More than 450,000 Aussies set to receive major compensation payout after bungled Robodebt scheme

7NEWS Australia
Australia's largest class action settlement will see over 450,000 victims of the Robodebt scheme receive $475 million in compensation.

Summary

Australia has reached its largest class action settlement in history, with over 450,000 victims of the government's Robodebt scheme set to receive $475 million in compensation. The Robodebt system, designed to recover overpayments of social security benefits, wrongly accused hundreds of thousands of people of owing money between 2015 and 2019, causing extreme debt, hardship, and even suicide. The settlement, approved by Federal Court Justice Jonathan Beach, includes $548.5 million in total, with up to $13.5 million allocated to legal costs. The agreement builds upon an earlier $112 million settlement and accounts for new information uncovered during the Royal Commission, including revelations that government officials attempted to mislead investigations. Class action representatives will receive between $20,000 and $25,000 each, and the settlement acknowledges the profound impact on victims like Jenny Miller and Kath Madgwick, who lost their sons to suicide.

(Source:7NEWS Australia)