The Salvation Army underpaid dozens of people who received financial compensation from the organisation for the alleged physical and sexual abuse they suffered in children's homes, a royal commission has heard.
The Royal Commission into Institutional Responses to Child Sexual Abuse was told the Salvation Army's two Australian territories have underpaid abuse victims by thousands of dollars.
A review of almost 200 claims in the eastern territory, which covers NSW, Queensland and the ACT, found more than a quarter were incorrectly assessed according to the Salvation Army's own formula.
The review of claims from 1997 to 2014 found 134 male victims were paid a total of $5.8 million for alleged abuse in boys' homes and 52 women received $1.4 million for alleged abuse in girls' facilities.
Of the claims, 59 were found to be incorrectly assessed, with about half underpaid, the inquiry heard.
A similar review of 422 claims in the Salvation Army's southern territory found 73 were underpaid, with the organisation granting top-up payments of an average of $13,000 each.
The commission heard the Salvation Army would not contact claimants directly to advise them of the outcome of the reviews out of concern it may re-traumatise them. It has advertised nationally for claimants to step forward to inquire about their review.
An analysis of 53 claims in the eastern territory between 2014-2016 found the average payment increased from $74,000 to $114,000, the maximum rose from $120,000 to $205,000 and the minimum increased from $30,000 to $60,000.
Eastern territory personnel secretary Lieutenant Colonel Christine Reid agreed in evidence the figures suggested payments were not appropriate in the past.
The national commander of the Salvation Army, Commissioner Floyd Tidd, told the commission the organisation was "committed" to the federal government's national redress scheme for victims of institutional abuse, which is capped at $150,000.
Commissioner Tidd told the inquiry the organisation accepted it might have to pay higher sums to claimants who received low settlements in the past.
Care Leavers Australasia Network, which advocates for people raised in children's homes, staged a protest outside the royal commission to draw attention to their treatment by the Salvation Army, nicknamed by many as the Starvation Army.
The Salvation Army has been the subject of three inquiries by the commission, mostly examining horrific allegations of sexual abuse in the homes it operated around Australia until the 1980s.
"Former residents told the royal commission of brutal sexual abuse at the hands of Salvation Army officers at times accompanied by extreme physical punishment," counsel assisting, Gail Furness SC, told the commission.
David Eldridge, a retired Salvation Army officer, told the inquiry: "The need to perform within a particularly tight budget led to young people not being fed adequately or cared for adequately."
He warned that organisations which don't listen to young people "will continue to mess it up".
Royal commission chairman Justice Peter McClellan said the Salvation Army, which will merge its two territories to become a national body by 2019, still had more to do to improve child protection and its response to survivors.
The inquiry heard the eastern territory has taken action against 11 officers. Eight were dismissed, one resigned before he was dismissed, one died while under investigation and another has been suspended while being investigated by police.
Both territories have boosted training and overhauled child safety but the southern territory's policy consultant Nici Lhuede told the inquiry: "Accountability does need to be strengthened."
The hearing has adjourned.
Kids Helpline 1800 55 1800
Lifeline 13 11 14
