Centrelink Alert on Robodebt Compensation
Government Reaches $475 Million Settlement
Services Australia has started contacting Australians eligible for compensation following the robodebt scandal. The government will pay a total of $475 million to settle claims from individuals incorrectly pursued for welfare overpayments.
The Compensation Scheme follows a Federal Court ruling that the automated income averaging system used by Centrelink between 2015 and 2019 was unlawful. Thousands of Australians were affected, receiving debt notices based on flawed data rather than verified income documentation.
Eligibility and Notifications
Australians who had debts calculated through income averaging during the affected period are being notified by Services Australia via official messages and letters. Recipients are advised to check their myGov accounts for updates regarding eligibility and payment details.
Officials have warned the public to remain alert for scams, emphasizing that Services Australia will never ask for personal bank details through text messages or unofficial emails.
Background of the Robodebt Scheme
The robodebt program generated automated debt notices against welfare recipients based on annual tax information. Due to data mismatches, many people were wrongly accused of owing money, causing widespread distress and financial hardship.
A Royal Commission later condemned the scheme for being “cruel” and “unlawful”, calling for stronger oversight of automated decision-making systems within government agencies.
“The robodebt scheme represents a shameful chapter in Australia’s administrative history,” the Commission’s report stated.
What Affected Australians Should Do
Eligible claimants do not need to reapply for compensation if they were part of the class action or previously eligible for a refund. Payments are handled automatically by Services Australia once verification is complete.
People should ensure their contact details are updated in myGov to avoid missing important notices or payment confirmations.
Author’s summary: Australians affected by the unlawful robodebt scheme are being contacted by Services Australia to receive part of a $475 million compensation payment, following a major government settlement.
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