"Biggest class action settlement due to harsh and unjust robodebt program in Australia" or simply "Australia reaches largest settlement over unfair robodebt class action".

Australian Government Announces Record-Breaking Settlement for "Robodebt" Class Action

The Australian government has declared a settlement of Aus$475 million (US$310 million) for the country's largest class action over the controversial "robodebt" scheme. The Attorney-General's office made the announcement in a statement, with Attorney-General Michelle Rowland stating that settling the claim is the just and fair thing to do.

The "robodebt" scheme, active from 2015 to 2019, sent false debt repayment demands to welfare recipients in Australia. The scheme, which used income averaging to automatically issue notices for debt repayment, resulted in hundreds of thousands of people receiving demands to pay back money they did not owe.

The settlement, if approved by the Federal Court, will be the largest class action settlement in Australian history. It is intended to compensate those affected by the "robodebt" scheme, which the Royal Commission described as a "crude and cruel mechanism, neither fair nor legal." The scheme caused distress to job seekers, pensioners, students, carers, and some even considered suicide.

The Royal Commission labeled the "robodebt" scheme a "costly failure of public administration, in both human and economic terms." The scandal allegedly led to the deaths of two young men.

Noteworthy, the head of the Ministry of Justice who approved the payment of the 475 million Australian dollar settlement for the "Robodebt" scandal is not publicly specified. If the settlement is approved by the Federal Court, approximately 370,000 people are expected to be affected by the payment.

The settlement comes on top of a 2020 class action settlement, where the government agreed to pay Aus$112 million in compensation to around 400,000 people. The settlement aims to resolve the largest class action in Australian history.

People were traumatized due to the possibility of owing money under the "robodebt" scheme, with the Royal Commission stating that it was a "crude and cruel mechanism, neither fair nor legal." The government's decision to settle this class action is a significant step towards rectifying the harm caused by the "robodebt" scheme.

The settlement is subject to approval by the Federal Court. If approved, it will mark a significant milestone in addressing the impact of the "robodebt" scheme on the lives of countless Australians.

"Biggest class action settlement due to harsh and unjust robodebt program in Australia" or simply "Australia reaches largest settlement over unfair robodebt class action".