FED Exclusion of Robodebt Settlement Payments from Compensation Definitions

Knox Class Action (Facilitation) Bill 2026

House of Representatives

Senate

Assent

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Links to official parliament websites

Official page: progress through parliament

Effects of this bill

If this bill passes, it means that:

Robodebt settlement payments are not treated as compensation under the National Disability Insurance Scheme Act 2013.
Robodebt settlement payments are not treated as compensation under the Social Security Act 1991.
Robodebt settlement payments are not treated as compensation under the Veterans' Entitlements Act 1986.

The Debate

What different members said when this bill was debated:

Tanya Plibersek ALP

“I move: That this bill be now read a second time. The illegal and immoral robodebt scheme, created by the former coalition government, caused pain and trauma for more than 400,000 people across Australia. It was a shocking and deliberate case of maladministration, perpetrated knowingly by ministers. Those opposite said they were going to save taxpayers $4.7 billion through this scheme.”

Official source →

Melissa McIntosh LIB

“I rise to speak on the Knox Class Action (Facilitation) Bill 2026. The Knox settlement will compensate eligible group members either through fixed payments or by an individual assessment for a range of economic or non-economic loss types.”

Official source →

Mark Dreyfus ALP

“I rise to support the Knox Class Action (Facilitation) Bill 2026 introduced by the Minister for Social Services, the Hon. Tanya Plibersek. This bill is wise, principled and beneficial, but behind it lies one of the most shameful episodes in the history of Australian public administration—the Liberal and National parties’ unlawful and punitive robodebt scheme.”

Official source →

Dr RYAN

“In June this year, the Federal Court approved a settlement in which the Commonwealth would pay $475 million as compensation for the harms caused by the illegal and immoral robodebt scheme. This was known as the Knox settlement. It was the largest class action settlement in Australian history. It was a settlement commensurate with the scale of the damage and the ruin caused by robodebt.”

Official source →

Ash Ambihaipahar ALP

“I rise to speak on the Knox Class Action (Facilitation) Bill 2026. It’s purpose is to amend three particular pieces of legislation: the National Disability Insurance Scheme Act, the Social Security Act and the Veterans’ Entitlements Act.”

Official source →

Claire Clutterham ALP

“I rise today to speak in support of the Knox Class Action (Facilitation) Bill 2026. I begin by thanking the member for Barton for her contribution—in particular, the way she highlighted the story of her constituent from Kingsgrove. I know that she has deep levels of empathy and concern for that lady and indeed for all Australians who were affected by the illegal and immoral robodebt scheme.”

Official source →

Sarah Witty ALP

“I rise to speak on the Knox Class Action (Facilitation) Bill 2026. This bill deals with the final consequences of one of the worst failures of public administration in modern Australian history.”

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Rowan Holzberger ALP

“In this tragic tale, there are many heroes. They are not victims. There are two heroes in particular who I want to talk about in this my second contribution on robodebt that I’m privileged to make to this place. The first contribution was when I recounted Kath Madgwick’s evidence to the royal commission into robodebt.”

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Ms ROBERTS

“The incorporated speech read as follows— I would like to speak to the Knox Class Action (Facilitation) Bill 2026, which is legislation that delivers on a solemn promise to the victims of the robodebt scandal—that the compensation they are owed will be received in full, without penalty, without reduction and without retraumatisation by the very system that harmed them.”

Official source →

Renee Coffey ALP

“I first start by acknowledging the contribution that the member for Forde shared—the testimony from Rhys’s mother. I don’t think anyone could listen to that and not be moved. I’m very appreciative of the member for Forde for sharing that with us. The robodebt scheme created by those opposite caused pain and trauma for more than 400,000 people across Australia.”

Official source →

Jess Walsh ALP

“I move: That this bill be now read a second time. I seek leave to have the second reading speech incorporated in Hansard. Leave granted. The speech read as follows— The illegal and immoral Robodebt Scheme, created by the former Coalition Government, caused pain and trauma for more than 400,000 people across Australia.”

Official source →

News articles and press releases

Context: the Robodebt Royal Commission

Royal Commission into the Robodebt Scheme, Final Report — 2023-07-07

Robodebt was a crude and cruel mechanism, neither fair nor legal, and it made many people feel like criminals.