National
Robodebt Victims Secure Landmark $475 Million Settlement
The Federal Court has approved a landmark settlement for victims of the Robodebt scheme, paving the way for more than 125,000 Australians to receive a share of A$475 million in compensation.
Key Insights
- The Federal Court has approved a $475 million compensation settlement for victims of Robodebt.
- The settlement includes a class of 125,000 or more who are eligible to participate.
- Including admin and legal costs, the total value of the settlement is $548.5 million
- One-time transfers of $1,000 or $1,750 are likely to start later this year.
- For individual compensation reviews, measures will begin next month.
More than 125,000 Australians affected by the government’s unlawful Robodebt scheme will share $475 million in compensation after the Federal Court approved the class action settlement. The settlement is the largest class action settlement in Australian history.
Over 125,000 Australians have signed up for the settlement scheme. A total settlement of $548.5 million was approved by Federal Court Justice Jonathan Beach. This comprises $475 million in damages, $60 million to run the scheme and $13.5 million in legal costs.
The deal is on top of a previous $112 million settlement that lawyers were able to appeal.
Compensation Payments
Those who decide on a fixed payment plan will be paid first. Gordon Legal says the fixed payment was to be $1,000 or $1,750 according to the member’s category.
Participants can also opt for their claim to be assessed individually based on their personal circumstances. A month from now, the process of individual assessment will commence.
Fixed payments will be made within six months and individual evaluations within eighteen. Class action representatives will be paid between $20,000 and $25,000 each for inconvenience over several years.
Response to the Decision
Andrew Grech, a partner at Gordon Legal said it was a historic day for thousands of Australians. Felicity Button, who was a nursing student and involved in the class action, received an $11,500 Robodebt while receiving Youth Allowance and said the court’s approval was a historic moment for victims of the scheme.
Source: ABC News
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