PricewaterhouseCoopers
Actuarial Pty Ltd
ACN. 003 562 696
Issues Paper
Review of NSW’s Victims
Compensation Scheme
22 March 2012
Liability is limited by a Scheme approved under Professional
Standards Legislation
Contents
1
Introduction
2
2
Scheme-Specific Considerations
4
3
General Issues
9
4
Summary of questions
11
This Issues Paper has been prepared at the request of the Department of Attorney General and Justice for the purpose
of the long term viability review of the Victims Compensation Scheme and evaluation of the statutory compensation
Scheme in NSW. It should not be used or relied upon for any other purpose. In preparing this Paper we have relied
upon information provided to us by the Department; we have not audited or verified that information.
1
Introduction
1.1
Background
On 11 August 2011 the NSW Attorney General announced an independent assessment of the Victims Compensation
Scheme (“the Scheme”) with a view to delivering faster and more effective financial support to victims of violent crime.
The Victims Compensation Tribunal (“the Tribunal”) was established under the Victims Compensation Act 1987 and
continues under the Victims Support and Rehabilitation Act 1996 (“the Act”). The object of the Act is to provide support
and rehabilitation for victims of violent crime by giving effect to an approved counselling and a statutory compensation
1
scheme. The latest Chairperson’s Report contains some general background to the Scheme and covers the period of the
financial year 1 July 2010 to 30 June 2011. The following key points are drawn from that report:

The Chairperson welcomes the independent assessment of the Scheme

Pending claims have increased to 21,610 (with a value of about $239.2M) and the scheme received around
9,000 claims in 2010/11

The present budget allocation of around $60 million to Victims Services enables the finalisation of about 4,900
claims per year

The time between lodgement and determination of a claim is about 25 months as at 30 June 2011
These statistics indicate that the Scheme, as it is currently structured, is not financially sustainable in the longer term.
Current funding is constrained, while benefit utilisation continues to grow.
PwC has been appointed to conduct an independent assessment of the Scheme. The scope of our review covers:
1. Examining the long-tem viability of the Victims Compensation Fund Corporation (“the Fund”)
2. Analysing and evaluating the statutory compensation scheme and
3. Examining strategies and options for service provision to victims of violent crime in NSW
As part of this assessment, we are obtaining input and feedback from a range of stakeholders. This Issues Paper forms
part of this consultation process. We are also conducting face to face interviews with key stakeholders and are surveying
victims who have recently accessed compensation from the Scheme.
In addition to the stakeholder consultation process we are also conducting a review of victims compensation and support
schemes in other jurisdictions. These schemes will provide a point of reference on key aspects including claimant
2
eligibility, benefits and support delivery. Information about these schemes is publically available on the internet .
1
2
http://www.lawlink.nsw.gov.au/lawlink/victimsservices/ll_vs.nsf/vwFiles/Chairpersons_2010_11.pdf/$file/Chairpersons_2010_11.pdf
The following links provide some information related to victims compensation for other jurisdictions:
VIC: http://www.justice.vic.gov.au/victimsofcrime/resources/2/5/250e55004389e12c92d9d7898c252b91/2011+-+victims+guide+a5+-+web.pdf
QLD: http://www.justice.qld.gov.au/justice-services/victims-of-crime/victim-assist-queensland/forms-and-publications/a-guide-for-victims-of-crime-inqueensland
WA: http://www.courts.dotag.wa.gov.au/_files/Compensation_for_VOC_brochure.pdf
UK: http://www.justice.gov.uk/downloads/victims-and-witnesses/cic-a/cica/how-to-apply/cica-guide.pdf
NSW Department of Attorney General and Justice
PwC
2
Introduction
1.2
The Issues Paper
This Issues Paper outlines the issues and questions that may be considered in our review of the Fund. We have prepared
this Issues Paper to enable input into our review from all interested stakeholders and welcome written submissions on all
aspects of the Scheme.
Written submissions and statements can be provided by either:

