Australia's Robodebt Scandal: $1.8 Billion Payout for 440,000 Victims of Illegitimate Welfare Scheme

Record Payout for Victims of 'Illegal' Australian Welfare Scheme A landmark payout of $1.8 billion has been awarded to over 440,000 Australians who were affected by the "illegal and immoral" welfare scheme, Robodebt, which operated from 2016 to 2019 under the conservative government of former Prime Minister Scott Morrison. According to a report by the Australian Broadcasting Corporation (ABC), the payout is one of the largest in Australian history and comes after a royal commission into the scheme finished in mid-2023. The commission heard hundreds of public submissions, including testimony from victims who described the devastating impact of the scheme on their lives. "It's a bittersweet moment," said Felicity Button, one of the victims, to reporters. "Some people have lost family members, gone through divorce or become bankrupt. Irreparable mental health issues that have stemmed from this... we can never compensate for that." The Robodebt scheme was designed to save about $1.7 billion by using an algorithm to determine if welfare recipients had been overpaid. However, the system relied on flawed calculations, including averaging a person's fortnightly income, which led to mistakes when recipients worked irregular hours. The scheme disproportionately affected some of Australia's poorest citizens, with many struggling to make ends meet after being incorrectly deemed overpaid. At least three suicides were linked to the scheme, according to the royal commission. "This payout is a significant step towards acknowledging the harm caused by Robodebt," said an Australian government spokesperson. "We recognize that no amount of money can fully compensate for the suffering and trauma inflicted on these individuals." The Robodebt scandal has sparked international interest, with human rights organizations and advocacy groups around the world expressing concern about the scheme's impact on vulnerable populations. "This case highlights the dangers of relying on flawed algorithms and data-driven decision-making in social welfare programs," said a spokesperson for the United Nations High Commissioner for Human Rights. "We urge governments to prioritize transparency, accountability, and human-centered approaches when designing social safety nets." The payout is expected to be distributed over several years, with affected individuals receiving an average of around $4,000 each. As the Australian government moves forward with implementing reforms to prevent similar schemes in the future, international observers are watching closely. "This case serves as a reminder that governments must prioritize the well-being and dignity of their citizens, particularly those most vulnerable," said a spokesperson for the International Labor Organization. *Reporting by Bbc.*