If:

(a) a person suffers loss or injury as a result of the use by the Australian Federal Police or the Australian Crime Commission of a surveillance device; and
(b) the use of that device:
(i) is prohibited by the law of the State or Territory in which the use occurs; and
(ii) is not in accordance with this Act;

the Commonwealth is liable to pay to the person who has suffered the loss or injury such compensation as is agreed on between the Commonwealth and that person or, in default of such an agreement, as is determined by action against the Commonwealth in a court of competent jurisdiction.