Compensation for Detriment caused by Defective Administration

You may be able to claim compensation if you believe we’ve made a mistake that caused you financial loss, injury or harm. Any individual or organisation can apply to us for compensation.

About the scheme

The Compensation for Detriment caused by Defective Administration Scheme (CDDA) Scheme covers claims for ‘defective administration.’ The scheme allows government agencies to consider and provide compensation for mistakes that cause loss, injury or harm.

CDDA payments are discretionary. This means compensation is not automatic if we or one of our officials have made a mistake. The Minister for Social Services, or a person authorised by the Minister, decides on CDDA payments.

Defective administration

Defective administration can occur when we make an error or do not take proper action when dealing with your matter. Examples can include:

• giving you incorrect or unclear information or advice
• not giving you information or advice that we could reasonably have provided
• not following the right processes when dealing with your matter
• not having proper processes in place to deal with your circumstances.

A number of errors or failures may also amount to defective administration when considered together.

Detriment

Detriment is the loss you have suffered as a direct result of our defective administration. 

This may include:

• financial loss or expenses you incurred
• a lost opportunity that can be given a financial value
• in some circumstances, non-financial loss, such as pain and suffering.

Defective administration does not automatically mean you are entitled to compensation. You must have suffered detriment as a direct result of the defective administration.

When to claim compensation

You can apply for compensation from us if our defective administration has directly caused your detriment, such as financial loss, injury or other harm.

Any individual, company or other organisation can apply for compensation. You can do this yourself or through an authorised nominee or representative.

Please note, we may not be able to compensate you if other options (such as requesting a review) will resolve the issue.

How to claim compensation

If you wish to lodge a CDDA claim, complete the application for compensation form.

You can also download the form and mail to:

Department of Social Services
Attention: Legal Services, Audit and Assurance Group
GPO Box 9820
Canberra ACT 2601

Your application will need to:

• describe the alleged defective administration
• explain how the actions or inactions were defective
• provide details of the detriment, including how you calculated the amount claimed
• explain how the defective administration directly caused the detriment.

You should also include relevant evidence in support of your application. This could include correspondence between you and the relevant Non-corporate Commonwealth entity, medical certificates and receipts.

When you send the claim

We’ll send you an acknowledgement email within 5 business days of receiving a claim.

We aim to resolve claims within 4 weeks. However, this isn’t always possible for complex claims. We’ll send you a letter or email about the outcome of your claim.

We may ask you to sign a settlement deed if your claim is approved. Signing this means you cannot make any future claims against us about the same matter.

After you hear from us

If you don’t agree with a decision or how we’ve handled your claim, you can make a complaint. 

If you still disagree with the decision, you can contact the Commonwealth Ombudsman. They'll consider whether the decision was reasonable in the circumstances. You can call the Ombudsman’s office(Opens in a new tab/window) for the cost of a local call anywhere in Australia.

When CDDA is not available

The CDDA Scheme is not available in all circumstances. You may need to consider other avenues for resolving a matter instead.

You cannot use the CDDA Scheme:

• for actions or decisions of another Commonwealth entity or body
• to reconsider a claim already determined under the Act of Grace process (see below)
• to ‘top up’ an Act of Grace payment you have already received
• where the Commonwealth would reasonably be expected to have a legal liability to pay compensation
• to waive, reduce or offset a recoverable debt owed to the Commonwealth
• to provide an outcome that would be inconsistent with, or overcome the operation of, legislation.

If your application for a CDDA claim is unsuccessful, and you cannot obtain compensation under any other kind of claim, you may apply to the Department of Finance to consider your claim under the Act of Grace payment mechanism.

Visit the Department of Finance website for more information on Act of Grace Payments(Opens in a new tab/window).

Alternatives to compensation

We still want to hear from you even if you can’t claim compensation. Learn more about:

• making a complaint
• sending an enquiry or feedback.

The Commonwealth has other discretionary options to address the financial impacts of Commonwealth.

The Department of Finance reviews claims for act of grace payments and waivers of debts. These are for people unintentionally disadvantaged by Australian Government legislation, actions or omissions. The Minister for Finance, or a delegate, make these decisions.

More information

Visit the Department of Finance website to learn more about the CDDA Scheme(Opens in a new tab/window).