About 3m Australians affected by unlawful Centrelink debt calculation to be eligible for up to $600 compensation

Announcement comes after the federal government admitted the use of income apportionment to determine welfare payments was invalid

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About 3 million Australians affected by Centrelink’s unlawful debt calculation method will be eligible for up to $600 in compensation after the federal government admitted the process was invalid.

The social services minister, Tanya Plibersek, announced on Wednesday the government would also raise the threshold for small, accidental debts to $250, meaning about 1.2 million debts are expected to be waived or not raised this financial year.