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Mother of robodebt suicide victim says she is barred from $475 million settlement

Kath Madgwick, whose son Jarrad died after a robodebt notice, was told she is ineligible for the $475 million compensation scheme.

In 2019, 22-year-old Jarrad Madgwick took his own life after a Centrelink notice indicated a debt of $1,795.85, which he believed would block his Newstart allowance. The royal commission later identified the robodebt scheme’s income-averaging method as unlawful and linked it to his death. The federal government recently approved a $475 million settlement for about 450,000 victims, with provisions for close relatives of deceased claimants.

Kath Madgwick, Jarrad’s mother, was informed by Commonwealth lawyers that she does not qualify because her son never received a formal debt notice. Services Australia argues the provisional debt did not involve income averaging, despite the commission’s findings that the review was triggered by that method. The agency says it has improved debt communication since 2019. Madgwick says the exclusion feels like a denial of responsibility and continues to affect her mental health, but she remains determined to seek justice.

Why it matters

The case highlights ongoing disputes over accountability and compensation for victims of the controversial robodebt scheme.

In this story

robodebtsettlementcompensationsuicidedebt noticeincome averagingCommonwealth lawyersmental healthroyal commission
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