Australia Agrees Record $587 Million Robodebt Settlement

The Australian government has agreed to pay an additional A$475 million in compensation to victims of the illegal Robodebt welfare debt recovery scheme, pending Federal Court approval, marking the largest class action settlement in Australian history. The Robodebt program, active from 2016 to 2019, used faulty automated algorithms to falsely claim debts from hundreds of thousands of welfare recipients, causing significant distress and reportedly contributing to multiple suicides. This new settlement follows an earlier 2020 agreement that wiped debts and refunded recovered payments but did not include compensation for the trauma endured by victims. Attorney-General Michelle Rowland described the scheme as 'illegal and immoral' and emphasized the government's commitment to addressing the harms caused by the former conservative government's actions. Victims and their legal representatives welcomed the settlement as vindication and accountability for governmental misconduct, while noting that the compensation, though historic in scale, could never fully repair the damage suffered. Additional funds have been allocated for legal fees and administration of the compensation scheme, bringing total government repayments related to Robodebt to approximately A$2.4 billion.