Scheme for Compensation for Detriment caused by Defective Administration

Overview

The Scheme for Compensation for Detriment caused by Defective Administration (CDDA) is an administrative, not a statutory (legislative) scheme, established under the executive power of section 61 of the Constitution.

Members of the public can suffer loss or damage because of a government agency’s mistake or poor administrative practice. The CDDA scheme allows Australian Government agencies to provide compensation where a remedy may not be sought through administrative appeal, litigation or other legal mechanisms; that is, where there is a moral rather than a legal obligation. The aim of a CDDA payment is to restore a person to the position they would have been in if the defective administration had not occurred. The scheme does not cover situations where an agency has or is likely to have a legal liability.  

Portfolio Ministers have responsibility for decisions made under the CDDA Scheme; Ministers may also authorise departmental officers to make decisions.

Payments made under the CDDA Scheme are discretionary. That a mistake has been made by an entity or an official of an entity does not automatically mean compensation is payable under the CDDA Scheme. The CDDA Scheme is generally an avenue of last resort and is used only where there is no other viable avenue to provide redress.

The Office of the Official Secretary to the Governor-General (the Office) will only action claims that relate to defective administration or inaction specifically caused by the administrative actions and decisions of the Office of the Official Secretary to the Governor-General; not the substantive powers, functions and activities of the Governor-General.  CDDA claims that do not relate to the Office must be sent to the appropriate Commonwealth agency for consideration under their CDDA scheme. If the Office receives a CDDA claim that relates to another Commonwealth agency, we will endeavour to forward the claim to them for review.

Detriment and Defective Administration

If there has been defective administration, you must demonstrate the direct loss – or detriment – you have suffered. There are three types of detriment:

  • detriment relating to a personal injury including mental injury (personal injury loss)

  • economic detriment that is not related to a personal injury (pure economic loss)

  • detriment relating to damage to property.

The Department of Finance’s Resource Management Guide 409 states that ‘defective administration’ can include:

  • A specific and unreasonable lapse in complying with existing administrative procedures that would normally have applied to the claimant’s circumstances

  • An unreasonable failure to institute appropriate administrative procedures to cover a claimant’s circumstances

  • Giving advice to (or for) a claimant that was, in all circumstances, incorrect or ambiguous

  • An unreasonable failure to give to (or for) a claimant, the proper advice that was within the official’s power and knowledge to give (or was reasonably capable of being obtained by the official to give).

Generally, claims for the following types of losses can't be considered under claims of legal liability or the CDDA Scheme:

  • claims for personal time spent resolving an issue

  • claims for stress, anxiety, inconvenience

  • costs of putting in a claim or conducting a claim for compensation.

Types of compensation we can consider are financial losses with a direct connection to our actions that lead to a finding of legal liability or defective administration. These can be losses such as:

  • professional fees, where evidence of payment is provided and the fees are considered by the decision maker to be reasonable (our assessment of what is reasonable may differ from yours)

  • bank or other administrative fees you incurred because of our actions.

Generally, if you apply for compensation under the CDDA scheme, you must provide:

  1. a calculation of the amount you are claiming,

  2. an explanation of how the amount was calculated, and

  3. the steps you have taken to minimise and/or contain the loss.

Applying for Compensation

To apply for compensation for detriment caused by defective administration by the Office of the Official Secretary to the Governor-General, you must complete the following form: 

CDDA Application Form

Your application should include the following information:

  1. address the criteria for determining defective administration,

  2. explain how the actions or inactions by the Office were defective,

  3. provide details of the detriment being claimed, including an explanation of how the amount claimed is calculated, and

  4. explain how the defective administration directly caused the loss.

Please attach all relevant documentation to support your claim; this may include correspondence between yourself and the Office as well as other relevant supporting evidence.

Any individual, company or other organisation can apply for compensation, either for themselves or for an authorised third party. There is no guarantee of a favourable outcome.

You can return your claim to us, by sending it to:

Chief Financial Officer

Office of the Official Secretary to the Governor-General

Government House

Dunrossil Drive

YARRALUMLA ACT 2600

We aim to acknowledge receipt of your compensation claim in writing within 7 business days of receiving it. 

In accordance with the principles of the Privacy Act 1988, your application will be treated as confidential to ensure adequate protection of your privacy.

We will not consider your claim until your original issue (that led to your claim) is resolved. If you are involved in other dispute resolution processes, including court or tribunal action, these need to be resolved before we consider your claim.

Your claim will be assessed using the criteria for decision makers in the Department of Finance’s Resource Management Guide 409. We aim to process the claim and make a decision within 90 days. If you did not provide us with all the information we need to make a decision, we will contact you to request the additional information required to assess your claim. Some complex claims and internal reviews may take longer to investigate and consider; if your claim fits this criteria we will contact you about an extended reply date.

If your claim is successful, we will transfer payment electronically into your nominated bank account.  We will ask you for your nominated bank account details at the time of payment. If you're unsure whether the payment is taxable, you can seek advice from a tax professional, or contact the Australian Taxation Office on 13 28 61 for guidance.

Review of Decision

There is no automatic right of administrative review of decisions under the CDDA Scheme. Our approach is to offer internal review where the claimant can provide new and relevant information or contentions in support of the claim.

If you have a complaint about the Office regarding the CDDA Scheme, or you are dissatisfied with the Office’s decision under the CDDA Scheme, you can contact the Commonwealth Ombudsman.

The Commonwealth Ombudsman has also produced a factsheet on the CDDA Scheme. Contact details for the Commonwealth Ombudsman are below:

Commonwealth Ombudsman

GPO Box 442

CANBERRA ACT 2601

1300 362 072

www.ombudsman.gov.au