Justice Bernard Murphy said in addition to being confident the girl had the expertise from “experienced and competent lawyers” at Maurice Blackburn, he was satisfied approving the settlement would avoid causing her any further psychiatric harm through litigation.

“It will alleviate the ongoing stress and disruption of litigation and bring some finality to the applicant’s claim, which may advance her recovery and assist her with moving on with her life,” Justice Murphy said.

The girl alleged she was sexually assaulted inside Nauru’s Regional Processing Centre by a family member’s drinking acquaintance.

She told the Federal Court she was removed from this family member’s care a number of times but had been returned.

In their care, she said she experienced a “high level of neglect, harmful parental behaviour and abandonment, including by her [family member] leaving her unaccompanied at home, including on the night she was sexually assaulted by their drinking acquaintance”.

Following the assault, the girl was diagnosed with a major depressive disorder, and it was recommended she be “immediately transferred” to an appropriate child and adolescent inpatient unit.

She and her family were moved to Australia in April 2018.

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It was alleged the Commonwealth and the minister breached their duty of care and caused her to suffer injury, loss and damage.

The girl claimed the Commonwealth had sufficient control and assumed responsibility for her welfare and living conditions and ought to have been aware she was at risk of harm.

Prior to the settlement, the Commonwealth denied having assumed responsibility for the day-to-day regional processing activities on Nauru and for the health and wellbeing of the girl.