The Government Will Refund Millions Of Dollars To People Affected By Robodebt

Today has finally bought some good news for anyone who’s been stuck in robodebt hell for the last few years — the government has announced it will refund $721 million worth of debts that it raised through the scheme.

According to Services Australia 470,000 of the debts calculated through the flawed robodebt scheme will be totally refunded — that’s about $721 million.

Refunds will also be made for any interest charges or recovery fees paid on related debts.

The debts will start being repaid from July and will continue through to the 2020-21 financial year.

At the moment people don’t need to do anything to get a refund — but people with questions about their debt are being told to visit the Services Australia website or to call 1800 061 838.

The colossal disaster that was robodebt involved an automatic system that sent inaccurate debt notices to thousands of Australians due to errors in their computer system.

Welfare recipients were then harassed and threatened with debt recovery letters demanding they pay back thousands of dollars.

For months the government denied there were any problems with the scheme — meanwhile, more than 2000 people died after receiving a robodebt letter.

A class action lawsuit against robodebt was announced last year.

A press release was sent out on Friday afternoon, shortly after Prime Minister Scott Morrison ended a press conference on the National Cabinet.

In their statement, Services Australia said they are putting mechanisms in place to start making refunds, and this will include figuring out how affected customers are advised of the next steps.

“The Morrison Government takes its responsibility for upholding the integrity of Australia’s welfare system seriously,” it said.

“It is important to note all other income compliance debts will continue to be subject to recovery, ensuring the integrity of Australia’s welfare system.”