A significant legal development has occurred in Australia regarding the “Robodebt” scheme, which affected hundreds of thousands of welfare recipients. This automated system incorrectly informed individuals that they had been overpaid and demanded repayments for debts that often did not exist. The scheme operated from 2016 to 2019 under the Liberal National coalition government led by former Prime Minister Scott Morrison, with the intent to save approximately A$1.7 billion.
In 2020, a class action lawsuit resulted in a settlement of A$1.8 billion for victims of the scheme. Recent evidence revealed that officials were aware the system was unlawful yet continued to enforce it, prompting legal representatives to pursue additional compensation.
On Thursday, the current Labor government announced a settlement that includes an extra A$475 million for those harmed by the scheme. Additionally, A$13.5 million has been allocated for legal expenses, alongside up to A$60 million to manage the compensation process. Attorney-General Michelle Rowland emphasized the need for justice and fairness for the affected individuals.
The total estimated cost of the redress scheme now amounts to about A$2.4 billion, incorporating A$1.76 billion in debts that were erased and funds returned to victims who had previously paid these debts. This new settlement raises the total compensation awarded to A$587 million, significantly higher than the previous largest payout of A$500 million for survivors of the 2009 Black Saturday bushfires.
Over 440,000 Australians were impacted by the Robodebt system, and inquiries have indicated that it led to severe consequences for many, including reports of suicides. An ongoing royal commission has uncovered flaws in the algorithm used to determine overpayments, which were based on faulty income averaging methods, particularly affecting those with irregular work hours. The commission’s findings have spurred further scrutiny of the accountability of public officials in this matter.
Source: https://www.bbc.com/news/articles/clyx3jvk4zeo?at_medium=RSS&at_campaign=rss