BREAKING: Federal government agrees to pay $1.2billion to victims of the Robodebt recovery scandal
The federal government has agreed to pay victims of the Robodebt recovery scandal a $1.2billion settlement.
Some $721million in wrongly recovered debt will be repaid to 370,000 people. They will get another $112million compensation and $398million worth of debt claims will not be pursued.
The ‘robodebt’ automated welfare recovery scheme matched Australian Taxation Office and Centrelink data to claw back overpaid welfare payments.
It was ruled unlawful last year, with the Federal Court saying Centrelink could not have been satisfied the debt was correct.
The Morrison government announced in May it would repay all debts but the scheme still faces a class-action lawsuit.
Just before a trial was due to begin on Monday morning, the case was settled.
The previous Labor government introduced a similar process in 2011 but had each case reviewed by a department staff member, while the coalition moved to a fully-automated system in 2016.