Abuse survivors are opting for civil law claims because of delays in the national redress scheme, a parliamentary inquiry has been told.
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Care Leavers Australasia Network chief Leonie Sheedy said while some people made claims through both avenues, many were avoiding the national scheme.
"They don't like the fact their part three (application) goes to the insurance company and the institutions, because they don't know how many pairs of eyes see their most personal and private information," she said on Friday.
People were also hearing on the grapevine other survivors weren't receiving much money, Ms Sheedy added.
"And the delay ... people say: 'I don't need shut-up money, I don't need to do that'."
Australians in their 80s and 90s are waiting for claims to be processed.
Ms Sheedy told the long-running inquiry the scheme was not survivor-focused and nothing had changed since the committee made recommendations to improve it earlier this year.
She said many care leavers were finding redress applications worse than appearing at the royal commission into institutional child sex abuse, as it made people focus on their trauma.
"Redress is causing huge mental health issues, depression and suicidal thoughts," Ms Sheedy said.
"'Redress is not an insurance claim. It's supposed to be less legalistic, less arduous than going down the civil path but now many care leavers are saying they're not going to apply for redress.
"Pay these care leavers some money and give them some dignity before they die."
The joint select committee's interim recommendations included that an upcoming review of the two-year-old scheme consider whether advance payments should be made to vulnerable survivors.
It called for the immediate removal of the requirement for statutory declarations with applications given the difficulties caused by coronavirus restrictions, plus additional support for survivors during the pandemic.
In July the federal government named groups who have refused to join the national redress scheme, who will be banned from receiving federal funding and could lose tax concessions, including charitable status.
Jehovah's Witnesses, Kenja Communications, the Lakes' Entrance Pony Club and Fairbridge Restored are holding out.
Survivors can't be given redress unless the institution they were abused by has joined the scheme.
The scheme can offer counselling, a direct response from responsible institutions and a redress payment.
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Australian Associated Press
