New Vicarious Liability Legislation Passed in Victoria

On 18 February 2026, the Victorian Parliament passed the Justice Legislation Amendment (Vicarious Liability for Child Abuse) Bill 2025.

The new legislation will introduce significant reforms by amending the current legislation under the Wrongs Act 1958 and the Limitation of Actions Act 1958 to expand the scope of vicarious liability in child sexual abuse cases.

Background

On 13 November 2024, the High Court came to a final decision in the case of Bird v DP (A Pseudonym) [2024] HCA 41. In that case, the High Court adopted a narrow approach to vicarious liability in the context of institutional abuse.

In Bird v DP, the High Court held that the Catholic Diocese of Ballarat was not vicariously liable for child sexual abuse perpetrated by one of it’s priests, as Catholic priests are not considered to be formal employees of the Church.

The impact of Bird v DP

The effect of the decision was to confine vicarious liability to circumstances in which the perpetrator of abuse was in a formal employment relationship with the relevant institution.

The result for many victim-survivors of child sexual abuse was that they had a limited or no cause of action to claim compensation through the court system where perpetrators operated in non-employment roles.

The Bird v DP decision attracted considerable criticism and public concern, being seen by many as a step backwards in obtaining justice for victim-survivors and holding institutions accountable for abuse.

The decision was viewed as being conservative in comparison to decisions made in international jurisdictions, such as the United Kingdom and Canada, where vicarious liability may also apply where a relationship between an institution and an offender is one that is “akin to employment.”

The result – new legislation

In response to the Bird v DP decision, several States have now passed or proposed legislative amendments that will broaden the scope of vicarious liability beyond the limitations set by the High Court.

In Victoria, the Justice Legislation Amendment (Vicarious Liability for Child Abuse) Act 2026 (Vic) (“The Act”) effectively overturns the Bird v DP decision.

The Act will make institutions vicariously liable where relationships between a perpetrator and an institution are found to be “akin to employment.”

The Act also allows victim-survivors to apply to have a previous court decision set aside where that decision was affected by the limitations in Bird v DP.

The Act aims to restore and expand avenues for victim-survivors to seek compensation and strengthen institutional accountability.

What relationships will the new legislation cover?

The Act allows for a broad interpretation of a relationship “akin to employment.” While the precise scope is still awaiting judicial interpretation, some new relationships that are potentially covered are:

 – Volunteers

– Clergy and other religious leaders

– Other non-employed staff

For further advice regarding vicarious liability in institutional abuse matters, please contact Charlotte Cooper on 0492 216 990 or via email at charlotte.cooper@lewisholdway.com.au.