Media Release
Welfare fraud tipoffs save $125.6 million
11 December 2006
A record number of Australians called Centrelink’s tip-off line last financial year to report alleged welfare fraud.
Minister for Human Services, The Hon. Joe Hockey, today said public tip-offs to Centrelink increased by 24 per cent last financial year resulting in taxpayer savings of $125.6 million from investigations.
“Australians support the ethos of giving a mate a fair go and a helping hand,” Minister Hockey said. “But these results indicate the community will not tolerate people double dipping.”
“I have made the tip-off line a priority in the past year and it’s good to see that it is producing results so quickly. It is important that the right welfare goes to the right people and I make no apologies for protecting tax-payers’ money.”
Centrelink received 118,491 public tip-off allegations during the period leading to 59,781 investigations. March was the most responsive month with 11,748 tip-offs.
Minister Hockey said the Support the System that Supports You campaign and the Australian Government Services Fraud Tip-Off Line, both launched last year, were major contributors to the increased numbers.
“All responsible citizens have an important role to play in making sure welfare payments go to those in genuine need,” he said.
Of the 59,781 investigations launched last financial year, 11,492 customers had their payments reduced.
“Tip-offs are an important part of Centrelink’s compliance activity and the investigation of public information builds community confidence in the integrity of the social security system,” Minister Hockey said.
Centrelink has 6.5 million customers accessing $63 billion in welfare payments.
“A significant part of providing this service is to ensure that people do not deliberately deceive Centrelink in order to receive payments they are not entitled to,” Minister Hockey said.
“People need to tell Centrelink if there are changes to their income, living arrangements, study load or assets, no matter how small. Centrelink’s investigation teams follow up each and every piece of information received from the public. When there’s no evidence of fraud, action will still generally be taken to recover overpayments.”
In 2005-2006 there were 2,885 customers prosecuted by the Commonwealth Department of Public Prosecutions with a conviction rate of 98 percent.
To report a suspected fraud, members of the public can call the Australian Government Services Fraud Tip-off Line on 13 1524, go to the Centrelink Websiteor visit their local Centrelink office.
Examples of tip-offs that led to prosecution:
Western Australia
A couple from Perth were both sentenced to jail after Centrelink received a tip-off stating that they had won nearly $800,000 in Lotto which they had failed to declare.
Centrelink investigators were able to confirm the winnings and track down where the money was deposited before contacting the couple and interviewing them. The tip-off from the public meant that Centrelink was able to prevent a larger debt occurring.
The female, 35, was sentenced to 15-months imprisonment, to be released after six months in November 2005 for claiming more than $14,000 in Parenting Payments, which she wasn't entitled to receive.
The male, 33, was sentenced in July this year to 15-months imprisonment, to be released after six months for falsely claiming Newstart Allowance and Parenting Payments.
When sentencing both customers, Magistrate Paul Heaney, commented that after winning almost $800,000 and continuing to claim welfare this was a case of “greed beyond comprehension”.
New South Wales
A married couple fraudulently claimed a combined total of almost $70,000 in Centrelink payments.
Griffith Local Court heard a 69-year-old was getting the Disability Support Pension and later the Age Pension in his own name between June 1998 and June 2004. During this time he was working under a false name and didn't declare his earnings to Centrelink.
His 42-year-old wife was receiving a pension during the same period. She was also employed under a false name and didn't declare her earnings to Centrelink.
In total, the couple received $69,149.18 in Centrelink payments to which they weren't entitled.
On 17 November, 2005 , both were sentenced to 12-month suspended sentences and 12-month good behavior bonds.
A tip-off from a member of the public alerted Centrelink to the fraud. Traditional investigation methods were then used to establish the extent of the offence. This included extensive optical surveillance of the couple.
Victoria
A Dandenong man was imprisoned for a minimum of seven months and his former wife, , was placed on a good behavior bond, after the Victorian County Court found both guilty of welfare fraud totaling $173,000.
The couple falsely claimed Unemployment Benefit, Newstart Allowance, various Family Payments, Parenting Payment and Partner Allowance over a 12-year period while failing to declare income from employment.
Ultimately they were detected thanks to information from the public.
South Australia
A 42-year-old woman from Adelaide was sentenced to 17 months imprisonment on 28 April 2006 for defrauding $38,000 from Centrelink over a five-year period.
The Adelaide Magistrates Court heard she had been married five times and had worked with various employers under previous married names while claiming Centrelink payments in another married name.
She failed to report her income and tell Centrelink she was living in a marriage-like relationship. A tip-off from a member of the public alerted Centrelink investigators to the fraud and she was ordered to repay Centrelink the outstanding amount of her debt.
Queensland
A north Queensland woman was sentenced to 36-months imprisonment, to be released after 15 months and ordered to repay $84,984 after public tip-offs alerted Centrelink investigators to the case.
She was claiming a sole parent pension, parenting payment single and family payments after representing herself Centrelink as single to. Investigations revealed that she had not separated and in fact her husband was also employed.
ACT
A 36-year-old woman from Canberra fraudulently claimed $73,008 in welfare payments over a seven-year period.
She claimed a Sole Parent Pension, and later a Parenting Payment Single between 1997 and 2004. She did not disclose that she was married and self-employed, and that she ran a business with her husband. The customer and her partner had numerous joint finances.
A tip off from a member of the public alerted Centrelink to the fraud. Traditional investigation methods, including optical surveillance, were then used to determine the extent of the offence, and payments were cancelled.
She pleaded guilty to four charges of receiving benefits she was not entitled to. The court heard that she had falsely notified Centrelink a number of times that she had separated from her husband and was living in rented accommodation with her children.
The court was also told this was despite having combined assets with her husband worth $2.3 million and a combined gross income of $250,000.
In sentencing, the judge acknowledged she had repaid the money. She received a 30 month suspended imprisonment term in the ACT Supreme Court on 28 March 2006 .
Tasmania
A 63-year-old Launceston woman was imprisoned for eight months, to be released after one month, in October 2006 after she was found guilty of defrauding the Commonwealth of $41,000.
She began claiming the widow allowance and received $41,451 between May 1999 and her detection in October 2003.
Centrelink investigated the case after receiving an anonymous tip-off