Record payout for victims of 'illegal and immoral' Australian welfare scheme
Summary
Hundreds of thousands of Australians affected by an illegal welfare scheme known as "Robodebt" have received a record compensation payout. The scheme wrongly claimed that welfare recipients owed money, resulting in a $1.8 billion settlement. The Australian government will now pay an additional $475 million as further compensation.Key Facts
- The "Robodebt" scheme incorrectly told welfare recipients they owed debts, which often did not exist.
- A class action lawsuit in 2020 led to a $1.8 billion settlement for those impacted.
- The scheme was found to be illegal, and government officials knew it was unlawful but continued it.
- The current Labor government will pay an extra $475 million in compensation for harms caused.
- Over $440,000 people were affected by the program, which ran from 2016 to 2019.
- The scheme was related to incorrect calculations of welfare payments based on flawed income averaging.
- A royal commission investigated the scheme and found significant legal violations.
- Another $13.5 million will cover legal costs, and up to $60 million will manage the compensation process.
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