Hundreds of thousands of Australians, some of whom were hounded for years over debts that were wrongly issued, will get a huge cash refund.
Hundreds of thousands of Australians, some of whom were hounded for years over debts that were wrongly issued, will get a huge cash refund.

$721 million payday for struggling Australians

Hundreds of thousands of Australians will secure robodebt refunds from the Morrison Government in July after it finally ran up the white flag on the botched welfare compliance scheme.

The decision will deliver a $721 million payday to welfare recipients who in some cases were hounded for years over the debts that were wrongly issued.

The huge refund of cash will also involve paying interest to thousands of Australians who were forced to repay debts before joining a class action against the Commonwealth.

In a statement, Human Services Minister Stuart Robert said the Morrison Government "takes its responsibility for upholding the integrity of Australia's welfare system seriously".

"From July this year, Services Australia will refund all repayments made on debts raised wholly or partially using income averaging of ATO data. Refunds will also be made for any interest charges and/or recovery fees paid on related debts," he said.

Hundreds of thousands of Australians will secure robodebt refunds from the Morrison Government in July.
Hundreds of thousands of Australians will secure robodebt refunds from the Morrison Government in July.

"Services Australia has identified 470,000 debts raised wholly or partially using income averaging of ATO data. Refunding of eligible debts will commence in July and will continue through the 2020-21 financial year. The total value of refunds including fees and charges is estimated at $721 million.

"Services Australia will now put in place the mechanisms needed to start making refunds, including how affected customers are advised of next steps. Consultation will occur with stakeholders, including the Commonwealth Ombudsman, and clear communication is a priority, so people understand what it means for them."

The Morrison Government stressed that all other income compliance debts would continue to be subject to recovery, ensuring the integrity of Australia's welfare system.

"People do not need to do anything right now to obtain a refund for a debt raised wholly or partially using averaging of ATO data. Further information will be available shortly at www.servicesaustralia.gov.au. Anyone with questions about their income compliance review can call 1800 061 838," he said.

Originally published as Aussies' $721 million payday



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