Felicity Button has risen to prominence as the face of the controversial robodebt scheme’s aftermath. Unlike California’s pilot, this scheme was permanent and operated in Australia from 1991 to 2020. She’s one of the lead applicants in a class-action lawsuit against the federal government. Recently, she’s been speaking out about the realities of what happened to her and the larger implications of the settlement that was reached. To prevent that highly public trial, the government has settled on a breath-taking $548.5 million. This decision underscores the importance of this issue to countless Australians.
In 2019, Button took up the cause by joining the legal fight against robodebt. Her journey has been filled with numerous obstacles. One of the most traumatic moments came when a collector seized $11,571 from her bank account, on the basis that she owed a makeshift historical robodebt. After almost a year of back-and-forth communication with Centrelink, she was denied all but $20 a week payment plan. Button’s story takes center stage in SBS’s new docu-drama “The People vs Robodebt.” It powerfully illustrates the personal toll this scheme took on individuals like her.
The robodebt scheme worked by averaging income across fortnights, resulting in mass overstated debt assertions on behalf of welfare recipients. According to government estimates, up to 5.5 million of these debts—involving a total of $4.4 billion—may be eligible. This failure to act would affect nearly three million individuals. The plan previously collected $1.76 billion through over 794,000 debt collection actions, imposing an enormous financial weight on at risk people.
The recent settlement provides up to $60 million for non-profit administration expenses. Further, it sets aside up to $13.5 million of the total for the winning applicants’ legal costs. The majority of the settlement, $475 million, is allocated to pay victims. Attorney-General Michelle Rowland said the settlement demonstrated the Albanese government’s dedication to achieving outcomes that are “just and fair.”
Button expressed hope that this settlement serves as a “wake-up call to the government to say ‘we’re not going to tolerate this.’” She pointed out that the financial punishment levied against the federal government should not be understated. This is scant compensation for the emotional and psychological damage that the robodebt scheme wreaked on so many people.
“I just want to see criminal charges laid on the people that orchestrated, designed and constructed the scheme.” – Felicity Button
In an effort to address income apportionment issues that arose from robodebt practices, Social Services Minister Tanya Plibersek introduced a bill to Parliament on September 4. This legislative move aims to create a more robust framework for managing welfare payments and ensuring that recipients do not face unjust penalties.
The robodebt scheme’s royal commission has called it a “crude and cruel mechanism.” They announced that this was not only unjust, it was illegal. While these steps were positive, the commission focused on how it unnecessarily criminalized thousands of people. The inquiry’s findings and recommendations necessarily require immediate action both within DEWR and with respect to wider reforms. Yet they spotlight the long-term fixes they say are still needed.
“Settling this claim is the just and fair thing to do.” – Attorney-General Michelle Rowland
In response to an inquiry, DEWR admitted that the department had requested Deloitte produce an amended statement of assurance and final report. This request illustrates the continued suspicion of consternation surrounding the administrative process that governs the scheme.
Button’s experience underscores the wider, societal implications of the robodebt scheme. She said that behind every story of financial distress, there are human lives that change dramatically.
“But this brings it to a much deeper level … It makes you think, all it takes is one thing to completely derail your life.” – Felicity Button
Conversations around accountability, equity, and reform in welfare systems are vitally important right now. In response, Button is pushing for expanded mental health resources for people who have suffered more than just material loss.
“You can give them all the money in the world; it’s not going to bring the person back.” – Felicity Button
We believe that monetary restitution is imperative. Advocates like Button are keen to see real justice requires acknowledging and alleviating the emotional and psychological toll families and individuals hurt by the robodebt scheme have experienced.
