Court filings reveal that the Christian Brothers, a Catholic religious order operating in Australia, has informed a court of its financial insolvency and inability to fully compensate abuse survivors through the government-run National Redress Scheme.
According to an actuarial report released alongside the court documents, there are currently 340 redress claims against the Christian Brothers valued at approximately $25 million. The report projects an additional 590 claims totaling $40 million will be filed in future years, bringing the total financial obligation to approximately 930 claims worth $65 million. Under the rules of the National Redress Scheme, the federal government functions as a “funder of last resort,” meaning Australian taxpayers would cover costs if the religious order cannot pay.
The Christian Brothers has proposed a scheme involving the sale of its remaining 36 properties, with proceeds distributed among creditors including survivors and the government. However, legal experts and survivors’ representatives indicate these property sales would yield far less than what survivors are owed. The situation has been further complicated by property transfers made over the past decade, whereby the religious order transferred substantial holdings to a separate entity known as the Trustees of Edmund Rice Education Australia for nominal $1 amounts. This entity has resisted attempts to liquidate those properties to fund survivor compensation.
Social Services Minister Tanya Plibersek has stated the government will take a “forensic approach” to the financial restructuring and emphasized that applications through the redress scheme will continue to be processed. The Department of Social Services is participating in New South Wales Supreme Court proceedings to protect the interests of both survivors and taxpayers. Court documents also indicate property holdings valued at approximately $47 million are controlled by another entity, the Brothers of the Christian Schools of Ireland, which the Christian Brothers is attempting to include in its proposed settlement arrangement.
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