The federal government has agreed to pay $548 million as part of a compensation package to victims of the "illegal and immoral" Robodebt Scheme.

In the biggest class action settlement in Australian history, nearly 450,000 victims of the Robodebt scandal are set to receive $475 million, along with legal costs not exceeding $13 million and the costs of administering the settlement, which could be as much as $60 million.

Details of the deal were finalised in the Federal Court today after the government decided not to pursue defending an appeal against the original class action settlement of $112 million.

The original settlement was reached in 2020 under the Morrison government and only covered interest on the money victims had been forced to illegally pay the government.

This would

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