An act of grace payment is a special 'gift of money' by the Commonwealth akin to the historical Royal Prerogative for 'grace and favour payments'. They are payments that fall outside statutory entitlements.
Generally, act of grace payments are a means of providing compensation to persons who may have been unfairly disadvantaged by the Commonwealth but who have no legal claim against it.
An act of grace payment can only be made in those cases that involve:
An act of grace payment cannot be made if the:
Example: Any case that can be settled under Financial Management and Accountability Act 1997 Regulation 9 cannot be paid as an act of grace payment.
Act reference: Financial Management and Accountability Act 1997, refer to Regulation 9
Last reviewed: 1 December 2008