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ARTICLE · 27 MARCH 2020

National Redress Scheme: does joining put government financial assistance at risk?

Schools can make redress payments from reserves, assuming that they have spent government funding on normal expenditure.

AustraliaConsumer Protection

At national school law conferences last year, David Ford noted that it was not clear whether Australian Government financial assistance could be used to meet the costs associated with belonging to the National Redress Scheme or to making payments under it without putting the receipt of ongoing financial assistance at risk. He also noted that, under state legislation, it was difficult to know with any certainty whether joining the Redress Scheme and making payments pursuant to it could cause a school to operate for profit and therefore put its government funding at risk. Looking at the NSW legislation – the infamous section 83C – one could argue that joining the Scheme and making payments pursuant to it were part of the school's operations. However, the NSW Guidelines issued in December 2018 and again in June 2019 said nothing about the Scheme and, on their face, suggested that joining the Scheme, which is voluntary, and then making payments which, although not

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