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Centrelink recipients to share in $112 million

·Personal Finance Editor
·2-min read
The Centrelink logo on the exterior of a building and Australian cash.
Centrelink recipients will find out how much they will recieve in compensation from the failed robodebt scheme. (Source: Getty)

Aussies who were wrongly chased for debts as part of the robodebt scheme will find out today how much money they are set to recieve as part of their settlement.

The Income Compliance class action will see those targeted receive a share of $112 million.

“If you’re a registered, eligible group member, we’ll send you a letter from 5 September 2022 with the amount of your settlement payment,” Services Australia said.

“Most people will be paid within a week of receiving their letter.”

Those eligible should receive their settlement payment by September 30.

But those waiting for the good news may be disappointed, with the majority set to receive only $100.

“Most people won’t get large amounts of money as a settlement payment,” Services Australia said.

“Around half of all settlement payments will be between $50 and $300.

“People who only repaid small amounts may get less than $10. A small number of people, around 1 per cent, will get less than a dollar.”

The settlements are in addition to wrongful robodebt payments that have been repaid.

Settlement payments are calculated in a similar way to interest.

The amount you get depends on:

  • How much money you repaid

  • How long you went without the money

The letters will include information about how settlement payments have been calculated and distributed.

To see how your individual settlement payment was calculated, download your settlement statement.

Robodebt failure

Prime Minister Anthony Albanese unveiled a royal commission into the controversial robodebt scheme last month.

The automated matching of tax and Centrelink data to raise debts against welfare recipients for money the former Coalition government claimed to have overpaid was ruled unlawful in 2019.

But the Morrison government never detailed who was accountable for the scheme and which ministers knew of its problems.

The royal commission is expected to cost $30 million, with the final report to be delivered to the Governor-General by April 18, 2023.

Albanese said key lessons needed to be learnt following the controversial scheme.

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