Budget Estimates questions asked by independent Member for Kurrajong Thomas Emerson MLA show legal action taken against the ACT Government is costing the Territory many tens of millions of dollars each year.
The revelations follow recent remarks from the Chief Minister, the Treasurer and a Labor backbencher criticising Assembly Committees for voicing fiscal sustainability concerns without proposing clear cost-saving or revenue-raising measures.
In the 2025-26 financial year, more than $60 million was paid out in damages, settlements and legal costs relating to medical negligence claims.
$3.2 million has been spent settling just eight of the 85 institutional abuse claims that have been opened in the last three financial years – including for child sexual abuse – suggesting there may be a bill of over $30 million for the outstanding cases.
Expenditure on footpath-related personal injury claims in 2025-26 was over $2.77 million, which equates to 38 per cent of what the ACT Government actually spent on fixing footpaths last financial year.
The Australian Federal Police is a named respondent in 29 civil proceedings currently before the Court which relate to ACT Policing action, 18 of which relate to or include use of force.
“Nobody’s talking about the budgetary impact of Canberrans suing their own government. These figures show the whole-of-government cost of incompetence is massive," Mr Emerson said.
“While not every lawsuit is avoidable, the ACT Government should be closely investigating the impact of its growing legal bill on the Territory’s finances. This is a clear avenue for the Government to improve its fiscal sustainability.
“Medical negligence payouts have more than doubled since 2023-24. Negligence isn’t cheap, so what’s the Government doing to tackle this?
“28 per cent of the ACT Government’s total expenditure on footpaths last year didn’t go to fixing them, but to the legal costs and damages arising from not having fixed them.
“How many footpaths could have been repaired with the millions of dollars spent on payouts and legal costs?
“The scale of legal costs and payouts revealed through these questions presents a huge opportunity for the ACT Government to pursue budgetary savings and reduce community harm.
“It’s such a cop-out for the Government to complain about Assembly Committees criticising their fiscal performance while Canberrans are literally suing them for their failures.”
MEDIA CONTACT: Will Devine | 0402 183 296 | [email protected]
BACKGROUND:
Find the relevant QONs and QTONs for further background below.