ACT Expands Institutional Liability for Child Sexual Abuse

Disclaimer: This article discusses institutional child sexual abuse. If you or someone you know needs help visit the Bravehearts Support Services page for support or help accessing the National Redress Scheme.

The ACT has become the first jurisdiction in Australia to pass legislation that significantly expands how institutions (such as churches, sporting organisations, schools and other groups) can be held liable for child sexual abuse.

What the New Law Does

• Institutions can now be held vicariously liable for the wrongful acts of individuals (including volunteers) who commit child sexual abuse while connected to that institution.

• The legislation was introduced in response to legal uncertainty after Bird v DP (a pseudonym) [2024] HCA 41, where the High Court ruled that a church could not be held liable for the actions of a priest who was considered a volunteer rather than a formal employee. Reporting on the case can be found here.

• The Bill overturns that legal “loophole” by clarifying that institutions will for the future (and in some cases retrospectively) face liability if people are abused in contexts tied to their operation or oversight.

• Survivors of child sexual abuse welcomed the reforms, seeing them as a major step toward accountability and justice.

Importance

• For survivors, the law opens up new possibilities to hold institutions responsible — which could mean greater access to justice and better outcomes in claims.

• For institutions, it means they must carefully evaluate their duty of care, supervision of staff and volunteers, and risk-management around abuse prevention.

• For legal advisers, this shift changes how we view liability, the nature of “employment” relationships and historical claims.

• The reform may serve as a model for other states and territories, leading to broader change across Australia.

Implications

• Survivors of institutional child sexual abuse are able to review their claims to see whether they now claim recourse through vicarious liability, in addition to the pre-existing negligence and direct liability claims.

• Institutions will need to audit:

  • the role of volunteers and how the organisation supervises them;

  • policies and practices around child safety, staff screening, reporting of abuse;

  • existing and historical claims, and whether retrospective liabilities may arise.

• The transitional and retrospective aspects of this new law mean some institutions may face claims for past abuse where the law now gives survivors new grounds.

• From a civil-litigation perspective, the reform may affect limitation periods, liability exposures, insurance arrangements and settlement strategies.

Conclusion

• The ACT has closed a major legal gap: institutions can now be liable for abuse by individuals tied to them, even if those individuals were not formal employees.

• This change increases pressure on organisations to actively prevent abuse and respond appropriately.

• Legal practitioners need to update advice, review policies, and prepare for increased activity in institutional child abuse claims.

If your matter involves child sexual abuse by or within an institution within the ACT, or you represent an organisation seeking to manage this risk, you may need to seek legal advice.

This OYBlog was created with AI assistance based on the following source:
https://www.abc.net.au/news/2025-10-30/act-law-increases-institutions-liability-for-child-sexual-abuse/105953636