324611ff_ual_Report_2011_2012__Glossary__Meaning
[Term] act of grace payment [Meaning] 
A discretionary power provided under section 33 of the Financial Management and Accountability Act 1997 (FMA Act) to make payments in special circumstances, generally when the Australian Government considers it has a moral rather than legal obligation to provide redress to an individual or other entity. The payments relate to losses directly caused by the acts or omissions of the government, or caused by the unintended, unfair or anomalous effect of its legislation.
Annual Report 2011-2012: Glossary
Meaning