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Finance Circular 2009/09

Discretionary Compensation and Waiver of Debt Mechanisms


The purpose of this circular is twofold:

  • to provide an overview of mechanisms that are available to provide discretionary payments in special circumstances, or financial relief from amounts owing to the Commonwealth; and
  • to provide guidance to agencies on how each of these mechanisms operate. 

The mechanisms described in this circular are:

  • payments made under the Scheme for Compensation for Detriment caused by Defective Administration (the CDDA Scheme);
  • act of grace payments made under section 33 of the Financial Management and Accountability Act 1997 (the FMA Act); and
  • waiver of amounts owing to the Commonwealth under section 34(1)(a) of the FMA Act.

This circular replaces and updates Finance Circular 2006/05: Discretionary Compensation Mechanisms issued in August 2006.  This circular provides updated guidance on the operation of the CDDA Scheme and the act of grace and waiver of debt mechanisms.

Please note that the Finance Circular 2009/09 and the mechanisms described in it, particularly the ex-gratia mechanism, are under review.

You may wish to refer to Finance Circular 2013/01 which provides guidance on Grants, Procurement and other Financial Arrangements.

Full Publication

Discretionary Compensation and Waiver of Debt Mechanisms [PDF Document 542 KB]
Discretionary Compensation and Waiver of Debt Mechanisms [RTF Document 185 KB] 

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