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2h ago

Australia Agrees to A$475 Million Robodebt Payout in Record Class Action

Federal Court approval remains pending, with the appeal driven by evidence uncovered at the royal commission.

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The "robodebt" scheme used income averaging -- comparing a person's reported income with their income as measured by the Australian Tax Office -- to automatically issue notices to welfare recipients saying they would have to repay some benefits
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Overview

  • The agreement totals A$548.5 million, including up to A$60 million for administration and up to A$13.5 million for applicants’ legal costs.
  • Gordon Legal says combined repayments, forgiven debts and compensation now exceed A$2.4 billion.
  • The settlement resolves the Knox v The Commonwealth appeal launched after royal commission disclosures.
  • Around 440,000–450,000 people were wrongly targeted by an income‑averaging system the Federal Court found unlawful in 2019.
  • The payout would be Australia’s largest class action settlement, with court approval and implementation details to follow; class members should keep Services Australia contact details current.