated $613 million worth of taxpayer-funded compensation claims have emerged as the key sticking point over a national child sex abuse redress system amid growing angst from the states over who will pay.

The states are demanding a fair deal over what the child sex abuse royal commission estimates is $613m worth of funder-of-last-resort costs facing the nation after institutions that ­failed to prevent abuse ceased to exist. Funders of last resort will also include institutions that still exist but have no assets to draw on to compensate victims, an issue that is possible as the Turnbull government finalises its $4 billion response.

The states, territories and commonwealth are negotiating a deal to share the costs, with Social Services Minister Christian Porter stating that the final details of the funder-of-last-resort bill will not be known until the scheme’s ­architecture is set up.

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