Department/Agency
National Indigenous Australians Agency
Announcement date
1 July 2024
Link to announcement
Enduring resolution for victims of Youpla Group | Ministers Media Centre (pmc.gov.au)
Youpla Support Program - About us - Services Australia
Problem being addressed
The Youpla Group (formerly the Aboriginal Community Benefits Fund) was a funeral expenses insurer that primarily marketed its products to First Nations people, often using misleading and deceptive practices. The Youpla Group entered into liquidation in March 2022, leaving its policy holders without funeral cover to conduct Sorry Business, a tradition of mourning with deep cultural importance for First Nations peoples. This collapse therefore inflicted significant cultural and emotional harm to many First Nations people and communities.
Proposal
The proposal aims to deliver a culturally appropriate resolution that reduces financial stress relating to Sorry Business and provides closure on this matter for former Youpla Group policy holders.
Three cohorts of people who held a policy with the former Youpla Group were identified:
- Cohort A – 2020 policy holders estimated to impact 7,850 policy holders with total premiums paid of $66 million.
- Cohort B – 2015 policy holders estimated to impact 13,700 policy holders with total premiums paid of $106 million.
- Cohort C – 2001 policy holders estimated to impact 31,400 policy holders with total premiums paid of $164 million.
The proposed resolution payment scheme consists of variations on the implementation of cash payments and/or funeral bonds.
- Option 1 – Choice between cash payment or funeral bonds.
- Option 2 – Funeral bonds set as a default; option to receive cash payment
- Option 3 – Funeral bonds are mandated, with specific exemptions.
The Impact Analysis details the impacts of each resolution payment option across each cohort. Cohort B and Option 2 is identified as the preferred option.
Assessed Impact Analysis outcome
Adequate
Assessment comments
To achieve good practice as per the Australian Government Guide to Policy Impact Analysis, the IA would have benefitted from greater use of quantitative and qualitative evidence to determine the net benefit of each option, in particular examining the impacts across the locations of stakeholders. The IA would also have benefitted from a more developed implementation and evaluation framework.
Regulatory burden
The NIAA estimates the preferred option would result in a regulatory cost of $1,276,152.