Robodebt Victims Urged to Act as $5500 Debts Loom
Thousands of victims of the Robodebt scandal are urged to take action before a crucial deadline for compensation. Gordon Legal, the firm behind the class action lawsuit, reports that only 100,000 affected Australians have registered so far. However, hundreds of thousands may still miss the chance to claim compensation.
Robodebt: A Troubling Legacy
The Robodebt initiative saw Australian authorities unlawfully pursue $1.7 billion in debts from 2015 to 2019. It used an automated system to issue debt notices to citizens, many of whom did not owe any money. This unethical practice has left a lasting impact on its victims.
Justin’s Story
Justin, a NSW resident, is one of the 443,000 Australians affected by this scheme. In 2016, he received a surprising $5,500 debt notice that significantly disrupted his life.
- Justin was living week to week and struggled to manage the unexpected debt.
- He resorted to buying minimal food and even moved out of his shared living space.
Despite his efforts to repay the debt, Justin faced severe financial difficulties. He described the stress from the debt as overwhelming, often leaving him with just bread and gravy for dinner.
Facing the Consequences
The Royal Commission into Robodebt branded the automated scheme a failure in public administration. Federal Court Justice Bernard Murphy labeled it a “shameful chapter” in Australia’s history. The repercussions included not only financial ruin for many but also tragic outcomes, including suicides linked to the stress caused by the program.
Compensation Opportunities
In 2022, Justin received a mere $350 from the initial settlement of a $112 million class action. He, along with many others, found this payout inadequate. Gordon Legal has since appealed for a more substantial settlement.
Victims have until March 6, 2026, to register for the new class action compensation. This settlement has the potential to provide payments ranging from $1,000 to tens of thousands of dollars.
How to Register
Gordon Legal partner Andrew Grech emphasizes the importance of registration. Victims are encouraged to verify their contact details with Gordon Legal. The deadline for registration will be strictly enforced, and those who miss it will forfeit their chance for compensation.
- Registration Deadline: March 6, 2026 at 4 PM
- Contact Gordon Legal for more information
The Federal Court will review the settlement in mid-2026, making this the last opportunity for victims to seek compensation.
Support and Resources
For emotional support, victims are encouraged to contact Lifeline at 13 11 14 or Beyond Blue at 1300 22 4636.