Email:
victims.compensation@au.pwc.com

Post:
Review of NSW Victims Compensation Scheme
GPO Box 2650
Sydney NSW 1171
The closing date for submissions is Monday 30 April 2012.
NSW Department of Attorney General and Justice
PwC
3
2
Scheme-Specific Considerations
2.1
Purpose of Scheme
Section 3 of the Act outlines the objectives of the Scheme:
“The objects of this Act are as follows:
a)
to provide support and rehabilitation for victims of crimes of violence by giving effect to an approved
counselling scheme and a statutory compensation scheme,
b)
to enable compensation paid under the statutory compensation scheme to be recovered from persons
found guilty of the crimes giving rise to the award of compensation,
c)
to impose a levy on persons found guilty of crimes for the purpose of funding the statutory compensation
scheme,
d)
to give effect to an alternative scheme under which a court may order the person it finds guilty of a crime
to pay compensation to any victim of the crime.”
The current scheme is heavily compensation focused, with compensation payments making up around 85% of total
payments from the Fund. The remainder includes payments for counselling, legal costs and Authorised Report Writers
(required for claims with psychological injury).
Questions on scheme purpose
1)
Are the objectives of the Act still appropriate in meeting the needs of victims of violent crime?
2)
Are the objectives of “support and rehabilitation” best achieved by “counselling and compensation”?
3)
Are the objectives of the Act being met by the current benefit and support structure of the Fund?
4)
Should the principle of the scheme be based on “compensation” or “support and rehabilitation”, or a combination of
both?
5)
Is it appropriate to impose a levy on convicted offenders?
6)
Is it appropriate to require convicted offenders to pay compensation to any victim of the crime?
7)
If the scheme is changed (with regards to eligibility, compensation and services), what should the continuation of
rights be under the existing scheme?
NSW Department of Attorney General and Justice
PwC
4
Scheme-Specific Considerations
2.2
Eligibility
Persons injured by an act of violence, such as an assault, a robbery, domestic violence or sexual assault that took place
in NSW may be eligible for compensation under the Scheme. Compensation may also be claimed by persons injured as a
result of witnessing or attempting to prevent an act of violence, parents or guardians of children who are injured as a result
of learning about the act of violence and family members of homicide victims.
The current time available for lodging applications for claims is 2 years, with the full rules for application documented in
Section 26 of the Act. Lodgement outside this time limit is allowable in certain circumstances, with special leave granted in
cases of domestic violence, sexual assault and child abuse.
There have been significant increases both in applications for incidents occurring outside of this 2 year eligibility period
and also for incidents occurring more than 10 years prior. Based on our discussion with staff at Victims Services, we
understand these applications are very time consuming and difficult to assess, given the lengthy delay between incident
and application.
One of the recommendations in the Chairperson’s report is:
“I recommend to Government that there should be a final limitation within which all claims, including those for
sexual assault and domestic violence, must be lodged. I consider the appropriate period limitation to be 20 years
after the act of violence or 20 years after the applicant attains the age of 18 years, whichever is the later.”
Questions on eligibility
8)
Are the current limitation periods appropriate? Under what circumstances, if any, should special leave be
granted?
9)
Should there be an absolute upper limit on eligibility?
10) What limitation periods should apply and should these periods vary by the type of crime?
11) What offences of violent crime should and shouldn’t be covered?
12) In what circumstances should support be available for primary, secondary, family and / or support persons of
victims?
13) Who should be able to claim expenses or compensation in respect of a homicide?
14) The current threshold for compensation is $7,500 in compensable injuries. Is this an appropriate threshold?
15) Under what circumstances, if any, should secondary victims or support persons be covered?
16) What level of evidence should be required to establish that an act of violence has occurred on the balance of
probability (police reports, medical reports, witness accounts. etc)?
17) Should a police report on the violent crime be required as part of the application process for eligibility?
18) Should applicants be required to show evidence of their injuries and associated recovery costs?
NSW Department of Attorney General and Justice
PwC
5
Scheme-Specific Considerations
2.3
