Compensation Provisions of the Biosecurity Act

The provisions for the payment of compensation are set out in Section 162A of the Biosecurity Act 1993, amended in 1998.

The compensation provisions provide for losses arising from actions of the exercise of powers under the Biosecurity Act. The key features of the compensation provisions are:

  • losses must be caused by the exercise of powers under the Biosecurity Act for the purpose of managing or controlling any pest or disease and not from the effects of the pest or disease itself;
  • losses must be verifiable;
  • losses must result from damage to, or destruction of property, or from restrictions placed on the movement or disposal of goods;
  • claimants receiving compensation must be placed in no better and no worse position than any person whose property or goods are not directly affected by the exercise of the powers;
  • compensation must not be paid:
    • for a loss related to unauthorised or goods that have not been cleared for import;
    • for a loss suffered before the time the exercise of the powers commenced; or
    • to any person who has failed to comply with the Biosecurity Act or regulations made under the Act; where the failure is serious or significant; or contributed to the presence or spread of the pest or disease being managed or eradicated; and
  • in the event of dispute, the compensation claim must be submitted to arbitration.

Compensation under the Biosecurity Act is related only to the use of statutory powers under the Act and not to the presence of, or losses due to, pests and diseases.

All reasonable steps must be taken by affected parties to mitigate losses. Compensation is calculated so that those affected are no better or worse off than any person whose property or goods are not directly affected by the exercise of the powers. It is the responsibility of the individual or organisation incurring the loss to present a claim, which must be verified by evidence. MAF will consider all claims for compensation, and offer settlement where this is consistent with section 162A of the Biosecurity Act.

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Page last updated: 14 March 2012