The settlement of the class action against the Commonwealth government over the robodebt scheme, which saw Services Australia illegally issue debt collection notices to more than 370,000 Australians, was approved by the Federal Court of Australia on Friday morning.
An update from Gordon Legal to members of the robodebt class action case applauded the announcement.
“Gordon Legal and our clients are delighted that the settlement has been approved by the court, bringing closure for so many people who have been affected by the robodebt scheme.
“We hope that this outcome brings peace of mind and some certainty to all class action members and acts as a strong deterrent against similar callous welfare practices for both present and future governments,” Gordon Legal partner Andrew Grech said.
According to the law firm, under the settlement approval, a further $112 million in compensation will be paid to approximately 380,000 eligible Australians, including legal costs.
In addition, since the commencement of the class action, more than $1.7 billion in financial benefits has been returned to approximately 430,000 group members.
The benefits include the Commonwealth:
- refunding $751 million in repayments of invalid debts;
- dropping claims for $744 million in debts partially paid back; and
- dropping claims for $268 million in debts where no repayments had been made.
Services Australia began rolling out $721 million in refunds for the illegal scheme from July 2020.
Are you entitled to a refund from the scheme? Here’s what you need to do.