Compensation and services
We distinguish between “compensation”, which we have defined as a generic lump sum payment to cover non-specific
general expenses and/or pain and suffering, and “services” where the payments are made on more of a “needs” basis for
specific service provision.
Compensation
Compensation payments currently make up around 85% of total payments from the Fund. Schedule 1 of the Victims
Support and Rehabilitation Act 1996 lists the injuries for which victims may receive compensation and the amounts
payable for each injury.
The purpose of the payments is not to provide full compensation to victims of crime equivalent to common law damages.
Rather, it is an acknowledgement by the NSW Government that the claimant has been a victim of violent crime and also to
assist victims financially, given that compensation can never fully account for the ongoing psychological trauma and pain
that victims of violent crimes endure.
The current level of compensation is not sustainable in relation to the amount of funding for the scheme and the
Chairperson’s report estimates a liability of about $239.2M in respect to outstanding compensation claims. This is
equivalent to well over three years of funding at present levels, and does not include any allowance for compensation
claims on injuries that have already occurred but have not yet been reported to the Fund. The amounts to be paid on
these already occurred but unreported claims are also likely to be significant based on PwC’s initial financial analysis.
The Chairperson’s report estimates the current average waiting time until determination of each claim to be 25 months.
While the level of the Scheme funding is partly responsible for this backlog, the time it takes to determine awards also
contributes to the backlog. This backlog is expected to grow as an increasing number of claims are lodged under the
Fund.
Clearly, the Fund is financially unsustainable. Changes to the benefit structure will be needed, either in the approach or
the quantum of benefits paid. A compensation based system has the advantage that it can provide closure for a victim of
violent crime, provide flexibility in payment of financial expenses and give some level of ownership to the victim for their
personal finances. However, there are problems with the payment of non specific compensation because the payments
may not be used in the recovery and rehabilitation of victims, there may be disputes in how to allocate the compensation
between victims and their families, and because it is specific to injuries, it may not be appropriate to a victim’s needs.
Questions on compensation
19) What should the aim and purpose of any compensation payments be?
20) Are lump sum payments the most appropriate way of providing this compensation?
21) What types of injuries should compensation be provided for and to whom?
22) Is a schedule of compensable injuries appropriate?
23) What is an appropriate level of compensation?
24) What should the maximum amounts of compensation be for primary / secondary victims?
25) What conditions should pre exist before compensation should be paid? (For example, permanent injury or
costs over a certain amount.)
NSW Department of Attorney General and Justice
PwC
0 PricewaterhouseCoopers. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers, a
partnership formed in Australia or, as the context requires, the PricewaterhouseCoopers global network or other member
firms of the network, each of which is a separate and independent legal entity.
6
Scheme-Specific Considerations
Services
Being a victim of violent crime can affect the person’s physical and mental health, relationships and quality of life and
require a range of services to help recover from the trauma. Support can be provided by government, non government
and/or community organisations. Counselling can assist the individual in dealing with the emotional distress following the
event, while appropriate medical specialists may be able to assist in treating the victim’s injuries. Early intervention and
prevention supports for those most at-risk can assist in minimising the impacts and support needs.
Individuals who experience a traumatic event are also faced with the significant burden of navigating legal, compensation
and community service systems. The assistance they are given through this process can shape their perceptions on the
quality of care and support received. The support needed may vary to meet issues unique to the individual such as
sensitive personal and family problems or language barriers and cultural attitudes.
There are a range of support services currently available to the victims of violent crimes in NSW. Navigating different
systems to get appropriate supports and waiting lists can make accessing these supports difficult. Broadly the types of
supports that people who are victims of violent crime will access can be grouped into the following:

