Key information about the CDDA Scheme.
Before you apply
The Compensation for Detriment Caused by Defective Administration (CDDA) Scheme is discretionary, is not an entitlement, and is not intended for crisis or emergency circumstances. It is generally only available where no other remedy or compensation mechanism exists.
You may be eligible for compensation if:
- DEWR made an unreasonable administrative error.
- The administrative error directly caused you financial detriment.
- You have taken reasonable steps to minimise your loss.
- You have explored any other available review, appeal or compensation options.
- Your claim relates to the actions of the Department of Employment and Workplace Relations (DEWR) and not another organisation.
You are not eligible for compensation under the CDDA Scheme if:
- Your claim relates to the actions of an employment service provider, contracted service provider or their employees.
- Another legal remedy is available to address the issue.
- Your claim relates to another Commonwealth, state, territory or local government entity.
- Your claimed loss cannot be directly linked to defective administration by DEWR.
Act of Grace payments
If you have suffered financial detriment but your circumstances do not fall within the CDDA Scheme, you may wish to consider an Act of Grace application through the Department of Finance.
Debt waiver or debt relief
Requests for waiver of Commonwealth debts are not considered under the CDDA Scheme. Information about debt waivers, debt relief and discretionary financial assistance is available through the Department of Finance.
Ready to apply?
If you are considering applying for compensation under the CDDA Scheme we recommend reading the further information about the CDDA scheme section below before applying.
To apply, complete the online CDDA application form and provide all relevant supporting documentation.
To assist the assessment of your claim, you should provide:
- A description of what happened.
- When and where the events occurred.
- Why you believe DEWR's administration was defective.
- Details of the detriment suffered.
- How the detriment has been calculated.
- Information showing how the defective administration directly caused the loss.
You should also include any relevant:
- correspondence
- emails
- records
- invoices
- receipts
- medical evidence
- other supporting documentation.
Compensation for incorrect cancellation of income support payments under the Targeted Compliance Framework
The Australian Government has established a separate compensation process for people who experienced detriment due to incorrect payment cancellation decisions under the Social Security (Administration) Act 1999. Information about this process is available on DEWR's Targeted Compliance Framework (TCF) compensation page.
Identity requirements
Applicants must provide identity documents before a claim can be assessed. Identity requirements are based on a 100-point identification process and are detailed in the application form.
Additional documentation may be requested where:
- names differ between documents
- proof of address is required
- further verification is necessary.
About the CDDA Scheme
The Compensation for Detriment Caused by Defective Administration (CDDA) Scheme is a discretionary mechanism that allows the Australian Government to provide compensation where a person or organisation has suffered detriment because of defective administration by a department.
As the CDDA Scheme is discretionary, there is no entitlement to compensation and no requirement for a decision-maker to approve an application, regardless of individual circumstances.
The CDDA Scheme is also an avenue of last resort. If another legislative, review or compensation mechanism is available, that option must generally be pursued before a CDDA claim can be considered.
Before applying, we recommend reviewing the Department of Finance's Resource Management Guide 409, which explains how compensation claims are assessed.
Who can apply?
Any individual or organisation may apply for compensation under the CDDA Scheme if they believe they have suffered detriment because of defective administration by DEWR.
An authorised representative may also apply on behalf of another person.
What is defective administration?
Defective administration may include:
- A specific and unreasonable failure to follow existing administrative procedures.
- An unreasonable failure to establish appropriate administrative procedures.
- An unreasonable failure to provide advice that was within an official's power and knowledge to provide or was reasonably capable of being obtained.
- Providing advice that was incorrect or ambiguous in the circumstances.
- A finding of defective administration does not automatically result in compensation. Applicants must also satisfy the other requirements of the Scheme.
What is detriment?
Detriment is a quantifiable financial loss that can be demonstrated and which arose directly because of defective administration. Applicants are expected to have taken reasonable steps to minimise or contain their loss.
Detriment may include:
Economic loss
Financial loss suffered because of defective administration that is unrelated to personal injury or damage to property.
Non-economic loss
Loss relating to personal injury, including psychiatric injury, emotional distress or damage to reputation arising from the personal injury.
Losses that are generally not compensated
The following losses are generally not compensable under the CDDA Scheme:
- Losses that cannot be directly linked to the defective administration.
- Personal time spent resolving an issue.
- Stress, anxiety or inconvenience.
- Costs associated with preparing or pursuing a CDDA claim.
- Interest.
Claims that cannot be considered by DEWR
DEWR can only consider claims involving defective administration by DEWR, its employees or its representatives.
Employment service providers and contracted service providers
Claims relating solely to the actions of employment service providers, contracted service providers or their employees cannot generally be considered under the CDDA Scheme unless the defective administration is attributable to DEWR.
Where a provider's actions may have caused financial detriment, applicants may wish to seek information about an Act of Grace Payments through the Department of Finance.
Other Commonwealth entities
If your claim relates to another Commonwealth entity, your claim may be referred to that entity for consideration.
State, territory or local government bodies
If your claim relates to a state government, territory government or local government body, you should contact the relevant organisation directly.
Corporate Commonwealth entities
The CDDA Scheme does not apply to corporate Commonwealth entities.
What happens after you apply?
After receiving your application, DEWR will review the information provided and determine whether further information is required. The department aims to acknowledge receipt of applications within 3 business days.
If additional information is required, you will be contacted.
Assessment timeframes vary depending on:
- the complexity of the claim
- the information provided
- the need for additional enquiries
- whether information is required from other parties.
The department aims to provide a preliminary assessment within 3 months of receipt of an application and will keep applicants informed where significant delays are expected.
If your claim is successful, compensation will be paid by electronic funds transfer to your nominated bank account.
CDDA Scheme payments may have taxation implications. Applicants should seek independent taxation advice or contact the Australian Taxation Office regarding their individual circumstances.
Further information
For more information about the CDDA Scheme, visit the Department of Finance's Resource Management Guide 409.
For information about Act of Grace payments and Debt Relief, visit the Department of Finance's Resource Management Guide 401.
Contact us
Department of Employment and Workplace Relations
If you have questions about making a CDDA claim to the department, please contact DEWR at CDDAClaimMailbox@dewr.gov.au.
Privacy
Your personal information will be collected, used and disclosed in accordance with the Privacy Act 1988 (Cth) and DEWR privacy policy for the purpose of assessing and managing your compensation claim. Further details are available in the Privacy Notice accompanying the application form.