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Note 25: Administered - Contingent assets and liabilities

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Unquantifiable administered contingencies

Natural Disaster Relief and Recovery Arrangements (NDRRA)

The Australian Government provides funding to states and territories through the Natural Disaster Relief and Recovery Arrangements (NDRRA) to assist with natural disaster relief and recovery costs. A state or territory may claim NDRRA funding if a natural disaster occurs and state and territory relief expenditure for that event meets the requirements set out in the NDRRA Determination. For major disasters, payments to individuals may be approved under the Social Security Act 1991. These include the Disaster Recovery Payment and Disaster Recovery Allowance.

At balance date the Department is unable to reliably estimate the future impact of natural disasters, and no provision for these claims has been recognised in the Administered financial statements.

Australian Victims of Terrorism Overseas Payment (AVTOP)

Under AVTOP scheme, the Commonwealth provides financial assistance to Australians who are victims of an overseas terrorist act that has been declared by the Prime Minister.

At balance date the Department is unable to reliably estimate the future value of these potential claims, and no provision for these clams has been recognised in the Administered financial statements.

Native Title Costs and Agreements (access to geospatial data)

Under the Native Title Act 1993 (the NTA), the Commonwealth will be liable for any compensation found to be payable in respect of compensable acts for which the Commonwealth is responsible.

The Australian Government has entered into agreements with State and Territory Governments to access their geospatial land tenure data, which is essential to support the National Native Title Tribunal in achieving its outcomes. Under these agreements the Australian Government provides indemnities against third-party claims arising from errors in the data.

At balance date the Department is unable to reliably measure the future value of potential claims, and no provision for these claims has been recognised in the Administered financial statements.

Future compensation claims

The "Scheme for Compensation for Defective Administration" (CDDA) allows agencies to provide compensation to persons who have been adversely affected by their maladministration, but who have no legal means to seek redress, such as a legal claim. It is not possible to estimate the value of future CDDA claims.

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