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Australia

Robodebt payout could take years to flow to victims

4 September 2025 16:57 | News

Robodebt victims may have to wait years to pay, although they have reached a record -breaking class action agreement with the federal government.

The worker agreed to pay $ 475 million following prosperity buyers for the money they did not borrow.

If Australia is the greatest agreement in the legal history and is approved by the Federal Court, it will mean that the Bungled program costs more than $ 2.4 billion to the government.

Robodebt followed hundreds of thousands of welfare buyers for the money they were not indebted. (Dave Hunt/AAP Photos)

The government will also pay tens of millions of dollars legal and administrative costs.

Attorney General Michelle Rowland said that the claim of the claim was “a fair and fair thing to be done”.

“Robodebt’s most important cost can be measured in dollars and cents. It can only be measured by human terms, because the Robodebt scheme has destroyed lives.

The latest agreement is over $ 1.76 billion forgiven from the original RobodeBT class action and compensation of $ 112 million.

Gordon Legal, Robodebt Royal Commission’s automatic debt collection plan was “rude and ruthless” and “neither fair nor legal” after the appeal.

The Law Office expects tens of thousands of people to register for a slice of settlement, but he points out that payment will take years to pay for everyone who registers.

Former Government Services Minister Bill Shortten, who directed the accusation to establish the Royal Commission for the plan, said that the agreement was “closing a dark and embarrassing part in the Australian public administration”.

“This settlement cannot bring back the lost lives, nor can it erase the years of stress that too many people are exposed to. But it can serve as a line in the sand,” he said.

RobodeBT operates between 2015 and 2019 and used automatically data from the tax office to calculate the average earnings of welfare buyers, and human supervision has published very little or no debt notifications.

RobodeBT Royal Commission Report (File Picture)
The Royal Commission of the RobodeBT found that the automatic plan was “neither fair nor legal”. (Lukas Coch/AAP Photos)

The Royal Commission found that it contributed at least three suicide.

The Greens welcomed the settlement, but says that responsible political leaders and public officials should still be responsible for the plan.

Green Senator Penny Allman-Payne, “People exposed to Robodebt, people who lost their family members Robodebt’a still have not seen justice,” he said.

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