Terrorism compensation of up to $75k

Australians caught up in terrorist acts overseas could receive payments of up to $75,000 in government compensation.

Under the Labor bill – brought back for debate after a 15-month delay – compensation would be given to Australian victims of an overseas terrorist act or, in the event of a death, to close family members.

On introducing the bill in March 2011, then attorney-general Robert McClelland said it would ease the suffering and provide support to Australian victims in the longer term.

“It is important to acknowledge the collective responsibility of the Australian community to help individuals recover from terrorist events,” he told parliament then.

Eligibility for the scheme requires the prime minister to declare an overseas terrorism event.

Applicants would have to be Australian residents and not have contributed to the act.

Victims would not be required to repay or deduct Medicare, workers compensation or other benefits from any payment received under the scheme, and it would be tax exempt.

Coalition justice spokesman Michael Keenan said opposition leader Tony Abbott would move amendments to ensure the payments would apply retrospectively.

“It could potentially leave victims of the Bali bombings and some of the other past terrorist acts without any financial support,” Mr Keenan told the chamber on Tuesday.

“The opposition certainly doesn’t seek to play politics with the issue.”

Labor backbencher Shayne Neumann said the bill would offer help but it would be a small token for the loss victims had gone through.

“Nothing will compensate those people in real terms for what they go through,” he said.

He was surprised neither party had considered this action years earlier.

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