Linda Reynolds (WA, Liberal Party, Minister for Government Services) Share this | Hansard source

I thank the senator for the question. The Federal Court has approved a settlement of the income compliance class action. Services Australia will be implementing a scheme to distribute the settlement funds of $112 million, less court approved costs for Gordon Legal. The background of the history which Senator Gallagher raises is very well-known. But for me, as the minister now, what is important is how we move forward and put this behind us. The court has decided the settlement is fair and reasonable and is in the interests of class action members. The court noted that the contradictor who was appointed to represent group members' interests described the proposed settlement as a very favourable outcome. Both the Commonwealth and Gordon Legal have acknowledged that the settlement of the class action is not an admission of liability by the Commonwealth and does not reflect any acceptance by the Commonwealth of the allegations that the Commonwealth or any of its officers had any knowledge of unlawfulness associated with the Income Compliance Program. His Honour similarly found that there is little in the materials placed before the courts that could have substantiated such an allegation.