Mainstream services, which are used by everyone in the community, such as hospitals and health services,
Centrelink services, educational facilities, correction and justice systems, family and children’s services and aged
care services

Specialist services, which provide support to people seeking assistance and crisis intervention, such as the
Victims Access Line (VAL), Community Services Domestic Violence Line, Victims of Crime Assistance League
(VOCAL), and Homicide Victims Support Group (HVSG)

Benefits provided by the Scheme such as counselling and compensation.
The Victims Assistance Scheme (VAS) was introduced in early 2007 to reimburse certain expenses for victims of crime.
The threshold for claimed expenses must reach $200 and payments are capped at $1,500. The current maximum
payment limit can leave victims out of pocket for many services or treatments. As an example, dental expenses will
frequently cost over and above the $1,500 cap.
Questions on services
26) What specific services should the Fund provide for victims? (For example, counselling, “gap” medical and
dental payments, cleaning, home care, legal aid, accommodation, relocation, loss of replacement of damaged
clothing, income replacement, funeral expenses, incidental travel, security of premises, loss of financial
support, translation services, other)
27) What are the main gaps in coverage for mainstream and specialised services for victims of violent crime?
28) What rehabilitation and supports are needed for victims?
29) What information services are useful and how should this information be disseminated?
30) What are your views on the Victims Access Line (VAL) as a single entry point for victims of crime?
31) What special remote area needs may be required?
32) To what extent are case managers required to provide support to navigate the complexity of mainstream and
specialist service systems for victims? i.e. Should there be a broader service coordination role?
33) Is witness assistance support required for victims, for example, a friend’s expenses in attending court
proceedings?
34) What limitations should be made on the financial support provided in respect of services?
NSW Department of Attorney General and Justice
PwC
7
Scheme-Specific Considerations
35) What are the barriers to utilisation of services and benefits?
36) Should interim payments in cases of financial hardship be available and if so, what level of evidence is
required for payment and what limits would be appropriate?
37) What services definitely shouldn't be provided by the scheme?
38) If the level of financial assistance to meet specific needs is increased in the scheme, how should the
compensation amounts available under the scheme be changed?
NSW Department of Attorney General and Justice
PwC
0 PricewaterhouseCoopers. All rights reserved. "PricewaterhouseCoopers" refers to PricewaterhouseCoopers, a
partnership formed in Australia or, as the context requires, the PricewaterhouseCoopers global network or other member
firms of the network, each of which is a separate and independent legal entity.
8
3
General Issues
3.1
Administration
It is acknowledged within the Chairperson’s report (page 11) that the waiting times for access to compensation benefits
are “outside an acceptable optimum period”, with average waiting times of around 25 months. These average times are
likely to continue given current level of claims and funding restraints.
Questions on administration
39) What are acceptable waiting times for access to compensation benefits?
40) What are acceptable waiting times for reimbursement of payment for appropriate services and for timeliness
of the delivery of services?
41) Are there any administrative roadblocks that may deter victims from accessing appropriate compensation?
3.2
Disputes
Appeals are allowable under the Fund through the Victims Compensation Tribunal, and subsequently through the District
Court.
Questions on disputes
42) Under what circumstances should disputes be allowed under the Fund?
43) What dispute process should be followed?
44) Should there be different levels of dispute resolution and what principles should guide this?
3.3
Other
We welcome comments on all aspects of the Fund. Some additional questions are mentioned below, however comments
need not be constrained to the specific questions.
Limited funding is clearly an issue for the Fund given the current level of benefits. Revenue comes from a number of
sources, the main source being general revenue from the NSW government. Other revenue comes from restitution from
defendants, court levies and other revenue (such as proceeds of crime/confiscation and repayments). Many of these other
sources have low levels of recovery, given that many are related to the perpetrators of crime who may not have the ability
to pay.
Questions on other issues/ considerations
45) What role should legal providers play within the Fund, in the process of making an application, seeking a
review, or appealing a decision?
46) What other potential funding sources should be considered?
47) What support should be available for convicted inmates who are victims of violent crime?
NSW Department of Attorney General and Justice
PwC
9
48) To what extent should benefits and compensation be adjusted for contributory negligence?
49) Are there other funding models that should be considered?
50) How should the scheme link with the broader service system?
NSW Department of Attorney General and Justice
PwC
10
4
Summary of questions
4.1
Scheme-specific considerations
