Robodebt Victims Secure $475 Million in Settlement, Largest in History

The court will also rule on legal fees capped at $13.5 million and administrative costs capped at $60 million under the record settlement.

A copy of the Report of the Royal Commission into the Robodebt Scheme is seen at Parliament House in Canberra, July 7, 2023. AAP Image/Lukas Coch

The federal government will pay $475 million (US$310 million) to victims of the failed Robodebt scheme, in what is set to become the largest class action settlement in Australian history.

The compensation package, if approved by the Federal Court, covers hundreds of thousands of people wrongly pursued by an unlawful debt-recovery system that left some of Australia’s most vulnerable in financial and emotional turmoil.