This bill became law on Sep 18th, 2026.
Welfare & housing
Eligible members of the Knox class actionAn appeal arising from the earlier Robodebt class action settlement. can receive either a fixed paymentA settlement amount paid without an individual loss assessment. or an amount based on an individual assessment.
The government said the bill was needed so about 168,000 Robodebt class members could receive the benefit of a $475 million settlement without having to repay money under Commonwealth compensation rules or having their ongoing support reduced. Without an exemption, a fixed settlement payment could add about $38.50 or $67.30 to a recipient's assessed income each fortnight for 52 weeks, potentially reducing or stopping social security or veterans' payments. The broader context was a scheme that unlawfully raised at least $1.763 billion in debts against about 433,000 people and recovered about $751 million from roughly 381,000 of them.
Robodebt had already unlawfully raised at least $1.763 billion in debts against about 433,000 people, and the Commonwealth's $475 million Knox class-action settlement created a risk that ordinary compensation and income-testing rules would claw back or reduce victims' support. After the Commonwealth agreed to the settlement in September 2025 and the Federal Court approved its distribution scheme on 23 June 2026, the government introduced this bill so about 168,000 eligible members could receive fixed or individually assessed payments without those consequences, with the House passing it on 15 September 2026.
No speaker in the evidence opposed the bill's protections. Monique Ryan (Independent) argued that the government had made no substantive progress on the Robodebt Royal Commission's recommendations for consistent safeguards, independent scrutiny and clearer review rights when Commonwealth agencies use automated decision-making. Melissa McIntosh (Liberal) raised a related concern that automated assessment systems in aged care and the NDISThe National Disability Insurance Scheme, which funds disability-related supports. lacked enough human oversight and could produce incorrect or inadequate support decisions.
The government introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 18 Sept 2026
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
8 days
From introduction to the latest recorded parliamentary step
Meaning
Eligible members of the Knox class actionAn appeal arising from the earlier Robodebt class action settlement. can receive either a fixed paymentA settlement amount paid without an individual loss assessment. or an amount based on an individual assessment. The $475 million settlement covers harm caused by Robodebt, and the first payments were expected to begin in late 2026.
For National Disability Insurance Scheme participants, a Knox payment will not be treated as compensation. This prevents the payment from being recovered to cover past NDISThe National Disability Insurance Scheme, which funds disability-related supports. supports or used to reduce funding in a future NDISThe National Disability Insurance Scheme, which funds disability-related supports. plan.
For people receiving social security, a Knox payment will not count as income or compensation. It therefore cannot reduce or stop their current payment, create a period when they cannot receive support, or be taken to repay social security previously received during such a period.
The same protection applies to income support paid under veterans' laws. A Knox payment will not count as income or compensation, so it cannot reduce or stop that support or be recovered by the Department of Veterans' Affairs under the compensation rules.
The main changes start the day after the bill receives royal assent. The bill itself does not create exemptions for income tax, Medicare or aged-care rules; the government said those protections would be made separately, with the income-tax exemption to be legislated before the end of the 2026–27 tax year.
The Commonwealth reached agreement in the class action appeal Knox & Anor v Commonwealth of Australia & Ors (VID982/2024) (Knox) in September 2025 for the harms caused by the Robodebt scheme. On 23 June 2026, this settlement was approved by the Federal Court of Australia in the decision Prygodicz v Commonwealth of Australia (Robodebt settlement) [2026] FCA 1029. The Knox class action was an appeal from the earlier Robodebt class action settlement in Prygodicz & Ors v Commonwealth of Australia (VID1252/2019). The Royal Commission into Robodebt found the Australian government scheme “harmed ecoKnox Class Action (Facilitation) explanatory memorandum
National Disability Insurance Scheme Act 2013 1 After subsection 11(2) (2A) A settlement payment under the Settlement Distribution Scheme approved in Prygodicz v Commonwealth of Australia (Robodebt settlement) [2026] FCA 1029 does not constitute compensation for the purposes of this Act.Knox Class Action (Facilitation) introduced text
Social Security Act 1991 2 After paragraph 8(8)(jd) (je) a settlement payment under the Settlement Distribution Scheme approved in Prygodicz v Commonwealth of Australia (Robodebt settlement) [2026] FCA 1029; 3 Subsection 17(2) Omit “subsection (2B)”, substitute “subsections (2B) and (2D)”. 4 After subsection 17(2C) (2D) A settlement payment under the Settlement Distribution Scheme approved in Prygodicz v Commonwealth of Australia (Robodebt settlement) [2026] FCA 1029 does not constitute compensation for the purposes of this Act.Knox Class Action (Facilitation) introduced text
Veterans’ Entitlements Act 1986 5 After paragraph 5H(8)(mc) (md) a settlement payment under the Settlement Distribution Scheme approved in Prygodicz v Commonwealth of Australia (Robodebt settlement) [2026] FCA 1029; 6 Subsection 5NB(2) Omit “or (6A)”, substitute “, (6A) or (6C)”. 7 After subsection 5NB(6B) (6C) A settlement payment under the Settlement Distribution Scheme approved in Prygodicz v Commonwealth of Australia (Robodebt settlement) [2026] FCA 1029 does not constitute compensation for the purposes of this Act.Knox Class Action (Facilitation) introduced text
2 Commencement (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms. Commencement information Commencement Date/Details 1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 2. Schedule 1 The day after this Act receives the Royal Assent.Knox Class Action (Facilitation) introduced text
Context
Robodebt had already unlawfully raised at least $1.763 billion in debts against about 433,000 people, and the Commonwealth's $475 million Knox class-action settlement created a risk that ordinary compensation and income-testing rules would claw back or reduce victims' support. After the Commonwealth agreed to the settlement in September 2025 and the Federal Court approved its distribution scheme on 23 June 2026, the government introduced this bill so about 168,000 eligible members could receive fixed or individually assessed payments without those consequences, with the House passing it on 15 September 2026.
