The federal government has agreed to pay $475 million in compensation to the thousands of victims of the Coalition government's Robodebt scandal. The scheme incorrectly demanded thousands of welfare recipients pay debts they did not owe.

Law Courts Library

A landmark settlement has been reached in the federal court regarding the Morrison government's robo-debt scheme, with a proposed payout of $175 million in addition to a previous $112 million from 2020. This brings the total compensation to over half a billion dollars for approximately 500,000 Australians who were wrongfully accused of welfare fraud between 2015 and 2019. 

The settlement follows a royal commission that found the scheme illegal and cruel, and was achieved through the persistence of victims and legal advocates. While the financial compensation is significant, advocates acknowledge it cannot fully address the personal losses suffered by many victims. The settlement still requires federal court approval, which could take up to six months.

Robodebt victims to get further $475 million compensation

An apology. Today is a day of vindication and validation for hundreds of thousands of Australians. And a warning. To governments and bureaucrats at all levels, not to recklessly and unlawfully attack the people who elected them. After a landmark settlement in the federal court over the Morrison government's robo-debt scandal. If approved, it'll become the largest class action payout in Australia's history. $175 million as part of a second phase of compensation, in addition to $112 million in 2020. Resulting in a total of more than half a billion dollars awarded to 500,000 Australians. The Albanese government has been left to clean up this shameful mess left by those opposite and that's exactly what we're doing. By agreeing to the record payment. Between 2015 and 2019, half a million victims were wrongfully accused of defrauding Australia's welfare system and hounded by the former coalition government to pay up. In 2020, it refunded and wiped the debts after a class action lawsuit. But after a royal commission found the scheme to be illegal and cruel, Gordon Legal launched an appeal. Australia remains a nation ruled by laws and not by kings. Gordon Legal attributed its success to the persistence and bravery of victims who fought for a decade, many of whom were among Australia's most vulnerable. Some went into further debt, while for others the mental strain was just too much and they took their own lives. People that have lost family members, people that have gone through divorce, become bankrupt. We can never compensate for that. Settlement approval could take up to six months in the federal court. Anyone seeking compensation is advised to contact Gordon Legal directly. Jessica Maggio, 10 News.

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Lisbon

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Brussels

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Barcelona

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Breakdown