The Commonwealth has agreed to a settlement worth $1.2 billion over its unlawful Robodebt recovery program, which raised automated debts against welfare recipients.
Key points:
- The Commonwealth had already agreed to repay $721 million in wrongfully collected debts
- Hundreds of millions of dollars in debts the Government was still pursuing will be dropped as part of the settlement
- Labor says it will continue to pursue a royal commission into the debt recovery program
The Robodebt scheme has been widely criticised for using computer algorithms to raise debts against hundreds of thousands of welfare recipients, with little to no human oversight.
In May, the Federal Government agreed to pay back $721 million to more than 370,000 people who were wrongly pursued.
Today's settlement includes that amount, plus $112 million in compensation and a decision to drop a further $398 million in debts wrongly raised.
The matter was meant to go to trial today.
Earlier this year, Prime Minister Scott Morrison apologised in Parliament for "hurt or harm" caused by the process.
The class action, launched on behalf of people who received notices through the automated debt recovery process, was launched last year.
Shadow minister for government services Bill Shorten said Labor would continue to push for a royal commission into Robodebt.
"Today it means that 400,000 victims of the Government's illegal protection racket … these people have got some justice," he said
"This is a good day for them, but I think the rest of Australia, and the people who were damaged by this process can say: 'who was responsible?'"
Mr Shorten said it should not have taken four years for the Government to recognise the program was flawed.
"I wish they had done their homework. It shouldn't have taken until the day of the court hearing for the Commonwealth to come good."
More to come.
https://news.google.com/__i/rss/rd/articles/CBMiWWh0dHBzOi8vd3d3LmFiYy5uZXQuYXUvbmV3cy8yMDIwLTExLTE2L2dvdmVybm1lbnQtcmVzcG9uc2Utcm9ib2RlYnQtY2xhc3MtYWN0aW9uLzEyODg2Nzg00gEnaHR0cHM6Ly9hbXAuYWJjLm5ldC5hdS9hcnRpY2xlLzEyODg2Nzg0?oc=5
2020-11-16 02:40:00Z
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