The Australian Government will make sure people get their full compensation payment under the new Robodebt class action appeal settlement.
New legislation and regulations will exempt these payments from Commonwealth taxation, income testing and compensation recovery arrangements.
This is an important step to make sure those impacted by Robodebt get the full compensation they deserve.
Under normal circumstances, compensation payments like these can be subject to taxation and Commonwealth statutory recovery schemes. Legislative and regulatory changes will exempt the new Robodebt class action payments from these arrangements.
The changes will also ensure the settlement payments are not treated as income for class action members currently getting an income support payment from Services Australia.
Legislative amendments relating to social security, veterans’ payments and the National Disability Insurance Scheme will progress as a matter of priority to make sure there are no delays to eligible group members getting their payments. Other exemptions will follow, including an exemption from income tax, proposed for legislation before the end of the 2026-27 financial year
Gordon Legal is expected to start making settlement payments before the end of 2026.
As the court appointed scheme administrator, Gordon Legal is responsible for determining eligibility, assessing claims and calculating and making payments.
Anyone with questions about the new Robodebt class action settlement should contact Gordon Legal by calling on 1300 001 356 or by emailing [email protected].
Quotes attributable to the Minister for Government Services Katy Gallagher:
“This will give certainty to Robodebt victims that the amount of compensation they’re entitled to won’t change."
“Robodebt never should have happened, and it’s only fair these compensation payments be exempt from government recovery arrangements."
“We’ll expedite this legislation to make sure victims get their compensation in full.”
Quotes attributable to the Minister for Social Services Tanya Plibersek:
“People impacted by Robodebt deserve nothing less than every single dollar of compensation they are entitled to.
“As we work to ensure the injustices of Robodebt are not repeated, we mustn’t lose sight of the people whom the past injustices have affected.
“These exemptions will ensure victims get full and fair recompense.”
Quotes attributable to the Assistant Treasurer and Minister for Financial Services, Daniel Mulino:
“People deserve to get the full compensation that they are entitled to.
The Albanese Government has worked to ensure there are no adverse tax outcomes for those impacted by Robodebt”.