The Christian Brothers, a Catholic order with a history of child abuse, has declared it is bankrupt and cannot afford to pay survivor redress claims, according to court documents that reveal taxpayers could be forced to cover up to $65 million in payouts.
Financial collapse and redress claims
Last month, the Christian Brothers informed a court it was going broke and would not be able to pay survivors. This has affected hundreds of cases brought through civil courts or the government-run National Redress Scheme, which allows survivors to seek capped compensation without litigation. An actuarial report released on Monday details the order's finances: there are currently 340 redress claims costing an estimated $25 million, with a projected additional 590 claims worth $40 million in future years. In total, the order faces 930 redress claims worth $65 million.
Government as funder of last resort
Under the redress scheme rules, the federal government acts as a “funder of last resort.” Where an institution no longer exists or cannot pay, the government must step in. Social Services Minister Tanya Plibersek responded sharply: “Victim-survivors deserve to have those responsible for their abuse held accountable. Christian Brothers should take responsibility for the harm members of their order have caused. Funder of last resort arrangements which call on taxpayer funds should be just that – the absolute last resort.”
Property sales and asset transfers
The Christian Brothers is proposing a scheme to sell its remaining 36 properties and divide proceeds among creditors, including survivors and the government. However, the proceeds will be far from sufficient to cover claims, likely providing only a fraction of what survivors are owed. Survivors and plaintiff law firms are angered that the order spent the past decade transferring vast property holdings to a separate entity, the Trustees of Edmund Rice Education Australia, for nominal amounts of $1. That entity is resisting any attempt to sell those properties to help pay survivors.
Government forensic approach
Plibersek said the government would take a “forensic approach” to the matter. “I want to assure victim-survivors that the Albanese Labor government will ensure the integrity of the National Redress Scheme is upheld, and applications naming Christian Brothers can continue to be lodged and will be determined in the usual way,” she said. “The commonwealth, through the Department of Social Services, is participating in the current Supreme Court of New South Wales proceedings concerning the Christian Brothers’ proposed creditors’ scheme and is acting to ensure the interests of victim survivors and taxpayers are protected. We will be adopting a forensic approach to the Christian Brothers’ proposed financial restructure.”
Support for convicted abusers
Guardian Australia also revealed the Christian Brothers has used its dwindling finances to support nine convicted child abusers who remain in the order, and used two remaining properties to house brothers with horrific abuse histories, including one who preyed on orphans and another kept in teaching positions for almost three decades after senior officials became aware of his offending.
Additional assets from Irish entity
Newly released court documents show more property owned by the Brothers of the Christian Schools of Ireland, currently out of reach of survivors and creditors. That entity held net assets of $57 million as of December 2025, rapidly reduced to $47 million by May this year. The Christian Brothers is attempting to fold those assets into its proposed sell-off scheme, which could boost funds available to survivors.
Parliamentary criticism
Earlier this month, Plibersek expressed serious concern in parliament about the Christian Brothers’ approach, particularly regarding asset transfers. “Growing up, I was taught that there was one church and one God, not multiple corporate entities that transfer assets for purposes that are yet to be made clear,” she said. “The feeling that no one may be held to account for this abuse – that is perhaps even worse than the financial impacts … The idea that no one will be held to account for child sexual abuse, when it is identifiable where it happened and who was responsible, I think is devastating for victims and survivors.”
In Australia, children, young adults, parents and teachers can contact Kids Helpline on 1800 55 1800, or Bravehearts on 1800 272 831, and adult survivors can contact Blue Knot Foundation on 1300 657 380. In the UK, the NSPCC offers support to children on 0800 1111, and adults concerned about a child on 0808 800 5000. The National Association for People Abused in Childhood (Napac) offers support for adult survivors on 0808 801 0331. In the US, call or text the Childhelp abuse hotline on 800-422-4453. Other sources of help can be found at Child Helplines International.
