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 last resort means of providing compensation to persons who may have been unfairly disadvantaged by the Commonwealth but who have no legal claim against it.
The act of grace mechanism may be appropriate in relation to special circumstances that have occurred as a direct result of:
An act of grace payment CANNOT be made if:
Example: Any case that can be settled under FMAA regulation 9 CANNOT be paid as an act of grace payment.
For further explanation of this topic, refer to the Finance Circular 2009/09: Discretionary Compensation and Waiver of Debt Mechanism.
Act reference: Financial Management and Accountability Regulations 1997
Last reviewed: 20 September 2012