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Compensation for an automated debt scheme that sent people bills they didn’t owe

A computer averaged people’s income and sent them welfare debts. Many were wrong. See what it cost taxpayers, with the original source.

🇦🇺 Australia · 2026 · ⚖️ Lawsuits

A computer averaged people’s income and sent them welfare debts. Many were wrong.

💸 Guess, then reveal the price

A$475 million 2026 compensation

The robot was very confident. It was also very wrong.

What actually happened

Robodebt raised debts against about 433,000 people. A 2021 settlement withdrew about $1.76 billion in debts and paid $112 million. After the Royal Commission, a further $475 million in compensation was agreed in a second settlement approved in 2026.

Source: The New Daily ↗ · Amount in original currency, not adjusted for inflation. An unusual cost is not automatically waste; see how we check the facts.

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