Mother Fights for Compensation After Son's Suicide Linked to 'Robodebt'

A Queensland mother whose son died by suicide after receiving a Centrelink debt notice is contesting the Commonwealth's claim that she is ineligible for Robodebt compensation, alleging the government is using a debt waiver issued after his death to block her claim. Kath Madgwick stated her son, Jarrad, discovered a $2,000 Robodebt on his MyGov account on May 30, 2019, after calling Centrelink about a rejected Newstart claim. He died by suicide hours later.

Jarrad was among over 450,000 Australians accused by the federal government of owing approximately $1.7 billion through the Robodebt scheme, which was later found to be unlawful. The system, designed to identify overpayments of social security benefits, wrongly accused thousands of individuals between 2015 and 2019, according to a Royal Commission.

Ms. Madgwick claims that Services Australia agreed to waive Jarrad's alleged $2,000 debt after she reported his death and challenged the notice. Years later, she says the Commonwealth is using this waiver to argue Jarrad was not entitled to compensation in the landmark Robodebt class action, despite the Royal Commission identifying the debt notice as a "precipitating factor" in his death.

In 2025, the federal government agreed to an additional $475 million in compensation for victims following an appeal by Gordon Legal. This followed a record $548 million settlement approved in June 2026, with compensation distribution now in progress. The appeal argued that the Royal Commission had uncovered "damning new evidence" suggesting officials involved in the scheme may have committed "malfeasance in public office."

Ms. Madgwick has launched a Change.org petition addressed to Finance Minister Katy Gallagher, Prime Minister Anthony Albanese, and Minister for Communications Michelle Rowland. She is calling for "accountability and fair compensation" for victims, after Commonwealth lawyers informed her in September that she was not eligible for compensation because her son had not received an official debt notice before or after his death.

She stated that victims like Jarrad must be "adequately compensated for the suffering they have endured" due to the Robodebt saga. "Now, I am faced with an injustice of another kind," she told the Daily Mail. "The Commonwealth is using the fact that they waived Jarrad's debt as an excuse to exclude me from participating in the class action regarding the Robodebt scheme. This betrayal is incomprehensible and adds further hurt to an already unbearable situation."

Ms. Madgwick wrote in her petition that her son's death was not an isolated incident. "The Robodebt program affected thousands of Australians, many of whom were just as innocent and undeserving of such torment as Jarrad was," she said. "This automated system, which operated with significant errors and moral ambiguity, inflicted harm on countless people, causing undue stress, mental anguish and, in the worst cases, loss of life. Those who can prove their innocence should not be barred from justice because of technicalities and bureaucratic oversight. The impact of this scheme must be acknowledged, and healing must begin."

Services Australia maintains that Jarrad's estimated debt was not generated through the unlawful income averaging method central to Robodebt. However, the Robodebt Royal Commission found that the review of his potential overpayments was triggered by income averaging using Australian Taxation Office data.

In a letter to Gordon Legal, the Commonwealth disputed key elements of the family's account, stating that a debt notice linked to Jarrad was "suppressed and was never issued" and that he was never sent a demand for repayment before or after his death. While Ms. Madgwick claims she was informed the debt was waived, the Commonwealth stated it was "permanently written off" after his death was reported, arguing this communication would have informed the family that no recovery action would be pursued. On this basis, the Commonwealth contends Jarrad falls outside the settlement's definition of a group member and is therefore ineligible for compensation.

"Services Australia acknowledges the Royal Commission's findings about Mr Madgwick's circumstances and the profound impact of the Robodebt scheme on individuals, families and vulnerable people," a spokesperson said. "The Robodebt scheme was found unlawful due to the use of income averaging in raising debts. Since 2019, Services Australia has changed how it communicates with customers about debts and reviews." The spokesperson added that the agency is providing clearer online information to customers about debts and overpayments, enhancing support pathways for vulnerable individuals, and increasing access to specialist social work assistance for those requiring extra help.

If you or someone you know needs support, contact Lifeline on 13 11 14, or Beyond Blue on 1300 22 4636.