Quantifying Losses for 443,000 Australians in a $1.2 Billion Robodebt Class Action

Client Overview

Over 443,000 Australians were adversely impacted by the Robodebt scheme, an automated debt recovery initiative implemented by the Australian Government between 2015 and 2019. The program retrospectively calculated alleged overpayments using income-averaging methods, which were later deemed legally invalid and financially harmful. Social security recipients were issued unlawful debt notices despite inaccurate calculations, causing financial hardship, mental health issues and suicides, which led to the initiation of a class action on their behalf.

​Engagement Scope​

Our forensic accounting team was engaged to investigate and quantify the financial losses caused by the Robodebt scheme, assess systemic errors in the debt calculations and provide independent forensic support in class action proceedings.

Our Approach

We conducted a forensic review of the Robodebt scheme’s debt calculations, repayment records and compensation framework.

• Quantification of Losses: Analysed repayment records, debt notices and reconciled welfare payments with ATO tax data.
• Error Investigation: Analysed the methodology used by Services Australia the legality and accuracy of income averaging compared with actual income verification.
• Impact Analysis: Modelled the financial and socio-economic impact of incorrect debt notices across 443,000 affected Australians.

Key Findings and Outcomes​

Our forensic analysis of the Robodebt scheme quantified the financial impact and highlighted the systemic issues that underpinned one of Australia’s largest class actions.

• Historic Settlement Achieved: Supported a $1.2 billion government settlement in November 2020, including $721 million in refunds, $112 million in compensation and $398 million in cancelled debts.
• Strengthened Litigation Strategy: Provided robust, independent financial evidence that reinforced Gordon Legal’s case and informed negotiations.
• Broad Impact and Resolution: Helped achieve one of Australia’s largest class action settlements, delivering justice and financial redress to hundreds of thousands of affected Australians.

Delivering Clarity and Outcomes Through Forensic Accounting

Our Forensic & Litigation specialists provide independent, evidence-based support to uncover the truth and secure outcomes that matter. Speak with our team today to explore your options.

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