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Australia

Record-breaking settlement for robodebt victims

4 September 2025 11:46 | News

Hundreds of thousands of Robodebt victims will share the biggest class action agreement in the history of Australia after filed a lawsuit against the federal government.

The worker agreed to pay a compensation of $ 475 million to the victims of the debt collection plan declared illegal in 2019.

The reconciliation is expected to reach approximately $ 550 million, including legal wages and management costs, but the final amount is still subject to court approval.

Robodebt victim Nathan Knox, after taking the case forward, said, “The daily Australians should now be able to stand up and especially if they can demand respect and justice from their governments”.

Felicity Button, the applicant, said that people affected by the program were considered as “second -class citizens ..

Orum I feel that myself and all other Robodebt victims are heard and eventually took our voice back, ”he said.

The law firm Gordon Legal applied for appeal after the publication of the Scathing final report of the Robodebt Royal Commission in 2024, which found that the automatic debt collection plan was “rude and ruthless” and “neither fair or legal”.

He proposed a series of policy changes, corruption investigations and potential civil and criminal prosecution for some relevant officials.

In total, approximately 450,000 people have signed class action.

The payment brings a total cost of $ 1.76 billion forgiven from the original RobodeBT class action and $ 112 million in compensation of $ 112 million and brings a total cost to the government over $ 2 billion.

Gordon’s legal partner Andrew Grech, “the courage of many victims to tell their stories and the persistence and Robodebt’s influence on their lives would never come today,” he said.

“I am very pleased that our legal difficulties are so successful and that this group members can finally start putting this terrible section behind them.”

Attorney General Michelle Rowland agreed to agree, saying that the government was determined to address the damages caused by Robodebt, a plan established under the former coalition government.

“Fair and fair thing to solve this claim,” he said.


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