A deal has been brokered to avoid Australian taxpayers being forced to pay financial restitution to abuse victims of a Catholic order facing bankruptcy.
In June, the Trustees of the Christian Brothers said the entity would be broke by September and unable to compensate hundreds of survivors of abuse.
The registered charity and legal entity announced a proposed scheme to distribute its remaining assets, valued at roughly $216 million, but no plan to cover the cost of future claims.
On Friday, the trustees advised creditors they had entered into a memorandum of understanding with the Trustees of Edmund Rice Education Australia (EREA) to develop and implement a new scheme to ensure all current and future victims and survivors would be paid.
"This means that not only will current claimants with settlements or judgements be paid in full, but EREA will assume responsibility and liability for all current and future legal proceedings as well as for claims before the National Redress Scheme," a statement said.
"Again, as with the earlier proposal, the revised scheme must be approved by both creditors and the court."
There were concerns Australian taxpayers would be expected to foot the $65 million shortfall if the organisation could not find the funds.
"Taxpayers should not have to step in to compensate victims of crime when the institution responsible is readily identifiable and has substantial wealth," Social Services Minister Tanya Plibersek told parliament on July 2.
There were reports the Christian Brothers had been transferring its most valuable Australian colleges to Edmund Rice for just $1 in recent years.
At least three prominent schools in NSW and three others in Victoria were reportedly transferred to the trust for the nominal consideration of $1 each.
Those schools charge fees between $8000 and $23,000 per year.
In the past 45 years, the group has made total payments - including compensation and claimants' legal costs - of more than $480 million.
Members of the Congregation of Christian Brothers first arrived in Australia in 1843, operating institutions where many of Australia's most notorious instances of child sexual abuse took place.
1800 RESPECT (1800 737 732)
National Sexual Abuse and Redress Support Service 1800 211 028
