Media Release
Operation Marcellus and Operation Chorus crackdown on Victoria’s cash economy and welfare fraud
07 August 2006
Minister for Human Services, The Hon. Joe Hockey MP, has revealed two major Centrelink operations have saved Australian taxpayers’ money, with a crackdown on cash economy activity in the harvesting and taxi industries.
Two operations in the last week have uncovered 52 customers who failed to report their income correctly to Centrelink, resulting in savings of $364,000.
On Saturday (29 July), Centrelink investigators joined Victoria Police and the Victorian Taxi Directorate for 'Operation Marcellus', which focused on the taxi industry in Melbourne 's inner suburbs. The operation resulted in 16 customers having their Centrelink payments cancelled or suspended, saving an estimated $112,000.
Minister Hockey said this was the latest in a number of field operations investigators have carried out in the Victoria this year.
"A team of specialist fraud investigators based in Melbourne have completed more than 15 field operations concentrating on Victoria 's taxi industry since February, which identified an estimated $2.3 million in savings," Minister Hockey said.
Centrelink Victoria 's Fraud Investigation Team manager, Trevor Coulter, said "Victoria Police and the Taxi Directorate have been instrumental in our efforts to stamp out cash economy activity in the taxi industry.
This co-operative approach to fraud control, especially in relation to the cash economy, has proved to be very successful."
On Tuesday (1 August), 'Operation Chorus' saw Centrelink investigators focused on harvest workers in the Bacchus Marsh district. Conducted with the assistance of officers from the Victorian Taxi Directorate, Centrelink cancelled or suspended the payments of 36 customers, saving an estimated $252,000.
"Taxpayers can rest assured Centrelink will continue to investigate industries at high risk of cash economy activity to make sure customers are accurately declaring income," Minister Hockey said.
"We encourage people on income support to find employment, but they're obliged to correctly tell Centrelink about any income they earn. Even if it's irregular work, it's not acceptable to make money and not notify Centrelink. If customers fail to meet this obligation, they may be committing fraud."
Members of the public can call the Australian Government's Fraud Tip-off Line on 13 1524 or go to the Centrelink website at centrelink.gov.au to report suspected cases of welfare fraud.
Minister Hockey said, "The Australian Government works hard to make sure people who need help have access to financial support. But when people take advantage of the welfare system, it's only a matter of time until they're caught.
"The results of these operations should serve as a warning that Centrelink has the resources to detect and investigate those defrauding their fellow Australians."
To help the Australian Government detect and investigate welfare fraud, Centrelink will recruit up to 380 new staff across Australia over the next twelve months.
These new staff are part of the Australian Government’s $282 million 2006-07 Budget measure to combat fraud in welfare and health,” Minister Hockey said.
Media Contact: Wendy Black - 0437 978 028