Two communities in remote Western Australia launched legal action on behalf of hundreds of people taking part in the Community Development Program arguing it breached the Racial Discrimination Act.
The federal court's Justice Richard White officially approved the settlement and the Commonwealth has agreed to pay out $2m to the Ngaanyatjarra Council — representing several thousand people who call the vast and remote region home.
The court was told that people on the CDP were subjected to onerous mutual agreement obligations and if recipients failed to comply — they were cut off from payments.
A CDP recipient can have their payments suspended for four weeks if they do not attend an appointment, activity or job interview, or for failing to sign a job plan or to accept a job.
In the judgement, published earlier this month, Justice White acknowledged the unique circumstances of people living in the small communities.
It also found the federal government and the Ngaanyatjarra community are working together to develop the new remote work program for those receiving government support.
"The applicants have confidence, and the Court can be satisfied, that the Commonwealth has a genuine desire to work in partnership with the Ngaanyatjarra People on the pilot program for an improved form of CDP," Justice White said.
The contentious remote work for the dole Community Development Program was criticised by community leaders, health and legal advocates as well as Labor and the Greens.
Northern Territory Senator Malarindirri McCarthy told NITV News the program failed Indigenous people living in some of the poorest communities in the country.
Labor NT senator Malarndirri McCarthy labeled the CDP as 'racist' and 'discriminatory' against First Nations people. Source: Supplied
"The CDP policy by the Scott Morrison government has always been flawed," the Yanyuwa woman told NITV news.
"It was flawed under previous Indigenous affairs minister Nigel Scullion, and it is flawed under current Indigenous affairs minister Ken Wyatt.
"It is a policy that has never worked for First Nations people," Ms McCarthy said.
She said the program was 'discriminatory and racist' for some of the most vulnerable people.
A spokesperson for the Indigenous Australians minister denied that CDP breached any laws in a statement to NITV News.
"The Applicants and the Commonwealth have agreed and acknowledged that the settlement is made without the Commonwealth admitting or conceding any legal liability," a spokesperson for Mr Wyatt's office said.
Trials are currently underway in several communities with the government saying it hopes to roll out a national remote employment program in 2023 after suspending the CDP announced in the May budget.
"Local co-design groups in each of the five trial areas are considering how the Remote Engagement Program trial will be implemented in their area, and the lessons learnt from the trials will inform the design of the national program to be rolled out in 2023."
The Ngaanyatjarraku Shire President has been contacted for comment.
