Dishonestly obtain a financial advantage (Centrelink Fraud) is found in section 135.2 of the Criminal Code Act 1995.
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Minor indictable offence
Magistrates Court of South Australia
Maximum penalty of 10 years imprisonment
Dishonestly Obtaining a Financial Advantage (Centrelink Fraud) Key Facts
| Offence | Dishonestly obtaining a benefit from Centrelink (Services Australia) by providing false information or failing to update details, under Commonwealth law. |
| Maximum Penalty | Maximum penalty is up to 10 years imprisonment under the Criminal Code Act 1995 (Cth) for general fraud; specific offences under the Social Security (Administration) Act may also apply. |
| Typical Sentence | Sentences vary: lower-level frauds may result in good behaviour bonds or community service; significant or repeated frauds can result in large fines and prison sentences. |
| Which Court? | Usually heard in the Magistrates Court for smaller amounts; serious or large-scale Centrelink frauds are heard in the District Court. |
| Process Timeline | Centrelink/Internal Investigation → Referral to Commonwealth DPP → Charge → Arrest or Summons → Police Interview → Bail Consideration → Court Hearing → Sentencing if guilty. (Average: 6-12 months) |
| Possible Defences | 1. No Dishonesty - Arguing there was no intention to defraud. 2. Mistake - Showing an honest mistake or misunderstanding of obligations. 3. Repayment - Repaying overpayments may help mitigate the penalty but is not a complete defence. |
| What The Prosecution Must Prove | If you are charged with obtaining property by deception, the prosecution must prove that: - You, by a deception, dishonestly obtained property belonging to another; - You intended to permanently deprive the other of the property; and - The property belonged to a Commonwealth entity. If you are charged with obtaining a financial advantage by deception, the prosecution must prove that: - You, by a deception, dishonestly obtained a financial advantage from another person; and - The other person is a Commonwealth entity. If you are charged with general dishonesty, the prosecution must prove that: - You did something with the intention of dishonestly obtaining a gain from, or causing a loss to, another person; and - the other person is a Commonwealth entity. If you are charged with general dishonesty (cause of loss or risk of loss), the prosecution must prove that: - You dishonestly caused a loss, or dishonestly caused a risk of loss, to another person; and - You knew or believed that the loss would occur or that there was a substantial risk of the loss occurring; and - The other person is a Commonwealth entity. If you are charged with obtaining a financial advantage, the prosecution must prove that: - You engaged in conduct; - As a result of that conduct, you obtained a financial advantage from another person; - As a result of that conduct, you obtained a financial advantage from another person; - You knew or believed that you were not eligible to receive that financial advantage; and - The other person is a Commonwealth entity. |
Centrelink Fraud Case Scenarios
Below are examples of how Centrelink fraud may be charged and sentenced in South Australia. These examples are not indicative of a specific outcome and are for informational purposes only.
Low-Level Offence
Mid-Level Offence
High-Level Offence
Low-Level Offence
Scenario:
A Centrelink recipient failed to update their reported income after securing part-time work. This resulted in minor overpayments over a 6-month period, totaling around $3,000. The oversight stemmed from confusion about reporting obligations rather than deliberate deception.
What to expect:
The matter was resolved as a case of general dishonesty. The court accepted the defendant’s lack of intent and cooperation with Centrelink, including voluntary repayments. The defendant was convicted but not imprisoned, receiving a good behaviour bond under section 19B of the Crimes Act.
Mid-Level Offence
Scenario:
Over a 2-year period, a person deliberately failed to report casual work income while receiving Newstart Allowance, resulting in over $20,000 in overpayments. They used the funds to support household expenses but did not disclose their employment.
What to expect:
Charged with obtaining a financial advantage by deception, the court found the offence moderately serious. While the defendant pleaded guilty and repaid part of the debt, the sustained deception warranted a 12-month suspended sentence and reparation order. A criminal conviction was recorded.
High-Level Offence
Scenario:
A man used two separate identities to claim both Parenting Payment and Disability Support Pension simultaneously over a 4-year period, receiving more than $100,000 in fraudulent payments. He created false documents and used different addresses to avoid detection.
What to expect:
The court deemed the conduct aggravated and premeditated, falling under obtaining property by deception. A term of 4 years imprisonment was imposed, with a non-parole period of 2 years. The court emphasized the sophisticated nature of the fraud and the breach of public trust.
