- Should I hand over my bank data to Centrelink because they say I’ll be getting a refund?
- I’m a member of the Robodebt Class Action, may I still receive benefits from the government?
- To be eligible for the Robodebt Class Action settlement, do I need to register with Gordon Legal?
- Does the Robodebt Class Action apply to my Centrelink debt related to Child Support Allowance, Family Tax Benefit or Farm Household Allowance?
- I’m a Group Member, but do I still have to pay off my debt?
Toward the end of November 2020, the Representative Applicants and the Commonwealth reached a deal. After the Federal Court’s approval of the settlement in June 2021, all Group Members will have their claims finally settled. Most Group Members will receive a settlement payment in addition to any refunds they have already received or will receive in the future as part of the settlement.
On 29 May 2020, the Commonwealth revealed a substantial shift in its position following the start of the Robodebt Class Action in November 2019.
According to the government’s announcement in May, the Robodebt System raised many illegal debts, and as a result, it agreed to return about 470,000 debts to approximately 373,000 people. Due to this, most but not all of the 373,000 Group Members who were affected by the news have received reimbursements.
Refunds have been made or will be made to those whose debts were partly or fully based on average ATO income statistics by the Commonwealth of Australia. As a result of this, you won’t get your money back if your debt was computed solely based on other data (such as pay stubs or bank statements).
If the Commonwealth has not acknowledged that your debt or debts were entirely or substantially calculated using averaged ATO income data, you may not be entitled to a refund.
Most reimbursements have been sent out, according to reports. All Group Members who are eligible for a refund will receive an additional settlement amount as a result of the settlement negotiated in the Robodebt Class Action on 16 November 2020 and approved by the Court in June 2021.
A refund is only available to Group Members who owed money to Centrelink because of the use of ATO income averaging.
No one at Gordon Legal has access to information about whether or not you are eligible for compensation.
On the other hand, you can check your eligibility by completing these steps on MyGov.
Providing Centrelink with updated bank account information may be necessary if you are owed a refund but haven’t received it yet.
As of early July 2020, the government declared in May 2020 that it would begin paying back reimbursements. The vast bulk of reimbursements had been made by May 2021.
Money paid toward a Robodebt will be refunded, as will any interest that has been levied.
Refunds of more than $1,000 will be issued in installments, according to the government.
Your tax return will not be garnished as reimbursement for a debt that was refunded or withdrawn because it was computed as a result of improper income averaging. A garnishment of your tax return or other collection action against you may be forthcoming if unpaid Centrelink debts remain.
After receiving confirmation from Centrelink that the refund you received would not be taxed, you will not need to take any further action in regard to your tax return.
Almost all of the qualifying group members have received reimbursements from Centrelink, according to our information. Centrelink has been unable to contact a limited number of Group Members because they do not have their current bank account information.
- Go to my.gov.au and sign in, then pick Centrelink to get online access to your account.
After completing the ‘Refund pending’ activity, you will get your refund within 5 business days. Centrelink will send you a follow-up letter once your refund has been paid to clarify the refund amount and the specifics of the debts that were returned.
Since 4 May 2020, if you have received an email or letter from Centrelink enclosing a document entitled “Opt Out Notice – Federal Court of Australia (VID1252/2019) (the “Group Member Notice”), or if you received a “Notice of Proposed Settlement” from Centrelink in January 2021, it is safe for you to assume that you are a Group Member. A copy of the Group Member Notice can be found here for your convenience.
A Robodebt is not the same as a non-Robodebt at Centrelink. Robodebts are not eligible for Group Member status if you received a debt because Centrelink determined that you were ineligible for the payment you were receiving.
The following three-point definition determines whether or not a person is eligible to join a group. You are a Group Member if you fulfill this definition even if you are not aware of the class action settlement. A MyGov message or letter from Centrelink with the Group Member Notice is proof that you are a member of the Group.
As of 4 May 2020, if you have not received a MyGov message or letter from Centrelink that includes the Group Member Notice, you may still be a Group Member if you meet the following definition.
- Your employment income was requested to be checked, confirmed, or updated by Centrelink letters or other communications or notifications; and you did so.
- As a result, Centrelink claimed that you owed them money and requested that you pay it back; and
3. You have paid, or had recouped from you, any debt or part thereof that you owed (including through a payment plan, garnishing of tax return or payment of the debt in full).
