NDIS reduces funding after abuse compensation payout

Dane Waites received a confidential compensation payment from St John of God in 2021 after suing over sexual abuse he experienced in the early 1990s at the Catholic-run Churinga Special Residential school. Four months ago he wrote a handwritten letter stating the payment was for his abuse and asking the National Disability Insurance Agency to maintain his existing support.

The agency applied a compensation reduction amount, a calculation used to offset court payouts that cover services previously funded by the NDIS. Waites' plan was reduced by $25,000 last year and another $25,000 this year.

Background on the NDIS rule Waites lives with level three autism, a severe intellectual disability and bipolar disorder. The NDIS plan funds support services tied to his permanent disability and is not means tested. His mother, Junee Waites, 83, said the Catholic church does not pay out for lifelong disabilities.

The Australian Lawyers Alliance has advised government that survivors of historical child abuse should not face compensation recovery.

Appeal and broader effects Waites and his mother have asked the Administrative Review Tribunal to overturn the decision. His support workers say it is unclear how much funding will remain. An NDIA spokesperson said it would be inappropriate to comment on a case before the tribunal.

The process assumes how much of a settlement covers lost earnings versus care and support, then spreads the reduction across years. Financial adviser Jane Campbell said the method has produced unpredictable outcomes and left some clients questioning whether they should have pursued civil claims at all.