Knox Class Action (Facilitation) Bill 2026; Second Reading

Dreyfus supported the bill, describing it as a principled response to the unlawful robodebt scheme implemented by the former Coalition government. Dreyfus referenced the Royal Commission into the Robodebt Scheme, which found the scheme was cruel, illegal, and caused significant human suffering. Dreyfus explained that the bill ensures compensation payments are not clawed back by other government systems, allowing victims to retain the full amount owed to them. Dreyfus emphasised that the legislation reflects the government's commitment to repairing the damage caused by the previous administration's failure to uphold the rule of law.

Ryan unreservedly endorsed the bill, stating that victims of robodebt deserve to receive their compensation without it impacting their social security, veterans' affairs, or NDIS supports. Ryan highlighted that the Federal Court had approved a $475 million settlement, the largest class action in Australian history, to compensate for the harms caused by the illegal scheme. Ryan urged the government to urgently implement safeguards for automated decision-making, referencing Royal Commission recommendations that had not yet been fully enacted. Ryan warned that without such safeguards, similar failures could occur in other areas such as aged care and the NDIS.

Ambihaipahar supported the bill, arguing that it prevents the Commonwealth from clawing back compensation from people already harmed by the unlawful robodebt scheme. Ambihaipahar shared an anecdote about a constituent who suffered stress and financial hardship due to an incorrectly calculated debt. Ambihaipahar explained that the legislation amends three key acts to exempt settlement payments from income testing and recovery provisions. Ambihaipahar noted that the government had agreed to all Royal Commission recommendations and that further exemptions, including for income tax, would be legislated later.

Clutterham supported the bill, detailing how it exempts Knox settlement payments from compensation and income-test provisions in the NDIS, Social Security, and Veterans' Entitlements acts. Clutterham referenced the Federal Court's approval of the settlement in Prygodicz v Commonwealth of Australia, which addressed claims for unjust enrichment. Clutterham argued that the robodebt scheme was a deliberate failure of public administration that caused severe distress and financial hardship. Clutterham emphasised that the bill ensures victims receive their compensation in full without being retraumatised by interactions with the social security system.

Witty supported the bill, sharing the story of a constituent who faced a large, incorrect debt while balancing study and work. Witty argued that the legislation ensures compensation reaches victims in full, without creating new administrative obstacles or financial liabilities. Witty highlighted the government's efforts to implement Royal Commission recommendations and improve debt management practices. Witty stated that the bill recognises the extraordinary circumstances of the robodebt scheme and ensures that victims are not disadvantaged again by the systems that harmed them.

Holzberger supported the bill, reading testimony from Jennifer Miller regarding the suicide of her son, Rhys, which was linked to the stress of robodebt debt collection. Holzberger detailed the timeline of Centrelink and debt collector interactions that preceded Rhys's death, highlighting the relentless pressure placed on him. Holzberger argued that the bill is a necessary step towards justice for those who suffered severe harm, including loss of life, due to the unlawful scheme. Holzberger commended the bill to the House, emphasising the human cost of the administrative failure.

Roberts supported the bill, stating that it delivers on the promise that robodebt victims will receive compensation without penalty or retraumatisation. Roberts outlined the government's progress in implementing Royal Commission recommendations, including reforms to debt management and the introduction of small debt waivers. Roberts explained that the bill amends key legislation to prevent settlement payments from being classified as income or compensation, ensuring they do not reduce other entitlements. Roberts emphasised that the swift passage of the bill is essential to provide fair and lasting redress to those affected by the scheme.

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Coffey supported the bill, arguing it protects compensation payments from being reduced by income support rules or recovered by the Commonwealth. Coffey detailed the trauma inflicted on over 400,000 people by the illegal robodebt scheme, citing specific cases of suicide linked to debt demands. Coffey stated that victims should not face tax liabilities or pension reductions when receiving redress for harm caused by the government. Coffey emphasised that the bill fulfils the government's commitment to acting on royal commission recommendations and restoring trust in social security systems.