Delays in the National Redress Scheme: Counting the Human and Economic Cost—and How to Fix It

24 Nov

The National Redress Scheme provides money and support to people who experienced child sexual abuse in Australian institutions. It was implemented after the Royal Commission into Institutional Reponses to Child Sexual Abuse delivered its report about redress and civil litigation a decade ago, in September 2015.

As the National Redress Scheme enters its final three years before its scheduled closure in June 2028, tens of thousands of survivors of institutional childhood abuse are still waiting for their applications to be processed.

According to January 2025 figures, more than 32,000 applications remain outstanding, while only 17,800 payments have been finalised, totalling $1.59 billion. That represents an average of around $89,000 per payment—a substantial outlay by the Commonwealth and participating institutions.

At current rates, many survivors will still be waiting when the Scheme closes. The Parliamentary Joint Standing Committee’s November 2024 inquiry into the National Redress Scheme highlighted many problems with its current implementation.

It is important to note that the Royal Commission recommended that the Scheme “Should have no fixed closing date and should close ‘when applications… reduce to a level where it would be reasonable to consider closing’. It also recommended that “When ready to close, a date should be specified, ‘at least 12 months into the future”.

The Economic Cost of Waiting

As operational costs continue to increase and compound the cost of delays in processing applications adds to the economic burden.

Meanwhile, the health system bears the load. Survivors coming forward and then waiting for a response to their redress application recognition often experience deterioration in mental health, leading to greater use of emergency and inpatient services. Outpatient services already at capacity struggle to meet the needs for ongoing and regular care for those living with psychiatric conditions such as post-traumatic stress disorder.

Productivity loss is also significant. Survivors unable to achieve closure or access counselling can be less likely to maintain stable employment and more likely to rely on welfare support. There is extensive evidence of the impact of trauma on workforce participation, and any delays to providing redress magnifies the problem.

Another consequence to delays is that some claimants may opt out and seek redress via civil claims. One of the advantages of the National Redress Scheme is that it avoids litigation and although compensation payouts are capped, participants are spared of repeated interrogation and an adversarial process. Civil matters are costly for both institutions and governments that are defending a claim.

The Human Cost

The Redress Scheme was conceived to provide a humane alternative to the courts: a means to recognise harm and facilitate recovery. Delay subverts that intent. For survivors, it can replicate the original experience of powerlessness—institutions making decisions that profoundly affect them, yet again beyond their control.

The emotional toll is seen at the clinical interface. Psychiatrists and psychologists manage worsening depression, anxiety, and suicidality, in response to uncertainty and waiting for a response. The uncertainty itself becomes a form of retraumatisation.

Falling Short of the Royal Commission’s Intent

On paper, the Scheme reflects the Royal Commission’s recommendations: counselling (20 sessions, with options for more), a direct personal response, and payments of up to $150,000.

In practice, it is struggling to meet the Commission’s intent for timely, survivor-centred justice. Redress was never meant to be delivered posthumously. Many older survivors of abuse that occurred decades ago, the wait may outlast their lives.

A Policy Document Already Exists

The Parliamentary Joint Standing Committee’s November 2024 inquiry provided practical measures to reduce both personal harm and public expenditure. However, to date these recommendations have not been implemented.

Some of those recommendations include:

Extending the Scheme beyond 2028.
A time-limited scheme risks excluding legitimate claimants through no fault of their own. Even a partial extension would improve the economic and health consequences of undertaking redress claims.
Provide surge funding to clear the backlog.
Targeted investment in services such as Department of Social Services, knowmore Legal Services and Redress Support Services will save money in the long term.
Guarantee ongoing counselling and personal response.
Extending psychological and acknowledgement supports is inexpensive compared to the cost of relapse, hospitalisation or suicide. The Committee recommends that the Australian Government extend funding terms for redress support services until 2 years following the extended expiration date of the Scheme.
Increase transparency.
Quarterly publication of backlog data and processing times would improve accountability and restore confidence that the system is delivering beneficial outcomes for both survivors and taxpayers.

The Return on Investment

It is important health policy and economically sound to implement the recommendations provided by the Parliamentary Inquiry. It ensures the recommendations of the Royal Commission based on thousands of survivor’s stories are respected and honoured.

Dr Helen Schultz is a consultant psychiatrist and independent medicolegal expert specialising in historical abuse matters.