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Robodebt class action and settlement payments
Settlement payment information - Income Compliance class action audio
For Centrelink payments and services, you can call our multilingual phone service.
We have completed our part in the Settlement Distribution Scheme.
We made settlement payments to eligible group members of the class action in September 2022.
Settlement payments were calculated similar to interest that people could’ve earned on money they paid back on a robodebt.
What the robodebt class action was
Gordon Legal filed a class action lawsuit for 6 applicants and other group members against the Commonwealth of Australia. It was about Centrelink debts raised under the Income Compliance Program between July 2015 and November 2019.
The Commonwealth and the applicants represented by Gordon Legal agreed on a $112 million settlement. It was approved by the Federal Court in June 2021.
Who was eligible for a settlement payment
Whether you got a settlement payment or not depended on which category your debt was in.
You can read more about the eligibility categories in the Implementation Plan.
How we made settlement payments
Most eligible class action members got their settlement payment directly into their bank account.
If you’re eligible and registered for a settlement payment and you haven’t received it yet, your bank account details may be incorrect.
To update your bank account or payment destination, please call our Income Compliance line.
If you asked for a cheque when you registered, we sent it by post to the address you gave us.
How we calculated settlement payments
We calculated settlement payments in two parts, simple interest and an added settlement amount.
We calculated simple interest for each day an eligible, registered class action member was without the money they repaid. We then added the daily amounts together to give a total interest amount.
We used interest rates set by the Federal Court.
Added settlement amount
After calculating simple interest for each class action member, there was money left over. Eligible and registered class action members got a portion of that left over money.
The added settlement amount was proportional to the amount of simple interest. Class action members who got larger interest amounts got a larger added settlement amount.
We added the simple interest and added settlement amount together to give a total settlement payment.
Download the settlement payment factsheet:
Class action members can see what information we used to calculate their individual settlement payment in their settlement statement.
If your Centrelink online account is linked to myGov, you can view your settlement statement online.
To do this:
- Sign in to myGov.
- Select MENU from your homepage, and then Payments and claims.
- Select Income Compliance then Class action settlement statement.
You can also ask us to send you a statement in the mail by calling the Income Compliance line.
What else you need to know
Settlement payments weren’t counted as income for Centrelink payments.
Settlement payments weren’t taxable. You don’t need to do anything at tax time in relation to the settlement payment. Read more about settlement payments and your tax return on the Australian Taxation Office website.