Question Time AU

Bill Debate · Second Reading

Knox Class Action (Facilitation) Bill 2026; Second Reading

House of Representatives · Thursday 10 September 2026

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The debate concerned the second reading of legislation to facilitate compensation for victims of the former government's robodebt scheme. The Minister for Social Services argued that the bill was necessary to ensure settlement payments were not reduced by tax, income testing, or statutory recovery schemes. She highlighted that the robodebt scheme caused significant harm and that the government had already implemented most royal commission recommendations. The bill aims to exempt these specific compensation payments from standard social security and disability insurance assessments to prevent further distress to victims. The debate was adjourned after the Minister's speech.

Outcome

The debate was adjourned.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Plibersek supported the bill, describing the robodebt scheme as an illegal and immoral program that caused trauma to over 400,000 people. Plibersek noted that the scheme cost the Commonwealth more than $2 billion, despite claims it would save $4.7 billion. Plibersek stated that the government had agreed to all 56 royal commission recommendations, with 52 fully implemented. Plibersek argued that the bill was essential to ensure victims received the full $475 million settlement without reductions due to income testing or debt recovery. Plibersek emphasized that the exemptions were unique to the extraordinary circumstances of robodebt and did not set a broader precedent.

Government response

Plibersek explained that the bill amends the National Disability Insurance Scheme Act 2013, the Social Security Act 1991, and the Veterans' Entitlements Act 1986. These changes prevent settlement payments from being classified as income or triggering recoveries for reasonable and necessary supports. Plibersek clarified that while normal systems generally apply, an exception was made because the royal commission found the scheme knowingly harmed disadvantaged people. Plibersek stated that other exemptions, including from income tax, would be enacted by the close of the 2026-27 financial year. Plibersek urged swift passage to ensure victims received fair redress without delay.