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Chapter 5

Justice and Fairness in Defence

A comprehensive overview of our justice and fairness systems, including an overview of the military justice system.

Compensation for Defective Administration

Compensation for Detriment Caused by Defective Administration

The Defence Legal Division in Corporate Services and Infrastructure Group manages claims under the Compensation for Detriment Caused by Defective Administration (CDDA) scheme. The Department of Finance and Administration has general oversight of the scheme. An explanation of how the scheme and other discretionary remedies operate can be found on the Department of Finance and Administration website www.finance.gov.au.

In Defence, the majority of claims under the scheme are from members and former members of the ADF. Claims have become increasingly complex in recent years. These claims may involve adverse administrative action, such as removal from a posting, termination of appointment, lost career progression or adverse reports. Claims involving delays in processing enlistment documents, security clearances and promotions have also become more common.

Although the scheme has not been developed specifically to deal with ADF personnel disputes, it is a means by which ADF members can seek compensation, whether or not their grievance has been upheld. The limited criteria of the scheme mean that compensation cannot be awarded in many instances.

An emerging trend is that a military member who is dissatisfied with the outcome of an application for redress of grievance may seek to reopen the matter by lodging a CDDA claim. As a general rule, where an ADF member is dissatisfied with the outcome of the redress of grievance process, the Defence Force Ombudsman may be the appropriate body to review the member's complaint, although the Ombudsman does have a discretion not to investigate grievances. While the CDDA scheme may be available where the redress of grievance has shown that the ADF member has grounds for complaint, it is not an appropriate avenue through which to reopen matters that have already been investigated and decided through the chain of command, but where the claimant simply remains dissatisfied with the outcome of the grievance process.

There have been a number of achievements over the past 12 months in the way that Defence deals with the scheme. More resources have been devoted to older claims on hand, with a significant reduction in their number. New claims are acknowledged upon receipt and the more straightforward ones are decided as soon as possible.

The scheme is a remedy of last resort and, not surprisingly, complaints may be many years old before they are considered under the scheme. An emerging area of concern is an increase in the number of claims for the non-payment of the Military Superannuation Benefits Scheme Retention Benefit. These matters comprise approximately ten per cent of all claims on hand. In the majority of cases, the claimant states that he or she has received incorrect advice about the time in which to apply for the Retention Benefit. Defence Legal Division is working with relevant stakeholders to ensure ADF members are provided with the correct advice about Retention Benefits.

The Department of Finance and Administration has completed a review of the CDDA scheme and other discretionary measures. Defence Legal Division will, in consultation with the Chief Finance Officer Group, need to consider what effect the revised instructions will have on current matters, and to amend current policies and procedures to ensure Defence complies with the new instructions.

Details of claims over the previous four financial years are at Table 5.12.

Table 5.12 Compensation for Detriment Caused by Defective Administration Claims Summary
Financial year Claims received Payments made(1) Amounts paid
2005–06 50 20 $321,660
2004–05 47 29 $332,062
2003–04 54 21 $359,010
2002–03 37 36 $287,983

Note:

  1. In some instances, more than one payment has been made to the same claimant, for example, payments through instalments or where expenses have been made separately.Payments made in any one financial year can relate to claims received in previous financial years.

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