Redress scheme for institutional child sexual abuse: Audit warns processing too slow

ANAO finds slow processing and uneven oversight in the redress scheme and presses DSS to tighten planning before 2028.

 

The way a national redress scheme exceeding $5 billion has been managed by the Department of Social Services (DSS) has been deemed partly effective overall, with improvements recommended for governance arrangements, administering processes, monitoring and reporting. 

An Australian National Audit Office (ANAO) review of the scheme — which was established in response to the Royal Commission into Institutional Responses to Child Sexual Abuse — aimed to assure parliament that it was being administered effectively by bureaucrats. 

The ANAO found arrangements to monitor and report on the efficiency and effectiveness of the national redress scheme were “partly appropriate”, and also warned application processing would need to be accelerated to meet the intended sunset date by mid-2028.

“Effectiveness of the department’s administration can be improved through stronger planning, more timely processing of applications, enhanced reporting, and coordinated evaluation of engagement activities,” the audit report read.

“With 60%of applications awaiting an outcome as at 4 July 2025, improving service delivery, stakeholder communication and processing efficiency is needed to ensure the department can manage the legislated end of the scheme in 2028.”

The audit office recognised that the scheme’s administration and governance arrangements had matured since its establishment, but also underscored how strategic planning between DSS and Services Australia was inconsistent, as well as delays over end-of-scheme planning and a failure to consider business plans until five years after the scheme was underway.

“Of the 15 communications strategies, plans and frameworks, 10 had not been evaluated, and there was a lack of overall coordination,” the audit report read.

“By June 2025, the scheme had engaged with 63,738 applicants and 911 institutions. The lack of comprehensive communications evaluation and shared risks reporting limited the department’s ability to identify and act on opportunities to improve scheme performance.”

In order to finalise planned work of the redress scheme by mid-2025, the report also suggested DSS find faster ways to manage application processing and institutional onboarding. 

The department would further need to operationalise decision-making quality mechanisms, standardise reporting to improve visibility of complaints and revocations, and leverage insights to support continuous improvement, the ANAO found. 

The scheme, which acknowledges ‘many children were sexually abused in Australian institutions and seeks to hold institutions to account for this abuse and help people who have experienced abuse gain access to redress’, commenced in July 2018 and is set to run until 30 June 2028.

Nearly 64,000 applicants have engaged with the scheme since it came into operation, and a total of $1.7 billion was paid to survivors as of 4 July 2025.

Survivors who successfully claim against the scheme can receive $150,000, may access counselling and psychological support (or a monetary payment of ($5,000), and receive a personal response from the institution responsible (those institutions that are partly participating in the scheme). 

Approximately 60% of applications to the scheme are waiting for DSS to make a decision about their outcome. The average waiting time for an application to be processed just exceeds 16 months, and a favourable outcome is given to applicants where “there is a reasonable likelihood” they are eligible for redress.

The ANAO also highlighted DSS’ arrangements to monitor and report on the efficiency and effectiveness, which were deemed to be “partly appropriate”.

“The [scheme’s performance] measures lacked comprehensive tracking of application processing, progress and efficiency,” the report read.

“No departmental oversight existed for Services Australia’s delivery against service levels, limiting insight into effectiveness. 

“Since 2018, six reviews have made 142 recommendations, with 76% agreed to by the government and 88% of those were implemented by June 2025. 

“Monitoring and reporting limitations constrained the department’s ability to assess the scheme’s efficiency and achievement of intended outcomes.”

The audit findings were made publicly available on Monday, with DSS agreeing to all five of its recommendations made in the report.  

DSS Secretary Michael Lye said many of the ANAO’s recommendations for the management of the scheme aligned with work already underway, and that a reviewed project management and governance arrangement was adopted in August. 

“The department is close to finalising an updated communication plan that will underpin a revised communication framework, informing messaging through to the end of the scheme,” Lye said.

“The scheme’s independent decision-making quality framework has been endorsed, and resourcing has been assigned to its implementation.

“The department is also working with Services Australia to establish a joint governance body with the scheme to ensure oversight and reporting of service delivery standards.”

The estimated funding profile scheme over its life is more than $5.7 billion as of July 2025, including special appropriations. 

The costs of redress should be directly shouldered by non-government participating institutions.

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