Australian government settles Robodebt class action for $1.7 billion
The Robodebt system, an automated debt recovery system used by Centrelink, calculated welfare debts using averaged income data from the ATO, leading to invalid debts. A class action was filed in November 2019 and settled in November 2020. The settlement provided refunds of over $751 million in invalid debts collected and $112 million in compensation to approximately 400,000 group members. The Australian government also dropped claims for over $1 billion in invalid debts.
- Organisation involved
- Australian Government (Centrelink)
- Product, system or model
- Robodebt
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