Aussie, 22, takes his own life after receiving message from Centrelink – now cruel bureaucrats are refusing his family compensation

A Queensland mother whose son took his own life after receiving a Centrelink debt notice says the Commonwealth is relying on a waiver she says was issued after his death to block her from receiving Robodebt compensation. 

Jarrad Madgwick, 22, called Centrelink twice on May 30, 2019, to find out why his Newstart claim – the working-age unemployment benefit that preceded JobSeeker – was rejected, before discovering a $2,000 Robodebt on his MyGov account. 

Hours later, he took his own life. 

‘It was an unimaginable tragedy that no parent should ever have to endure,’ his mother Kath Madgwick  told the Daily Mail this week.

‘The debt was the last thing he mentioned to me before he left the house. Thirty-six hours later, I found my son dead in a tree.’

Jarrad was one of more than 450,000 Australians the federal government accused of owing about $1.7billion through the Robodebt scheme, later found to be unlawful. 

The system was designed to address overpayment of social security benefits, but resulted in thousands of people being wrongly accused between 2015 and 2019, according to the Royal Commission. 

Ms Madgwick claims Services Australia agreed to waive the alleged $2,000 debt after she reported her son Jarrad’s death and challenged the claim.

Years later, she says the Commonwealth is relying on that same waiver to argue Jarrad was not entitled to compensation in the landmark Robodebt class action, despite the Royal Commission finding the debt notice was a ‘precipitating factor’ in his death.

In 2025, the federal government agreed to pay an additional $475 million in compensation to victims after a Gordon Legal appeal. 

The claim argued the Royal Commission had uncovered ‘damning new evidence’ that officials involved in the scheme may have committed ‘malfeasance in public office’.

A record $548million settlement was approved in June 2026, with compensation distribution now underway. 

In Jarrad’s case, the Royal Commission found the way he was informed of a potential Centrelink debt was a ‘precipitating factor’ in his death.

Ms Madgwick has now launched a Change.org petition addressed to Finance Minister Katy Gallagher, Prime Minister Anthony Albanese and Minister for Communications Michelle Rowland. 

In it, she calls for ‘accountability and fair compensation’ for victims after Commonwealth lawyers told her in September she was not eligible for compensation because her son never received an official debt notice before or after his death.

She said victims such as Jarrad must be ‘adequately compensated for the suffering they have endured’ as a result of 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 the petition that her son’s death was not an isolated case.

‘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 Jarrad’s estimated debt was not generated through the unlawful income averaging method that sat at the heart of 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 seen by the Daily Mail Australia, the Commonwealth disputed key elements of the family’s account, stating a debt notice linked to Jarrad was ‘suppressed and was never issued’.

The note said that he was never sent a demand to repay the debt before or after his death.

While Ms Madgwick claims she was told the debt had been waived, the Commonwealth said it was instead ‘permanently written off’ after his death was reported. 

It argues that this communication would have informed the family that no recovery action would be pursued.

On that basis, the Commonwealth says 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 organisation is assisting customers who were overpaid with clearer information online, strengthening support pathways for vulnerable people and increasing access to specialist social work assistance for those with situations requiring extra help.

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