The tactical payments scheme was legislated on 1 July 2009, under sections 123H and 123J of the Defence Act 1903. The scheme was introduced in 2009–10 to provide a means for making expeditious non-liability payments resulting from military actions by deployed forces. This scheme is critical for maintaining local community support and thereby ensuring the safety of deployed forces.

In 2019–20, four individual payments totaling $2,458 were made under the scheme. All payments were a consequence of damage to property from motor vehicles.