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Largest Class Action Payout in Australian History for ‘Heartless and Disastrous’ Scheme
Nearly 450,000 Australians will share $548 million after the Federal Court ruled the Robodebt scheme unlawful and harmful, causing severe personal and economic damage.
- The Australian federal government agreed to a $548 million settlement in 2025 to compensate victims of the illegal Robodebt scheme.
- The settlement followed a 2019 Federal Court ruling that declared Robodebt unlawful after an automated system wrongly demanded repayments from over 440,000 welfare recipients.
- The scheme used flawed income averaging calculations, leading to numerous errors and causing trauma, with a royal commission linking it to multiple suicides.
- Attorney-General Michelle Rowland described the settlement as "the just and fair thing to do" for the "heartless and disastrous" program affecting vulnerable Australians.
- The settlement, pending Federal Court approval, represents Australia's largest class action payout, reflecting government accountability and a commitment to redress past harms.
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Robodebt victims awarded more compensation in landmark class action | Evening News Bulletin 4 September 2025
In this bulletin, Robodebt victims secure almost half a billion dollars in an historic class-action claim, the Greens push for more home care support for older Australians. And in sport, Australia announces its team for the world athletics championships in Tokyo.
·Sydney, Australia
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Sydney Morning Herald+3 Reposted by 3 other sources
Largest class action payout in Australian history for ‘heartless and disastrous’ scheme
The $587 million in compensation – $112 million from 2020 and the new $475 million settlement – for robo-debt victims eclipses the $500 million awarded to victims of the 2009 Black Saturday bushfires by power distributor SP AusNet and asset managers Utility Services Group in 2014.
·Sydney, Australia
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Total News Sources19
Leaning Left5Leaning Right5Center3Last UpdatedBias Distribution39% Left, 38% Right
Bias Distribution
- 39% of the sources lean Left, 38% of the sources lean Right
39% Left
L 39%
C 23%
R 38%
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