Accordingly, the vast majority of Group Members who did not opt out of the settlement agreement concluded on November 16, 2020, will be legally bound by it.
It was only after the Honourable Justice Murphy signed off on the settlement in June 2021 that he ordered that the approximately 600 Group Members who had objected could choose to opt out of the agreement. A letter from Centrelink will inform these Group Members of their right to opt out of the program.
Centrelink debts known as “robodebts” were considered to be unconstitutional by Representative Applicants in a class action lawsuit. Information supplied by the Commonwealth reveals that at least 470,000 robodebts have been created since Centrelink began generating them in April of this year.
When Centrelink conducts a review of a recipient’s entitlements to social security payments (this could be for a period as far back as seven years) and determines that the recipient was overpaid, a Robodebt is created. “Check,” “confirm,” or “update” your historical income information is what Centrelink typically asks for while completing this review.
The evidence used by Centrelink to calculate the overpayment and demonstrate that a debt is owed is a critical component of a Robodebt. It is determined by using averaged ATO PAYG income data throughout either part or all of the fortnights that the recipient received payments, and treating those averaged amounts as the recipient’s actual wages for that debt period. In other words, the Robodebt system does not take into account the person’s actual income at the time of the debt.
Due to the fact that the amount of social security benefits a person is entitled to is based on how much the person actually earned when receiving payments, not the averaged ATO amounts, robodebts are illegal. Our clients claim that Centrelink has no legal basis for increasing a Robodebt as a result of this issue. The Commonwealth confirmed that the Robodebts it issued in this manner are invalid in an announcement made on May 29th, 2020.
All Robodebts calculated using the invalid averaging method will be refunded as part of the settlement agreement reached between the parties, and the recipients will receive an additional settlement payment to reflect the harm they experienced as a result of the debt being raised against them in this manner.
Checking on MyGov to see if you are eligible for a refund if your Centrelink debt was a Robodebt is the best way to find out if you are eligible for a refund, remembering that all Robodebts are eligible for refunds.
As a result of our investigation of the Robodebt system, we were tasked with launching the Robodebt Class Action against the Commonwealth of Australia.
People who received Robodebts could use the Robodebt Class Action to pursue compensation for their losses, including the money they paid toward (or had withdrawn from) their Robodebts and the pain and inconvenience they endured as a result of the debts’ issuance.
This class action contended that Centrelink’s handling of the Robodebt system resulted in the Commonwealth being unjustly profited. Centrelink recipients who had illegitimate debts raised against them were also contended that the Commonwealth was irresponsible in breaking its duty of care.
Centerlink had established an illegal Robodebt against one Centrelink beneficiary, Ms. Deanna Amato, even before the Robodebt Class Action began in Australia’s Federal Court. Despite the significance of this judgement, it only pertained to Ms. Amato. People who have been impacted by the Robodebt Class Action are eligible for assistance.
It was brought on behalf of all those affected by the issue by a group of Representative Applicants.
The Representative Applicants and the Commonwealth signed a settlement agreement on November 16, 2020. Final claims for all Group Members will be settled in June of 2021 after an agreement was reached by the Court. Group Members who have already received or will get a refund in the near future will receive an additional settlement amount as part of the settlement.
Yes. Centrelink payments will not be affected by your participation in the Robodebt Class Action as a Group Member.
Centrelink will now contact all Group Members to inform them of the settlement’s application to them and their entitlement, if any, under the settlement, following its approval by the Court. If you want to participate in the settlement process or obtain a settlement benefit, there is no need to contact Gordon Legal.
Consult a social security rights legal service in your state if you have any other issues with Centrelink, such as a Robodebt. People who are having problems with Centrelink payments, debts, or other issues can get free legal advice from social security legal services by calling. The Economic Justice Australia website is a good place to look for the service you need: http://ejaustralia.org.au/link/. Here you can pick your state. QLD SA TAS VIC WA ACT NT QLD SA
Your debt, even though it may not be eligible for a refund, may still include other issues that can be investigated by Centrelink in an internal review. This could modify the amount of the loan.
If you need an internal review, we suggest requesting for it to be conducted by an Authorised Review Officer. The following methods can be used to accomplish this:
- Click on ‘Complaints’ in myGov and type in the free text box that you want an ARO to investigate your complaint. You can also download the form from the Centrelink website to request a review of your decision.