Disclaimer: The examples above are provided for informational purposes only and do not guarantee a specific result in your matter. Sentencing decisions can vary significantly depending on individual circumstances, including the severity of the offence, intent, prior criminal history and other legal factors. For case-specific advice, get in touch with one of our expert criminal lawyers.
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Centrelink Fraud FAQ’s
If you need more information about Centrelink fraud offences in South Australia, these FAQs answer the most common questions.
What is Centrelink fraud?
Centrelink fraud refers to dishonestly obtaining social security payments from Centrelink through false information or failing to report changes in circumstances. This includes income concealment, relationship status misreporting, and using false identities, among other deceptive practices.
What is the penalty for centrelink fraud?
The maximum penalties are:
- For obtaining property by deception: 10 years’ imprisonment
- For obtaining a financial advantage by deception: 10 years’ imprisonment
- For an offence of general dishonesty: 5 years’ imprisonment
- For obtaining a financial advantage: 12 months’ imprisonment
What are the possible defences for Centrelink fraud?
It may be a defence to the charge that you:
- were under duress;
- have a factual dispute;
- had a lack of intention;
- identification dispute; or
- suffer from a mental impairment.
What laws apply to Centrelink fraud offences?
Most Centrelink-related fraud offences fall under the Criminal Code Act 1995 (Cth), including:
- s 134.1: Obtaining property/financial advantage by deception
- s 135.1: General dishonesty
- s 135.2: Obtaining financial advantage without deception
The CDPP (Commonwealth Director of Public Prosecutions) handles prosecutions.
What must the prosecution prove in a Centrelink fraud case?
It depends on the charge, but generally the prosecution must show that:
- The person engaged in dishonest conduct;
- The person obtained a financial benefit or caused a loss;
- The conduct was intentional and involved a Commonwealth entity (e.g., Centrelink).
Can I go to jail for Centrelink fraud?
Yes. Serious offences can result in up to 10 years in prison, especially where large sums are involved or the deception was prolonged or systematic. Even lower-level frauds can lead to criminal convictions, fines, or community service.
Is Centrelink fraud the same as Centrelink debt?
No. A Centrelink debt may arise from an overpayment that is unintentionally received, while fraud involves deliberate deception. Not all debts result in criminal charges—but debts caused by dishonesty can.
Can Centrelink prosecute me for not reporting income?
Yes. If Centrelink determines that failing to report income was intentional, this may result in a criminal prosecution under s 135.2 or s 134.2 of the Criminal Code Act 1995 (Cth).
What happens during a Centrelink fraud investigation?
Investigations may involve:
- Data matching with the ATO or banks
- Field visits from Mobile Review Teams
- Requests for employer records or tax information
If misconduct is suspected, Centrelink may refer the matter to the CDPP for prosecution.
Do I have to attend a Centrelink prosecution interview?
No. There is no legal obligation to attend or remain in a prosecution interview. If Centrelink issues a warning that what you say may be used in court, you should immediately seek legal advice and can leave at any time.
How long do I have to report changes in circumstances to Centrelink?
You are required to notify Centrelink of changes (income, relationship, address, rent, etc.) within 14 days. Failing to do so can result in a debt, suspension of payment, or prosecution if found to be intentional.
How does Centrelink detect fraud?
Centrelink uses:
- Automated data matching with other agencies
- Tip-offs from the public (anonymous or named)
- Audits and reviews
- Information from banks, employers, and tax records
They are legally empowered under the Social Security (Administration) Act 1999 to gather this data.
Will a Centrelink fraud conviction affect future benefits?
Yes. A conviction can affect:
- Your eligibility for future Centrelink payments
- Your ability to work in government or certain financial sectors
- Visa or citizenship status, if you’re not an Australian citizen
What should I do if I’ve been accused of Centrelink fraud?
You should:
- Not attend any interviews without legal advice
- Avoid signing any statements or admitting guilt
- Contact a criminal lawyer experienced in Commonwealth offences
Prompt legal advice can significantly improve your chances of avoiding conviction or securing a lighter outcome.
How is Centrelink fraud handled in other states compared to South Australia?
Centrelink fraud is a Commonwealth offence, so the laws and penalties are the same across Australia. However, procedural differences such as how local courts handle federal charges may vary slightly by state. In SA, cases are often dealt with in the Magistrates Court depending on severity.
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