Robodebt unlawfully raised debts against hundreds of thousands
The scheme raised at least $1.763 billion in debts against about 433,000 people, and about $751 million was recovered from roughly 381,000 of them.
Knox Class Action (Facilitation) explanatory memorandum ↗Commonwealth agrees to Knox class-action settlement
The agreement made a $475 million settlement available to compensate eligible class members for harm caused by Robodebt.
Knox Class Action (Facilitation) explanatory memorandum ↗Federal Court approves the Knox settlement distribution schemeThe Federal Court-approved process for assessing and paying eligible class members.
The court approved the scheme that would pay eligible members through fixed payments or individual assessments.
Knox Class Action (Facilitation) explanatory memorandum ↗Government introduces the Knox Class ActionAn appeal arising from the earlier Robodebt class action settlement. (Facilitation) Bill
The bill was introduced to stop settlement payments from triggering Commonwealth compensation recoveryRules allowing government to reclaim support after compensation is received. or income-testing consequences for social security, veterans’ and NDISThe National Disability Insurance Scheme, which funds disability-related supports. recipients.
Parliamentary timeline ↗House passes the bill
The House completed its consideration after agreeing to the bill at second and third reading.
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The Governor-General gave Royal Assent, turning the bill into an Act.
Key criticism
No speaker in the evidence opposed the bill's protections. Monique Ryan (Independent) argued that the government had made no substantive progress on the Robodebt Royal Commission's recommendations for consistent safeguards, independent scrutiny and clearer review rights when Commonwealth agencies use automated decision-making. Melissa McIntosh (Liberal) raised a related concern that automated assessment systems in aged care and the NDISThe National Disability Insurance Scheme, which funds disability-related supports. lacked enough human oversight and could produce incorrect or inadequate support decisions.
Both speakers supported the bill itself: Ryan endorsed it without reservation, while McIntosh said the Coalition would support its quick passage. Their criticism concerned the government's wider use and regulation of automated decision-making, rather than the settlement protections in this bill.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Start here — lead voices
Holzberger supports the bill as a way to help people harmed by robodebt pursue justice, highlighting the devastating pressure that unlawful debts placed on victims and their families.
Read in Hansard ↗Ryan unreservedly supports the bill because it ensures robodebt victims can receive their full settlements without losing social security, veterans' affairs payments or NDISThe National Disability Insurance Scheme, which funds disability-related supports. supports.
Read in Hansard ↗Coffey supports the bill because it protects robodebt compensation from reducing income support, being recovered by the Commonwealth or creating unexpected tax liabilities, and she urges its quick passage to avoid further delays for victims.
Read in Hansard ↗Witty supports the bill because it ensures people harmed by robodebt receive their full Knox class actionAn appeal arising from the earlier Robodebt class action settlement. compensation without the payments affecting social security, veterans' entitlements or disability support arrangements.
