Federal Government Agrees $475 Million Robodebt Compensation Settlement

The Australian federal government has agreed to pay an additional $475 million in compensation to victims of the Robodebt scandal, potentially the largest class action settlement in the country's history. This settlement follows a 2020 class action that resulted in $112 million in compensation and debt forgiveness totaling $1.76 billion, with the total financial redress now exceeding $2.4 billion. The Robodebt scheme, criticized for relying on a faulty automated system to recover welfare debts, was described by a royal commission as a 'crude and cruel mechanism, neither fair nor legal,' causing significant distress and financial harm to vulnerable Australians. Attorney-General Michelle Rowland emphasized the settlement as a just and fair resolution, reflecting the government's commitment to addressing the scandal's harms. The settlement also includes up to $13.5 million for legal costs and up to $60 million for administrative costs, with the Federal Court's approval pending. Victims are advised to keep their contact details updated to receive compensation without further action required.