If, after an ARO review, you believe your debt is incorrect, you may take your case to the Administrative Appeals Tribunal for further consideration.
Because of this, the Robodebt Class Action does not apply to those who owe money to Centrelink because of one of these payments. Why? Because these payments were made without the usage of the Robodebt system being applied to them.
Social Security Rights Victoria (SSRV) or the comparable organization in your state or territory can provide assistance if needed.
As a non-profit, state-wide community legal center, SSRV is dedicated to social security law and policy issues. SSRV’s phone and fax numbers can be found here:
- On Mondays and Wednesdays from 9.30 a.m. to 12.30 p.m., call the general advice line at 03 9481 0355 or 1800 094 164 (for rural callers).
- General inquiries can be made by calling (03) 9481-0299 on Monday through Thursday, from 9.00am to 5pm (excluding public holidays).
Visit the Economic Justice Australia website to discover your nearest social security rights legal center outside of Victoria: http://ejaustralia.org.au/legal-help centrelink.html Here you can pick your state. ACT The states of New South Wales, Northern Territory, and Queensland TAS VIC WA SA TAS
Centrelink still owes you money if your debt isn’t qualified for a refund due of incorrect income averaging. Refund eligibility can be determined by following the following steps:
There were no legal expenses for Group Members in the Robodebt Class Action brought by Gordon Legal on a no-win, no-fee basis.
When the Court accepted the settlement, it ordered that the $112 million settlement amount be reduced by the legal fees expended by the Representative Applicants in running the class action.
In accordance with the settlement distribution plan, the remaining settlement sum will be divided among Group Members.
How much will I get from the robodebt settlement?
The $112 million settlement total will be divided among the group members who are eligible to receive benefits from it.
The court-approved expenses of Gordon Legal will be subtracted from this total. The majority of the settlement’s refunds had already been distributed to those who were entitled to them.
Rather than accruing interest on your debt repayments, the settlement payment replaces that interest with a single lump sum payment. People who paid back more and were without their money for a longer period of time will receive more compensation.
The majority of claimants will not receive sizable settlement payments. Settlement amounts will fall in the $50 to $300 range for most cases.
Even if a group member only redeemed a little portion of their obligation, we will compute settlement payments for them. As a result, some members of the team will receive a payment of under $10.
Who is entitled to the robodebt refund?
Since the start of the debt collection program in 2015 until its termination, more than 400,000 Australians have paid back welfare debts.
Payments made on debt estimated using averages determined from the automated matching of Australian Tax Office data are eligible for a refund.
There will be no return for people who calculated their debts without reference to ATO income averages, including those who used bank statements or pay stubs.
Each robodebt victim will receive a payment that is unique to their situation.
It’s possible that every single victim might earn between between $200 and $300 in compensation.
However, Gordon Legal, the firm that represented the victims of the robodebt crisis, hasn’t stated how much of the $112 million compensation it would be seeking.
What is robodebt Centrelink?
Servicing Australia’s Centrelink payment compliance program used an illegal method of computerized debt assessment and recovery called Robodebt, or Online Compliance Intervention (OCI). Overpayments and debt notices to welfare users were replaced with an automated data-matching system that used Centrelink records to compare with averaged income data from the Australian Taxation Office in July 2016 and was announced to the public in December of the same year.
Debt notice recipients’ physical and mental health and the legality of the program have all been cited as reasons for the controversy surrounding the program, which has drawn the ire of the media as well as academics, advocacy groups, and politicians. A Commonwealth Ombudsman probe, two Senate committee hearings, and a number of legal challenges have all focused on Robodebt.
Approximately 470,000 wrongly-issued debts will be refunded in full under the Morrison Government’s announcement on May 29, 2020. At first, it was expected that the repayments would total
Do I have to pay back Centrelink?
The money you get from Centrelink will be deducted from your check. However, you can alter the amount of money we take out of your account.
We may possibly be able to get money back in other ways. When you file your taxes, for example.
What is happening with Robodebt?
The Federal Court of Australia’s Honourable Justice Murphy authorized the Robodebt Class Action settlement in June 2021.
The Federal Court has now authorized a settlement negotiated on November 16th, 2021, between the Representative Applicants and the Commonwealth.
