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Bali bomb witness denied compo

Terror attack: The aftermath of the 2002 bombing. Picture: The West Australian

A musician whose footage of the 2002 Bali bombings aftermath helped the investigation has been denied a government payment designed to help victims of overseas terror atrocities.

A ruling this week said because he was not actually in the Sari Club at the time he could not be compensated for the trauma he suffered.

Richard Hananeia was 600m away from the club when two blasts rocked the holiday island on October 12, leaving 202 people dead, including 88 Australians.

The New Zealand-born fine arts graduate, who supported John Butler on stage in his musical career, rushed to the scene to help victims while filming the carnage.

The Australian Federal Police deemed the footage so important it was seized for their investigation.

Mr Hananeia also gave a statement to the trial of Imam Samudra, who was executed for his part in the bombings.

But the horrific sights of the night left Mr Hananeia emotionally bereft, diagnosed with post-traumatic stress so severe he could not work and could not leave his house for two years and contemplated taking his own life.

"After the bombing, I tried to go back to work . . . but I could not hold down that job. I felt totally numb," he said.

"I withdrew from my friends and family. Since that night I have felt trapped and isolated. The events I saw are stuck in my mind."

As a result, the 38-year-old applied for an Australian victim of terrorism overseas payment, a scheme the Gillard government introduced in 2012 to grant compensation of up to $75,000 to those caught up in terrorist acts.

But the Administrative Appeals Tribunal told Mr Hananeia he did not qualify because he was too far from the blasts.

The legislation, amended by Prime Minister Tony Abbott in 2013 to take in past attacks including Bali, states payments will be made to those "in the place where (the) terrorist act occurred".

The AAT ruling said on that basis Mr Hananeia did not qualify and that the resultant harm to his mental health was down to him.

"The applicant was not 'in the place where' the relevant terrorist act occurred at the time and the harm to his mental health was suffered as a result of his voluntarily and unnecessarily attending the site," deputy president Stanley Hotop wrote.

The lawyer for Mr Hananeia declined to provide any comment when approached about the ruling.