The federal government has reached a historical agreement to provide an additional $475 million in compensation to victims of the robodebt, marking the largest class action settlement in Australia’s history. This agreement, announced on Thursday, resolves the appeal from the 2020 robodebt class action settlement, following revelations of fresh evidence uncovered by a royal commission. The total settlement amounts to $548.5 million, with provisions for administration costs and legal fees for the applicants.
The Robbins v Commonwealth case, which prompted this settlement, was initiated after new evidence came to light. The settlement is expected to bring comfort to victims, in addition to the $112 million in compensation and legal costs that were already awarded in 2020.
The financial restitution to the robodebt victims now exceeds $2.4 billion, including the $1.76 billion in debts forgiven, cancelled, or repaid by the government. Federal Attorney General, Michelle Rowland, emphasized that the settlement underscores the Labor government’s dedication to rectifying the harms inflicted upon hundreds of thousands of vulnerable Australians by the previous Liberal government’s robodebt scheme. The royal commission had previously termed robodebt as a “crude and cruel mechanism,” finding it to be neither fair nor legal, and a significant failure in public administration. Further details are expected soon.
Source: https://www.theguardian.com/australia-news/2025/sep/04/robodebt-victims-win-record-settlement-centrelink-government-compensation
