The Commonwealth agrees to settle landmark class-action lawsuit Robodebt

The Commonwealth of Australia has just reached a settlement in the Robodebt class-action, which is set to cost $1.2 billion.

Gordon Legal has announced the settlement today, subject to the approval of the Federal Court of Australia.

The Commonwealth will now have to pay $112 million in compensation to around 400,000 people.


It’ll also pay back more than $720 million in debts it had already collected, and it will also stop chasing a further $400 million in debts.

As part of the settlement, the Commonwealth has not admitted that it was legally liable to Group Members.

Gordon Legal Partner, Andrew Grech, released the following statement.

“We want to acknowledge the courage of the lead applicants; Katherine, Elyane, Steven, Felicity, Shannon and Devon, who led these proceedings on behalf of all Robodebt victims in pursuit of this class action, which has allowed this outcome to be achieved today.

“Our clients have asked us to especially thank Bill Shorten for his relentless pursuit of this issue, for his compassion over the last four years for vulnerable Australians hurt by Robodebt and for bringing the case to Gordon Legal’s attention when it seemed that all other options had been exhausted and only resorting to the legal system would help.

“Once again we would like to acknowledge the work of the legal team at Victoria Legal Aid, who worked tirelessly to bring a number of individual claims before the Federal Court before the Class Action was commenced as well as the efforts of many community legal services in the Welfare Rights Network, such as Social Security Rights Victoria who have been advocating for victims of Robodebt for the last few years.

“Our clients would also like us to acknowledge the Federal Court of Australia for its preparedness to schedule frequent case management hearings and to facilitate a trial of the proceedings so quickly, notwithstanding the difficult circumstances of the Melbourne Covid-19 lockdown,” the statement reads.