Centrelink fraud is a serious offence. Generally prosecuted as an offence of ‘Obtaining a Financial Benefit’ or ‘Obtaining a Financial Benefit by Deception’, Centrelink fraud is a Commonwealth offence prosecuted by the Commonwealth Director of Public Prosecutions. 

If you receive a Centrelink payment of any sort, you generally have obligations to ensure that your details are up to date and remain correct at all times. You may also have an obligation to report your income on a regular basis for calculations to be made as to your pension payment. 

Many Centrelink fraud cases arise from either the failure to report income, or the deliberate under reporting of income. This is generally proved by the Commonwealth Director of Public Prosecutions through the production of bank statements, payslips, and the Centrelink reporting system. Non-reporting or under reporting of income generates a financial benefit for the person that they would not have otherwise received. 

The penalties for Centrelink fraud can be severe and often include serving a sentence of imprisonment. When the Court is sentencing for these offences, particular regard is had to the amount of the fraud (often in the hundreds of thousands of dollars) and whether or not restitution has been made. If restitution has not been made, the Court can order that in addition to a sentence. 

The maximum penalties for Centrelink fraud vary depending on the particular charge, but can include imprisonment for up to 10 years. 

For more information, see the Commonwealth Director of Public Prosecutions website: https://www.cdpp.gov.au/crimes-we-prosecute/fraud/social-security-fraud

Written by Solicitor Taylor Falting