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  • 1 year ago
In what may be the largest class action settlement in Australian history the government has agreed to pay 475 million dollars in compensation to victims of the coalition government's robodebt scheme. The scandal triggered a royal commission but not before the system automatically charged hundreds of thousands of people for debts they didn't owe.

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00:00Well, today's announcement means that Australians who were caught up in the robo-debt scandal
00:08will now be offered compensation after the federal government agreed to a multi-million
00:13dollar settlement.
00:14Now, the robo-debt scheme was an automated government scheme under the former coalition
00:21government which used a faulty algorithm to incorrectly demand hundreds of thousands of
00:28welfare recipients pay debts that they didn't actually owe.
00:32Now, the scandal pushed some of Australia's poorest people even further into debt, with
00:38many taking out loans that they couldn't afford just to pay off the urgent repayments.
00:44It also dramatically impacted people's mental health, with the subsequent Royal Commission
00:50linking the robo-debt scheme to at least two known suicides.
00:55Now, the law firm behind the class action, Gordon Legal, has hailed today's announcement
01:02as vindication.
01:03And one of the victims of the robo-debt scheme, Felicity Button, who had thousands of dollars
01:08withdrawn from her account, had this to say earlier.
01:12It doesn't matter how vulnerable a population is, and it doesn't matter where you come from
01:17or what your circumstances are, there is no room in Australia for unethical and illegal
01:23conduct, particularly within our government.
01:26Now, this is not the first class action relating to robo-debt.
01:31A previous class action back in 2020 resulted in the refunding of incorrect debts with interest
01:38and also the wiping of incorrect debts made through this illegal system.
01:43But it did not provide compensation for things such as distress and suffering.
01:49So, if approved by the federal court, this class action could be the largest in Australian history,
01:56with hundreds of thousands of robo-debt victims set to receive a share of compensation.
02:01Here's what Attorney General Michelle Rowland had to say in question time earlier.
02:05The robo-debt scheme has cost taxpayers over a billion dollars.
02:11And yet the most significant cost of robo-debt cannot be measured in dollars and cents.
02:17It can only be measured in human terms, because the robo-debt scheme destroyed lives.
02:24Now, the class action members are not required to take any action at this stage.
02:30All they need to do is make sure that their details are up to date on Services Australia.
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