I have done a bit more research and just thought I would add a little more, as what I said above was not the complete picture.
The Fed Govt has introduced a compensation scheme for victims of child sex abuse, that operates in a similar way to the some workers' compensation schemes. Under the scheme, rather than going through the courts and engaging lawyers, a victim can just apply and, through an administrative assessment process, receive an amount of up to A$150,000.
If no State, religious organisation or other relevant organisation opts in to the scheme, then the scheme only covers the victims of organisations controlled by the Fed Govt, which amounts to only around 1000 of the estimated 60,000 victims. So far, only the Catholic Church has opted in, and that covers around 4,400 more victims. Most of the other major religions have given in principle support, but have not yet opted in. Watchtower is one of the few that has given no commitment at all, at this stage. None of the States have agreed to "opt in", and one has stated categorically that it will not, as it has its own scheme that pays out a lower amount.
If Watchtower does not "opt in", then individual victims can still sue Watchtower in Court, and there will be no A$150,000 cap.
Contrary to what I said in my earlier post, the Fed Govt has already agreed to cover the shortfall in the situation where an organisation lacks the funds to pay. The issue fought at the COAG meeting appears to be about whether the states will "opt in". As I read it, in effect, the States are maneuvering for funding.