Almost half a million Australians will have their robodebts refunded

The federal government will refund $721 million recouped from 470,000 people through the controversial “robodebt” scheme.

Under the contentious “robodebt” program, welfare recipients had the income they reported to Centrelink matched to Australian Tax Office records.

The scheme worked by averaging worker income, and sending automatic debt repayment notices.

The federal court has ruled the program can’t calculate people’s money this way.

Those who have been overcharged through the scheme will begin receiving refunds from July.

Interest charges and recovery fees paid on debts will also be refunded.

The federal government says it has made changes to the way the system works going forward.