The robodebt class action was originally settled in 2021. In 2022, approximately $112 million in settlement payments was distributed to group members.
In September 2024, Gordon Legal appealed this settlement.
The Commonwealth, and the applicants represented by Gordon Legal have agreed to resolve the appeal with a new settlement.
The new settlement now needs to be approved by the Federal Court. We expect the Federal Court will be asked to approve the settlement in the first half of 2026.
If the new settlement is approved, the Commonwealth will pay $475 million as compensation for the harms caused to eligible group members.
The new settlement will include an amount for the applicants’ reasonable legal costs as determined by the Federal Court (up to $13.5 million).
The new settlement will also include an amount for the reasonable costs of administering the settlement scheme as determined by the Federal Court (up to $60 million).
This is in addition to settlement payments already paid in 2022, and eligible debts that were refunded or zeroed.
Group members of the class action don’t need to do anything at this stage. We encourage group members to ensure their contact details with us are up to date. We have information available to help you change your address with us.
We will send notices to eligible group members explaining how they can register to be part of the new settlement. Eligible group members will have 14 weeks to register.
The new settlement will be managed by a scheme administrator. The scheme administrator will be appointed by the Federal Court.
Eligibility for the settlement scheme and payment amounts will be determined by the scheme administrator.
If you have questions about the robodebt class action appeal settlement, you can contact Gordon Legal by email at robodebt@gordonlegal.com.au.