Discrimination Compensation in Australia Has Changed — And It May Be Time to Raise the Standard Again
- Brian AJ Newman LLB
- Jun 26
- 4 min read
The Courts Have Spoken. The Value of Human Dignity Is No Longer Measured by Yesterday's Standards.
For many years, victims of workplace discrimination and sexual harassment faced an uncomfortable reality.
Even when they proved their case, compensation for the humiliation, distress and psychological harm they suffered was often modest. Awards between $12,000 and $20,000 became the accepted norm despite the devastating consequences discrimination can have on a person's career, mental health, financial security and personal relationships.
That began to change in 2014.
More than a decade later, a series of significant Federal Court decisions demonstrates that Australian courts are continuing to recognise the true impact of unlawful workplace conduct.
The trend is unmistakable.
Compensation is evolving because community standards have evolved.
Richardson Changed Australian Discrimination Law
The turning point came with the Full Federal Court decision in Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82.
The trial judge had awarded only $18,000 for non-economic loss arising from workplace sexual harassment.
On appeal, the Full Court increased that amount to $100,000.
Importantly, the Court recognised that historical awards had become outdated and no longer reflected contemporary Australian community standards.
The Court acknowledged that discrimination frequently causes:
humiliation
anxiety
emotional suffering
loss of dignity
psychological injury
long-term emotional consequences.
Richardson fundamentally changed how Australian courts approach compensation for non-economic loss.
Hughes Confirmed Serious Conduct Warrants Serious Compensation
The Full Federal Court reinforced this approach in Hughes trading as Beesley and Hughes Lawyers v Hill [2020] FCAFC 126.
The Court confirmed that aggravated damages may be awarded where discriminatory or harassing conduct causes additional humiliation or distress because of the manner in which it occurred.
The decision demonstrated that compensation is not limited to emotional harm alone.
Where the conduct itself worsens the injury, courts may award substantially higher damages.
Taylor Continued the Upward Trend
The Federal Court again demonstrated this shift in Taylor v August and Pemberton Pty Ltd [2023] FCA 1313.
The Court awarded more than $268,000 in compensation arising from workplace sexual harassment and victimisation.
The decision reflected an increasing judicial willingness to recognise the profound consequences that unlawful workplace conduct can have on every aspect of a person's life.
Magar v Khan Raises the Bar Again
The most recent significant authority is Magar v Khan [2025] FCA 874.
The Federal Court awarded approximately $305,000 in damages, including compensation for:
sexual harassment
victimisation
aggravated damages
economic loss.
The award represents one of the highest recent Federal Court compensation awards in this area and illustrates that the courts continue to move beyond the outdated approach that once characterised discrimination litigation.
It is another clear indication that the judiciary increasingly recognises the serious psychological, financial and personal consequences of unlawful discrimination.
The Evolution of Compensation
Year | Case | Key Development |
2014 | Richardson v Oracle Corporation Australia Pty Ltd [2014] FCAFC 82 | Non-economic damages increased from $18,000 to $100,000. Historical awards rejected as inadequate. |
2020 | Hughes trading as Beesley and Hughes Lawyers v Hill [2020] FCAFC 126 | Full Court confirmed substantial aggravated damages are appropriate in serious sexual harassment matters. |
2023 | Taylor v August and Pemberton Pty Ltd [2023] FCA 1313 | Federal Court awarded more than $268,000 for workplace sexual harassment and victimisation. |
2025 | Magar v Khan [2025] FCA 874 | Approximately $305,000 awarded, reflecting the continuing evolution of compensation principles. |
Why These Cases Matter
These decisions are about far more than numbers.
They represent judicial recognition that discrimination can fundamentally change a person's life.
Victims frequently experience:
anxiety and depression
post-traumatic stress symptoms
damaged careers
financial hardship
reputational harm
relationship breakdown
ongoing medical treatment
loss of confidence
diminished enjoyment of life.
Many never fully recover.
Compensation must recognise those realities.
Has the Law Finally Caught Up?
Richardson was a watershed moment.
It acknowledged what victims had been saying for years—that discrimination causes harm deserving of meaningful compensation.
But Richardson was never intended to become the final word.
The decisions in Hughes, Taylor, and now Magar suggest that Australian courts continue to reassess what constitutes fair compensation in light of contemporary community expectations.
The trajectory is clear.
The law is moving toward recognising the genuine human cost of discrimination.
The Challenge for the Future
Employers should take careful note of these decisions.
Failing to prevent discrimination, sexual harassment and victimisation is no longer simply a matter of reputational risk.
Where unlawful conduct causes significant harm, the financial consequences can now be substantial.
For employees and workers, these authorities reinforce an equally important principle:
Your dignity has value.
The law increasingly recognises that emotional injury, psychological harm and the loss of personal dignity deserve meaningful compensation—not token awards that reflect the standards of decades past.
The Bottom Line
Richardson gave discrimination compensation a much-needed shot in the arm.
Magar v Khan [2025] FCA 874 demonstrates that the courts are still moving.
The question now is not whether discrimination causes serious harm.
That has long been established.
The real question is whether compensation in every case accurately reflects the genuine psychological, financial and human harm caused by discrimination, sexual harassment and victimisation.
The law has come a long way.
It may still have further to go.
Need Assistance?
If you believe you have experienced workplace discrimination, sexual harassment, victimisation or adverse action, obtaining professional assistance early can make a significant difference to protecting your rights and presenting your case effectively.
BAJN.au provides professional employment and human rights advocacy throughout Australia.
Disclaimer: BAJN.au provides advocacy services. We are Employment & Human Rights Advocates, not legal practitioners. We do not provide legal advice. If you require legal advice, you should seek advice from an Australian legal practitioner.
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