SYDNEY (Reuters) -The Australian government said on Thursday it had agreed to pay a further A$475 million ($308.66 million) in compensation to victims of an illegal welfare debt recovery programme, which if approved by the courts would be the largest class action payout in the country’s history.
The programme, known as “Robodebt”, chased hundreds of thousands of welfare recipients for false debts calculated by a faulty automated algorithm between 2016 and 2019, until a court ruled it illegal.
A government royal commission inquiry found that “Robodebt” pushed vulnerable people into further debt and caused multiple suicides.
The latest settlement brings total government repayment and compensation costs to A$2.4 billion and ends what is regarded as one of Australia’s worst-ever public admi