Questions on scheme purpose
1)
Are the objectives of the Act still appropriate in meeting the needs of victims of violent crime?
2)
Are the objectives of “support and rehabilitation” best achieved by “counselling and compensation”?
3)
Are the objectives of the Act being met by the current benefit and support structure of the Fund?
4)
Should the philosophy of the scheme be based on “compensation” based or “support and rehabilitation”, or a
combination of both?
5)
Is it appropriate to impose a levy on convicted offenders?
6)
Is it appropriate to require convicted offenders to pay compensation to any victim of the crime?
7)
If the scheme is changed (with regards to eligibility, compensation and services), what should the continuation of
rights be under the existing scheme?
Questions on eligibility
8)
Are the current limitation periods appropriate? Under what circumstances, if any, should special leave be granted?
9)
Should there be an absolute upper limit on eligibility?
10) What limitation periods should apply and should these periods vary by the type of crime?
11) What offences of violent crime should and shouldn’t be covered?
12) In what circumstances should support be available for primary, secondary, family and / or support persons of victims?
13) Who should be able to claim expenses or compensation in respect of a homicide?
14) The current threshold for compensation is $7,500 in compensable injuries. Is this an appropriate threshold?
15) Under what circumstances, if any, should secondary victims or support persons be covered?
16) What level of evidence should be required to establish that an act of violence has occurred on the balance of
probability (police reports, medical reports, witness accounts etc)?
17) Should a police report on the violent crime be required as part of the application process for eligibility?
18) Should applicants need to show evidence of their injuries and associated recovery costs?
Questions on compensation
19) What should the aim and purpose of any compensation payments be?
20) Are lump sum payments the most appropriate way of providing this compensation?
21) What types of injuries should compensation be provided for and to whom?
22) Is a schedule of compensable injuries appropriate?
23) What is an appropriate level of compensation?
24) What should the maximum amounts of compensation be for primary / secondary victims?
NSW Department of Attorney General and Justice
PwC
11
25) What conditions should pre exist before compensation should be paid? (For example, permanent injury or costs over
a certain amount.)
Questions on services
26) What specific services should the Fund provide for victims? (For example, counselling, “gap” medical and dental
payments, cleaning, home care, legal aid, accommodation, relocation, loss of replacement of damaged clothing,
income replacement, funeral expenses, incidental travel, security of premises, loss of financial support, translation
services, other)
27) What are the main gaps in coverage for mainstream and specialised services for victims of violent crime?
28) What rehabilitation and supports are needed for victims?
29) What information services are useful and how should this information be disseminated?
30) What are your views on the Victims Access Line (VAL) as a single entry point for victims of crime?
31) What special remote area needs may be required?
32) To what extent are case managers required to provide support to navigate the complexity of mainstream and
specialist service systems for victims? i.e. Should there be a broader service coordination role?
33) Is witness assistance support required for victims, for example, a friend’s expenses in attending court proceedings?
34) What limitations should be made on the financial support provided in respect of services?
35) What are the barriers to utilisation of services and benefits?
36) Should interim payments in cases of financial hardship be available and if so, what level of evidence is required for
payment and what limits would be appropriate?
37) What services definitely shouldn't be provided by the scheme?
38) If the level of financial assistance to meet specific needs is increased in the scheme, how should the compensation
amounts available under the scheme be changed?
4.2
General issues
Questions on administration
39) What are acceptable waiting times for access to compensation benefits?
40) What are acceptable waiting times for reimbursement of payment for appropriate services and for timeliness of the
delivery of services?
41) Are there any administrative roadblocks that may deter victims from accessing appropriate compensation?
Questions on disputes
42) Under what circumstances should disputes be allowed under the Fund?
43) What dispute process should be followed?
44) Should there be different levels of dispute resolution and what principles should guide this?
NSW Department of Attorney General and Justice
PwC
12
Summary of questions
Questions on other issues/ considerations
45) What role should legal providers play within the Fund, in the process of making an application, seeking a review, or
appealing a decision?
46) What other potential funding sources should be considered?
47) What support should be available for convicted inmates who are victims of violent crime?
48) To what extent should benefits and compensation be adjusted for contributory negligence?
49) Are there other funding models that should be considered?
50) How should the scheme link with the broader service system?
NSW Department of Attorney General and Justice
PwC
13