Federal government settles years-long PFAS contamination class actions

Three communities where the groundwater was contaminated by firefighting foams used on defence force bases until the early 2000s have reached an "in-principle" settlement with the federal government in separate class actions.

Residents of Oakey in Queensland’s Darling Downs, Williamtown in NSW and Katherine in the Northern Territory had brought actions against the Defence department, claiming it was liable for resulting issues including lowered land values.

Aviation rescue and firefighting training exercises involving toxic foam in 1998.Credit: United Firefighters Union

The contamination had been found to stem from the use of firefighting foams containing per- and poly-fluroalkyl substances which accumulate in the soil.

Authorities in the United States have linked similar chemicals to health issues in laboratory animals. Investigations have previously uncovered cancer-clusters there and in Australia.

In a joint statement, Defence Minister Linda Reynolds and Veterans Affairs Minister Darren Chester said the parties were still in the process of finalising the "detailed terms" of the settlement.

"These terms are confidential and are subject to formal consideration and approval by the Federal Court of Australia," the statement said. "The parties will inform the Federal Court of Australia that an in-principle agreement has been reached at the first available opportunity."

The ministers said Defence saw itself as a "part of the fabric" of the communities and the settlement would not represent the end of its involvement with them.

"However, it does represent an important milestone on what has been a difficult journey for many people over the past few years," the statement said.

Defence is investigating and managing contamination at 27 other sites across the country. At least 90 locations, including airports, are thought to be under investigation.

Shine Lawyers, which represented the residents of Oakey and Katherine, hailed the settlement as a significant milestone for the thousands of residents who had been "living in limbo" for years.

The Oakey class action was filed in 2017, three years after Defence made public the contamination. The Katherine action was filed one year later. Williamtown one year earlier.

Joshua Aylward, Shine's class actions practice leader, told media in Brisbane on Thursday his clients had reacted with a mixture of "shock and disbelief" about the step forward without the need to go to trial - set to happen within months.

"They are looking forward to closing this chapter and moving on with their lives, but obviously it doesn't remove the contamination from their land, it doesn't remove it from their bloodstream," he said. "It's something they are going to have to live with for as long as they are living in these communities."

Celebrity American activist Erin Brockovich, hired by the firm to lobby on the communities' behalf, also welcomed the "victory".

The settlement must now be signed off by the court before a distribution plan is drawn up. It follows an Australia-first private settlement for an Oakey doctor last year, who had arranged his own agreement outside court.

Mr Aylward said Shine was working with seven or eight other communities also impacted, with action to start "very soon".

More communities might now "have the courage" to think about launching their own, he said.