Melbourne Centrelink Fraud Lawyers

If you have received a Centrelink (Services Australia) fraud investigation letter, or been charged by the Commonwealth Director of Public Prosecutions (CDPP), it is important to separate two things: the recovery and review of a welfare debt, and the criminal prosecution. The most common charges come from the Commonwealth Criminal Code, such as obtaining a financial advantage by deception (s134.2) or obtaining a financial advantage (s135.2). Getting legal advice before an interview or before deciding how to plead can shape the whole case.

Key points

• Centrelink fraud is a Commonwealth offence. Services Australia usually investigates and refers the matter to the CDPP, which decides whether to prosecute.
• Under the Criminal Code, s134.2 (obtaining a financial advantage by deception) carries a maximum of 10 years' imprisonment; s135.2 (obtaining a financial advantage) carries a maximum of 12 months.
• The debt and the criminal case are separate: repaying does not rule out prosecution, and on conviction the court can also make a reparation order.
• If you disagree with a debt decision, you can ask for a formal review by an Authorised Review Officer, then apply to the Administrative Review Tribunal (ART).
• The ART began operating on 14 October 2024, replacing the Administrative Appeals Tribunal (AAT).
• You can ask Services Australia to pause debt repayments while an explanation or formal review is under way.

What situations can lead to a Centrelink fraud allegation?

The heart of a Centrelink fraud allegation is dishonesty: knowingly failing to report, or misreporting, something that affects your payment. Common situations include:

• not reporting, or under-reporting, wages, cash income or overseas income;
• not disclosing a relationship (being a member of a couple) and claiming as a single person;
• not declaring assets such as overseas property, bank savings or business interests;
• leaving Australia or changing address without telling Centrelink.

For example: an older pensioner owns a rented flat in China and does not declare the rent because they did not understand the reporting rules. That is not necessarily fraud. The key question is whether the person knew and intended to conceal. Language barriers, misunderstanding the forms or relying on poor advice from others can all be relevant to whether dishonesty is proven.

What to do if you are contacted for an investigation or interview

Services Australia has legal powers to require information and documents, and ignoring those notices can have consequences. But if you are invited to a recorded interview, that is usually part of a criminal investigation and you are generally not obliged to answer questions. Speak to a lawyer first about what documents to provide, whether to take part in the interview, and whether you need a professional interpreter.

How a debt review differs from a prosecution

An overpayment calculated by Centrelink is a civil debt that must be dealt with even if no charges are laid. The amount can be wrong, for example if income has been averaged incorrectly or the start date of a relationship is wrong. You can ask for an explanation, then a formal review, then apply to the ART. Reducing the debt can also affect the amount alleged in any criminal case.

Separately, the CDPP applies the Prosecution Policy of the Commonwealth, considering whether the evidence is sufficient and whether prosecution is in the public interest. Repayment, cooperation and personal circumstances may be considered at the charging and sentencing stages, but none of these guarantees that charges will not be laid.

Court process and sentencing considerations

Most Centrelink fraud cases are heard in the Magistrates' Court of Victoria; larger or more serious matters may go to the County Court. Sentencing follows the Crimes Act 1914 (Cth), and common considerations include:

• the amount involved and the period over which it occurred;
• whether the money has been repaid or a repayment arrangement is in place;
• an early guilty plea and genuine remorse;
• health, family responsibilities and prior good character.

Outcomes range from release without conviction, conditional release orders, fines and community correction orders through to imprisonment. Courts emphasise general deterrence in welfare fraud, so careful preparation of sentencing material matters.

Visa and citizenship consequences

For temporary or permanent visa holders, a conviction can trigger the character test in section 501 of the Migration Act 1958. A sentence of 12 months' imprisonment or more (including two or more terms totalling 12 months) is a substantial criminal record. Even a shorter sentence for dishonesty against the Commonwealth may affect future visa or citizenship good-character assessments, so migration consequences should be considered alongside the criminal case.

How we can help

Chua Tan Associates has served Melbourne's Chinese-speaking community since 1990, working in Mandarin, Cantonese and English. We can review Centrelink letters and debt calculations, prepare you for or attend an interview, seek formal and ART review, negotiate with the CDPP about the charges, prepare a plea or defence and sentencing material, and assess visa consequences.

Frequently asked questions

Will I go to jail for Centrelink fraud?

Possibly, but not necessarily. It depends on the amount, the duration, repayment, your plea and personal circumstances. The maximum for s135.2 is 12 months and for s134.2 is 10 years. Many cases end without imprisonment, but large, long-running cases carry a much higher risk.

I have repaid Centrelink. Can I still be charged?

Yes. Repayment deals with the debt, while prosecution is a separate decision. Repayment is, however, usually a favourable factor for the CDPP and the court.

Centrelink says I owe a debt but I think the amount is wrong. What can I do?

Ask for an explanation, then a formal review by an Authorised Review Officer, and if you still disagree apply to the Administrative Review Tribunal. You can ask for repayments to be paused during the review. Keep payslips, bank statements and leases as evidence.

Centrelink has invited me to an interview. Do I have to go?

If it is a recorded interview in a criminal investigation, you are generally not obliged to answer questions. Statutory notices requiring information must still be dealt with properly. Get legal advice before attending.

Will a Centrelink fraud conviction affect my visa?

It can. A sentence of 12 months or more is a substantial criminal record under migration law, and lesser outcomes may still be considered in later visa or citizenship applications. Assess the migration consequences early.

If you or a family member has received a Centrelink investigation letter or a court summons, call 03 9602 3988 to book a consultation. Meet us at our Melbourne CBD office (Level 2, 262 Queen Street) or by video, in Mandarin, Cantonese or English.

This article is general information only and is not legal advice.

Reviewed by Justin Chua, Lawyer, Chua Tan Associates | Last updated: October 2026