Media Release
What the Government is doing to keep the system fair
09 May 2006
The Ministers for Human Services; Health and Ageing; Employment and Workplace Relations; Families, Community Services and Indigenous Affairs; and Education, Science and Training; today announced a strategic package of measures to address health and welfare fraud.
The Australian Government has committed $282.3 million as part of the 2006-07 Budget to this package, which will result in savings of $548.4 million over five years.
Minister Hockey said "This package of measures builds upon the government's existing prevention and detection activities, and complements the benefits that will be delivered through the health and social services access card. It will provide the opportunity to further crack down on illegal payments to keep the system fair for all Australians."
Human Services agencies already save taxpayers in excess of $2 billion in payments each year . I n announcing the package Minister Hockey said "We need to ensure the system is fair, and that it supports only those who need assistance and are eligible for benefits."
Complex Fraud
Minister Hockey said "The Government investment in preventing fraud is already high, but people are finding better, more sophisticated ways of defrauding the system. This package also focuses on addressing new areas of exposure, including high profile, complex and international cases."
"Enhancing Centrelink's ability to detect and investigate high profile and complex cases and improving the Director of Public Prosecutions' capacity to prosecute the more serious social security fraud will result in substantial returns to taxpayer funds, as well as having a deterrent effect," Minister Hockey said.
It includes extra resources to scrutinise financial intelligence from the Australian Transaction Reports and Analysis Centre (AUSTRAC) and serious fraud tip-offs from members of the public, as well as recruiting specialist intelligence analysts dedicated to uncovering elaborate fraud cases.
Overseas Payments
The Australian Government will improve checks on Centrelink payments paid to customers living overseas.
Centrelink pays approximately $600 million each year to over 70,000 customers residing overseas.
"This measure builds on a pilot programme Centrelink conducted last year to ensure customers abroad were getting their correct entitlements," Minister Hockey said
Under legislation, some customers can leave Australia and be paid their Centrelink payment while they are overseas, but Minister Hockey said they are still obliged to correctly report any changes to their circumstances, including income or assets.
Increased Education
Funding has also been provided for more education for Age Pensioners to remind them to keep their information up to date, particularly where they own real estate, to ensure they receive their correct entitlement. This will help Age Pensioners avoid being overpaid.
More targeted feedback will also be given to 10,000 medical providers over the next three years, to give doctors a clearer picture of appropriate billing and prescribing practices for their particular practice.
Increased Compliance
A new compliance framework for the child care sector will also be introduced. This will cover all types of child care and related payments.