Once the settlement is finalized, a distribution plan will be put into place.
All but a few of the $112 million in settlement funds will be distributed to Group Members according to the distribution plan.
As part of the settlement announcement made by the Commonwealth in May 2020, those Group Members who received or were eligible for a refund of their Robodebt will receive this share of the settlement money.
Individual circumstances and the settlement distribution process determine whether a Group Member is eligible for a settlement payout.
All Group Member debts will be reviewed as part of the settlement distribution mechanism to ensure that their entitlements under the settlement are properly assessed.
It will begin notifying Group Members in August 2021 of their classification and whether they are entitled for a settlement payout in August of that year.
When the settlement was approved, the Honorable Justice Murphy ruled that the approximately 600 Group Members who had argued against the deal would be given the opportunity to “opt out” of the settlement. A letter from Centrelink will be sent within eight weeks of the settlement approval to those Group Members who choose to opt out.
We recognize that you may have concerns about the settlement’s impact on you. From August 2021, Centrelink will begin issuing all Group Members their categorization letters, which you should wait for. Whether or whether you’ll get paid depends on your categorization letter.
Please call the Centrelink compliance helpdesk at 1800 171 846 first if you need assistance with the settlement.
After dealing with Centrelink, you can call Gordon Legal at 1300 001 356 if you have any questions.
The general FAQ page and the settlement FAQ page are also available on our website for additional information.
On November 19, 2019, the Representative Applicants filed the Robodebt Class Action. The Representative Applicants and the Commonwealth reached an agreement on the first day of trial, which was planned for November 16th, 2020.
More than $1.7 billion in financial benefits have been granted to approximately 430,000 group members since the beginning of the class action.
- A total of $112 million in compensation, including legal fees, will be provided to nearly 400,000 qualified Group Members by the Commonwealth.
- The Commonwealth is reimbursing Group Members for almost $751 million in debts that were wrongfully collected and will continue to do so.
- For $744 million in partially repaid invalid debts, the Commonwealth has agreed to drop claims for repayment; for $268 million in invalid debts with no repayments, the Commonwealth has agreed to drop claims.
For this historic result, which has resolved the claims of hundreds of thousands of people who were awarded Centrelink debts based on averages derived from ATO income data, we at Gordon Legal are extremely proud.
Will I go to jail for Centrelink debt?
If you owe money to the government, you won’t inevitably end up in prison. A garnishee order, for example, can be issued by Centrelink to force the ATO, your bank, or your employer to pay the money they would have otherwise paid you to Centrelink.
Can you go to jail for owing Centrelink money?
These crimes are taken quite seriously by the courts. Centrelink fraud is punishable by up to ten years in prison. If you defraud the government in order to receive a Centrelink benefit, you might face up to ten years in prison.
Deception may include collecting unemployment benefits, but then obtaining income under a false name.
How do I get rid of my Centrelink debt?
In other cases, even if Centrelink is accurate, there may be reasons why it would be unreasonable for them to recover a sum that they wrongly believe they owe.
If Centrelink refuses to amend or abolish the debt, you have the option of appealing to an impartial tribunal. Appealing Centrelink debts, on the other hand, carries some risk. Centrelink may conduct additional investigations and assess the time period and the amount of the debt. Debt may be reduced, but it may also rise.
Consult a specialised agency for free and impartial legal advice before disputing a Centrelink debt or requesting that it be waived or reduced. Economic Justice Australia can help you locate a service near you.
How many people are in a Robodebt?
Many of these marginalized or vulnerable individuals have been able to seek compensation from the Commonwealth for behaviour that it has just recently conceded was illegal. The proposed settlement shows once more that our class action system works when properly administered.”
When did Robodebt start?
At a cost of roughly $1.2 billion, the Robodebt class action brought by Gordon Legal has been resolved. This is the largest class action in Australian history, according to federal Labor frontbencher Bill Shorten.
This included $721 million in refunds to 373,000 people, $112 million in compensation, and $398 million in cancelled obligations for the rest of us.
“Robodebt,” as it’s generally known, refers to the government project that began in 2016 with the goal of increasing recoveries of “overpayments” made to social security claimants going back to 2010.
In the table below, you’ll find an overview of Robodebt’s important milestones from 2016 to the present.
