Mistakes happen, it’s a part of life. But what happens when a mistake is made due to an administrative error that then results in financial loss or some other damage?
There have been cases where individuals have suffered financial losses or detriment by a non-corporate commonwealth entity (NCCE). Where this occurs, the person affected by the error can claim compensation from the relevant NCCE under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme.
A non-corporate commonwealth entity is a Department of State, executive agency or statutory agency that is under the direct policy control of the Australian Government. They are accountable to the Parliament and are legally and financially part of the Commonwealth. There are many NCCEs. Some examples include:
- Department of Home Affairs
- Department of Finance
- Department of Parliamentary Service
- Australian Bureau of Statistics
What is the Compensation for Detriment Caused by Defective Administration (CDDA) Scheme?
The Compensation for Detriment caused by Defective Administration Scheme provides a means for a non-corporate commonwealth entity to compensate people who have experienced detriment due to a NCCE’s defective administration. Defective administration may have occurred if a mistake has been made by a NCCE or an official of a NCCE.
For individuals who have experienced detriment as a result of defective actions or inaction by the Department of Home Affairs (‘the Department’), they may contact the Department requesting that their matter be considered under the CDDA Scheme.
The aim of the CDDA Scheme is to restore the individual, company or organisation affected by the Department’s / relevant NCCE’s defective administration to the financial position they would have been in had the defective administration not occurred.
What is defective administration?
Defective administration can include:
– A specific or unreasonable lapse in complying with existing administrative procedures
– Failure to institute appropriate administrative procedures
– Failure to give proper advice that was in the officer’s power and knowledge to give
– Giving advice that was in all circumstances incorrect or ambiguous
What is detriment?
Detriment is considered the direct loss the individual, company or organisation has suffered. There are three types of detriment:
- Detriment relating to personal injury including mental injury (personal injury loss)
- Economic detriment that is not related to personal injury (pure economic loss)
- Detriment relating to damage to property
In order to claim compensation for detriment you must be able to demonstrate the loss you have suffered. When applying for compensation, the Department / NCCE requires applicants to provide:
- A calculation of the amount being claimed
- An explanation of how the amount was calculated
- The steps taken to minimise / contain the loss
Payments made under the CDDA Scheme are discretionary. This means that even if a mistake was made by an entity or an official of an entity there is no automatic entitlement to a payment. The CDDA Scheme is considered a last resort and is only used when there is no other viable avenue to rectify the situation.
What Can and Can’t be Claimed Under the CDDA Scheme?
Compensation is considered for financial losses that have a direct connection to the actions of the Department / NCCE which resulted in legal liability or defective administration. These include:
- Professional fees (where evidence of payment is provided and fees are deemed reasonable by the decision maker)
- Bank or other administrative fees incurred because of the Department’s / NCCE’s actions
Claims for the following won’t be considered:
- Claims for personal time spent resolving an issue
- Claims for stress, anxiety or inconvenience
- Costs of putting in a claim or conducting a claim for compensation
More information about the CDDA Scheme can be found on the Department of Home Affairs website. To learn more about migration to Australia, contact the team of experienced registered migration agents at Visa Solutions Australia. Book a consultation.
