Hundreds of thousands of Australians forced to pay back welfare debts created by an illegal automated system have won the largest payout in the country's history.
Known as 'Robodebt', the scheme wrongly told welfare recipients they had been overpaid and demanded they repay these debts, which often never existed.
In 2020, a successful class action resulted in a A$1.8bn (£876m; $1.2bn) settlement for victims of the scheme - some of whom took their own lives.
However, the group's lawyers appealed for more money after new evidence showed officials of the then-Liberal National coalition government knew the scheme was unlawful but continued anyway.
On Thursday, the current Labor government announced it would settle that claim, and hand an extra A$475m over as compensation for the harms caused by the illegal and immoral Robodebt scheme.
Another A$13.5m has also been earmarked for legal costs and up to A$60m to administer the compensation scheme.
[It] is the just and fair thing to do, Attorney-General Michelle Rowland said, adding that it reflected the harm caused to thousands of vulnerable Australians under the disastrous scheme.
Lawyers for the class action said the extra compensation was validation for the victims.
Today is also one more vindication of the principle that Australia remains a nation ruled by laws and not by kings - laws which even hold the government accountable, Peter Gordon told reporters.
One victim, Felicity Button, reflected on the bittersweet nature of the announcement, underscoring the severe personal impacts faced by many victims, including loss of family members and severe mental health issues.
It is estimated that more than 440,000 people were impacted by the illegal system, which ran from 2016 to 2019 under the conservative government of former Prime Minister Scott Morrison.
The scheme, intended to save about A$1.7bn, disproportionately affected some of the country's poorest citizens and has been linked to at least three documented suicides.
A royal commission into the scheme concluded in mid-2023, revealing that the algorithm used to ascertain overpayment was fundamentally flawed, often penalizing those with variable income streams.
Senior public servants were found to have been aware of the illegality of the scheme, prompting the appeals for further compensation based on 'misfeasance in public office'.
In total, the redress scheme now accounts for approximately A$2.4bn, inclusive of A$1.76bn in forgiven debts and funds returned to victims who were falsely accused of overpayment.
The announcement of the additional compensation total A$587m signifies a major step in addressing the wrongdoings associated with the Robodebt scheme, surpassing the previous record payout for victims of the 2009 Black Saturday bushfires.
