The clock is ticking for Australians impacted by the Robodebt scandal. With just days left until the deadline on March 6, over 300,000 Centrelink recipients are being urged to register for their share of the $475 million in additional compensation. This payout is part of a massive settlement, but there’s one catch—you need to sign up before it’s too late.
A Payout Years in the Making
The Robodebt scheme, which ran between 2015 and 2019, used a flawed algorithm to incorrectly demand that thousands of welfare recipients repay debts they didn’t actually owe. The system caused widespread distress, pushing many vulnerable people into financial ruin. Some even took out loans they couldn’t afford, and tragically, the scheme was linked to at least two suicides.
Last year, a Royal Commission declared the scheme to be “crude and cruel,” leaving many of those affected feeling criminalized by a system that was supposed to help them. After this damning report, the government agreed to compensate victims with a $548.5 million settlement, which includes $475 million in additional compensation. But to get your part, you must register before the deadline hits.
How to Claim Your Centrelink Compensation
So far, over 135,000 people have registered for the payout, but Gordon Legal, the firm spearheading the class action, has warned that hundreds of thousands are still yet to sign up. The registration process is straightforward, and you likely received a notice through myGov or your last known contact details. If you’ve been impacted, or if you’re the legal representative of someone who has, now is the time to act.
Gordon Legal partner Andrew Grech explained that approximately 482,530 potential group members are eligible for the payout. “There are up to approximately 482,530 potential eligible group members. To date, more than 135,000 have registered to participate in the proposed settlement scheme,” he said to Yahoo Finance. So, if you’re eligible, don’t wait—register before time runs out.
What Does the Payout Include?
The $475 million in additional compensation will go toward the victims of Robodebt, with a portion of the settlement set aside to cover the legal costs associated with administering the scheme. It’s a significant step toward rectifying the damage caused by the scheme, though many victims feel that no amount of money can undo the harm done by the system.
The new payout follows a previous $112 million settlement, which came after an earlier class action in 2020. However, it was the Royal Commission’s findings that spurred the government to take this further step, acknowledging the deep harm caused.
