The Government Will Repay $721 Million to People Impacted By Robodebt

470,000 debts will be waived.

If you were affected by the Robodebt scheme, it's safe to say you've probably been waiting to hear the government plans to sort it out for a long time.

Well, it looks like you've finally got an answer now.

Earlier today, the government announced that 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 Robodebt scheme will be entirely refunded.

Government Services Minister Stuart Robert said in a statement that anyone affected will also be refunded for any interest charges or recovery fees paid on related debts. Plus, those who have already paid their debts will be refunded.

If you're not totally sure what we're talking about, "Robodebt" is the term given to the averaging process used by the government in which data from the Australian Taxation Office (ATO) was matched with Centrelink income reports from welfare recipients. 

Lawyers had concerns that the process was faulty, holding that the system lacked human oversight. 

Between July 2016 and October 2018, thousands of Australians received inaccurate debt notices as part of Robodebt. As the ABC reports, more than 370,000 people were affected, with some being issued multiple notices.

In 2019, it was announced that a class action would be launched against the government over the scandal.

It’s not about those who rort the system but the thousands of innocent people who were told they owed money & without any discussion it was deducted from (in my husband’s case) their pension #robodebt

— 💧 janbirk (jannyB) (@JanJanbirk) May 29, 2020

Labor's Government Services spokesman Bill Shorten highlighted the devastating impact that Robodebt had on those affected.

"Hundreds of people, after receiving the debt notices, passed away, and I have no doubt that some of that in some cases is due, tragically, to the mental health pressures of robodebt action by the government," Mr Shorten said.

In November last year it was revealed that the government was halting a key part of the scheme. 

How will I receive my refund?

The repayments will begin in July, and you don't have to do anything to get a refund. 

Services Australia will begin contacting 190,000 recipients whose details are up to date from 1 July to receive their overpayment back. If you're not one of those people, you'll be contacted to update your details. 

Make sure you keep an eye on the Services Australia website, as details will be updated there.

Header Image: NurPhoto / Contributor / NurPhoto via Getty Images