Politics

Thousands of couples caught cheating welfare system to the tune of $61M

Nov 19, 2018

Latest figures show 70 people a day are being caught rorting the welfare system by falsely claiming to be single. Source: Getty

While Centrelink payments are intended for Australians who need and deserve a helping hand, the Department of Human Services has found thousands of couples have been rorting the welfare system by claiming they are single in an attempt to qualify for higher payments.

More than 70 people a day are cheating the system, with figures showing 26,346 individuals failed to declare they were in a relationship for the 2017-18 financial period. This resulted in more than $61 million worth of overpayments that now have to be repaid to the Commonwealth.

Some cases were found to be genuine mistakes and oversights, but many were deliberate acts of fraud that were detected by members of the Department of Human Services’ specialist fraud and compliance teams. These teams have generated by more than $2.1 billion in savings for taxpayers since 2016. The Department has now warned that those defrauding the system are highly likely to be caught out.

“Stealing from the welfare system is not a victimless crime,” Minister for Human Services and Digital Transformation Michael Keenan said in a statement. “You are stealing directly from the pockets of Australian taxpayers and robbing the wider community of much needed funds that could be spent on other essential services such as roads, schools and hospitals.

“You also need to know that if we catch you, you will be made to pay the money back and you could also end up with a criminal record, or worse, in jail.”

The revelations come after a 76-year-old woman was sentenced to three years in jail last month after a Victorian court convicted her of claiming $287,000 in benefits she wasn’t entitled to. The woman said she was single to receive a higher rate of the Age Pension, despite being in a relationship with a man who was worth millions.

“Australia has a strong welfare system that ensures those who genuinely need our help can get a fair go,” Kennan added. “But those who fund the system – taxpayers – also have a right to a fair go, which is why we will continue to take strong action against those who are doing the wrong thing.”

In order to avoid getting into debt, welfare recipients should notify Centrelink immediately to any changes in personal circumstances that may impact eligibility for payment. At present, failing to declare a relationship is one of the main ways welfare recipients are ending up with debts, as well as people incorrectly declaring their income.

The latest crackdown comes after a retired Melbourne man who fraudulently claimed almost $250,000 in Centrelink payments was sentenced to four years in prison for defrauding and deceiving the Commonwealth. In that case, the 69-year-old was claiming and receiving Newstart payments under one name, while also claiming Disability Support Pension payments under a different name.