A second Robodebt class action settlement has been reached for $475 million

ABC NEWS (Australia)

Hundreds of millions of dollars in compensation will be handed to Australians caught up in the Robodebt scandal. Lawyers who worked on the class action case say the settlement will help victims get back on their feet. Robodebt was an automated scheme instigated by the Morrison government which incorrectly demanded thousands of welfare recipients pay back benefits.

Transcript

00:00Another win for some of Australia's most vulnerable.

00:05Today is a day of vindication and validation for hundreds of thousands of Australians.

00:10Compensation for about 450,000 people caught up in the robo-debt scandal.

00:16Today is also a day of warning to governments and bureaucrats at all levels,

00:19not to recklessly and unlawfully attack the people who elected them.

00:24In 2020, the Federal Government paid back the debts.

00:27Today it's agreed to $475 million in compensation,

00:32as well as legal and admin fees, which could bring the total cost to over $548 million.

00:39This would be the largest class action settlement in Australian history,

00:44the size of which reflects the harm caused to vulnerable Australians

00:48by the policies of the former government.

00:51Under the Coalition Government, the debt collection scheme

00:54wrongly accused people of owing money.

00:57A Royal Commission established while Bill Shorten was Government Services Minister

01:01found it was a crude and cruel mechanism that wasn't fair or legal.

01:05It was vindication for the class action.

01:07It's vindication for calling the Royal Commission.

01:09Mum of two, Felicity Button, had $11,000 taken from her account in 2017.

01:15It didn't just affect me, it affected my little girl because she was in the car with me

01:19as I was driving down the freeway thinking of running into a tree

01:22because that would solve all my problems.

01:24Hoping her fight sends a warning to future governments.

01:27It doesn't matter where you come from or what your circumstances are.

01:31There is no room in Australia for unethical and illegal conduct.

01:36The former government was hoping the robo-debt scheme would claw back

01:40more than $4 billion.

01:42Instead, it caused deep distress to many

01:45and Labor says it cost taxpayers more than $1 billion.

01:48While there's been a large payout,

01:50victims want the Anti-Corruption Commission to take strong action

01:53against those responsible for the scheme.

01:56I thought it was a very little bit more.

01:57Instead, the law enforcement system was forced to take off their own

02:06and be able to trade off the system.

02:08If the law enforcement system was threatened

02:11to take on their own or the way.

02:13Once in my defense system,

02:14you're going to have to increase your own reasons.

02:16After the law enforcement system,

02:17you're going to be able to change your own way.

02:19If the law enforcement system is not needed,

02:20do this happen.

02:22You may need to be able to change your own way.

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