Robodebt
An automated debt recovery program run by Centrelink, the Australian government agency, between 2015 and 2019. It used an algorithm to estimate welfare recipients' debts and automatically issued debt notices; logical flaws led to large numbers of erroneous debt claims, and the scheme was ruled unlawful in 2019.
Timeline (last 90 days)
Robodebt was an automated debt recovery system run by Australia's welfare department between 2015 and 2019, which used algorithms to estimate how much welfare recipients might owe the government and sent debt collection notices directly.
Robodebt's estimation logic used averaged income to infer individuals' actual income, resulting in large numbers of erroneous debt collections.
In June 2026, the failure cost of Robodebt was recalculated as 548.5 million AUD, and compensation payments will begin before the end of 2026.
Robodebt was ruled unlawful by the Federal Court in 2019, and in 2020 the government agreed to pay about 1.8 billion AUD in a settlement, with subsequent recalculations pushing the failure cost up to 548.5 million AUD.
All Facts (3)
Robodebt was an automated debt recovery system run by Australia's welfare department between 2015 and 2019, which used algorithms to estimate how much welfare recipients might owe the government and sent debt collection notices directly.
50%UnverifiedRobodebt's estimation logic used averaged income to infer individuals' actual income, resulting in large numbers of erroneous debt collections.
50%UnverifiedRobodebt was ruled unlawful by the Federal Court in 2019, and in 2020 the government agreed to pay about 1.8 billion AUD in a settlement, with subsequent recalculations pushing the failure cost up to 548.5 million AUD.
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