Hundreds of thousands of Australians forced to pay back welfare debts created by an illegal automated system have won the largest payout in the country's history.
Known as Robodebt, the scheme wrongly told welfare recipients they had been overpaid and demanded they repay these debts, which often never existed.
In 2020, a successful class action resulted in a A$1.8bn (£876m; $1.2bn) settlement for victims of the scheme - some of whom took their own lives.
However, the group's lawyers appealed for more money after new evidence showed officials of the then-Liberal National coalition government knew the scheme was unlawful but continued anyway.
On Thursday, the current Labor government announced it would settle that claim, and hand an extra A$475m over as compensation for the harms caused by the illegal and immoral Robodebt scheme. Another A$13.5m has also been earmarked for legal costs and up to A$60m to administer the compensation scheme.
[It] is the just and fair thing to do, Attorney-General Michelle Rowland said, adding that it reflected the harm caused to thousands of vulnerable Australians under the disastrous scheme. Lawyers for the class action said the extra compensation was validation for the victims.
Today is also one more vindication of the principle that Australia remains a nation ruled by laws and not by kings - laws which even hold the government accountable, Peter Gordon told reporters.
One of the victims, Felicity Button, described it as a bittersweet moment, noting that some victims had lost family members, gone through divorce or become bankrupt due to the scheme.
It is estimated that more than 440,000 people were impacted, with a landmark inquiry revealing the devastating consequences of the scheme, including at least three suicides. The inquiry, which drew hundreds of public submissions, found that the algorithm used to determine overpayments was based on flawed calculations.
In total, the redress scheme amounts to about A$2.4bn, including A$1.76bn in wiped debts and compensation for those affected. The recent announcement of A$475m is in addition to the A$112m awarded in 2020, bringing the total to A$587m. Previously, the largest payout was A$500m for victims of the 2009 Black Saturday bushfires, marking a significant moment in Australian history.
Known as Robodebt, the scheme wrongly told welfare recipients they had been overpaid and demanded they repay these debts, which often never existed.
In 2020, a successful class action resulted in a A$1.8bn (£876m; $1.2bn) settlement for victims of the scheme - some of whom took their own lives.
However, the group's lawyers appealed for more money after new evidence showed officials of the then-Liberal National coalition government knew the scheme was unlawful but continued anyway.
On Thursday, the current Labor government announced it would settle that claim, and hand an extra A$475m over as compensation for the harms caused by the illegal and immoral Robodebt scheme. Another A$13.5m has also been earmarked for legal costs and up to A$60m to administer the compensation scheme.
[It] is the just and fair thing to do, Attorney-General Michelle Rowland said, adding that it reflected the harm caused to thousands of vulnerable Australians under the disastrous scheme. Lawyers for the class action said the extra compensation was validation for the victims.
Today is also one more vindication of the principle that Australia remains a nation ruled by laws and not by kings - laws which even hold the government accountable, Peter Gordon told reporters.
One of the victims, Felicity Button, described it as a bittersweet moment, noting that some victims had lost family members, gone through divorce or become bankrupt due to the scheme.
It is estimated that more than 440,000 people were impacted, with a landmark inquiry revealing the devastating consequences of the scheme, including at least three suicides. The inquiry, which drew hundreds of public submissions, found that the algorithm used to determine overpayments was based on flawed calculations.
In total, the redress scheme amounts to about A$2.4bn, including A$1.76bn in wiped debts and compensation for those affected. The recent announcement of A$475m is in addition to the A$112m awarded in 2020, bringing the total to A$587m. Previously, the largest payout was A$500m for victims of the 2009 Black Saturday bushfires, marking a significant moment in Australian history.