Read in Hansard ↗All speeches by bloc
9 speakers · 9 support
“We still haven't organised that, Kath. If we get a chance, let's do that soon. I know you have a sister in arms, Jennifer Miller, who you have, through these awful circumstances, joined forces with to shed light on what was an unspeakable failure of government policy. I know that because I've seen the media reports of you and Jennifer Miller together. So I went looking and I found Jennifer's testimony to the royal commission, and her words sum up what this bill is all about much better than I can. Jennifer Miller gave her testimony to the royal commission on 17 February 2023. She said: 'My name is Jennifer Miller. This statement made by me is to give a voice to what Rhys went through, since he is no longer here to speak for himself.' The statement went on:”Read the full speech in Hansard ↗
“Passing this bill quickly will help put these protections in place and avoid unnecessary delays for compensation. For someone waiting for compensation, another delay means more uncertainty about the money that they are owed. We have an opportunity to give people greater certainty about the treatment of their compensation. The Albanese Labor government promised to investigate robodebt. We delivered the royal commission. We are acting on its recommendations and protecting compensation for the people harmed. There is more work to finish, and we will keep doing it. But no member of this House should lose sight of why we are here. People trusted their government to administer the law fairly. That trust was violated. Families have lived with the grief of an empty chair at family gatherings. Survivors have carried distress long after the scheme ended. They deserve justice expressed through the decisions we make and the decisions we put into law.”Read the full speech in Hansard ↗
“The Australians affected by robodebt did not ask to be part of a class action. They did not ask to be part of a royal commission. They simply expected government to treat them fairly, lawfully and with respect. Many were let down. This bill will not undo the stress and the hardship that people experienced. It will not return the years they spent dealing with a scheme that should never have been operated. But it will help ensure that, when compensation has been secured, the compensation reaches the people it was intended for. That is fair. That is responsible. And, after everything Australians affected by robodebt have been through, it is the very least they deserve. For those reasons, I commend the bill to the House.”Read the full speech in Hansard ↗
“People's lives have been destroyed, in many cases, irreparably. The human impacts of robodebt: families struggling to make ends meet receiving a debt notice at Christmas, like the lady from Kingsgrove that the member for Barton told us about. There are young people being driven to despair by demands for payment and, horribly, an account of a young man's suicide. This can never happen again, and thanks to many stakeholders, especially the countless victims who did speak up and tirelessly advocated for themselves and others, it won't. And thanks to this bill, those entitled to payment through the Knox class action will receive that payment in full. I commend the bill to the House.”Read the full speech in Hansard ↗
“This bill is this Albanese Labor government putting it right methodically and completely. We established the royal commission. We agreed or agreed in principle to all 56 of its recommendations. We are delivering the largest class action settlement in Australian history, and, with this bill, we are making sure that settlement is not diminished by the very Commonwealth systems it was meant to remedy against. The government has also flagged that complementary exemptions relating to Medicare and aged care will follow through regulation and that a full exemption from income tax on these payments will be legislated before the end of the 2026-27 tax year. This bill is not the end of that work. It is the next necessary step in it.”Read the full speech in Hansard ↗
“This bill is about more than money. It is about dignity. It is about saying to every person who was terrorised by robodebt, 'We see you, we hear you and we will not let the system hurt you again.' It is about acknowledging that the harm done was not only financial but also human, personal and profound. Some will say this is unusual legislation. They are right. The robodebt scheme was unusual in its cruelty, unusual in its illegality and unusual in the scale of its failure. Ordinary rules do not apply to extraordinary wrongs. To the victims of robodebt: this parliament stands with you. This government will not rest until every person who was harmed receives the justice they deserve. And, when the compensation payments arrive, they will arrive in full because you have already paid enough. I commend the bill to the House.”Read the full speech in Hansard ↗
“This bill cannot undo what was done, but it can make sure that the people harmed by an unlawful scheme keep the compensation they are owed without another arm of government taking it back. That is a modest act of justice. After robodebt, it is the very least we owe them. I commend this bill to the House.”Read the full speech in Hansard ↗
“It is important that this Bill pass quickly through both Houses of Parliament to ensure settlement payments to Robodebt victims are not delayed, and I thank parties that have pledged their cooperation in this respect.”Read the full speech in Hansard ↗
“I want to thank members for their cooperation on the swift passage of this important bill through the House, which will ensure victims of the illegal and immoral robodebt scheme receive the compensation owed to them under the Knox class action settlement in full. It bears repeating that robodebt was a shocking and deliberate case of maladministration perpetrated knowingly by ministers of the former coalition government. It caused profound pain and trauma for more than 400,000 people. This must never happen again, and it's up to us to ensure that those who suffered because of robodebt are not retraumatised by the system that caused them harm in the first place.”Read the full speech in Hansard ↗
1 speaker · 1 support
“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. The bill will amend the NDIS, social security and veterans' entitlements acts to exempt Knox settlements payments from the existing statutory recovery schemes and income testing provisions that ordinarily apply. Under normal circumstances, compensation payments received by a person would be assessed against their entitlement to social security payments. This bill will amend the Social Security Act to exempt any payment made under the Knox settlement from being classified as income or a compensation payment to assess a person's entitlement to social security payments. The same exemption will be applied under the Veterans' Entitlements Act to exempt these payments from being used for a person's entitlement to DVA payments. The bill will also exempt any settlement amount under the NDIS Act so as not to impact a person's NDIS plan for the funding of reasonable and necessary supports. I understand from discussions with the government that an additional bill will be introduced to the parliament by the end of the 2026-27 financial year to also exempt these payments from income tax provisions. The government has requested that this bill pass the parliament quickly to ensure settlement payments can be made promptly and there is no impact to people's payments. The coalition will support quick passage of the bill.”Read the full speech in Hansard ↗
1 speaker · 1 support
“Victims of robodebt certainly deserve to access full NDIS social security and veterans' affairs payments. People who are harmed by an unlawful government scheme shouldn't be penalised again when the government compensates them for that harm. They deserve to stand on equal ground. They deserve to receive compensation for the harm that they experience without that compensation impacting other ongoing supports that they receive and need. And so I unreservedly endorse this bill.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Assent · Assent
Assent
The Governor-General gave Royal Assent, turning the bill into an Act.
