The Federal Government has reached a $22 million settlement with an Aboriginal community over PFAS contamination.

The government has made a deal with the Wreck Bay Aboriginal community on the New South Wales South Coast regarding the perfluoroalkyl and polyfluoroalkyl (PFAS) contamination from firefighting foam. 

The settlement follows accusations made against the Commonwealth in recent weeks, when the Wreck Bay community was the only group among eight applicants that did not receive a payment in the $132.7 million multi-site PFAS contamination settlement with the Department of Defence.

The Wreck Bay community has alleged that the Defence Department negligently allowed PFAS chemicals to seep into surface water, groundwater, and soil, causing significant harm to their land and culture. 

The contamination resulted from the use of firefighting foams at the neighbouring naval base HMAS Creswell and the Jervis Bay Range Facility over a span of three decades starting from the 1970s.

The $22 million settlement primarily focuses on the community's ability to live on their land and engage in cultural activities. 

However, Justice Michael Lee of the Federal Court clarified that this settlement does not cover potential health impacts, which could be addressed through separate legal action.

The settlement amount includes a provision of at least $5 million to cover legal and administrative costs. 

The terms of the settlement will be subject to approval by Justice Lee, and the community will be consulted before the final approval on June 19. 

Furthermore, there will be court-supervised sessions to determine the distribution of the settlement funds.

Craig Allsopp, joint head of class actions at Shine Lawyers, described the settlement as “bittersweet” for the Wreck Bay community. 

He said that compensation for land value would never be sufficient to repair the loss of their connection to the country. 

Allsopp also noted that Shine Lawyers is actively exploring personal injury claims related to PFAS contamination, as the settlement does not preclude such claims.

The settlement is significant as it marks the first successful claim by an Indigenous community in relation to PFAS contamination. 

Allsopp expressed hope that this outcome would lead to greater recognition of Indigenous issues in the court system.

The broader $132.7 million multi-site settlement, announced in mid-May, covered 30,000 claimants across various locations in Australia affected by PFAS contamination, including Wagga Wagga, Richmond, Wodonga, Darwin, Townsville, Edinburgh, and Bullsbrook.