The federal government has agreed to pay $475 million in compensation to the thousands of victims of the Morrison government's Robodebt scandal.

Robodebt was an automated government scheme that used a faulty algorithm to incorrectly demand tens of thousands of welfare recipients pay debts they did not owe.

The scandal pushed some of Australia's poorest people further into debt, with many taking out loans they could not afford to make the urgent repayments.

Attorney-General Michelle Rowland said if approved by the court, the payout would be the largest class action settlement in Australian history, covering hundreds of thousands of victims.

A previous class action in 2020 resulted in the refunding of incorrect debts with interest and wiping of other debts accrued through the illegal sys

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