what is robodebt

The Robodebt scheme was an Australian government automated debt recovery program, introduced in 2016, which used a method called "income averaging" based on Australian Taxation Office data to calculate alleged welfare overpayments and issue debt notices to welfare recipients. This automated system often generated inaccurate and unlawful debt claims, placing the burden of proof on recipients to disprove debts they were told they owed. The scheme caused widespread distress, financial hardship, and mental health impacts, affecting over half a million Australians. The scheme was ruled unlawful by the Federal Court in 2019, leading to its dismantling and a major class-action settlement where the government repaid over $751 million in unlawfully claimed debts plus compensation. A Royal Commission later examined the scheme's failures and impacts, producing recommendations aimed at preventing similar future policy failures. The program is now widely recognized as a costly failure of public administration with lasting negative effects on vulnerable Australians.