Finance Circular 2006/05
Discretionary Compensation Mechanisms
Purpose
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 debts owed to the Commonwealth; and
- to provide information to agencies on how each of these mechanisms operates.
The mechanisms described in this circular are:
- payments made under the Scheme for Compensation for Detriment caused by Defective Administration (the CDDA Scheme);
- payments made under section 33 of the Financial Management and Accountability Act 1997 (the FMA Act) (act of grace payments);
- waiver, postponement or deferral of debts under section 34 of the FMA Act; and
- ex gratia payments.
The circular replaces and updates Finance Circular 2001/01: Commonwealth Compensation ‘Schemes', Debt Waiver and Write-Offs, issued in July 2001. This circular provides updated guidance on the operation of the CDDA Scheme and the act of grace and waiver mechanisms (including current protocols for handling claims) and information on ex gratia payments.
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Copyright Notice
© Commonwealth of Australia 2006
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