Federal government to pay out $2m to settle class action over ?racist? work for the dole program

The federal government will pay a traditional owners corporation representing some of the poorest communities in Australia more than $2m after settling a class action that argued the remote "work for the dole" program was racist.

The Community Development Program (CDP) has required about 30,000 jobseekers in remote communities to work up to 25 hours a week to receive the dole. Participants, 80% of whom were Aboriginal, were said to have faced tougher welfare penalties than those in other parts of Australia.

After sustained criticism from Indigenous leaders who claimed the program was racist and even "modern-day slavery", Western Australia's Shire of Ngaanyatjarraku and the Ngaanyatjarra council launched a class action in 2019 on behalf of 680 CDP participants.

Following a year of confidential mediation, orders issued this month by the federal court Justice Richard White officially approved the settlement, revealing the government will pay $2m to the Ngaanyatjarra council.

The court said the council "represents the interests of around 2,000 Ngaanyatjarra, Pintupi and Pitjantjatjara Traditional Owners (Yarnangu) who reside in the Ngaanyatjarra Communities". It said it intended to use the money for an infrastructure program and an arts project at Warburton, the largest community in the area.

The government also agreed to redesign the CDP scheme for jobseekers in the 10 communities covered by the class action. Without referencing the case, the Indigenous affairs minister, Ken Wyatt, announced in the May budget that the government would overhaul the entire CDP.

The government made no admission or concession of legal liability, while the class action members waived the right to recoup lost welfare payments or damages. The government will also pay the applicants' costs, worth $278,897.19.