It is a criminal offence to receive a benefit from the Department of Social Security, or Centrelink dishonestly. The Social Security (Administration) Act 1999, prescribes specific offences for persons who commit such offences. Some examples are,
-
Obtaining a newstart allowance and failing to declare part-time earnings.
-
Obtaining a single parent allowance and failing to declare a live-in defacto relationship.
-
Obtaining an invalid pension and failing to disclose full time employment.
Often a person who commits these offences do not realise the serious consequences of their actions, and once they have commenced the conduct, find it difficult to stop. Each time a person receives a payment a separate offence is committed.
Where a matter has been referred to the Commonwealth Director of Public Prosecution, usually the decision is made to commence proceeding for offences under the Social Security (Administration) Act 1999, and the maximum penalty on conviction is imprisonment up to 12 months for each offence.
The matter will come before a Local Court in NSW and dealt in the court's summary jurisdiction. Often, the defendant pleads guilty to the charges and the magistrate will sentence the defendant. The sentence imposed by a magistrate will depend on the circumstances of each case, and in most cases are dealt with by way of a good behaviour bond, fine or suspended sentence.
NEED OR GREED
It is important that the magistrate be well informed about the circumstances of why the defendant committed the offence. In many cases defendants commit the offence because they are in financial hardship and needed the extra funds to survive. In these situations, reports or documents may be required to prove the point, and if the magistrate accepts that the offences were committed out "need", then that is taken into account when sentence is passed.
On the other hand, offences of this type can be committed out of "greed". This can be evident if the defendant receives several benefits under different names, or where the defendant is quite wealthy and claims a benefit and fails to disclose full time employment. Offences of this type are viewed more seriously when the defendant is sentenced.
Furthermore, the Commonwealth Director of Public Prosecution may take a view that the conduct is so serious that the defendant is charged with offences under Criminal Code (Commonwealth) 1995. For example, defrauding the Commonwealth which can lead to a maximum period of 5 years imprisonment. If charges are commenced under this Act, then it is likely that the matter will proceed by way of a committal hearing in the Local Court and the matter sent to the District Court.
In all these cases, the Department of Social Security will initiate steps to recover any monies that were paid wrongly, and this is separate to the criminal proceeding.
Contact us now for Fast, Accurate and Timely legal advice
Phone LAC Lawyers on NSW 1300 799 888 or VIC 1300 734 638 or send us an email